Industrywide Issues

Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

PA Former Sec. Krancer: Frack Moratorium “Worse than Misguided”
October 8, 2013October 8, 2013

MDN editor Jim Willis had the great pleasure of meeting and speaking with former PA Dept. of Environmental Protection (DEP) Sec. Michael Krancer at Shale Insight 2013 a few weeks ago. Jim doesn’t mind telling you what he told Sec. Krancer to his face: “I’m a huge fan!” Krancer did some great work at the DEP during his too-short tenure. Since then, Krancer has moved on to private practice in Philadelphia, working on energy law for powerhouse law firm Blank Rome.

Sec. Krancer minces no words, which is what we love about him. He’s also extremely smart. And, he’s no fan of recently introduced legislation by PA Sen. Jim Ferlo who wants to ban fracking in Pennsylvania–Ferlo calls it a moratorium but it’s “open-ended,” meaning it’s really a ban (see PA Dems Go Over the Cliff – Introduce Statewide Frack Ban Bill). Krancer penned a devastating rebuttal to Ferlo’s bill and indeed to obtuse anti-fossil fuel advocates throughout Pennsylvania. Sec. Krancer sent along a copy of his sterling piece, first published on the Law360 website, with permission for MDN to distribute it far and wide. Forthwith, from the sharp pen of Sec. Krancer…
Read More “PA Former Sec. Krancer: Frack Moratorium “Worse than Misguided””
Industrywide Issues | Ohio | Statewide OH | Trucking | Utica Shale | Wastewater

Open-Air Frack Wastewater Impoundments Coming Soon to Ohio
October 8, 2013October 8, 2013

Coming soon to a neighborhood near you in eastern Ohio: frack wastewater ponds? Maybe. Ohio regulators with the Ohio Dept. of Natural Resources (ODNR) say they will soon approve, permit and regulate frack wastewater ponds or “impoundments”–something currently not allowed in Ohio. The impoundments hold millions of gallons of frack wastewater–a kind of temporary holding container so drillers can re-use the liquid for more fracking. The impoundments, typically close to drilling operations, cut down on truck traffic and when built and maintained properly, are completely safe (according to drillers).

However, some people are concerned about open-air impoundments and the possibility that nasty chemicals may escape–either through the air or into the ground. Valid concerns?…
Read More “Open-Air Frack Wastewater Impoundments Coming Soon to Ohio”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Sullivan County

Debra Winger: Vote Early & Vote Often – Against Fracking in NY
October 8, 2013October 8, 2013

Hollywood actress Debra Winger, who not only has an apartment in New York City but owns a “farm” in Sullivan County, NY (Upstate for the uninitiated), is on a mission. Her mission is to get her other Hollywood and Downstate pals that also own a place in Sullivan County to register to vote there. Register once? Register twice? We’re not sure she’s advocating voter fraud (although she may be).

Winger wants Downstaters to register to vote in Sullivan County so they can pack local town boards with anti-drillers–just in case Gov. Andrew “Spineless” Cuomo suddenly grows a spine and allows shale drilling…
Read More “Debra Winger: Vote Early & Vote Often – Against Fracking in NY”
Allegheny County | Economic Impact | Industrywide Issues | Jobs | Pennsylvania | Statewide PA | Washington County | Westmoreland County

Pittsburgh Summit: Marcellus the WD-40 of SW PA Rustbelt Economy
October 8, 2013October 8, 2013

Yesterday a group of manufacturing and labor leaders gathered at the International Brotherhood of Electrical Workers headquarters on Pittsburgh’s South Side to talk about the creation of more manufacturing jobs in the greater Pittsburgh area–specifically about how Marcellus Shale is changing the landscape and is a tremendous jobs creator in the region. Several publications attended and each put their own angle on what was said at the meeting.

