Industrywide Issues

Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Statewide PA

How Does Conventional/Unconventional Drilling Differ in PA?
November 19, 2012November 19, 2012

Before the Marcellus Shale was actively drilled in Pennsylvania, starting with Range Resources in 2004, there was natural gas drilling in the state for many years. In fact, although about 5,000 Marcellus Shale or “deep” natural gas wells have been drilled in the past eight years, there are about 50,000 conventional or “shallow” natural gas wells scattered throughout the state, drilled over the past 50+ years. Ever wonder how conventional and unconventional wells stack up?

An article in the Pittsburgh Tribune-Review does a good job of comparing the two types of wells. Here’s a few interesting facts and figures:

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

NY Fracking Rules Won’t be Released in 2012
November 16, 2012November 16, 2012

Is there any chance that New York will move forward with releasing new shale gas drilling rules by Nov. 29, the one year anniversary after the last public hearing on the new rules (and by which the rules must be released or the rulemaking process restarts)? No. Not a chance.

Why? NY State Health Commissioner Nirav Shah has only just yesterday named three outside “experts” to help conduct a “health review” of New York’s proposed drilling regulations. The deadline given the experts to complete their review? “Mid-February.”

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Exporting | Industrywide Issues | Regulation

FERC Report on LNG Exports Coming by End of 2012
November 16, 2012November 16, 2012

Seven liquefied natural gas (LNG) export terminals have officially been proposed to the Federal Energy Regulatory Commission (FERC). Another six have been informally proposed. FERC has twice delayed releasing their decision on whether or not to permit and allow exports of natural gas, coming under heavy criticism for the delays. According to Chris Smith with the Dept. of Energy, we’ll have a pretty good idea of which way FERC is leaning by the end of this year.

In comments at an industry event in Washington, D.C., Smith said FERC will release their LNG export report detailing the pros and cons for each site by the end of this year (see a map and list of all North American proposed import and export sites below). Although the report will be issued this year, a final decision from FERC will not be made until early next year.

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Allegheny County | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

Industry “Prepares for Worst” with Expected EPA Regs
November 16, 2012November 16, 2012

Some energy producers at the Developing Unconventional Gas (DUG) East Conference in Pittsburgh went on record expressing their concerns that a rogue (MDN’s words) Obama EPA will soon make a power grab to control shale drilling through the back door of controlling hydraulic fracturing. In their words, they are “preparing for the worst,” although what those preparations include was unstated.

Here’s what was said at DUG East yesterday:

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Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues

Anti-Drilling Group Releases Fracking Chemical Database
November 16, 2012November 16, 2012

A new database of the chemicals used in hydraulic fracturing (fracking) has just been released by anti-drilling organization SkyTruth.org. The database uses publicly available information posted on FracFocus.org. According to SkyTruth, they make the FracFocus chemical data more accessible and easy to use.

Here’s the press announcement from SkyTruth:

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Health Impacts | Industrywide Issues | Pennsylvania | Statewide PA

Third Group Joins Unfunded Marcellus Health Impact Study
November 16, 2012November 16, 2012

Three months ago MDN told you about two health care networks joining forces to study the health effects of Marcellus drilling in Pennsylvania—Guthrie Health and Geisinger Health System (see this MDN story). You may now add a third health care system to the list. Susquehanna Health, serving northcentral PA, will join Guthrie and Geisinger in a multi-year study. Problem is, as far as MDN knows, the so-called study is still not funded (see this MDN story).

You can get as many partners as you want, but until someone (like the deep-pocketed health care systems themselves) comes up with money, the study is going nowhere fast. Here’s the press release from Susquehanna Health:

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Allegheny County | Economic Impact | Industrywide Issues | Pennsylvania

I’ve Been Workin’ on the (Short Line) Railroad, All the Live-Long Day
November 16, 2012November 16, 2012

More feel-good stories of how the Marcellus Shale has almost single-handedly revived the short line railroad business. The Pittsburgh Tribune-Review has an excellent roundup piece that covers a number of short line railroads that have gotten a second chance because of the Marcellus. The article begins with this story about the Allegheny Valley Railroad company, located in a Pittsburgh suburb:

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Economic Impact | Industrywide Issues | Lehigh County | Pennsylvania | Statewide PA

Canadian Firm Building 2nd NatGas Power Plant Near Allentown
November 16, 2012November 16, 2012

Two months ago Canadian firm EmberClear Corp. announced they will build a new 300 megawatt (MW) electrical generating plant west of Allentown, PA. The plant, called Good Spring NGCC 1, will cost $400 million to build and create $1 billion in economic impact for the community (see this MDN story). The original plan was to use coal to power the plant, but EmberClear changed and decided to use abundant, cheap Marcellus Shale gas instead.

Although construction on that plant has not yet begun, EmberClear announced on Tuesday of this week that they now plan to build a second 300 MW electrical generating plant on the same property—Good Spring NGCC 2—which will also use Marcellus natural gas for power. From the EmberClear announcement:

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Energy Companies | Exxon Mobil | Industrywide Issues | Taxation

Exxon Mobil Foolishly Backs Obama Carbon Tax Idea
November 16, 2012November 16, 2012

Exxon Mobil is a major disappointment. Since 2009 they’ve supported a so-called “carbon tax” over what they consider a less-desirable alternative—legislation capping carbon dioxide emissions. Carbon dioxide, in case you didn’t know, is the substance you breathe out with every breath you take. Plants breathe it in. Plants, on the other hand, expire oxygen that we animals breathe in—something called the circle of life. Obama and green wackos want to tax carbon dioxide emissions in the misbegotten belief it’s “polluting the planet” and that by taxing it, you will cause its use to go down. (Maybe a tax on breathing will be next?) Boggles the mind.

