Industrywide Issues

Alternative Energy | Industrywide Issues | Pennsylvania | Statewide PA

PPG Columnist “Stuck in the Middle” of Marcellus Debate
May 31, 2012May 31, 2012

Brian O’Neill, a columnist for the Pittsburgh Post-Gazette and author of the book The Paris of Appalachia: Pittsburgh in the Twenty-first Century, writes in a PPG column today that although his heart is with the enviro-left movement, his head tells him that shale gas is the best option for now.

O’Neill puts himself squarely in the middle of the gas drilling debate with clowns to his left and jokers to his right. He’s a true believer in man-caused global warming but believes that natural gas is the “other” (and preferred) fossil fuel, like pork is the other white meat.

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Economic Impact | Industrywide Issues | Pennsylvania | Statewide PA

Short Line Railroads Roar Back to Life in Marcellus Region
May 31, 2012May 31, 2012

The renaissance in short line railroads because of shale gas drilling continues. Information from a panel presentation at the recent Pennsylvania Rail Freight Seminar brings us this news:

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Economic Impact | Hydraulic Fracturing | Industrywide Issues | Jobs

AGA Report: The Profound Impact of Shale Gas
May 31, 2012May 31, 2012

Last week the American Gas Association (AGA) released a new economic report detailing that on average, customers saved $175 on their natural gas bills due to the abundant supplies of natural gas in the U.S., mostly from shale gas. Commercial customers saved an average $1,100 per year (see a copy of the full report embedded below).

The report also shows that for 2011, new jobs generated by the shale industry in this country was 150,000—or 9 percent of all new jobs created. Additionally, another 194,000 jobs were held by people who provide goods and services to the shale industry. Astonishing for a single industry to have such a profound impact. As MDN has recently reported, UGI and other utilities are cutting gas rates for customers—drastically. And all because of hydraulic fracturing of shale gas.

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Chesapeake Energy | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Regulation

EPA Study: Marcellus Fracking Does NOT Impact Drinking Water
May 30, 2012May 30, 2012

This is big news folks. You may recall that the federal Environmental Protection Agency (EPA) is conducting a multi-year study of hydraulic fracturing in a transparent attempt to seize control of oil and gas drilling in the U.S.—grabbing that control away from the individual states who are empowered under the U.S. Constitution to regulate drilling in their own states. As part of the EPA study, they are analyzing water samples in locations where there has been a lot of shale gas fracking (see this MDN story for a copy of the EPA’s study plan).

Chesapeake Energy participated shoulder to shoulder with the EPA by taking water samples at the same time and from the same locations in Bradford County, PA. They then had those water samples analyzed by accredited laboratories, and the results analyzed by an independent specialist. Here’s what they found…

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Hydraulic Fracturing | Industrywide Issues | Regulation

IEA Releases “Golden Rules” for Shale Gas Drilling
May 30, 2012May 30, 2012

The International Energy Agency (IEA), an independent organization formed in the early 1970s in response to the oil shortage and composed of 28 member countries including the U.S., released a shale gas report report yesterday they call “Golden Rules for a Golden Age of Gas” (a copy of the full report is embedded below). The new Golden Rules report is the IEA’s attempt at encouraging the growth of the natural gas industry. Their “expert” opinion and prescription? Drillers need to behave themselves, countries and local governments need to highly regulate shale gas drilling, and if those two things happen, the general population will accept it.

Saying that drillers need to “earn and maintain their social license to operate,” the report’s chief author maintains that without public trust the very new and in many ways infant shale gas industry will die. She also admits the prescriptions they outline will increase the cost of drilling by at least 7 percent, but she maintains without these measures, that 7 percent will be better than no drilling at all.

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

PA Political Left Believes Marcellus Compact is DOA
May 30, 2012May 30, 2012

Lest you think that MDN is just so much right-wing, Tea Party-spouting bilge when we make quips about the politics of drilling, we offer the following into evidence that our views and opinions are dead-on accurate.

Yesterday MDN wrote an article about the so-called Marcellus Compact, a set of six bills that have been introduced by left-wing PA Democrats in what MDN considers an attempt to have an issue to run on in the next election (see this MDN story). MDN pointed out the bills have no chance of passage.

It seems the left shares the same view as MDN about the Marcellus Compact. To wit:

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Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Statewide PA

PA Bill Makes Using Acid Mine Water More Likely
May 30, 2012May 30, 2012

One of the more intriguing developments over the past year or so is that drillers in Pennsylvania have considered using acid mine drainage as a source of water for hydraulic fracturing. Water that flows from abandoned coal mines creates acidic water, some 300 million gallons of it per day, destroying plants and fish in some 5,000 miles of Pennsylvania’s waterways. If drillers were to use it, it would address two issues: cleaning up acid mine drainage, and reducing the need for fresh water needed for fracking. Everyone wins, right? Life is never that easy.

