Industrywide Issues

Air Quality | Industrywide Issues | Research

Yet Another “The (Methane) Sky is Falling” Study Released
November 26, 2013November 26, 2013

Yes, MDN has spotted the news circulating around the mainstream media echo chamber that trumpets, OMG!…”fugitive methane” is leaking at, like 50% more than even WE thought in our worst nightmarish dreamworld–and it may be, might, could, possibly be, coming from shale drilling. This latest “scare them while they still believe you” scam comes straight from, yes, another “peer reviewed” so-called “study” published in the prestigious (and it is prestigious) Proceedings of the National Academy of Sciences (or PNAS). The AP/Bloomberg/Reuters et al can’t wait to share this bit of bad news with the general public. Too bad it’s wasted during a holiday week when no one will notice.

This latest study, which attempts to create a boogeyman where none exists, is titled, “Anthropogenic emissions of methane in the United States.” The new study certainly tickles discredited Cornell professors Robert Howarth and Tony Ingraffea who have spun wild yarns about how coal is better than natural gas because of the “fugitive methane” issue. Unfortunately MDN could not get a copy of this study–not without paying good money (money we’d rather spend on something important, like going to see The Hunger Games). However, our friends at the always-excellent Energy in Depth have scored a copy and have written this insightful review:
Read More “Yet Another “The (Methane) Sky is Falling” Study Released”
Carroll County | Industrywide Issues | Ohio | Wastewater

New Frack Wastewater Recycling Plant Opens in Carroll County, OH
November 26, 2013November 26, 2013

A new frack wastewater recycling facility is about to open in Sherrodsville (Carroll County), Ohio. The new plant was built by Rettew Flowback (of North Canton, OH) and is owned and will be operated by Iron Eagle, a Youngstown-based company that rents equipment to oil and gas drillers. The new plant will employ 50 people and is set to open it’s doors “by Dec. 1” according to an Iron Eagle spokesperson. It will have the capacity to process up to 588,000 gallons of water per day.

We have to confess, this one flew under the MDN radar. Here’s the few details we know, courtesy Crain’s Cleveland Business:
Read More “New Frack Wastewater Recycling Plant Opens in Carroll County, OH”
Anti-Drilling/Fossil Fuel | Crime | Industrywide Issues | Ohio | Trumbull County | Wastewater

2 Anti-Drillers Arrested at Youngstown Injection Well
November 26, 2013November 26, 2013

Two anti-drilling protesters were arrested Sunday for blocking trucks trying to enter an injection well facility in Niles (Trumbull County), Ohio–near Youngstown. Film at eleven.

Oh! You want more details? There isn’t much in the way of information, but here’s what we know about who was arrested, and why:
Read More “2 Anti-Drillers Arrested at Youngstown Injection Well”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues

Eco Group Schisms & The Heart of the Fracking Debate
November 26, 2013November 26, 2013

An article in the National Journal does a good job of capturing the growing rift among so-called environmentalists on the issue of fracking–or hydraulic fracturing. Every now and again it’s helpful to review the basics here on MDN because we constantly have new readers/subscribers to our service. For years MDN has said the true movement people who oppose fracking (i.e. shale drilling)–people like Josh Fox with his Gasland fictions and the odious Food & Water Watch, and lately even the Sierra Club–oppose fracking not because the practice actually pollutes, but because it frees up large volumes of natural gas, which is a fossil fuel, and they HATE all fossil fuels. Yes, it’s an irrational hatred–but that is what is truly at the heart of this debate: fossil fuel phobia. Movement environmentalists believe humans should stop using fossil fuels now. Bring back the horse and buggy.

Of course anti-frackers are rankly hypocritical as they jet around the world and drive around the country using fossil fuels to spread their anti-fossil fuel message. They go home at night and turn up the furnace–a furnace that burns fossil fuels–to heat their homes. They turn on their stoves that burn natural gas to cook their food. They use electricity which (coming as a shocking surprise to their parochial worldview) is created by big power plants that burn coal or natural gas. But “do as I say not as I do” has always been the credo for anti-frackers. The article in National Journal is about the “fight” over fracking in Colorado among environmentalists, but the story could easily take place in NY, PA, WV, or OH. The arguments, the lies and deceptions by extremist “environmental” groups, are the same wherever you go…
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Industrywide Issues | Litigation | Pennsylvania | Warren County | Wastewater

PA DEP Consent Decree Against Waste Treatment’s Warren Plant
November 26, 2013November 26, 2013

A month ago MDN told you a lawsuit had been filed by anti-drilling Clean Water Action (CWA) against the municipal sewage treatment plant in Warren, PA operated by Waste Treatment Corporation. The lawsuit claimed the Warren plant, based on testing of the Allegheny River, continues to process and dump treated frack wastewater into the river (see CWA Sues/Accuses Waste Treatment Corp of Continued Shale Pollution). A day after that story broke, both Waste Treatment and the Pennsylvania Dept. of Environmental Protection responded and said that no, the plant does not and has not treated shale frack wastewater since 2011 (see Waste Treatment, PA DEP Respond to CWA Lawsuit).

