Industrywide Issues

Hydraulic Fracturing | Industrywide Issues | New York | Ohio | Pennsylvania | Pipelines | Statewide NY | Statewide OH | Statewide PA | Statewide WV | Supply Chain | West Virginia

ShaleNavigator Cloud-Based Mapping Service Continues Expansion [Free]
November 5, 2012November 5, 2012

MDN friend and “partner in crime” Ed Camp (from ShaleNavigator) released a press release on Friday to call attention to some of the latest and greatest features he’s added to the ShaleNavigator service—the web’s premier cloud-based shale mapping system. Ed’s ShaleNavigator maps are the basis for the MDN Marcellus and Utica Shale Databook series (see here for more info on the Databook).

We’re happy to bring you Ed’s latest press release, along with his offer of a free 7-day trial:

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

PA DEP Adopts New Rules for Timely Review of Drilling Permits
November 5, 2012November 5, 2012

In July of this year, PA Gov. Tom Corbett issued an executive order to the Dept. of Environmental Protection to streamline and cut down on the red tape involved in reviewing permits of various kinds, including permits for Marcellus Shale drilling. The AP and other lefty news organizations promptly jumped on the directive and attempted to smear Corbett by saying he’s trying to remove safeguards and as a result will put public health at risk (see this MDN story).

About a month later, the DEP issued a draft for a new permit review process (see this MDN story). Don’t tell the AP, but the DEP just officially published those draft rules and they are now the law in Pennsylvania. And not even a whisper from the mighty AP about it. Must be the shiny new object isn’t so shiny anymore—not even worth a mention by the AP. Do you now see why the mainstream media’s reporting is often referred to as “drive-by” reporting?

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Aqua America | Economic Impact | Energy Services | Industrywide Issues | Pennsylvania | Statewide PA

Aqua America Says Shale Gas Will be Big as Coal/Steel for PA
November 5, 2012November 5, 2012

Last week Aqua America CEO Nicholas DeBenedictis addressed Drexel University students at the 2012 Energy/Utility Forum held at Drexel and told them the natural gas industry in Pennsylvania will be the biggest thing to come along, economically, since the “heydays” of coal and steel in the state.

Here’s a summary of what he said to Drexel students:

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Industrywide Issues | Ohio | Pipelines | Statewide OH | Statewide WV | West Virginia

Both Major & Minor NatGas Pipelines Go Unmapped in WV & OH?!
November 5, 2012November 6, 2012

According to a former oil and gas inspector with the West Virginia Dept. of Environmental Protection, West Virginia and Ohio fail to map and keep track of where both major interstate and minor regional and gathering natural gas pipelines are built. Over time, according to this former official, people will forget. It also means there’s no regular inspection of pipelines for corrosion and leaks.

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

PA DEP Accused of Skewing Water Tests from Wells Near Drilling
November 2, 2012November 2, 2012

Pennsylvania House of Representatives member Jesse White (D-Allegheny, Beaver, and Washington counties) is outraged with the PA Dept. of Environmental Protection (DEP) and says someone needs to go to jail. The DEP is outraged with Mr. White and lawyer Kendra Smith. What’s all the outrage over?

Two DEP officials have gone on record in a court case in Washington County, PA with testimony that seems to indicate when the DEP tests residential water wells suspected of being contaminated by natural gas drilling, the reports they issue suppress (or simply don’t look for) certain drilling-related chemicals. Mr. White says it’s evidence of a systematic cover-up—a crime. He’s basing his allegation on a letter by Kendra White, attorney in a case against Range Resources (a copy of the letter is embedded below). The DEP says Mr. White and Ms. Smith are both wrong.