MDN picks through the stories to bring you the bits and pieces we found interesting–news about how the Marcellus is changing the picture in southwest PA and beyond. One of those interesting tidbits: the chairman of the PA Public Utility Commission said Marcellus Shale gas has been responsible for power prices dropping an average 52% across the state–for everyone. Incredible! And a comparison between the Marcellus and WD-40…
Read More “Pittsburgh Summit: Marcellus the WD-40 of SW PA Rustbelt Economy”
Economic Impact | Hydraulic Fracturing | Industrywide Issues

U.S. Passes Saudis (Oil) & Russia (NatGas) to Become #1 Worldwide
October 7, 2013

None other than the U.S. Energy Information Administration (EIA) released a report on Friday that says the United States will pass Saudi Arabia to become the #1 oil producing country in the world, and will pass Russia to be the #1 natural gas producing country in the world–THIS YEAR. How? Why? Shale energy, of course. No wonder the Saudi’s are worried (see Top Saudi investor says US energy boom could doom kingdom’s economy) and even the braggadocio Vladimir Putin is showing signs of concern (see Worried by shale gas, Putin calls for new energy strategy).

This is really big news folks…
Read More “U.S. Passes Saudis (Oil) & Russia (NatGas) to Become #1 Worldwide”
Hydraulic Fracturing | Industrywide Issues | Litigation | New York | Regulation | Statewide NY

NY Frack Ban Cases Make (Glacial) Progress, Some Dates to Share
October 7, 2013

In August MDN told you that New York’s highest court, the Court of Appeals, would hear the twin cases of Dryden and Middlefield (see BREAKING: NY Court of Appeals will Hear Dryden/Middlefield Case). There are two things that keep shale drilling away from New York right now: (1) Gov. Andrew Cuomo’s spineless inability to take a stand and do the right thing to allow it, and (2) the Dryden/Middlefield cases. MDN believes the court cases are the more important of the two. Cuomo will come around sooner or later–he has to. However, if the court says a majority vote from a local town board can ban fracking thereby denying property rights for landowners throughout an entire township–that’s the death knell for drilling in New York. No sizable driller will gamble with hundreds of millions in lease money to see a local town simply vote to shut it all down. Too risky. (For our analysis of the New York situation, see the post: Anti-Drillers Attempt a Brave Face with NY Appeals Court Decision.)

So the Dryden/Middlefield cases are of supreme importance in the fight for property rights and to allow drilling for New York’s landowners. What’s the latest in those all-important cases? They’re moving along at the speed of a glacier–but at least we now have some dates to share…
Read More “NY Frack Ban Cases Make (Glacial) Progress, Some Dates to Share”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Pennsylvania | Washington County

Strange Twist: Rep. Jesse White Calls His Own Words “Hate Speech”
October 7, 2013October 7, 2013

For some time MDN has chronicled the sad story of western PA Rep. Jesse White, an anti-driller with a grudge against Range Resources who turned to using fake online IDs in order to trash talk his own constituents (see How the Mighty Have Fallen: PA Rep White Admits Guilt, Not Sorry). White eventually (months later) saw the error of his ways when he was outed at Harvard summer school and his “peers” told him “Jesse, you done wrong” (see PA Rep. White Says Fake IDs were “Error in Judgment”).

So get this. Some of White’s constituents, rightly outraged that he is still in office, put his own fake ID words on a big poster board and showed it at an information table set up at the local Fall Festival at an area park. Local Democrat officials were miffed that someone had the audacity to tell the truth about one of their own–in public! Some of the local Dems resigned from their respective boards in protest over the booth. Jesse called his own words on that poster “hate speech.” Huh? That’s right–the fact that someone took his exact words and showed them to local residents (because the media continues to fail to do its job), and White said it’s hate speech. Yeah Jesse, we’re glad you agree that what you previously said is indeed “hate speech”…
Read More “Strange Twist: Rep. Jesse White Calls His Own Words “Hate Speech””
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Inergy | New York | Schuyler County

Walkin’ and Talkin’ and Prayin’…To Seneca Lake?
October 7, 2013October 7, 2013

Saying that “every body of water has a spirit” and attempting to communicate with that spirit, later this week a small group of (wacko) anti-drillers intend to walk 80 miles around Seneca Lake, NY to pray to the lake spirit that no evil fracking comes to harm the little water nymphs that live in the lake. Or something like that.