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Accidents | Education | Hydraulic Fracturing | Industrywide Issues | New York | Pennsylvania | Statewide PA

UB Backs Away from Own Shale Institute’s New Study
May 29, 2012May 29, 2012

A few weeks ago the new natural gas institute at SUNY University at Buffalo (UB) released a 52-page study that found environmental problems caused by Marcellus Shale gas drilling in Pennsylvania were isolated, mostly minor and on the decline (see this MDN story for a copy of the study). The high priests of the enviro-left could not let a study favorable to the drilling industry stand, so a fast and furious mud-slinging contest began to see if they could besmirch, ridicule, criticize and otherwise try to blunt the effect of such a study. Their concerted (and coordinated?) campaign is having an effect.

The University at Buffalo is now distancing itself from the study, even though the study was rigorous and academically sound. Such are the vagaries (and lack of intestinal fortitude) in academe.

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Commodity Price | Economic Impact | Industrywide Issues | Muskingum County | Ohio

New Gas-Fired Electric Power Plant in Ohio
May 29, 2012May 29, 2012

Another story about how electric generating plants are switching from coal to natural gas. This one comes from Ohio, where Appalachian Power brought a newly completed gas-fired plant in February near Dresden. Why switch from coal to gas? It’s all in the economics. The cost of coal has skyrocketed from $43.75 per ton in 2007 to $63.78 in 2011, an increase of 46 percent. At the same time, natural gas has gone from over $14 per million Btus to around $2.70 today. Need we say more?

But at what price is it more economical to use coal rather than natural gas? Thanks to Appalachian Power, we now know.

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

PA Dems Introduce 6 New Bills to “Fix” Act 13 Drilling Law
May 29, 2012May 29, 2012

Pennsylvania Democrats have introduced a series of six grandstanding bills into the state legislature called the “Marcellus Compact” that stand no chance of passage. But that’s not why they introduced them. The purpose is to have an issue they can demagogue as they try to win back control of one or both state houses in the next election.

According to the Dems and the sycophantic media that supports them:

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Bradford County | Industrywide Issues | Litigation | Pennsylvania | Pipelines | Statewide PA

PA Court Overturns Lower Court on Zoning Compressor Plants
May 29, 2012May 29, 2012

A new ruling in Pennsylvania’s Commonwealth Court will have far-reaching implications for municipalities that try to apply zoning regulations to a select part of the drilling process, like compressor stations. Compressor stations are necessary to move gas along pipelines—from the well to a point where the gas can be processed and eventually sold. A three judge panel has just overturned a lower court’s decision on whether or not townships can regulate compressors separately from other drilling activities.

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Industrywide Issues | Jobs | Pennsylvania | Statewide PA

PA Engineering Firms Expand During U.S. Recession – Why?
May 29, 2012May 29, 2012

There’s one industry that’s been recession-proof over the past four years. Can you guess which one?

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Accidents | Bradford County | Chesapeake Energy | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Pennsylvania

Possible New Case of Methane Migration Near PA Gas Wells
May 25, 2012May 25, 2012

A potential case of methane migration from nearby Marcellus Shale gas well drilling is being investigated by the state Department of Environmental Protection (DEP) in Bradford County, PA. Three residential water wells and two streams have high levels of methane. A Chesapeake drilling operation is located about a half mile from the residential water wells.

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Hydraulic Fracturing | Industrywide Issues | Ohio | Regulation | Statewide OH | Wastewater

Ohio Passes New Drilling Law, Gov. Kasich Will Sign
May 25, 2012May 25, 2012

Ohio’s new shale oil and gas drilling legislation (SB 315) has now passed both the House (73-19) and the Senate (21-8) and is on the way to Gov. John Kasich’s desk for his signature, which it will receive. The bill as passed is 220 pages long and wide-ranging in its scope, covering not only shale oil and gas extraction, but renewable energy, water conservation, and wastewater treatment. The bill reportedly contains some of the strictest rules in the nation for hydraulic fracturing.

So what’s in the bill? MDN doubts you want to read through 220 pages to find out. Embedded below is the 70-page summary overview version. However, here’s a few brief highlights of what’s in it:

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Exporting | Industrywide Issues

Japanese Invest Big Money in U.S. Shale Gas
May 25, 2012May 25, 2012

The Japanese have a huge appetite for U.S. shale gas and they’re investing big money to get access to it. Two Japanese and a French firm are putting up $1 billion of the $5 billion cost to build a liquefied natural gas (LNG) export terminal in Louisiana. Now all they need is government approval for the exports.

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Hydraulic Fracturing | Industrywide Issues

FracFocus.org Chemical Reporting Service Expands Rapidly
May 25, 2012May 25, 2012

FracFocus.org, the hydraulic fracturing chemical registry website, is now just over one year old and contains detailed information on the fracking chemicals used in over 18,000 hydraulically fractured wells. FracFocus.org is an independent organization that enjoys both drilling industry and environmental group support. With over 200 drillers now submitting data to the FracFocus.org website, it has become the de facto standard source for fracking chemical data, expanding rapidly each month as more and more drillers use the service.

A press release issued today describes FracFocus.org in more detail and links to online training offered by the organization along with a video of highlights from the past “wild ride” year:

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