Industrywide Issues

Columbiana County | Energy Services | Industrywide Issues | Ohio | Processing Plants | Utica East Ohio Midstream | Utica Shale

Behind the Scenes at UEO Buckeye’s Kensington, OH Cryo Plant
November 19, 2013November 19, 2013

MDN friend and ace reporter Bob Downing (Akron Beacon Journal) recently went on a field trip to visit the Utica East Ohio Buckeye Midstream Kensington (Columbiana County), OH. The $400 million cryogenic plant processes natural gas, separating methane–or what we think of as natural gas–from “wet gas” compounds like ethane and butane.

Ever wondered what it would be like to visit a processing plant? Bob filed this “behind the scenes” report for the Beacon Journal:
Read More “Behind the Scenes at UEO Buckeye’s Kensington, OH Cryo Plant”
Anti-Drilling/Fossil Fuel | Industrywide Issues

Gender Equality and Global Warming Linked – Who Knew?
November 19, 2013November 19, 2013

We don’t know whether to laugh or cry. We don’t often talk about so-called climate change (i.e. global warming) because it’s not popular to say you don’t believe the science supports it. (You do know the earth hasn’t been warming for 15 years now, right?) When you dare to say such things in polite company you’re viewed as the modern-day equivalent of a hillbilly snake handler–unschooled, uncouth and unintelligent. Whatever. Our current let’s-poke-fun-at-the-warmers comes from a press announcement we received for something called the United Nations Framework Convention on Climate Change – COP (Conference of the Parties) 19–also known as “UNFCCC COP 19”–currently underway in Warsaw, Poland. Stick with us, there is a (funny) point.

The press announcement MDN received has this headline: WOMEN TAKE ACTION ON CLIMATE CHANGE AND GENDER EQUALITY. Well there’s a first–for us. Who knew that climate change and gender equality were scientifically linked? What does “gender equality” have to do with so-called climate change, anyway? Being climate change-challenged and unschooled and unintelligent, we were eager to learn, so we read on…
Read More “Gender Equality and Global Warming Linked – Who Knew?”
Carroll County | Hydraulic Fracturing | Industrywide Issues | Ohio | Research

UC Study: OH Utica’s Most Drilled County – No Water Contamination
November 18, 2013November 18, 2013

Results from a new scientific study of drinking water in the most drilled Utica Shale county in Ohio, Carroll County, were released last week at a meeting of Carroll Concerned Citizens (anti-drilling group). And what, pray tell, did the study, conducted by researchers at the University of Cincinnati find? “You have very good quality water. There’s no evidence of problems from drilling.”

Whoops, that story line won’t play well in the mainstream media! We thought that (like Mary and her little lamb) everywhere that drilling went, water problems were sure to follow. What happened to that nursery rhyme thinking? That’s right–it’s a fiction that’s debunked by study after study after study. The UC study is just one more in a long line that proves shale drilling doesn’t contaminate drinking water supplies…
Read More “UC Study: OH Utica’s Most Drilled County – No Water Contamination”
Economic Impact | Industrywide Issues | Pennsylvania | Roads | Statewide PA

PA’s Roads Vastly Improved – Thanks to Marcellus Drilling
November 18, 2013November 18, 2013

The new president of the Marcellus Shale Coalition, Dave Spigelmyer, has hit the ground running. He’s making the rounds (recently in Scranton, see Cabot’s Big CNG Celebration at Johnson College in Scranton, PA). Now, he’s hitting the editorial pages of major state newspapers, like the Harrisburg Patriot-News.

In an editorial published yesterday, Spigelmyer makes a strong case for the enormous positive impact shale drilling has had on the state’s infrastructure–roads in particular. He points out over the past several years Marcellus drillers have spent 3/4 of a billion dollars to improve PA’s roadways. That’s money that didn’t come out of taxpayers’ pockets. And in addition to now $400+ million raised from an impact fee/tax, another $1.8 billion has flowed in to local and state coffers from taxes on Marcellus-related activities. It’s hard to overstate the huge economic impact the drilling industry has had in PA…
Read More “PA’s Roads Vastly Improved – Thanks to Marcellus Drilling”
Industrywide Issues | M&A | Ohio | Statewide OH

Latest Shale M&A Mania to Hit Ohio…Banks?!
November 18, 2013November 18, 2013

It doesn’t surprise when we hear about mergers and acquisitions (M&As) between “producers” (i.e. drillers) in the Marcellus and Utica Shale–for example the recent purchase of Oxford Oil by Eclipse Resources (see Eclipse Resources buys Oxford Oil, Adds Another 49K Utica Acres). Nor does it surprise when we hear about M&As between midstream–pipeline and processing plants–companies (see Crestwood/Inergy Complete Their Merger Today, Worth $8B).