We long ago gave up on trying to figure out these people…
Read More “Walkin’ and Talkin’ and Prayin’…To Seneca Lake?”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA | Susquehanna County

Gasland II Starlet Leaves Anti-Drilling Behind, Adopts “Realism”
October 7, 2013October 7, 2013

What’s this…one of the stars of Gasland II, someone who trash-talked the shale drilling industry in Dimock, PA has changed sides? Yep. Well, sort of. Victoria Switzer has given up what she calls “tunnel vision” and has adopted “realism.” She says, “Realism is good.” She no longer calls for a halt to drilling in PA and instead wants to ensure it’s done safely–by working with industry and regulators. Welcome to logic and sanity! Glad to have you on our side.

Watch out Josh Fox: Switzer is not the only former anti-driller now whistling a different tune…
Read More “Gasland II Starlet Leaves Anti-Drilling Behind, Adopts “Realism””
Crestwood Midstream | Energy Services | Industrywide Issues | Inergy | M&A

Crestwood/Inergy Complete Their Merger Today, Worth $8B
October 7, 2013October 7, 2013

MDN told you last week that Crestwood Midstream and Inergy Midstream were close to consummating the merger of their two companies and that it would be coming soon (see Crestwood/Inergy $7B Merger Update: Combined Boards Announced). Looks like soon is today.

A press release from Friday says today, Monday, the final paperwork will be filed and the two companies will officially be merged. The new company will take the name Crestwood Midstream Partners and starting tomorrow it will trade on the New York Stock Exchange with the ticker symbol of CMLP. The two companies together, contrary to previous estimates, will be worth $8 billion (not $7B previously reported), a true midstream giant…
Read More “Crestwood/Inergy Complete Their Merger Today, Worth $8B”
Ashtabula County | Industrywide Issues | Ohio | Processing Plants | Utica Shale

More Details on Ashtabula, OH Gas-to-Liquids Plant
October 7, 2013October 7, 2013

A few weeks ago MDN told you about a new gas-to-liquids plant coming to Ashtabula, OH (see Utica Shale Gas-to-Liquids Plant Planned for Ashtabula, OH).

Another story, this one in Crain’s Cleveland Business, provides a few more details about this $300 million plant that will convert Marcellus and Utica Shale gas into chemicals and even diesel fuel…
Read More “More Details on Ashtabula, OH Gas-to-Liquids Plant”
Commodity Price | Coterra Energy (Cabot O&G) | Energy Companies | Industrywide Issues | Pennsylvania | Susquehanna County

The Cabot O&G Marcellus Rocketship – To the Moon!
October 4, 2013October 4, 2013

Cabot Oil & Gas, one of our favorite Marcellus drillers, continues to amaze and astound just about everyone. Last Friday (a week ago) the company issued a new “guidance” or “this is our best, educated guess” as to how much natural gas production the company will end up producing for 2013, and how much they believe it will grow in 2014. Given Cabot is already the number one natural gas producer in PA and the first member of what MDN calls the “billion cubic feet per day” club (see Who’s a Member of the Marcellus “1 Bcf/d” Club?), it’s amazing that in 2014 they predict production will be up another 30-50% over this year. Wow!

Something just as startling and no doubt the envy of all their competitors, Cabot CEO Dan Dinges tips their hand as to what the breakeven price is at which the company starts to make money. It’s a LOT lower than even we thought is was…
Read More “The Cabot O&G Marcellus Rocketship – To the Moon!”
Carlyle Group | Energy Services | Energy Transfer Partners | Industrywide Issues | Pennsylvania | Philadelphia Energy Solutions | Processing Plants | Statewide PA

Philly Refinery Processes 190K Barrels/Day of Shale Oil
October 4, 2013October 4, 2013

My how times change. A year ago the then-Sunoco Philadelphia refinery was set to close its doors with a loss of 850 jobs. But something happened on the way to closing down: shale. Shale oil, in particular. Today, the refinery is called Philadelphia Energy Solutions (PES), a joint venture between the Carlyle Group and Sunoco (Sunoco merged with and is now known as Energy Transfer Partners). As MDN chronicled in July 2012, three shale plays will ultimately play an important role for the refinery–the Bakken, the Marcellus and the Utica (see Sunoco & Carlyle Group Ink Joint Venture for Philly Refinery). However, PES is also eyeing other shale plays, like oil from the Permian Basin (in Texas). That would be a hoot–Pennsylvania refining Texas oil!