However, as we said at the time, the fact that the DEP had also (quietly) filed their own lawsuit against Waste Treatment raises more questions than it answers. We now begin to get some of those answers. Yesterday, the DEP announced a “Proposed Consent Decree” with Waste Treatment that will reduce the amount of total dissolved solids it releases into the Allegheny River. The (important) question remains: If the effluent from the Warren plant is not coming from processing shale fracking wastewater, where is it coming from? What is the source of this super-salty wastewater that’s being processed by this plant?…
Read More “PA DEP Consent Decree Against Waste Treatment’s Warren Plant”
Industrywide Issues | Jobs

Shale Drilling Jobs Among CNN’s Top 100 “Best Jobs in America”
November 26, 2013November 26, 2013

CNNMoney recently posted their “Best Jobs in America 2013” list which is a ranking of the top 100 jobs with “big growth, great pay and satisfying work.” MDN had a quick scan through the list and found many of the jobs are either directly or indirectly related to the shale drilling industry. Here were the six jobs from the list directly related to energy/shale drilling:
Read More “Shale Drilling Jobs Among CNN’s Top 100 “Best Jobs in America””
Energy Companies | Hydraulic Fracturing | Industrywide Issues | Litigation | New York | Norse Energy | Regulation | Statewide NY

Norse Energy Suing NY Gov Cuomo to Force Release of SGEIS
November 25, 2013November 25, 2013

This is BIG news: It seems we haven’t heard the last from Norse Energy–the Norwegian-based driller that just over a month ago converted from Chapter 11 bankruptcy, or “keep the creditors at bay while we reorganize,” to Chapter 7, or “sell off the furniture and turn off the lights” (see Lights Turned Off, Door Closed – Good Night, Norse Energy). There’s still a bit of fight left in Norse–or fight left in its creditors anyway. Late last week MDN received a tip from friend and intrepid blogger Andy Leahy, writer of the excellent NY Shale Gas Now! blog, about some of the biggest New York news we’ve heard in some time: Norse Energy, or what’s left of it, has decided to file a lawsuit against New York Gov. Andrew Cuomo, Dept. of Environmental Conservation (DEC) Commissioner Joe Martens, and State Health Commissioner Nirav Shah–a lawsuit that will force the release of draft drilling regulations called the SGEIS (Supplemental Generic Environmental Impact Statement).

The official lawsuit has not yet been filed but according to MDN’s sources, it will be filed in early December. This story is a bit complicated, so we’ll break it down for you and show you the evidence we have that a lawsuit against the Cuomo/Martens/Shah cabal is indeed on the way–very soon…
Read More “Norse Energy Suing NY Gov Cuomo to Force Release of SGEIS”
Coterra Energy (Cabot O&G) | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Litigation | Pennsylvania | Susquehanna County

Cabot Buys Second Dimock, PA Property on Carter Road
November 25, 2013November 25, 2013

Contrary to the desires of Josh Fox and other anti-drillers, the “Dimock” story continues to fade away into obscure history. A month ago MDN told you about the former house of some of the loudest Cabot critics who used to live in Dimock, PA–the Sautners. Craig and Julie Sautner sold their house and 3.6 acres to Cabot last year and snuk out of town with $167,500 (see Fracking Opponents Craig & Julie Sautner Sell, Leave Dimock). Last month, the old Sautner house was leveled and the property was sold to the neighbor for a measly $4,000 (see End of an Era? Sautner’s Dimock Home Leveled, Property Sold).

