Industrywide Issues

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    Supply Chain: WV Company Specializes in Hard-to-Lay Pipelines

    Looking to get a piece of the Marcellus/Utica  Shale business for your company (i.e. plug in to the supply chain)? Think niches. An interesting story about a West Virginia construction company that specializes in digging and laying pipelines for the oil and gas industry. But they don’t specialize in the easy stuff–they specialize in the hard stuff…laying pipeline over hills and mountains.

    The company, Ronald Lane Inc., has to hang their backhoes from two to four steel cables, dangling on the side of mountains! And they have all the work they can handle because of the Marcellus…
    Read More “Supply Chain: WV Company Specializes in Hard-to-Lay Pipelines”

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    Will Winter Storm Cleon Affect Marcellus/Utica Pipelines?

    Can foul weather mess with the shale gas market? Sure it can. If a bunch of snow (or freezing rain) drops, it can slow drilling operations–trucks and personnel coming and going to drill sites may be stopped for a time. However, one thing you may not think could be affected but sometimes is affected, are pipelines. Not because of snow and freezing rain, but because of super low temperatures.

    Natural Gas Intelligence/Shale Daily published an article yesterday about winter storm Cleon (yes, they’re now naming winter storms, can you believe it?!) and its impact on natural gas pipelines. Some pipelines have announced they are increasing flows ahead of Cleon just in case (so there’s plenty of supplies). Cleon, with brutally low temperatures, is moving from West to East and will soon affect the northeast–the Utica and Marcellus in particular. Pipelines are “hardened” against cold weather (and baby it’s going to get cold outside). However, prolonged foul weather (especially cold weather) sometimes interrupts pipeline flows…
    Read More “Will Winter Storm Cleon Affect Marcellus/Utica Pipelines?”

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    More Global Warming Flummery – Latest Scare Report Issued

    A new report is out on the hazards of global warming…blah blah blah…fill in the blanks. If the warmers detect the general public doesn’t believe as fervently as they used to about global warming–if people are going a little bit squishy and starting to ask uncomfortable questions–it’s time to ratchet up the rhetoric and start talking about impending doom and a coming environmental holocaust. Trouble is, they keep doing it–decade after decade–and the environmental holocaust never seems to arrive. So they have to start blaming hurricanes and big winter storms–things we’ve had for, oh, millions of years–on global warming. Do they really think we’re that stupid?

    And so enters yet another shrill global warming flummery study from the left-leaning National Research Council–because the general population needs another good scare. The compliant New York Times does as good a job as any at trumpeting this latest false alarm. We learn that even though global warming hasn’t really caused any problems yet, when it does, baby it’s gonna happen “all at once” and be “really bad”…honest…
    Read More “More Global Warming Flummery – Latest Scare Report Issued”

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    New Electric Power Plant in Lancaster Powered by Marcellus Gas

    Even though there’s no Marcellus Shale under Lancaster County, PA, the county is about to benefit from the Marcellus Shale. A new electrical generating power plant is planned for Lancaster County that will be powered by cheap Marcellus Shale gas from Pennsylvania–meaning lower electricity prices for the 390,000 homes it will power. It also means a new 9-mile natural gas pipeline will be built, and a 7-mile water pipeline.

    Lots of jobs in building the plant and the pipelines, some landowners will benefit from having the pipeline cross their property, and everyone in the region gets lower cost electricity. It’s a win/win/win situation–thanks to the Marcellus…
    Read More “New Electric Power Plant in Lancaster Powered by Marcellus Gas”

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    Who Dat Sneakin’ Around my Well Pad…PA DEP?!

    We’re not quite sure what to make of this one… PA State Sen. Scott Hutchinson (Republican from Butler County) has introduced legislation to prohibit the state Dept. of Environment Protection (DEP) from using video surveillance cameras, some of them with “night vision”, to monitor and enforce environmental laws at oil and gas sites. DEP also uses “unmarked cars” in drive-by inspections and Hutchinson wants that fixed too.

    Is the DEP being shifty? Are they sneaking around? Should they better announce themselves? Or is this just a tempest in a teapot as DEP says it is? You decide…
    Read More “Who Dat Sneakin’ Around my Well Pad…PA DEP?!”