What boggles the mind even more is Exxon’s support for the idea. A carbon tax is nothing more than a huge, new tax increase that gives greedy politicians more money to play with, reduces manufacturing activity (and jobs at those manufacturers), and overall is about the worst idea anyone has had in oh, about a century.

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Hydraulic Fracturing | Industrywide Issues

Obama’s War on Fossil Fuels (and Jobs)
November 16, 2012November 16, 2012

Warning: If you voted for Obama and don’t like reading critiques of our Dear Leader, move along and don’t bother reading this post. You’ve been warned.

The former chief Republican counsel to the Senate Foreign Relations Committee and author William C. Triplett II has an article in yesterday’s Washington Times that is a must read. Triplett makes a visit to various shale plays around the country, including the Marcellus in West Virginia, and comes to the conclusion that the miracle of hydraulic fracturing is now the fourth economic revolution since the end of World War II (the others being the jet engine, integrated circuits/modern electronics and the Internet, all invented by Americans). Triplett expected to see an exciting new industry—what he didn’t expect, and found, were the stories of how the shale revolution has profoundly and positively affected individuals.

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Economic Impact | Ethane | Industrywide Issues | Jobs | Processing Plants | West Virginia | Wood County

Wood County, WV in the Running for Ethane Cracker
November 15, 2012November 15, 2012

According to Kevin DiGregoria, executive director of the Chemical Alliance Zone West Virginia, Wood County, WV is one of the prime locations in the state being considered for a new ethane cracker plant. DiGregorio also said the Marcellus Shale will be around for at least 30 years and is “an economic grand slam” for the state.

DiGregoria was joined by WV Commerce Sec. Keith Burdette at a roundtable discussion in Wood County. Burdette, who has been in the hunt for a cracker plant for the state for nearly two years now, said he’s in regular contact with interested companies:

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Commodity Price | Hydraulic Fracturing | Industrywide Issues | Regulation

Deloitte Survey: NatGas Price >$3 in 2013, Oil Price <$100
November 15, 2012November 15, 2012

Consulting firm Deloitte recently completed a survey of 250 oil and gas professionals on their expert opinions about where they believe the energy industry is headed in the near and long-term. Among their findings: The U.S. will soon become completely energy self-sufficient for natural gas, but we’ll always need to import at least some oil.

Looking at 2013, a majority of those surveyed (60%) believe the commodity price of natural gas will average more than $3 per million Btus for the year, and a majority (59%) think crude oil will stay below $100 per barrel next year. Attitudes about regulation of fracking is also interesting: 49% think existing regulations of fracking is “just right” or “on track.”

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

Anti-Drillers Pressure PA Gov on Water Testing “Controversy”
November 15, 2012November 15, 2012

The ever-shrill anti-fracking machine believes they have a winner of an issue in the recent “discovery” that (gasp) the Pennsylvania Dept. of Environmental Protection does not, in every instance of well water testing, conduct useless and expensive testing for every chemical known to mankind (see this MDN story). For the anti-drilling lobby, the DEP’s lack of extreme testing equals “cover-up.” And so they grind out press release after press release, letter after letter. (Crank up the Peter, Paul & Mary music, there’s more letters to write!)

Yesterday, 25 groups (listed at the bottom so you know whom not to support) sent one such letter to Gov. Tom Corbett requesting he order the DEP and Sec. Michael Krancer to start conducting those extreme tests post haste (a copy of the letter is embedded below). Here’s how the latest faux controversy is being reported:

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Alternative Energy | Industrywide Issues

A Peak at the Future of U.S. Energy if Enviro Wackos Prevail
November 15, 2012November 15, 2012

To get an inkling of what’s in store for the U.S. when it comes to energy if the environmental wackos get their way, we give you Exhibit A: The lobotomized country of Germany. Germany now believes, en masse, that in the next 35 years or so they will convert to so-called alternative energy sources like wind and solar—for 100% of their energy needs. MDN editor Jim Willis likely won’t be alive in 35 years to laugh at them and say “we told you that you were nuts,” so we’ll just do it now.

The following self-delusional fantasy is brought to you by Bloomberg News:

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BP | Commodity Price | Energy Companies | Ethane | Industrywide Issues | NGLs

Industry Expert Says NGL Prices are Headed Down
November 15, 2012November 15, 2012

Dawn Constantin, head of partnerships and analytics at BP plc, spoke at the LDC Gas Forum in Toronto earlier this week about what the future holds for the natural gas liquids (NGLs) market. Her analysis? Drillers who thought NGLs (wet gas) were a safe harbor against the low price of methane (dry gas) may not find it so safe after all. Why? Simple economics of supply and demand. Demand for NGLs is not keeping up with the flood of supply coming from places like the Marcellus and Utica Shale.

Constantin said there now exists downward pressure on the price of NGLs, just like there is for dry gas:

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Athens County | Industrywide Issues | Ohio | Portage County | Washington County (OH) | Wastewater

ODNR Approves 4 Wastewater Injection Wells, More on the Way
November 15, 2012November 15, 2012

Now that the Ohio Dept. of Natural Resources (ODNR) has created tougher regulations for wastewater injection wells following earthquakes last year related to injection wells, they are once again approving new wells.

On Tuesday ODNR signed off on four new injection wells—another 30 applications are in the pipeline for consideration:

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