Industrywide Issues

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    Small Group of Old Hippies Oppose Shell Ethane Pipeline

    A small group boasting a big name, The Breathe Project, recently sent a letter to the Pennsylvania Dept. of Environmental Protection proclaiming their opposition to Shell’s planned Falcon Ethane Pipeline–a 97-mile pipeline system with two “legs” that will feed Shell’s mighty ethane cracker plant now under construction in Monaca, PA. Right. So the DEP and Shell should simply give up on the $6 billion ethane cracker, which can’t operate without ethane to feed it–ethane that will flow through this pipeline. Of course the group’s opposition is for show, maybe for fundraising, and certainly not serious. The funny thing for us was in viewing a picture of some of the members of the group, standing around clutching signs that say SHELL FALCON PIPELINE with a big circle/slash through it. The group, when you look at them, is the geriatric squad. Old folks. In our opinion, they look like old hippies–people who likely protested the Vietnam War in the 60s and have now found their new reason for living–to defeat a small ethane pipeline. On Thursday a tiny protest of the Falcon Pipeline (under two dozen people) caught the interest of the Pittsburgh Business Times on a slow news day…
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    PA Consumers Save $30B Over 10 Years Thx to Marcellus Shale

    Although the push is on to get Marcellus molecules to new markets where they can fetch higher prices, there is one group who has benefited in a major way from an overabundance of cheap, clean-burning Marcellus Shale gas. That would be the residents and businesses located in the great state of Pennsylvania. Industry group Consumer Energy Alliance has just published a new report that reveals PA residents and businesses have saved a cumulative $30.5 billion from 2006-2016 as a result of the decreasing price of natural gas in the state. Can you imagine the economic impact! What president or governor or state legislator wouldn’t salivate over a cash infusion of $30 billion over ten years! It’s mind-blowing. And it’s all thanks to the Marcellus Shale. And that $30B is just the savings that went into folks’ pockets (and got spent on other things). That number doesn’t even take into consider the billions upon billions of dollars paid out in signing bonuses, royalties, and drilling work done. The Marcellus industry has single-handedly lifted many PA residents out of poverty. Hey, how much revenue and how many jobs and how much energy savings have groups like Delaware Riverkeeper, Sierra Club, Clean Air Council, Food & Water Watch, PennEnvironment, PennFuture and other radical Big Green groups generated for PA? What’s that? They’ve actually COST the state money? Think about that the next time you read about these so-called environmental groups and how much they “care” about the Keystone State…
    Read More “PA Consumers Save $30B Over 10 Years Thx to Marcellus Shale”

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    Blockchain: Explaining a Complex New Tech + Impact on O&G

    We don’t know about you, but hardly a day goes by we don’t notice the word “blockchain” in the headlines. Increasingly that word is used in oil and gas news. We had some vague idea that blockchain has something to do with digital currency–using Bitcoin instead of dollars. Whatever Bitcoin is! So what could blockchain possibly have to do with oil and gas? As it turns out, blockchain the technology is much more than just a technology that makes digital currency possible. We spotted an article on the World Oil website about blockchain and took the opportunity to dig into this new tech sweeping the world by storm. Put simply, blockchain is an ironclad “way of tracking things.” Those things can be money (the earliest adopter of the technology), but also other things, like legal documents. The technology can also be used to guard against hackers breaking into a company’s network. Cybersecurity is often mentioned as a huge benefit of using blockchain in the oil and gas industry. Blockchain tech can protect against hackers breaking into a remotely controlled drilling rig, for example. Or breaking into a computer that controls shipments of goods and materials. Drilling companies have some of the most complex logistics operations in the world. They plan out drilling new shale wells up to a year in advance, coordinating it so that trucks hauling equipment (even the rig itself) arrive on the exact day they need to be there. And they coordinate deliveries of water and sand used in fracking–down to the day those deliveries need to arrive, figuring out how to get them shipped via train and truck. A year in advance! Can you imagine a hacker breaking into a network and screwing with that information? It could be economically catastrophic for the driller. Blockchain guards against it. Here’s more about blockchain and how it’s coming (fast) to the shale industry…
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    Price of PA Marcellus Gas Going Higher, Even with More Production