More than half of the refinery’s 350,000 barrel per day capacity now comes from the Bakken Shale in North Dakota. How? Mostly by railroad, with the rest by barge. According to PA Gov. Tom Corbett, on hand for a ribbon-cutting ceremony at the refinery earlier this week, the Marcellus and Utica will soon play a role at the refinery too: “There’s a pipeline coming over here soon that’s going to be bringing natural gas over. You’re using natural gas now to fuel some of your efforts here but also to create a propane and ethane facility here”…
Read More “Philly Refinery Processes 190K Barrels/Day of Shale Oil”
Delaware County | Energy Services | Industrywide Issues | Millennium Pipeline | New York | Pipelines | Regulation

Millennium Pipeline Gets FERC Approval for Hancock, NY Compressor
October 4, 2013October 4, 2013

The Millennium Pipeline is a major northeastern natural gas transmission pipeline that starts in Steuben County, NY, runs along the center/bottom of the state (an area called New York’s Southern Tier) and angles down through the Catskill Mountains toward New York City, ending in Rockland County, NY. If you know anything about the geography of New York, it roughly parallels State Route 17 (in parts now called Interstate 86). The Millennium runs close to where MDN sits, not far from Binghamton. It handles an increasing amount of Marcellus Shale gas and is one of the important ways Marcellus gas gets to market.

Just down the road about 33 miles from MDN is a little town called Hancock, NY–in Delaware County. The Millennium runs by Hancock. The company previously filed a request with the Federal Energy Regulatory Commission (FERC) to build a new compressor plant near Hancock, at a location called Hungry Hill. The Millennium wants to install a single 15,900 horsepower compressor engine to increase pressure and throughput of gas in the pipeline as it flows through Delaware County. A compressor at Hungry Hill would add 107,500 thousand cubic feet per day of additional capacity to the pipeline. FERC has just green lighted the project…
Read More “Millennium Pipeline Gets FERC Approval for Hancock, NY Compressor”
Crestwood Midstream | Energy Services | Industrywide Issues | Inergy | M&A

Crestwood/Inergy $7B Merger Update: Combined Boards Announced
October 4, 2013October 4, 2013

In May, MDN told you that Crestwood Midstream, with pipelines and processing plants in the Marcellus, and Inergy Midstream, America’s fourth largest propane retailer, trying to establish a new underground propane storage facility near Watkins Glen, NY but is being frustrated by the state’s DEC, would merge to form a $7 billion midstream behemoth (see M&A Mania: Crestwood Midstream & Inergy will Merge). In June the two companies tied 2/3 of the knot (see Crestwood Midstream & Inergy Tie 2/3 of the Merger Knot).

The companies remain at a 2/3 merger–at this stage. However, they have announced the composition of the boards of directors (plural) for Inergy. There is Inergy GP the parent/umbrella company, and Inergy Midstream GP, which will merge with Crestwood. Both boards of directors (see below) contain Crestwood people on them starting next week. So it appears the consummation of this merger marriage will happen soon…
Read More “Crestwood/Inergy $7B Merger Update: Combined Boards Announced”
Boardwalk Pipeline Partners | Energy Services | Exporting | Industrywide Issues | NGLs | Pipelines | Processing Plants | Williams

Rumor Now Reality: Williams/Boardwalk to Build Gulf LPG Terminal
October 4, 2013October 4, 2013

Williams and Boardwalk Pipeline Partners announced in March they will build a natural gas liquids (NGL) pipeline that would run from the Marcellus/Utica region all the way to the Gulf Coast. They dubbed the new pipeline the Bluegrass Pipeline (see Williams, Boardwalk Announce Marcellus-to-Gulf Coast NGL Pipeline). But where would the new pipeline connect to along the Gulf Coast to process the NGLs? In July, we heard rumors that Williams and Boardwalk were considering building a new LPG export facility to process and export the Marcellus/Utica NGLs (see Bluegrass NGL Pipeline Recap, Builders Eye LNG Exports Too).

It’s no longer a rumor…
Read More “Rumor Now Reality: Williams/Boardwalk to Build Gulf LPG Terminal”