Industrywide Issues

Energy Companies | Hydraulic Fracturing | Industrywide Issues | Litigation | Marion County | West Virginia | XTO

District Court Judge Asks WV Supremes to Rule in Surface Rights Case
April 4, 2013April 4, 2013

Waaaay back in July 2011 MDN told you about an interesting legal case in West Virginia in which a surface rights landowner was suing XTO because XTO is (in the opinion of the landowner) abusing the right to set up a well pad on his surface in order to get gas not only under the surface of his property, but also from his neighbors’ property (see WV Marcellus Legal Battle over Well Pads: Surface Rights Owners v. Mineral Rights Owners). The surface landowner, Richard Cain, acknowledges law and precedent allows XTO to set up a well on his land in order to get the gas under his land—but Cain maintains XTO isn’t really all that interested in getting it from under his land, but simply wants to use his convenient location to reach other nearby properties. Cain gets all of the headaches and none of the royalty money. Kind of a raw deal, from his perspective. Can’t blame him.

There is a new development in the case. The judge presiding over the case, U.S. District Judge Irene Keeley, has formally asked the WV Supreme Court to rule on the key question in the case since it will set a precedent (and has far-reaching consequences) for the entire state…

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Economic Impact | Hydraulic Fracturing | Industrywide Issues | Research

New Report: Reasons for U.S. Dramatic Increase in O&G Production
April 4, 2013April 4, 2013

Robert Bryce, an author for more than two decades and a senior fellow at the Manhattan Institute’s Center for Energy Policy and the Environment has just released an important new report titled, “New Technology for Old Fuels: Innovation in Oil and Natural Gas Production Assures Future Supplies” (full copy embedded below). In the opening of the report, Bryce shares a startling fact: “In 2012, U.S. oil production rose by 790,000 barrels per day, the biggest annual increase since U.S. oil production began in 1859. In 2013, the Energy Information Administration expects production to rise yet again, by 815,000 barrels per day, which would set another record. Domestic natural gas production is also at record levels.”

How and why has production increased so dramatically in the past few years? The obvious (to us) answer is shale, but it’s not that simple. Bryce’s report delves into the confluence of reasons for why oil and gas production has gone up, and will continue to increase for the foreseeable future. His reasons include better technology and better methods of drilling. Here’s the executive summary of the report, which includes his key findings:

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Energy Companies | Industrywide Issues | Shell | Supply Chain

Ultimate Supply Chain Challenge: Sell Your Whole Company to Shell
April 4, 2013April 4, 2013

Listen up start-up technology companies with products and services in the oil and gas space: Shell is ready to invest “several hundred million dollars” in emerging tech companies—everything from gas production and conversion technologies to geophysical mapping to “big data.” To find out if your company fits the profile, and for details on how to contact Shell with a proposal, read the press release below:

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Industrywide Issues | NG Vehicles | Pennsylvania | Statewide PA

REV LNG, 11 Others Finalists in Shale Gas Innovation Contest
April 4, 2013April 4, 2013

A shout-out and big congratulations to REV LNG (headquartered near Rochester, NY), one of 12 finalists in this year’s Ben Franklin Shale Gas Innovation Contest. Each year the Ben Franklin Shale Gas Innovation and Commercialization Center conducts a contest looking for the “best shale gas-oriented innovations, new product ideas, or service concepts that are either in the development stage or recently launched.” They are awarding three $25,000 prizes this year.

Through his work with Shale Daily, MDN editor Jim Willis has had the pleasure of working with, and learning about, the unique technology REV LNG has developed. The company is one of the very few in the United States that buys, transports and sets up “mobile filling stations” (at drill pad sites) so drillers can use liquefied natural gas (LNG) to power their equipment. REV LNG’s uniqueness is that it’s a turn-key service. Customers just pay a “per gallon” fee to fill it up, and REV LNG takes care of the rest. We wish them well in the competition!