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    Developments in WV Lawsuit to Rescind $5/Acre Leases

    Way back in March MDN told you about a lawsuit filed by landowners in Preston County, WV. They sued Magnum Land Services and Belmont Resources LLC to have leases they were snookered into signing for as little as $5 per acres rescinded on the basis of fraud and a variety of other legal claims (see Update on WV Lawsuit to Rescind $5/Acre Leases). There’s been a major development in the case.

    U.S. District Judge Irene Keeley has dismissed charges against 19 employees from Magnum and Belmont because the paperwork was not timely. She also dismissed half the counts brought by the landowners against the companies. Plus, we now have a date for a trial: October 2014. Justice delayed…
    Read More “Developments in WV Lawsuit to Rescind $5/Acre Leases”

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    Iroquois Gas Open Season for New South-to-North Marcellus Pipeline

    Iroquois Gas Transmission System announced yesterday a non-binding open season to gauge interest in their new “South-to-North” project that will move and additional 300,000 dekatherms per day of Marcellus Shale gas from Pennsylvania and New York to as far north as Canada. There’s a change! Normally natural gas comes from Canada–now we’re sending it the other way.

    The new “SoNo” project, as they call it, would not involve any new pipeline construction but will instead rework existing pipelines and compressor stations. Target in-service date is November 2016. The open season lasts from now until January 24, 2014…
    Read More “Iroquois Gas Open Season for New South-to-North Marcellus Pipeline”

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    Steel Building Manufacturer Hits it Big in the Marcellus

    A small regional company that builds steel buildings, located in western PA, has rocketed from the minor to the major leagues in their industry. Steel Nation Inc. is now ranked as the 11th largest metal building construction company in the country–thanks to the Marcellus Shale.

    Steel Nation’s story is interesting, and instructive, for those looking to crack into the shale supply chain. It’s a story of creativity and determination…
    Read More “Steel Building Manufacturer Hits it Big in the Marcellus”

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    The “Flexible” (and Capricious) Ways of EPA Admin. McCarthy

    It used to be that the law (and regulations, which are based on and have the power of law) were “blind” and not a respecter of men nor companies. The law was designed to apply to all equally and without exception. But when you have a law-breaker–someone who flouts the law–as your president, you then get a situation where the law is twisted to the political whims of those in power. Don’t like a particular law because you oppose it? No problem–just ignore it and don’t enforce it. Don’t like the political blow back of enforcing laws and regulations you yourself passed? No problem–just be “flexible” with how you implement said law or regulation.

    The latest “flexible” Obama official is none other than newly minted EPA Administrator Gina McCarthy, who is signaling she won’t enforce the draconian carbon regulations her agency recently established that are designed to kill coal. Instead of killing coal all at once, she’ll toy with it, like a cat with mouse…
    Read More “The “Flexible” (and Capricious) Ways of EPA Admin. McCarthy”

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    US Chamber to Obama: Don’t Let EPA Screw Up Fracking Miracle

    One of the finest organizations in America–the U.S. Chamber of Commerce–sent a warning to President Obama yesterday to put him on notice that if the Obama Environmental Protection Agency continues down the road of federal regulation of fracking (something that is unconstitutional by the way), it will kill the very jobs and economic success that Obama has had nothing to do with but takes credit for. OK, the Chamber didn’t use that exact language, but that’s our take on their sentiment.

    Chamber President Thomas Donohue essentially said “don’t go there” with respect to the EPA wanting to horn in with regulating fracking…
    Read More “US Chamber to Obama: Don’t Let EPA Screw Up Fracking Miracle”

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    ACCF to DOE Sec. Moniz: Please Hurry Up LNG Export Approvals

    On Monday, the American Council for Capital Formation (ACCF) sent a letter to Dept. of Energy Secretary Ernest Moniz to encourage him to continue approving new liquefied natural gas (LNG) export terminals, and to “goose him along” and get him to speed up the process (full copy of the letter embedded below). To be fair, DOE has now approved five such facilities which will allow the export of LNG to countries without a free trade agreement with the U.S. However, there are another 21 applications waiting to be reviewed–and it took 65 days between the last two approvals (way too long).