However, what may surprise you is to hear that the Marcellus/Utica is also driving an increase of M&As among banks–particularly in eastern Ohio…
Read More “Latest Shale M&A Mania to Hit Ohio…Banks?!”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Mifflin County | Pennsylvania | Statewide PA

TU: If You Can’t Beat Shale Drillers, Try a New Lie
November 18, 2013November 18, 2013

An interesting twist. Apparently the devout anti-drilling group Trout Unlimited has at least one leader and one chapter that isn’t quite so anti-drilling. Either that or they’re trying a new tactic: bald-faced lying (wouldn’t be the first time).

At a local Penns Creek chapter meeting of TU in Lewistown, PA, Paula Piatt, a “sportsmen organizer” for the group said she doesn’t want to tell landowners not to lease and not to drill–well, she really does want to tell them that, but she isn’t, not right now anyway. No, what she does want to tell them is this is how you should drill. To which we say, the utter arrogance of these people….
Read More “TU: If You Can’t Beat Shale Drillers, Try a New Lie”
Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY

Cuomo Continues to Stall on Fracking in NY, Decision by Nov 2014
November 18, 2013November 18, 2013

In case you missed it, Gov. Andrew “the ditherer” Cuomo was asked the day after the November election by Binghamton reporter Bob Joseph (WNBF Radio) if he expects to make a decision on fracking before next November’s election. And Cuomo said, “Yes, I do.” Meaning, “Yes, I expect to make a decision, but I’ll hedge my bets and delay that decision as long as I can” (our words, but his real meaning).

Real presidential leadership by our fearless governor, wouldn’t you say? What a waste of a politician. No different than his prevaricating father Mario…
Read More “Cuomo Continues to Stall on Fracking in NY, Decision by Nov 2014”
Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA | Taxation

PA Dems Continue to Beat the “Tax & Regulate Marcellus” Drum
November 18, 2013November 18, 2013

Here’s not a surprise: The eight (or ten or twelve) Democrats who have announced they’re running against incumbent Republican PA Gov. Tom Corbett next year want to more than double the taxes on Marcellus Shale drilling and slap super-strict and unnecessary new regulations on drilling. Ever hear of an elected Democrat who wasn’t in love with taking YOUR money and giving it to other people? Or an elected Democrat who doesn’t love micromanaging your life for you–telling you what you can and can’t eat, drink, smoke, do? (Everything except sex–you can have all the risky sex you want.) No, we haven’t either, which is why we NEVER vote for them. EVER.

We won’t make this an anti-Democrat diatribe–MDN has lots of Dem subscribers (and friends) and we appreciate them all–and we hear from them when we make these kinds of comments. 🙂 Have no fear–we will not cover the upcoming PA governor’s race ad nauseam. However, every now and again we’ll bring you an illustrative story of the PA governor’s race just to remind you of the philosophical Grand Canyon that exists between those who truly support drilling and those who would, by intent or ignorance, crush it with ill-advised over-tax and over-regulate policies…
Read More “PA Dems Continue to Beat the “Tax & Regulate Marcellus” Drum”
Braskem | Economic Impact | Energy Services | Ethane | Industrywide Issues | Jobs | Odebrecht | Processing Plants | Statewide WV | West Virginia | Wood County

WV Announces Brazilian Company to Build Ethane Cracker Complex
November 15, 2013November 15, 2013

Yesterday West Virginia Gov. Earl Ray Tomblin was flanked by representatives from Brazilian chemical company Odebrecht to announce the company has chosen a site near Parkersburg, WV (third largest city in the state) to be the potential site of an ethane cracker plant complex. The complex will have an ethane cracker, three polyethylene plants and infrastructure for water treatment and energy co-generation. Gov. Tomblin was justifiably proud to make the announcement, calling it a “game changer” for West Virginia. He’s right.

