Industrywide Issues

Commodity Price | Economic Impact | Hydraulic Fracturing | Industrywide Issues

The Reason We Have Low Natural Gas Prices: Marcellus
June 25, 2012June 25, 2012

Startling new statistic from Bloomberg: The United States was able to produce enough energy from homegrown sources to meet 81 percent of our energy demand in 2011. Why? The miracle of hydraulic fracturing of shale.

Second startling new statistic: The Marcellus Shale alone produced 6.3 billion cubic feet per day in March. That’s enough gas to meet 62% of natural gas demand in 11 eastern states from Maine to Maryland. Astonishing.

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Air Quality | Hydraulic Fracturing | Industrywide Issues

OSHA Issues Hazard Alert for Sand Used in Fracking
June 25, 2012June 25, 2012

A few weeks MDN wrote about potential health hazards to those who work with hydraulic fracturing from the sand used in the process (see this MDN story). That sand is silica, or crystalline sand. Very very fine—think extremely small like asbestos particles. And like asbestos, proper precautions must be taken when working around it to prevent it from lodging in the lungs and causing lung cancer.

The Occupational Safety and Health Administration (OSHA) along with the National Institute for Occupational Safety and Health (NIOSH), both federal agencies, have jointly issued a hazard alert for workers who handle sand during the process of fracking:

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Aither Chemicals | Energy Services | Industrywide Issues | Kanawha County | Processing Plants | Statewide WV | West Virginia

Aither Chemicals Still Trying for a Cracker Plant in WV
June 22, 2012June 22, 2012

Will West Virginia ever get its own ethane cracker plant? It will if Aither Chemicals, based in South Charleston, WV has any say in the matter. MDN has been following the Aither story for some time. Aither Chemicals, a spin-off/subsidiary of Mid-Atlantic Technology, Research & Innovation Center, was established to build and operate ethane cracker plants that use modern technology making the plants smaller and less expensive to build and operate than tradition cracker plants (see this MDN story for background).

Aither had a deal in principle with Bayer CropScience and MarkWest Energy to build one of these “new” kinds of cracker plants in the Charleston, WV area. That deal was set to be officially announced in mid-March (see this MDN story). But then the wheels came off the wagon and all was silent. No deal, no announcement. Until now.

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Belmont County | Energy Companies | Guernsey County | Gulfport Energy | Harrison County | Hydraulic Fracturing | Industrywide Issues | Ohio

Gulfport Drills Longest Horizontal Utica Wells to Date
June 22, 2012June 22, 2012

Gulfport Energy reports it has just completed drilling the two longest horizontal Utica Shale wells—ever. The horizontal portion for one of the wells, located in Harrison County, Ohio, went over 1.5 miles.

Here’s the particulars:

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Commodity Price | Industrywide Issues

What’s the Reason Natural Gas Prices are So Low?
June 22, 2012June 22, 2012

Why are natural gas prices at historically low prices? According to gas pricing experts, you can sum it up in a single word: Marcellus.

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Hydraulic Fracturing | Industrywide Issues

CNBC Special Report on Natural Gas and Shale Fracking
June 22, 2012June 22, 2012

A CNBC “special report” asks the question: Who’s Winning the Natural Gas Game? The special report is actually a series of articles they’ve posted looking at various aspects of natural gas, including the controversy over the hydraulic fracturing of shale gas.

Part of the special report includes a poll. The poll itself, although an unscientific sample, illustrates the ongoing split in opinion of the general population on the issue of fracking. The poll asks, “Is Shale-Gas Fracking Environmentally Safe?” Here’s the results as of this morning when MDN voted:

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Energy Services | Hydraulic Fracturing | Industrywide Issues | U.S. Silica

New Deal Brings Midwest Sand to Marcellus/Other Shale Areas
June 22, 2012June 22, 2012

Sand is a key ingredient in the hydraulic fracturing process. A special kind of sand, referred to as crystalline sand, is injected into cracks made during fracturing and stays in the cracks, propping them open so the gas can continue to come out (which is why it’s called a “proppant”). More sand will be on the way to the Marcellus and Utica region due to a new agreement between U.S. Silica, the nation’s second-largest sand producer, and Canadian Pacific Railway (CP). CP will be the exclusive rail shipper for U.S. Silica’s new frack sand facility being constructed in Wisconsin.

From the CP press release announcing the exclusive deal with U.S. Silica:

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Hydraulic Fracturing | Industrywide Issues | Ohio | Statewide OH

Wildlife Federation Sounds Alarm on Fracking in OH, MI
June 22, 2012June 22, 2012

Sadly, we have to add the National Wildlife Federation to the list of rabid anti-drilling groups. In fact, a check of the NWF website shows they’ve drunken so deeply from the anti-everything pool they’re beyond redemption. The latest “wild” charge they’re making (pun intended) is that natural gas drilling, specifically fracking in Ohio and Michigan, will use excessive amounts of water from the Great Lakes and is an imminent danger to people and animals.