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Economic Impact | Hydraulic Fracturing | Industrywide Issues | Jobs | Research

New Study: U.S. Shale Drilling = 1.6M Jobs, $245B in 10 Yrs
November 2, 2012November 2, 2012

The American Clean Skies Foundation has just released a major new study (copy embedded below) based on analysis by ICF International which finds that shale oil and gas drilling in the U.S., from 2007 to 2017 (10 years) will lead to the creation of upward of 1.6 million new jobs and increase the country’s domestic gross product (GDP) by as much as $245 billion. These are seriously huge numbers.

The 123-page study takes a detailed look at where the jobs are being created (state by state), and the types of jobs created. It is without a doubt the best kind of economic stimulus—it doesn’t come from the government! Here’s the press release announcing and summarizing the findings of the study:

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Hydraulic Fracturing | Industrywide Issues | Maryland | Regulation | Statewide MD

MD Del. Heather Mizeur Continues to Spin Fracking Whoopers
November 2, 2012November 3, 2012

Maryland State Delegate Heather Mizeur (D-Montgomery County, a Washington, D.C. suburb) continues to spread lies in her state about the miracle of hydraulic fracturing in an attempt to whip up support to ban fracking. Here’s the latest whopper from Ms. Mizeur:

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Erie County (NY) | Hydraulic Fracturing | Industrywide Issues | New York | Research

UB CLEAR: Burn the Fracking Witches and Their Castle
November 1, 2012November 1, 2012

What happens when those who commit the academic “crime” of supporting the miracle of hydraulic fracturing won’t apologize or back down from their views, and the academic institution “harboring” them bravely defends their right to have a contrary-to-orthodoxy opinion? Those in the witch hunt sharpen their pitchforks and become even more shrill, banging at the gates, demanding the witches be burned and the department (castle) they work for be obliterated. That’s the situation at University at Buffalo (UB).

Yesterday a group of faculty members, led by an English professor, along with some of their impressionable young students (whom they’ve convinced that fracking is a sin against the renewable energy orthodoxy), sent a letter and “report” (full copy embedded below) to the SUNY Board of Trustees demanding the UB Shale Resources and Society Institute be shut down because they won’t admit to their crime of being pro-fracking. Yeah, real science and academic freedom rule at UB.

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Anadarko | Commodity Price | Energy Companies | Industrywide Issues

Anadarko: Gas Must be $4 Mcf Before More Marcellus Drilling
November 1, 2012November 1, 2012

An interesting comment yesterday from Anadarko Petroleum’s CEO about where price levels for natural gas have to be before he’s willing to commit more money for dry gas drilling. The magic number for Anadarko is $5 per thousand cubic feet (Mcf). Equally interesting was a comment by the VP of E&P that for the Marcellus Shale, the magic number is $4 per Mcf—because drilling in the Marcellus costs less than other plays. The current price of natural gas on the Nymex is currently $3.70 (as of this morning).

Until prices improve, Anadarko will stick to drilling in wet gas areas and not invest in Marcellus drilling. Here’s what Anadarko’s executives said yesterday on an earnings call:

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Hydraulic Fracturing | Industrywide Issues | New York | Statewide NY

JLCNY Endorsements for NY Elections – Solid Republican
November 1, 2012November 1, 2012

The Joint Landowners Coalition of New York (JLCNY) has provided New Yorkers with a handy list of endorsements from their organization for the upcoming election in a 14-county region (see the full list below). The offices they cover are either county, state or federal elections—mostly for New York State Senate and Assembly, with a few congressional and other offices on the list. The JLCNY has not endorsed candidates at the local town board level, instead referring voters to their local landowner coalition for guidance.

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Commodity Price | Economic Impact | Industrywide Issues | Pennsylvania | Wyoming County (PA)

Oklahoma Manufacturer Buys Interest in PA Marcellus Wells
November 1, 2012November 1, 2012

This is a fascinating (to MDN) story about where the industry and economics for shale gas drilling may be heading. Yesterday LSB Industries, an Oklahoma City chemical (and equipment) manufacturer that depends on natural gas as its raw materials, announced they have purchased ownership interest in 14 producing natural gas wells, 7 soon-to-be producing wells and 36 yet-to-drilled wells in the Marcellus Shale, in Wyoming County, PA.