Another Dimock property has just been sold to Cabot, albeit for not quite as much. Mike Ely sold his 12-acre property on Carter Road (including double-wide trailer) to Cabot for $140,000…
Read More “Cabot Buys Second Dimock, PA Property on Carter Road”
Commodity Price | Coterra Energy (Cabot O&G) | Energy Companies | Industrywide Issues | Pennsylvania | Susquehanna County

Cabot O&G: Marcellus Cost Structure Goes Through the…Floor!
November 25, 2013November 25, 2013

Cabot Oil & Gas continues to impress and astonish the drilling industry. MDN has written many times before about Cabot’s ability to spin “gold” (profits) from “hay” (low cost price environment). Cabot recently presented at a pair of “global energy conferences” arranged by investment firms Jeffries & Co. and Bank of America Merrill Lynch. We have the slide deck from each (which is pretty much identical) and we’ve embedded it below. You’ll want to review it if you have an interest in the Marcellus Shale.

One of the startling pieces of information we glean from it: Starting in 2009 Cabot’s cost to drill and produce gas was $2.47 per thousand cubic feet (Mcf). By 2013, that number had dropped to an average $1.37/Mcf. Next year, in 2014, Cabot says their Marcellus per unit cash cost, the cost of drilling and producing, will be around…
Read More “Cabot O&G: Marcellus Cost Structure Goes Through the…Floor!”
Economic Impact | Industrywide Issues | Lycoming County | Pennsylvania

Is the Marcellus Already Going Bust in Lycoming County, PA?
November 25, 2013November 25, 2013

Has the Marcellus Shale drilling industry already going bust? If you read the headlines of say, oh, the Philadelphia Inquirer, that may be the conclusion you reach. But if you read beyond the headlines you’ll find a different story.

The number of drilling rigs in the Marcellus is down a bit from what it was a year or two ago, that’s for sure. With less drilling comes less of a lot of other things needed for drilling (hotel visits, construction, security, catering, etc.). However, it may be more accurate to view the Marcellus drilling industry as more like taking a breather. Regrouping. Assessing. One thing is for sure, although some parts of the Marcellus drilling industry may have dipped (not gone bust, but slowed a bit), other parts of it are just picking up steam. A better metaphor is “ebb and flow”…
Read More “Is the Marcellus Already Going Bust in Lycoming County, PA?”
Hydraulic Fracturing | Industrywide Issues

CO2 Instead of Water for Fracking – Seriously?!
November 25, 2013November 25, 2013

From time to time MDN likes to highlight new technologies used in shale drilling. We’ve talked about the recent trend in drillers switching from using diesel to run drilling rigs to using natural gas. A number of Marcellus drillers now use pure natgas or dual fuel drilling rigs, drillers including Cabot, Seneca, Antero, CONSOL, EQT (see this MDN search for a list of those stories). We’ve also talked about companies who have developed alternatives to water as a fracking fluid–most recently eCORP Stimulation Technologies’ liquefied petroleum gas (LPG or propane) fracking (see ecorpStim Tries to Interest France in Waterless Fracking Tech).

MDN always hastens to add, there’s nothing inherently wrong with using water as a fracking fluid. It’s cheap, it’s plentiful and the amount used is so tiny in comparison to other uses, it’s not an environmental problem–at least not in the northeastern U.S. However, there are places were water is not abundant, so enterprising companies are still trying to create innovative solutions. Some of those enterprising companies are now looking at that evil, nasty compound that is the cause of so much angst for global warmers: carbon dioxide (goes by the gang name CO2). CO2 is plentiful–it’s the stuff you breathe out with every breath and the stuff plants and trees need to breath in so they can produce oxygen. But we digress. Engineers are looking at CO2 as a possible solution to replace water fracking. If they can figure it out, we say, grrrreat!…
Read More “CO2 Instead of Water for Fracking – Seriously?!”
Economic Impact | Hydraulic Fracturing | Industrywide Issues | Ohio | Pennsylvania | Pipelines | Processing Plants | Research | Statewide OH | Statewide PA | Statewide WV | West Virginia

Deloitte & EIA: 90,000 Marcellus Wells Drilled in Next 20 Years
November 25, 2013November 25, 2013

A new report published by consulting powerhouse Deloitte references (and affirms) U.S. Energy Information Administration’s predictions that it will take at least $5 trillion of investment in the oil and gas sector between now and 2035 to main current levels of oil and natural gas production and meet future demand as it rises. The report is titled “The challenge of renaissance: Managing an unprecedented wave of oil and gas investment.” Unfortunately we couldn’t locate a copy–but reportedly it’s full of interesting facts–like the $5 trillion number.