    In an interesting coincidence, we spotted two different stories on the same day about the price of gas in the Marcellus Shale–detailing how prices this year are much higher than they were last year at this same time, and speculating that the perhaps we have finally turned a corner and our prices (compared with the benchmark Henry Hub price) will stay higher. Which is good news for both drillers and landowners who get royalty checks from those drillers. Why are northeast gas prices higher today and staying higher? In a word, pipelines. With Rover Pipeline now online and the final laterals that feed it going online soon, with NEXUS coming online by the end of this year (both of those projects carting gas to the Midwest and Canada), and with Atlantic Sunrise and other pipelines coming online to cart gas to the south, even as far as the Gulf Coast, Marcellus/Utica molecules are finding new homes in higher-paying markets. As Martha Stewart says, “That’s a good thing!”…
    Read More “Price of PA Marcellus Gas Going Higher, Even with More Production”

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    BLM Panders to Radicals, Cancels OH Wayne Natl Forest Auctions

    Wayne National Forest

    One step forward and two steps back. That’s the modus operandi of the federal Bureau of Land Management (BLM) and the DC swamp dwellers who run it. After 10 long years, BLM finally began to auction a small amount of acreage in Wayne National Forest (WNF) in 2016 (see BLM Launches Auction to Lease Wayne National Forest for Fracking). WNF is a “patchwork” of public land scattered among private land. Some 60% of the mineral rights below WNF are privately owned. Those mineral rights owners have been denied the use of their property rights for over a decade. BLM controls drilling on federally-protected lands like WNF. BLM eventually conducted four (we think it’s four) auctions with under 2,000 acres total. And yet BLM still refuses to let drilling commence (see BLM Blocks Eclipse from Completing Utica Well in Wayne Natl Forest). On August 7 BLM announced another auction, for a piddly 75 acres. A radical Big Green group (far far out of the mainstream) called the Center for Biological Diversity protested the auction, and on August 28 BLM canceled the auction “while an appeal is under consideration.” That’s all it takes. Throw some Big Green money at eager radical lawyers, and everything stops. That’s all the excuse BLM needs. Who the heck in the Trump Administration is in charge of BLM? And why is this happening during Trump’s watch??…
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    2 New Protesters Take to Trees in Va. to Stop Mountain Valley Pipe

    Tree sitters protest the Mountain Valley Natural Gas Pipeline, Sept. 5, 2018 (Photo courtesy Lauren Bowman)

    We thought we had seen the last of Big Green protesters with names like “Ink,” “Sprout,” “Red,” “Nutty,” “Fern” and “Decard” illegally sitting in the tops of trees (or on poles) in Virginia as a tactic to prevent Mountain Valley Pipeline (MVP) from cutting trees along the path of the pipeline. Nope. We have two more: “Lauren” and “Nettle.” Two youngsters (early 20s) have built themselves a make-shift tree house in Montgomery County, VA.–in the path of trees that are due to be cut down for MVP. Draping a banner that says, “No Prisons, No Pipelines” (whatever that means), the two nutjobs say they pick and choose which laws they want to obey. Which is called anarchy. But that’s their philosophy. They don’t agree with the law that says EQT Midstream has the right to build MVP, so they’re illegally attempting to stop it. As near as we can tell, they’ll have a long wait. Due to federal laws protecting bats and other so-called endangered species, MVP can’t cut those trees until November. At least that’s our understanding. At any rate, we now have two more protesters who will need to be starved or otherwise forced out the trees. When that finally happens (as it will), the police need to send a bill for their services to the protesters, not MVP…
    Read More “2 New Protesters Take to Trees in Va. to Stop Mountain Valley Pipe”

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    Riverkeeper Lawsuit Against Atlantic Sunrise Tossed by Fed Court