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

Local Politicians Gather in Albany, NY to Support “Home Rule”
June 21, 2012June 21, 2012

A number of New York State local government officials gathered in Albany on Monday, June 18 to talk about and support a new initiative to grant local municipalities the legal right to control oil and gas drilling in their borders. The concept is referred to as “home rule” and it’s gathering momentum with both Democrats and even with some Republican state legislators.

The event was sponsored by a group of anti-drilling groups, including Sustainable Otsego, Catskill Citizens for Safe Energy, and Otsego 2000. The anti-drilling group Shaleshock was also present and videoed the speakers. They offer the video on their website (click the link below to view it).

This was the press release about the home rule gathering:

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Economic Impact | Energy Companies | Industrywide Issues | Jobs | Pennsylvania | Shell | Statewide PA

PA Gov. Corbett Press Conference on Shell Cracker Plant
June 21, 2012June 21, 2012

Pennsylvania Gov. Tom Corbett continues to push hard to get his package of tax incentives for a Shell ethane cracker plant passed before the state legislature goes on summer break at the end of June. Looks like it’s paid off. Word has come out the legislature will pass his proposed package.

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Coshocton County | Industrywide Issues | Jobs | Muskingum County | Ohio

Utica Shale Drilling Causes Unemployment Drop in Eastern OH
June 21, 2012June 21, 2012

The Coshocton County, Ohio unemployment rate has been stubbornly high, but now it’s starting to move lower. In May of this year the unemployment rate for Coshocton stood at 9.3 percent. It was 10.2 percent in April, one month earlier. And if you go back a year to May 2011, it was 11.3 percent. In fact, the current 9.3 percent rate is the lowest rate seen in Coshocton County since 2008.

What’s caused the Coshocton unemployment rate to go 2 percent lower in just one year? Yep, much of it can be credited to Utica Shale drilling.

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Hydraulic Fracturing | Industrywide Issues | New York | Statewide NY

Josh Fox Releases Short Movie Targeting Gov. Andrew Cuomo
June 21, 2012June 21, 2012

Josh Fox, a talented movie-maker and master purveyor of half-truths and outright lies in the mostly fictional movie Gasland, has just released a new short “documentary” called The Sky is Pink aimed squarely and solely at New York Gov. Andrew Cuomo. It seems the anti-drilling movement is desperate to prevent any kind of high volume hydraulic fracturing from getting a fair evaluation in New York State—so they’re pulling out all the stops to try and make sure it doesn’t.

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Hydraulic Fracturing | Industrywide Issues | Monroe County (NY) | New York | Regulation

Rochester, NY Votes to Ban Fracking for 1 Year
June 20, 2012June 20, 2012

Et tu Rochester? Rochester, NY is the latest New York municipality to ban hydraulic fracturing. Their ban is for one year.

Seems Cuomo’s trial balloon to allow fracking (nowhere near Rochester) and the soon-to-be-released new drilling rules from the state DEC have scared some uninformed politicians, like those in Rochester, into acting rashly.

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Economic Impact | Industrywide Issues | Jobs | Ohio | Statewide OH | Tuscarawas County

Just How Big Will Shale Oil/Gas Drilling Get in Ohio?
June 20, 2012June 20, 2012

The Tuscarawas Oil and Gas Alliance (TOGA) Summit was held on Tuesday, June 19 at the Performing Arts Center at Kent State Tuscarawas, Ohio. One of the speakers was Rhonda Reda, executive director of the Ohio Oil and Gas Energy Education Program (OOGEEP). She said in 2011 there were 33 shale wells drilled with 5 in production, and by 2015 eastern Ohio will see some 4,000 new shale wells, mostly in the Utica Shale.

Reda had a number of statistics and predictions for how large the drilling boom will get in Ohio. Among the statistics she highlighted:

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Alternative Energy | Hydraulic Fracturing | Industrywide Issues

Iconic Environmentalist James Lovelock Loves Fracking
June 19, 2012June 18, 2012

I love it. One of the biggest environmentalist gurus of the past 40 years has been British scientist (formerly with NASA) James Lovelock. It seems Dr. Lovelock has had a change of heart. He’s in favor of fracking and says Britain should be “going mad on it.” He also says the modern green movement has turned into a religion and its theories are “meaningless drivel.”

From a story in the UK Daily Mail:

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Air Quality | Devon Energy | Energy Companies | Industrywide Issues | Regulation

EPA Air Pollution Rules Targeted at Senate Hearing Today
June 19, 2012June 18, 2012

Today, Devon Energy Corp.’s environmental manager Darren Smith will testify before the Senate Environment and Public Works Committee in Washington, D.C. about the Environmental Protection Agency’s badly overestimated data on the amount of so-called fugitive emissions that escape from a natural gas well when it’s drilled (a copy of his full testimony is embedded below).

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