    ACCF respectfully requests Moniz to hurry it up in their letter, and provides him with compelling arguments for why more LNG exports should go forward…
    Read More “ACCF to DOE Sec. Moniz: Please Hurry Up LNG Export Approvals”

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    Tom West Demands DEC Com. Martens Release the SGEIS – Soon

    just do your jobYesterday Tom West, lead attorney with The West Firm in Albany, NY, issued a “demand” letter to Dept. of Environmental Conservation (DEC) Commissioner Joe Martens (full copy of the letter embedded below). The hand-delivered letter (arrived around 12:30 pm we’re told) tells Martens that, as MDN revealed last week, The West Firm has been retained as legal counsel for Norse Energy (see Norse Energy Suing NY Gov Cuomo to Force Release of SGEIS). The letter asks (actually demands) that Martens inform West within the next two weeks of the “date certain in the near future” he plans to release the SGEIS drilling regulations…or else.

    The “or else” is not spelled out in the demand letter, but we know what it is: If Martens does not release the drilling rules promptly, West will file an Article 78 lawsuit to force Martens–and Gov. Cuomo and Health Commissioner Nirav Shah–to get off their rear-ends and just do their jobs. That’s what an Article 78 is–a citizen or company’s legal way of forcing recalcitrant and disobedient public servants (Martens, Cuomo and Shah) to do the job they were hired to do. So three cheers for Norse Energy and Tom West! Finally we should start to see a resolution to the 5 year, 4 month and 10 day old defacto ban (i.e. “moratorium”) on shale drilling in New York…
    Read More “Tom West Demands DEC Com. Martens Release the SGEIS – Soon”

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    List of U.S. Shale Plays Ranked by Profitability (IRR)

    Thanks to our ever-helpful second set of eyes, Chris Acker, MDN was alerted to a Seeking Alpha article with a table showing the Internal Rate of Return (IRR) for commercially developed U.S. shale plays. It is a way of ranking shale plays (specific regions within plays) that shows the profitability of the plays. The higher the IRR percentage, the better/more profitable that play is. A dollar of investment goes further with a higher IRR.

    And what did we spot in scanning the chart? The top spot–the most profitable shale play in America–is the “Marcellus Super Rich” area located in southwest PA and the northern panhandle of WV. The second most profitable play, virtually tied with the Marcellus? The “Utica Liquids Rich” region in eastern OH. It’s a fascinating table. Have a look…
    Read More “List of U.S. Shale Plays Ranked by Profitability (IRR)”

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    The Real Employment Numbers in Ohio’s Utica Shale

    There’s a lot of trash talking about how many jobs shale drilling “actually” creates–by those desperate to stop drilling. In classic disinformation style they throw out wildly inflated numbers, say those of us on the pro-drilling side made those claims, and then knock down the “straw man” they created when employment numbers don’t measure up. “See! The drilling industry lied to you about how many jobs they would create.” That’s the tact they use to try and discredit this jobs-creating industry.

    The truth is, shale drilling has created thousands of new, direct jobs in the oil and gas industry–in Pennsylvania, West Virginia and Ohio. It’s also created thousands more jobs in related industries, like environmental consulting, trucking, etc. So let’s, for a change, talk about real numbers, shall we? The Ohio Dept. of Job and Family Services, official tallying agency for employment numbers in Ohio, says Ohio’s natural gas and shale employment numbers have gone up 30% over the past two years…
    Read More “The Real Employment Numbers in Ohio’s Utica Shale”

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    Martin Sheen Pimps Himself for Anti-Frackers

    No one has ever mistaken actor Martin Sheen for someone who’s actually smart. He’s a good actor, but not that good! However, Sheen is pleasant enough to watch, especially as he ages. And he has a nice voice–perfect for voice over work. So Sheen supplements the long periods when the phone doesn’t ring by pimping himself out to liberal/loony causes. The latest “Martin for hire” work is playing now–an “expose” on fracking.

    Apparently the program airing the so-called expose is called Breakthroughs–a semi-regular series on PBS narrated by Sheen, who dutifully reads what is set before him–outright lies, big huge whopper lies, and smaller insidious lies–but all lies. Sheen doesn’t care he’s lying to you–he’s getting paid by whomever. For the fracking episode Sheen is being paid by the rabidly anti-drilling Environment America to pedal their pap to the snooty crowd that watches public television…
    Read More “Martin Sheen Pimps Himself for Anti-Frackers”