    In May 2016, three Big Green groups–THE Delaware Riverkeeper, Lancaster Against Pipelines and the Sierra Club (fueled by money from the William Penn Foundation and Heinz Endowments)–conspired and sued the Pennsylvania Dept. of Environmental Protection (DEP) saying the DEP erred in granting federal Clean Water Act “401” stream crossing permits for Williams’ Atlantic Sunrise Pipeline project (see Dela. Riverkeeper Launches Lawsuit Against Atlantic Sunrise Project). It took nearly two and a half years, but yesterday the U.S. Court of Appeals for the Third Circuit finally rejected the lawsuit. Although the lawsuit was frivolous and a long-shot to begin with, we’re glad to see it resolved. It’s never good to have these lawsuits hanging out there–especially since startup of Atlantic Sunrise is coming any day now, which will be the ultimate victory over these nutters (see Atlantic Sunrise Pipeline Slightly Delayed, Ready by Sept 10). Riverkeeper’s Maya van Rossum, who fancies herself the sole protector of the Delaware River, threw a snit fit…
    Read More “Riverkeeper Lawsuit Against Atlantic Sunrise Tossed by Fed Court”

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    NJ Towns Win Delay for Phase 2 of Garden State Expansion Pipe

    You win some, you lose some. Today we brought you the news that THE Delaware Riverkeeper and other radical groups lost their case opposing the Atlantic Sunrise Pipeline project (see Riverkeeper Lawsuit Against Atlantic Sunrise Tossed by Fed Court). However, the same court, the U.S. Court of Appeals for the Third Circuit, went the other way on a different Williams project. Last August two New Jersey towns sued in federal court, seeking to overturn a decision by the Federal Energy Regulatory Commission (FERC) to approve Williams’ Transco Garden State Expansion pipeline project (see FERC Fights NJ Town Effort to Decertify Garden State Expansion). The project was created to address supply disruptions following Superstorm Sandy in 2012. By upgrading compressor stations and adding a new meter station, the Garden State Expansion project will supply an extra 180 million cubic feet per day (MMcf/d) of natural gas to “a new delivery point on Transco’s existing Trenton Woodbury Lateral pipeline.” Two towns in Burlington County (Bordentown and Chesterfield) where some of the work would be done for Phase 2 of the project filed a lawsuit asking the Third Circuit to overturn FERC’s previous decision to allow the project. They also asked that permits issued by the New Jersey Dept. of Environmental Protection (NJDEP) be revoked. Yesterday the court ruled that NJDEP erred by issuing permits for the project. However, the court ruled that the towns’ challenges to FERC’s order allowing the project lack merit (and were dismissed). So, a partial victory–but still more delays because of the ruling re NJDEP…
    Read More “NJ Towns Win Delay for Phase 2 of Garden State Expansion Pipe”

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    Responding to Sore Loser Antis re Shale Court Cases

    Blond Boy Crying

    Ever notice how antis get all hot and bothered when they lose a court case? They holler and scream and rant and rave. Some even lay down and roll on the floor like two-year-olds. The refrain is always the same: “The court sided with the natural gas industry!” But that claim is not true. The editorial writers at the Charleston (WV) Gazette-Mail recently penned an editorial that, in so many words, tells antis to grow up. They do an excellent job of pointing out the courts are not siding with the industry, they’re siding with the law. Which is a strange and unfamiliar concept for many snowflake antis who were never told “NO” by their parents…
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    Rover Pipe Asks FERC to Start Up Final 2 Laterals, for Antero