Odebrecht will build the plant, and once built, it will be operated by Braskem, another Brazilian company with operations in Pennsylvania (51% owned by Odebrecht). MDN told you about Braskem’s interest in a WV ethane cracker all the way back in March 2012 (see Second Company Interested in Building Cracker Plant IDed). So it appears Odebrecht/Braskem have been sniffing around the concept of building a cracker in WV for at least a year and a half. We have a lot of coverage of the announcement below. The key word here is: caution. Like the Shell cracker, this is very early in the process and not yet a 100% done deal…
Read More “WV Announces Brazilian Company to Build Ethane Cracker Complex”
Beaver County | Braskem | Economic Impact | Energy Companies | Energy Services | Ethane | Industrywide Issues | Jobs | Odebrecht | Pennsylvania | Processing Plants | Shell | Statewide PA | Statewide WV | West Virginia | Wood County

Clash of the Ethane Cracker Titans: PA vs WV Smackdown
November 15, 2013November 15, 2013

As MDN mentions in today’s companion story about the newly announced potential ethane cracker plant complex to be built near Parkersburg, WV, there is angst in Pittsburgh about whether or not a WV cracker plant will help or harm the potential cracker plant to be built by Shell northwest of Pittsburgh in Beaver County, PA.

The Pittsburgh Business Times, a bit critical and skeptical of the WV cracker (no surprise there), tackles the question of, “Is you a friend or is you foe?”…
Read More “Clash of the Ethane Cracker Titans: PA vs WV Smackdown”
Economic Impact | Ethane | Industrywide Issues | Jobs | Processing Plants | Statewide WV | West Virginia | Wood County

Officials Say Cracker Will be Truly Huge for WV Jobs & Economy
November 15, 2013November 15, 2013

One final story in MDN today about WV ethane cracker mania (see our other two stories posted today for full coverage of the announcement from yesterday). Although WV Gov. Earl Ray Tomblin and officials with the companies that would build and operate a proposed ethane cracker in WV–Odebrecht and Braskem–were careful to say this is a preliminary announcement and not a 100% done deal, it’s still just too juicy a carrot to leave alone for the Tomblin administration.

Although Tomblin says Oderbrecht is “exploring” the possibility of building an ethane cracker, he’s also shouting that this is the best thing for West Virginia since sliced bread was invented (our words, but certainly his sentiment). And sure enough, right on the heels of his announcement, Tomblin officials were talking about the thousands of new jobs this project will generate and the incredible economic impact it will have on WV. IF built, they are 100% correct, this will be an economic and jobs-generating engine like none we’ve seen in the northeast for generations–no doubt about it. The key word, though, is IF…
Read More “Officials Say Cracker Will be Truly Huge for WV Jobs & Economy”
About MDN | Hydraulic Fracturing | Industrywide Issues | MDN Resources

Important New Shale Energy Resource Launches: NaturalGasIntel.com
November 15, 2013November 15, 2013

As some MDN readers may know, in addition to writing and publishing Marcellus Drilling News each weekday and writing/editing the Marcellus and Utica Shale Databook, MDN editor Jim Willis also consults for Natural Gas Intelligence (NGI). You may recognize the NGI name–they’re the publishers of the fabulous Shale Daily newsletter–the first and still the only daily publication dedicated to news coverage from all North American shale plays. Jim works with the fine folks at NGI to help with marketing Shale Daily and other NGI publications and products (like a really cool shale/pipeline wall map). One of the projects Jim has had a small hand in is the design and launch of the NaturalGasIntel.com website.

