As predicted yesterday (see this MDN story), NY State Sen. Greg Ball, a RINO from Putnam County, introduced legislation into the Senate yesterday that would extend the moratorium on hydraulic fracturing in New York until June 1, 2013. Fortunately not many of his colleagues in the Republican-controlled Senate agree with him, making passage of the bill unlikely.
Read More “Bill to Extend Fracking Moratorium until 2013 Hits NY Senate”
On Tuesday, the anti-drilling Citizens for Pennsylvania’s Future (PennFuture) released a report detailing the problems (from their perspective) with PA Senate Bill 1100 and PA House Bill 1950 which are nearing passage (a copy of the PennFuture report is embedded below). PennFuture’s CEO and president, Jan Jarrett, called on the legislature and Gov. Tom Corbett to throw out the existing bills and instead introduce new, stand alone bills to consider drilling issues separately.
Read More “PA Gov. Responds to PennFuture Criticism of Marcellus Bills”
New legislation will be introduced in the New York Assembly today to extend the moratorium on fracking in New York State until either June, or “the end of” 2013, depending on the news source. MDN previously warned that this was coming (see this MDN story).
The bill will be introduced in the Assembly by Robert Sweeney, and likely will be introduced into the Senate by Greg Ball.
Read More “Bill Extending NY Fracking Moratorium Hits Assembly Today”
An article in Bloomberg Businessweek takes a look at the profound impact shale gas is having on the cost of energy in the United States. One of the biggest eye-poppers in the article: The average price of wholesale electricity has dropped 50 percent on average since 2008. Why? Because electrical generating plants are switching from other forms of producing electricity to using natural gas to produce electricity.
Read More “Shale Gas Leads to 50% Drop in Wholesale Electricity Prices”
The following brief is purely for your entertainment purposes, to illustrate how loony the anti-drilling opposition can get. Yesterday, at a rally in Harrisburg, PA to protest new Marcellus Shale drilling legislation, a Lutheran pastor laid claim that the Bible says we shouldn’t frack.
More details have become known about a proposed new liquefied natural gas (LNG) exporting facility to be built by Gulf Coast LNG Export. The facility, if approved by the U.S. Department of Energy, would be the country’s largest LNG exporting facility, exporting some 2.8 billion cubic feet of natural gas per day to other countries.
Read More “Details on Proposed LNG Export Facility in Texas”
Although pro-drilling groups in New York are attempting to put a positive face on it, yesterday NY Gov. Andrew Cuomo said the state has not yet made a determination on whether fracking will be allowed. Not “when” it will be allowed, but “whether” it will be allowed. He said, “We haven’t made that determination.” His remarks in context were about whether the state will add funding in this year’s budget (being released today) for an estimated 140 regulators that would be needed if fracking were to begin.
At a minimum, it seems Cuomo is saying that fracking won’t be a resolved issue during this budget year, although his remarks are not exactly clear.
Read More “NY Gov. Cuomo Signals Drilling Not Likely to Happen in 2012”
West Virginia Gov. Earl Ray Tomblin has sent proposed new legislation to lawmakers asking for a 25-year break from business property taxes for any company investing at least $2 billion to build an ethane cracker plant in the state. There is a bidding war going on among West Virginia, Ohio and Pennsylvania to attract the plant, a facility that processes ethane from shale gas drilling into ethylene, a raw material used to make plastics.
Read More “WV Gov. Tomblin Proposes 25-Year Tax Break for Cracker Plant”
Although a comprehensive bill to tighten regulations on Marcellus Shale drilling in Pennsylvania along with an impact fee has still not passed the PA legislature, a separate, smaller bill is about to. The smaller bill requires Marcellus Shale well operators to provide geographic siting information to local, county and state EMS officials and to develop an emergency response plan.
Read More “PA Bill Requiring EMS Plan for Marcellus Wells Nears Passage”
Pembina Pipeline Corp., a Canadian oil and gas pipeline operator (based in Calgary), just announced an agreement to buy Provident Energy Ltd. (another Calgary-based company) for C$3.2 billion to add natural gas liquids assets. The combined company will have a market cap of C$7.9 billion and a total enterprise value of C$10 billion, making it one of Canada’s largest energy infrastructure companies. Although the combined company will have far-ranging operations, part of their portfolio includes pipeline capacity to transport shale gas from the Marcellus and Utica Shales into Canada.
Read More “Canadian Pembina Pipeline Buys Provident Energy for C$3.2B”
U.S. Sen. Robert Casey (Democrat, Pennsylvania) has been an outspoken critic of fracking and Marcellus shale gas drilling. He introduced and is lead sponsor of legislation in the Senate called the FRAC Act—Fracturing Responsibility and Awareness of Chemicals (see this MDN story). The title sounds nice with words like “responsibility” and “awareness” in it, but in reality the FRAC Act is a massive power transfer, stripping the right to regulate oil and gas drilling from the individual states and handing it over to the Environmental Protection Agency in the federal government. It’s bad legislation that would gut oil and gas drilling in the United States.
Read More “The Two Faces of Sen. Robert Casey (D-PA) on Shale Drilling”
The Pennsylvania Department of Environmental Protection (DEP) sent a violation notice to Chief Oil & Gas on Jan. 4 for three gas wells in Nicholson Township (Wyoming County) saying there is 100 percent combustible gas between the cemented steel casings, which the DEP uses as a sign of flaws in construction of the well. The investigation began after a nearby resident complained of high methane levels in well water supplies. The DEP is still investigating two nearby water wells with high levels of methane and has not yet determined if Chief’s wells are the cause.
Read More “Possible New Case of Methane Migration in Wyoming County, PA”
Jack Barnes, writing for Money Morning, analyzes the price of natural gas and why it’s so low—and what it ultimately means. He says that numerous shale plays in the U.S. do contribute to an overabundance of supply. But the real culprit, according to Barnes, is that major drillers are going after natural gas liquids (NGL), which can be used in a variety of ways. NGL are closely aligned with the higher price of oil and more valuable. In the process of going after NGL, “dry gas” (or methane) is recovered in the process too. It is the scramble for NGL that leads to an oversupply of methane, and that oversupply keeps natural gas prices low.
Read More “Is the Shale Rush Almost Over? One Analyst Says Yes”
The Pennsylvania Department of Environmental Protection (DEP) has finally gotten around to assessing a fine for a fracking water spill that happened in March 2011—a spill of 800-1,000 gallons of fracking water that the DEP says was preventable.
Read More “PA DEP Fines TerrAqua for Frack Water Spill in March 2011”
Several commenters on MDN have stated that a new 90-day extension to work out terms of a contract between the Teamsters and the Pipe Line Contractors Association (PLCA) has been agreed to and that the strike by some Teamster locals in West Virginia and Pennsylvania is now over.
MDN does not yet have independent verification but will track this and post an update when more information is available from either the Teamsters or the PLCA.
A new entrant has entered the ethane cracker plant sweepstakes, this one claiming they can build a cracker plant for one-third of the cost of others. Earlier this week, Keith Pauley, president and chief executive officer of the Mid-Atlantic Technology, Research & Innovation Center (MATRIC) said that MATRIC has launched a subsidiary company, Aither Chemicals, to leverage “off patent” technology created by Union Carbide in the 1970s that will make building an ethane cracker plant much less expensive than competing technologies.
Read More “Another New Entrant in the Ethane Cracker Plant Sweepstakes”