    We finally come down to the final two lateral pipelines for Rover. The Federal Energy Regulatory Commission (FERC) played a game of hardball with Energy Transfer (ET) over the Rover Pipeline. For months FERC refused to allow four Rover laterals–feeder pipelines to shuttle gas from where it’s produced into the main Rover pipeline–to start up (see FERC Plays Hardball with Rover – Refuses to Certify 4 Laterals). The reason? ET had not, according to FERC, lived up to its word on restoration work. Things like smoothing over the dirt and replanting grass/other vegetation over top of the buried pipeline. In early August ET assured FERC it would have the majority of restoration work done on two key laterals–the Burgettstown Lateral in southwestern PA, and the Majorsville Lateral in the northern panhandle of WV–by the end of August. FERC made ET sweat. Finally, near the end of August, FERC gave ET permission to start up both the Burgettstown and Majorsville Laterals on Sept. 1 (see FERC Finally Approves 2 Key Rover Pipeline Laterals, Sept 1 Start). That leaves just two final laterals, the CGT (Columbia Gas Transmission) and Sherwood Laterals, still not online. On Friday ET asked FERC to approve the startup for those two laterals, along with a compressor station and two meter stations associated with them. The driller with the most at stake in the startup of these two final laterals is Antero Resources…
    Read More “Rover Pipe Asks FERC to Start Up Final 2 Laterals, for Antero”

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    2nd PA Toilet Paper Plant Converting from Coal to Gas-Fired Elec

    In early 2013, the Proctor & Gamble manufacturing plant in Wyoming County (northeastern PA) began generating 100% of its own energy needs thanks to the Marcellus Shale beneath plant property (see PA P&G Plant: 100% Energy Self-Sufficient from Marcellus Gas). The plant, which manufactures Pampers and Luvs diapers and Charmin toilet tissue, uses a LOT of electricity and natural gas. They built their own gas-fired electric plant and began generating all of their own electricity–enough electricity to power 40,000 homes! Fast forward to today. P&G competitor Kimberly Clark has just announced that it too will build a gas-fired electric plant, in Delaware County (near Philadelphia), to power its plant that manufactures Scott 1000 toilet paper. What is it about toilet paper and gas? Kimberly Clark is getting a $6 million grant from PA toward the $150 million project. Make way for another new major customer for PA’s Marcellus fracked gas…
    Read More “2nd PA Toilet Paper Plant Converting from Coal to Gas-Fired Elec”

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    Pittsburgh Utility Experiments with NatGas Fuel Cells in Homes

    An intriguing concept: What if you could generate your own electricity for your own home–without big, ugly solar panels plastered on your roof, or without an unsightly (and loud) wind mill stuck in your yard? What if all you need is a natural gas pipeline connected to your home. What’s that? You don’t want to contribute to man-made global warming by *burning* natural gas? No problem. This nifty little invention, called a fuel cell, uses natural gas in a *chemical* reaction to create electricity. These types of fuel cells have been around for a while, but what’s new is that they are now getting good enough to be commercially viable. Peoples Natural Gas, the largest natural gas distribution company in PA, providing natural gas service to approximately 700,000 customers in western PA, West Virginia, and Kentucky, has cut a deal with a Westmoreland County fuel-cell manufacturer to put 100 test systems in customer’s homes to create electricity at home. It’s an experiment. If all goes well, more will be deployed. Remember when cable companies first began offering internet access, then telephone access? Yeah, electric utilities and electric generators might want to look over their shoulder. They may get some serious competition! If natgas fuel cells ever take off for the residential market, demand for natural gas would be ginormous. Hence our interest. Is this technology anywhere near mainstream yet? No. But let’s keep a close eye on this potential new market for Marcellus/Utica gas. It may happen sooner than you think…
    Read More “Pittsburgh Utility Experiments with NatGas Fuel Cells in Homes”

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    Making Sense of Insane NY – How Radicals Pressure Cuomo re NatGas

    If you live in New York State, as MDN editor Jim Willis does, you often shake your head at the stupidity of our political leaders. Especially people like Gov. Andrew Cuomo. How could he, in good conscience, turn against natural gas and block pipelines, electric plants and fracking? Is he obtuse? Is he getting paid-off by someone? There has to be a reason for his obviously irrational behavior. What is that reason? We have, perhaps, a better understanding now. The radical left is well-organized–think Saul Alinksy, Obama and Hillary Clinton’s idol. Taking a chapter from Alinksy’s “Rules for Radicals” book, the green radicals in NY have organized themselves to pressure Cuomo. We’d call it highly organized and well-funded. The radicals have weekly meetings, plan strategy, and motivate groups of blind followers to show up and heckle Cuomo at public events. And guess what? Cuomo caves–every time. Like a house of cards. The radicals have found the magic formula to pressure Cuomo into doing their bidding. Andrew Cuomo is actually weak-willed. He’s a patsy for the green movement because he fears them, fears a public shaming by them. And so they have their way with him–every time. None other than a liberal Gannett reporter has outed Cuomo as a Big Green patsy…
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    Captain Planet Cartoon that Brainwashed Kids, Now a Foundation!