Another eye-popping number from the report: Current estimates are that 90,000 Marcellus Shale wells will be drilled over the next 20 years. That kind of activity will spur an unfathomable economic revival in the northeast like we haven’t seen in since, well, forever! The study says while “trillions” will be spent on upstream (drilling), “hundreds of billions” will need to be spent on midstream (pipelines & processing plants) in order to keep up with the production. More from the Deloitte study…
Read More “Deloitte & EIA: 90,000 Marcellus Wells Drilled in Next 20 Years”
About MDN | Allegheny County | Industrywide Issues | Jobs | MDN Resources | Pennsylvania | Supply Chain | Washington County

Want to Plug in to the Marcellus Industry? These Groups Can Help
November 25, 2013November 25, 2013

For individuals living in Greater Pittsburgh looking for a job in the drilling industry, or companies looking to break into the Marcellus Shale supply chain, the Pittsburgh Business Times published a helpful list of organizations (and their websites) that may be able to give you an assist with your pursuit…
Read More “Want to Plug in to the Marcellus Industry? These Groups Can Help”
Air Quality | Anti-Drilling/Fossil Fuel | Industrywide Issues | Pennsylvania | Susquehanna County

The One Issue on Which Anti- and Pro-Drillers Agree
November 22, 2013November 22, 2013

Is there an issue on which both anti- and pro-drillers can agree? Is there ever a time both sides can sit at the same table and discuss a potential problem, and do so without hyperbole and snarky comments? Is there an issue over which both sides can talk and not have it end in shouting? Indeed there is–and it is the issue of air pollution. MDN realizes we’re on shaky ground with our industry friends by writing this, but on several occasions we’ve pointed out there is a growing body of evidence that shows a marked increase in air pollution in heavily drilled areas–mostly from compressor plants, but also from drilling rigs, truck traffic, etc. (see PA DEP Report: Counties with Fracking Have More Air Pollution). The issue of air pollution is enough to unite two neighbors from Dimock, PA who were formerly on opposite sides of the drilling debate.

One of those neighbors starred in Josh Fox’s Gasland II fiction–Victoria Switzer (see More on “Pro-Drilling” Conversion of Gasland II Star from Dimock). We wouldn’t say Vickie is exactly pro-drilling these days, but she’s decided to be realistic and constructive, instead of obstructive, and that’s a positive change. She’s once again on speaking terms with her Dimock neighbor Ron Teel, a pro-drilling landowner. Ron and Vickie both belong to the local advocacy group Breathe Easy Susquehanna County…
Read More “The One Issue on Which Anti- and Pro-Drillers Agree”
Beaver County | Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Processing Plants | Shell

Cracker Talk: Shell Rumored to be Buying Up Land Near Site
November 22, 2013November 22, 2013

Yes, more “cracker talk,” but we’re hopelessly addicted to cracker talk. The Pittsburgh Post-Gazette is reporting that Shell is buying up more land around a proposed ethane cracker site in Beaver County, PA. If Shell has decided to not build the cracker, it certainly doesn’t make sense for them to spend money on purchasing land. So, maybe this is a good sign that Shell is moving forward with their cracker?

The race is now on to see who will build the first ethane cracker in the northeast: PA or WV. Is the talk about Shell buying land just more hype by the Pittsburgh media? Or is there something “there” with this story? The latest scuttlebutt about the Shell cracker…
Read More “Cracker Talk: Shell Rumored to be Buying Up Land Near Site”
Energy Services | Industrywide Issues | NGLs | Pennsylvania | Pipelines | Statewide PA | Sunoco Logistics

Sunoco Logistics Planning Second Mariner East Pipeline for NGLs
November 22, 2013November 22, 2013

More than a year ago MDN brought you the news that Sunoco Logistics’ Mariner East pipeline–an existing pipeline being upgraded to convey propane and ethane from western Pennsylvania all the way to the Marcus Hook refinery near Philadelphia–was completely spoken for (see Mariner East Pipeline to Philly Refinery 100% Committed). Range Resources announced at the time that they would be the main user of the pipeline (see Range Announces They’re Main Shipper for Mariner East Pipeline). Upgrades to the Mariner East are under way now and will be online beginning in 2014.

In re-reading those stories from last year, we should have noticed something we did not. Sunoco said they were considering a second “open season” for Mariner East. If the pipeline is already 100% committed, how can they take on even more customers? Answer: Build a second Mariner East pipeline. Thanks to an excellent bit of reporting in the Harrisburg Patriot-News, we now understand what that statement meant last year. In a story published yesterday, the Patriot-News says Sunoco is working on a plan to build a second Mariner East pipeline across PA. Although there are currently few details, the outlines of where the pipeline may go are taking shape thanks to notifications received by PA landowners in the Susquehanna Valley area…

Read More “Sunoco Logistics Planning Second Mariner East Pipeline for NGLs”