NaturalGasIntel.com is an incredibly important new resource for those interested in the shale energy industry. It incorporates all of the great content from Shale Daily PLUS content from NGI’s other publications PLUS brand new features like shale basin resource pages–individual pages dedicated to each of the major (and many of the minor) commercial shale plays in North America. MDN will tell you more about how you can leverage these new features in the coming weeks. For now, we include the NGI press release announcing the new site (read it below) and we encourage you to head on over and get a free 7-day trial and try it out for yourself…

Read More “Important New Shale Energy Resource Launches: NaturalGasIntel.com”
Economic Impact | Hydraulic Fracturing | Industrywide Issues | Jobs | Lackawanna County | Luzerne County | Pennsylvania | Supply Chain

NE PA Audience Hears How to Plug in to the Marcellus Supply Chain
November 15, 2013November 15, 2013

The Marcellus means jobs and an economic boom for northeast Pennsylvania. That was the message delivered yesterday in Wilkes-Barre at a Marcellus forum hosted by State Sen. John Yudichak and State Sen. John Blake (both from the Scranton/W-B area). The forum was attended by over 100 people–local contractors, trade unions, small manufacturers and others. MDN friend John Augustine from the Marcellus Shale Coalition was one of the featured speakers, with lots of good tips for those who want to plug in to the Marcellus supply chain.

The Wilkes-Barre Times Leader was on hand and filed this helpful report:
Read More “NE PA Audience Hears How to Plug in to the Marcellus Supply Chain”
Anti-Drilling/Fossil Fuel | Berks County | Industrywide Issues | Pennsylvania | Pipelines

Berks County, PA Hosts Pipeline “Education” Forum – LOL
November 15, 2013November 15, 2013

A supposedly non-partisan “pipeline education forum” was held yesterday in Berks County, PA (near Philadelphia)–payed for with taxpayer money and hosted/organized by the Berks County League of [Liberal Democrat] Women Voters. To their credit, the League had two pro-drillers on the panel: someone from utility giant UGI and someone from Spectra Energy. But the rest of the panel was packed with anti-drillers, like a rep from the rabidly anti-drilling Delaware Riverkeeper and the anti-drilling director of the so-called Pipeline Safety Coalition, based in neighboring Chester County. They were there to scare the *&@# out of attendees.

Such is “fair and balanced” from the “non-partisan-doesn’t-take-a-position” League. Excuse us as we pick ourselves up off the ground from laughing so hard…
Read More “Berks County, PA Hosts Pipeline “Education” Forum – LOL”
Economic Impact | Industrywide Issues | Research | Supply Chain

The Important Role of Engineering/Construction Firms in Shale
November 15, 2013November 15, 2013

Engineering and construction firms play a big and important role in the shale drilling industry. If you ever attend a trade show, like the top-notch Shale Insight event hosted by the Marcellus Shale Coalition, and walk around the exhibition area, there are a LOT of engineering and construction companies with booths. And rightfully so–because without them drilling and the associated work (clearing sites, constructing buildings, installing pipelines, siting compressor plants, etc.) would not get done.

Uber big consulting firm PricewatershouseCoopers (PwC) recently released a “report” (i.e. white paper) that discusses how engineering and construction companies can successfully help deliver shale oil and gas products at quicker speeds and lower costs through integrated project planning. That is, PwC is trying to drum up some business. If you’re an engineering/construction company, they can show you a way to do it better, by using their high-priced consultants. 🙂 Still, the white paper has a few useful points to make, and so we pass it along to you…
Read More “The Important Role of Engineering/Construction Firms in Shale”
Economic Impact | Ethane | Industrywide Issues | Jobs | Processing Plants | Statewide WV | West Virginia | Wood County

BIG NEWS: West Virginia is Getting an Ethane Cracker Plant
November 14, 2013November 14, 2013

The Parkersburg News and Sentinel is reporting that WV Gov. Earl Ray Tomblin will make an announcement today that has been years in coming: West Virginia is getting its own “multi-billion-dollar ethane cracker chemical plant” and it will be located in Wood County. If this rumor, which seemingly originates with reliable sources, bears out, this is seriously good news for WV. In fact, we’re jumping up and down happy! For years MDN has been pulling/cheerleading/advocating for WV to get their own cracker–we think they deserve it.

The speculation is that Tomblin sealed a deal for a cracker plant on a recent European trade mission trip (see WV Gov Going to Europe to Find Him a Cracker). While he was in Europe, he said by phone he would have a big announcement a few days after he returned home. We speculated at the time, three weeks ago, that he might be talking about a cracker (see Did Gov Tomblin Find a European Investor for a WV Cracker Plant?). Was our speculation accurate? We will know today…
Read More “BIG NEWS: West Virginia is Getting an Ethane Cracker Plant”