Here’s the press release and full list of all the very worthy companies selected to be in the final 12:

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Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Pennsylvania | Pipelines | UGI Energy Services | Wyoming County (PA)

Back to Kindergarten: UGI Explains NatGas Gate Stations
April 4, 2013April 4, 2013

Northeastern PA utility company UGI is in a strange position. Geographically the company and it’s natural gas distribution network sit in or near some of the richest deposits of natural gas known to exist in the United States—the Marcellus Shale. All UGI has to do is install some new pipelines here and there, and a compressor station here and there, to bring that low-cost gas to its customers. Currently the gas being delivered to households in the Scranton/Wilkes-Barre area mostly comes from the Gulf Coast! Why not use gas produced locally, which is far cheaper.

Why not? Because of dullards who oppose installing the new pipelines and compressor stations. Anything to do with natural gas has gotten so divisive and politically charged, that UGI now has to explain (“dumb it down”) to people why lowly gate stations (pipeline connectors) are safe:

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Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Lawrence County | Pennsylvania | Seismic Testing

Westminster College Takes a Pass on Seismic Survey & Drilling
April 4, 2013April 4, 2013

Seismic surveying is coming to New Wilmington (Lawrence County), PA—and when surveys come, it’s usually not too long until permits and then drilling follow. Which is great news for local landowners.

However, the largest landowner in town, Westminster College, has sadly decided to disqualify themselves from the survey and from realizing the benefits of fracking. Westminster won’t allow seismic surveying and is bogged down in the “study it to death” routine being pushed by anti-drillers when it comes to potential drilling under college land:

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Electrical Generation | Industrywide Issues | Lawrence County | Pennsylvania

Supporters, Detractors Meet on Proposed NatGas Power Plant in PA
April 4, 2013April 4, 2013

If the crowd that turned out last night for a public hearing on a proposed new natural gas-powered electrical generating plant in Lawrence County, PA is any indicator, the community is split about evenly between those who support the new plant, and those who don’t. Area residents filled the North Beaver Volunteer Fire Department to listen to and express their opinions about the new plant before representatives of the PA Dept. of Environmental Protection.

The bottom line is that the plant, according to LS Power (which is building it), is desperately needed. Some 3,000 megawatts of generating capacity will disappear from the region in the next several years as plants using coal to generate electricity retire. The Lawrence County plant will generate 900 MW—less than one-third of what will be needed to replace it. That is, it’s desperately needed unless residents who oppose the plant want to volunteer to participate in rolling blackouts…

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Commodity Price | Industrywide Issues

One Year Later: NatGas Inventories & Rig Counts Down, Price Up 2X
April 4, 2013April 4, 2013

MDN’s favorite Seeking Alpha blogger and energy analyst, Richard Zeits, has posted a top-notch analysis about the price of natural gas and where he believes it’s headed—and why. The article is extensive and well worth the time to read it if you care about the price of natural gas. He points out “what a difference a year makes,” noting that in just one year natural gas inventory surpluses are gone (even contracting), rig counts are at their lowest numbers in decades, and the price of natural gas has doubled from a low of $2 MMBtu to near $4 MMBtu. Surprisingly, he notes that recent supply numbers for natural gas show a slight contraction overall, despite the huge expansion of production in the Marcellus, Utica and Bakken.

Zeits says the fundaments for natural gas trading look very good. He makes the following points in the article:

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Industrywide Issues | Pennsylvania | Statewide PA | Taxation

PA PUC Launches New Interactive Website with Impact Fee Details
April 4, 2013April 4, 2013

The Pennsylvania Public Utility Commission, charged under Act 13 with the assessment and collection of shale drilling “impact fees,” released a new interactive website yesterday that “allows users to better examine information related to the collection and distribution of the state’s unconventional gas well Impact Fee.” MDN checked it out and is impressed. Lots of useful charts and graphs detailing who drilled the most, who paid the most, and where/how the money from impact fees has been spent.