    You know, for years we’ve poked fun at green leftists, saying they were raised watching Captain Planet cartoons–and that’s what warped their brains. Little did we know how right we were in our jocularity! Captain Planet was a cartoon created and produced by Ted Turner & Barbara Pyle, airing from 1990-1996. Did you know that there’s now a foundation, endowed with big bucks, called The Captain Planet Foundation? No lie! It was set up in 2001, funded by Turner and other lefty whack jobs. This is what we’re up against folks. The Captain Planet cartoon, brainchild of radical leftist Democrat Ted Turner (Turner Broadcasting), intentionally brainwashed a generation of our children, planting kindergartenish, simpleton ideas into our children’s heads. Unfortunately some of our kids never grew up. Not intellectually. Some of them still harbor childish, immature ideas that corporations are out to “loot and plunder”–there’s a character in CP cartoons called Looten Plunder, no lie. Do you know how silly it looks to support a foundation based on a kid’s cartoon?…
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    PA Natural Gas Production Hits Another All-Time High in 2Q18

    Last Thursday the PA Independent Fiscal Office (IFO) released their latest quarterly Natural Gas Production Report for Apr-Jun 2018 (full copy below). It shows natgas production rose 9.9% compared to the same period last year–same as the increase in 1Q18 (see PA Natural Gas Production Hits New All-Time High in 1Q18). The report also shows the number of producing wells is up 10.4% from last year. Total natural gas production volume was 1,455.8 billion cubic feet (Bcf), and the number of producing wells in 2Q18 was 8,672 (of which 8,194 were shale wells). The biggest news is that once again 2Q18 saw the highest quarterly production of natural gas in the state–ever. This is the seventh quarter in a row there has been an increase in production. Two-thirds of the state’s natural gas production consistently comes from four counties: Susquehanna, Washington, Bradford and Greene. The #1 county for natgas production in 2Q18 was, as it was in each quarter of 2017 and in 1Q18, Susquehanna County, in the northeastern corner of the state. The #1 producing driller in Susquehanna County is Cabot Oil & Gas. Here’s the full 2Q18 natural gas production report from the IFO…
    Read More “PA Natural Gas Production Hits Another All-Time High in 2Q18”

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    Shell Ethane Cracker Gets Reprieve from Trump Steel Quotas

    Shell ethane cracker plant under construction in Monaca, PA – so many cranes you can’t count them!

    RINO Pat Toomey can rest easy–there will be no delays in building the $6 billion Shell ethane cracker near Pittsburgh. The Trump Administration previously slapped a 25% tariff (i.e. tax) AND quotas on imported steel coming from countries dumping steel in our markets, driving out our own steel industry. Last week Trump lifted the quota from steel coming from certain countries, including Brazil. Shell is getting steel they need for the cracker from Brazil. Indeed, Shell’s Brazilian steel is already sitting in a U.S. port, undelivered due to the quota (a limit on how much can be imported). Now Shell’s steel can get shipped to Pittsburgh and used by the army of people working there. But get this: Shell will still have to pay the 25% tariff/extra charge for their Brazilian steel. Toomey, an early and persistent Trump critic (and a DC swamp dweller), one of PA’s two U.S. Senators, recently claimed Trump’s quotas/tariffs would result in layoffs and delays at the cracker (see Sen. Pat Toomey Claims Trump Tariffs Will Delay Shell Cracker). With that barrier now gone, Toomey will have to find something else to criticize about Trump. How about his hair?…
    Read More “Shell Ethane Cracker Gets Reprieve from Trump Steel Quotas”