Why would a manufacturing company invest in natural gas wells? As a hedge against natural gas prices going higher—which they believe is going to happen relatively soon. They want a piece of the action that supplies their company with a key raw material, to keep their future costs down. Smart.

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

53 NY Towns Ask to Join Fracking Ban Court Case
October 31, 2012October 31, 2012

While New York Gov. Andrew Cuomo dithers about whether or not to allow fracking in the state, two court cases that will have a profound effect on where fracking can happen (should he finally make up his mind) continue to work their way through the court system. Those cases address of the issue of whether or not local municipalities should have the right to completely ban fracking within their borders—sometimes referred to as “home rule.”

Not long ago MDN updated you on the status of those cases with word that oral arguments are likely to take place in February with a decision by late spring (see this MDN story). A new development in those cases: 53 municipalities have filed a request with the court to join the cases on the side of pro-ban/anti-fracking:

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Economic Impact | Hydraulic Fracturing | Industrywide Issues | Jobs | New York | Statewide NY

NY vs ND Unemployment Rates: Why is One High, the Other Low?
October 31, 2012October 31, 2012

We interrupt this blog post to bring you the following news: New York’s unemployment rate is 8.2% (a full 9% in Chemung County). The Bureau of Labor Statistics reports that 345 out of 372 metro areas in the country (93%) have lower unemployment rates than the New York State average. The lowest unemployment rate in the country? North Dakota—at 2.2%.

Why is ND’s unemployment rate so low? And why is NY’s so high? Is there a connection?

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Commodity Price | Economic Impact | Industrywide Issues | Pipelines

Marcellus May Produce Additional 5Bcf/d of Gas in Next 14 Mo
October 31, 2012October 31, 2012

A blogger on the Seeking Alpha website says the Marcellus is “a ticking time bomb” waiting to “explode” with a tremendous amount of new natural gas production that will flood into the U.S. marketplace over the next 1-2 years. How much new gas? Blogger David White makes a compelling case he believes an additional 5 billion cubic feet of new natural gas will flow—from just the Marcellus Shale region—by the end of 2013.

Here’s his reasoning:

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Economic Impact | Hydraulic Fracturing | Industrywide Issues | Ohio | Pennsylvania | Statewide OH | Statewide PA | Statewide WV | West Virginia

Sandy’s Affect on Drillers in the Marcellus & Utica Shale
October 31, 2012October 31, 2012

Although Hurricane turned Super Storm Sandy gave New York City, Delaware and New Jersey a big, black eye (and we grieve for their losses), further inland Marcellus and Utica Shale drillers prepared for and appear to have avoided any major impacts from the storm. Some production was and still is shut in to avoid potential problems, but given the storm is now mostly gone from the Marcellus and Utica Shale region, shut in production should quickly come back online.

Here’s a Sandy report from four of the largest drillers in the Marcellus:

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Antero Resources | Doddridge County | Energy Companies | Energy Services | Industrywide Issues | MarkWest Energy | Pipelines | Processing Plants | Statewide WV | West Virginia

MarkWest Opens Sherwood I Wet Gas Processing Facility in WV
October 31, 2012October 31, 2012

MarkWest, a huge midstream (pipeline & processing facilities) company and Antero Resources, a Marcellus Shale driller, inked a deal in May 2012 for MarkWest to gather and process Antero’s wet gas, or natural gas liquids in West Virginia (see this MDN story).

MarkWest announced today the first phase of that deal is now online with the commencement of operations at the Sherwood I facility in Doddridge County, WV. The Sherwood I facility has the capacity to process 200 million cubic feet per day of wet gas. MarkWest is building Sherwood II now, which would add an additional 200 Mmcf/d of capacity. Eventually a third Sherwood facility may be built for a total capacity of 600 Mmcf/d.

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