Here’s the press release announcing the site and it’s purpose:

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Industrywide Issues | Ohio | Research | Statewide OH | Utica Shale

OOGA Report on Ohio Utica Drilling for 2012 – Charts & Maps
April 3, 2013April 3, 2013

At the recent winter meeting of the Ohio Oil and Gas Association, OOGA presented the DeBrosse Memorial Report: 2012 Oil and Gas Activity in Ohio. Chock-full of interesting charts and maps showing who drilled wells in Ohio, where they drilled them and how far (distance) the wells were drilled, the report (full copy embedded below) is a must-read if you have an interest in the Utica Shale.

A few highlights:

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Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Statewide PA

GASLAND vs FrackNation: Josh Fox Refuses to Debate Phelim McAleer
April 3, 2013April 3, 2013

The Delaware Valley Marcellus Association (DVMA) is sponsoring a screening of the excellent documentary film FrackNation at the Bryn Mawr Film Institute on April 10 (Philadelphia, see this calendar announcement for details). As part of the screening event, DVMA invited Josh Fox, creator/producer/director of the documentary GASLAND to attend the screening and debate FrackNation creator Phelim McAleer. Apparently Fox is a coward and not willing to defend his work–he refuses to respond or even acknowledge the invitation from DVMA.

Yesterday, the DVMA issued the following press release/open letter to Fox:

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Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Ohio | Statewide OH

“Faith” Group Lies About New Sustainable Shale Center, Fracking
April 3, 2013April 3, 2013

MDN finds it particularly repugnant and hypocritical for so-called “faith groups” to use religion to jusify their twisted anti-fossil fuel philosophies. Shame on them for misusing religion in such a way. It’s disgusting.

One such disgusting group, Faith Communities Together for Frack Awareness (FaCT), issued the following press release yesterday, questioning the creation of the Center for Sustainable Shale Development and in general denigrating the miracle of hydraulic fracturing:

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Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY

JLCNY (Politely) Tells Cuomo to Wise Up and Look at PA
April 3, 2013April 3, 2013

The president of the Joint Landowners Coalition of New York (and MDN friend) Dan Fitzsimmons published an op-ed in yesterday’s Binghamton Press & Sun-Bulletin. Without naming names (cough *Cuomo* cough), Dan says “New Yorkers” should look to our neighbors just across the border to the south for examples of what can happen when safe natural gas drilling is allowed. He provides some startling facts and figures…

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Industrywide Issues | Maryland | Regulation | Statewide MD

Landmen Operating in Maryland Will Soon Have to Regi$ter
April 3, 2013April 3, 2013

Maryland State Sen. George Edwards (Republican) has introduced a bill that will make it crime for anyone to negotiate mineral leases with landowners unless they are first registered with the state as a landman. The same bill has already passed the state House of Delegates with a 135-0 vote in March. In other words, if you’re a landman operating in Maryland, get ready to pay…
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Air Quality | Industrywide Issues | Regulation

EPA Keeps Messing with Drillers, Tweaks Regulations Yet Again
April 3, 2013April 3, 2013

The federal Environmental Protection Agency (EPA) is once again interferring in the states responsibilities to regulate oil and gas drilling. The always excellent ShaleEnergyLawBlog, written by the law firm Babst Calland, notes two recent changes to regulations issued by the EPA dealing with greenhouse gas reporting and storage tanks:

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Industrywide Issues | NGLs | Research

New Report on Important-but-Overlooked Natural Gas Liquids
April 2, 2013April 2, 2013

The Brookings Institution, one of America’s oldest Washington, D.C.-based think tanks, conducts (and shares) research on a variety of topics, mostly economics-related. Brookings recently released a new report titled: Natural Gas Liquids (full copy embedded below). The report focuses on an aspect of the shale revolution researchers at Brookings believe is often overlooked–but critically important.

From the basics of describing what NGLs are and where they are found to how they are mined and the economics and key players–this short 15-page report does an excellent job of briefing readers without becoming a data dump. Here’s a brief description of the report and a summary of its five key takeaways, from the Brookings website:
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