Ethane Storage a Hot Topic at Shale Insight – Who Will Use It?
One of the major themes at last week’s Shale Insight conference was NGLs (natural gas liquids), in particular ethane–and how the petrochemical industry that uses those NGLs will revolutionize the economic landscape of western PA, eastern OH, and northern WV–the tri-state area. One of the hottest of the hot topics is ethane storage. As we reported in early September, a research team from West Virginia University spent the past year studying geologic regions in 50 counties in the Marcellus/Utica Shale region to see if our region would support a proposed $10 billion ethane storage hub (see WVU Appalachia Ethane Storage Hub Final Report – We Need it Bad). The conclusion? Heck yeah! WVU researchers released their findings in a 181-page report titled “A Geologic Study to Determine the Potential to Create an Appalachian Storage Hub for Natural Gas Liquids.” Among the study’s findings: A shale ethane storage hub could help create $36 billion in investment and more than 100,000 permanent jobs. The report and its findings were on the lips of a number of speakers at Shale Insight…
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In August the D.C. Court of Appeals ruled in a case that (we previously thought) may have long-term, very negative consequences for the oil and gas industry related to pipeline development (see 
Last Friday the U.S. Energy Information Administration, our favorite government agency, released its Natural Gas Annual 2016 report (full copy below). Weighing in at 214 pages, this report is full of data. It is a datamonger’s dream come true. A few highlights: In 2016, U.S. dry gas production actually FELL from the previous year, the first time that has happened since 2005. Texas saw the biggest dry gas production decline (10%), while Pennsylvania had the biggest increase in production (10.2%). This is the fourth straight year PA production has gone up–thank you Marcellus Shale! Natural gas consumption across the country reached a new record high–for the seventh year in a row. Imported natural gas went down again–for the ninth year in a row. Here’s the full report, and a few bullet point highlights to feed your inner datamonger…
We’ve written in the past about silly nutters who stay awake at night worried that the earth is going to fry to a crisp–any decade now. Often the oil and gas industry (i.e. fossil fuels) are blamed for an increase in methane in the atmosphere. But the reality, as we’ve written many times before, is that agriculture–cows and rice paddies–are the real culprit. In Oct. 2013, we wrote this article: 
A group of lawless anarchists–people calling themselves “anti-capitalists” from the Philadelphia area, have admitted in a blog post that they engaged in illegal, criminal (we’d call it eco-terrorist) activities against construction equipment being used in Media (Delaware County), PA for the Mariner East 2 Pipeline project. The criminals, from the anti-American group Philly Anti-Capitalist, said they filled the fuel tanks of a flatbed truck and several excavators with sand and sugar–meant to ruin the engines. They even outline how to inflict maximum damage to the engines by removing the fuel filters. These idiots justify their criminal actions by saying, “Human-caused ecological collapse and mass extinction are upon us.” In other words, they’re loony tunes. Crazy. Driven to commit criminal acts because they’ve been brainwashed into believing mankind is poisoning Mom Earth by extracting and using fossil fuels. And brainwashed against liberty and freedom as personified in the United States. They are serious (and dangerous) nutjobs. We sincerely hope the FBI, Homeland Security and other police organizations hunt them down and jail them for destroying private property…
Police in Lancaster County, PA are trying to get out in front of what they expect may be a tense situation. Big Green groups along with local nutters in the Lancaster area have pledged so-called non-violent action to stop work on the now-fully permissioned Atlantic Sunrise Pipeline project. Atlantic Sunrise is a $3 billion, 198-mile natural gas pipeline project running through 10 Pennsylvania counties to connect Marcellus Shale natural gas from northeastern PA with the Williams’ Transco pipeline in southern Lancaster County. Lancaster Against Pipelines, headed up by Mark Clatterbuck (who participated in the ineffective protests against the Dakota Access Pipeline) and his wife Malinda. The clattering Clatterbucks have made threats that they and their “many” followers will enter private land and do whatever it takes–lock arms, chain themselves to something, etc.–to stop the backhoes and bulldozers. Several local town police departments, wanting to be prepared, sent a form letter/survey to residents where the pipeline will cross, to ask them (a) if they (the landowners) plan to allow antis onto their property, and (b) if they don’t plan to allow antis, will they consent to allowing the police to arrest antis on their property. Manor police Chief Todd Graeff says his department is neutral with respect to the pipeline–they just want to know where they have permission to enter and arrest people, and where they don’t. In West Hempfield “many” of the questionnaires have been signed and returned. Every single returned questionnaire gives the police permission to arrest antis on their property. Which is a VERY loud and clear signal to the troublemakers: You WILL get arrested and jailed for your shenanigans…
Back in May MDN told you about the antis running the City of Green, Ohio (see 
This is likely the “make or break” week that will tell us whether or not a Marcellus-killing severance tax will pass the Pennsylvania legislature. The PA budget is now close to 100 days late–at least the final bits of the budget. Republicans run both the PA Senate and House. They did the ultimate stupid thing by passing a spending plan of $32 billion with only about $30 billion available to pay for it. So over the past three months there has been intense pressure by Gov. Wolf (Democrat) and Philadelphia (even northeastern) RINOs (Republicans in Name Only) to pass a severance tax–on top of the existing impact fee. Wolf needs the severance tax because he promised the money to Philadelphia teacher’s unions–as payback for electing him. If he doesn’t get the tax, he stands of good chance of not being reelected. It’s always about politics. Lawmakers are back in Harrisburg today, in session, and the mainstream media “mood” indicates a deal will get done this week. Will a severance tax be part of it? We hope not! It is possible, but seems (to us) unlikely that the severance tax will get passed…
In July, the Federal Energy Regulatory Commission (FERC) issued a favorable final environmental impact statement (EIS) for Dominion’s $5 billion, 594-mile Atlantic Coast Pipeline (ACP)–a natural gas pipeline that will stretch from West Virginia through Virginia and into North Carolina. At least, we *thought* the pipeline would end in North Carolina–at Lumberton. However, Dominion vice president and general manager for Southern pipeline operations, Dan Weekley, seems to have spilled the beans at an industry conference that Dominion has designs on extending Atlantic Coast beyond North Carolina–into South Carolina. He said “everybody knows” that Atlantic Coast is not going to stop in Lumberton, “despite” what current plans say. It was just two months ago that FERC issued a final, favorable environmental impact statement for the project–a project that terminates in NC (see 
One of the interesting breakout sessions MDN editor Jim Willis attended at last week’s Shale Insight event in Pittsburgh was a panel of lawyers discussing recent rulings in the Marcellus/Utica related to eminent domain and royalties. Sitting with the lawyers was a non-lawyer panelist from Williams. Aaron Blair is right-of-way manager for Williams in the northeast. He managed securing easements for the Atlantic Sunrise Pipeline project, Williams’ $3 billion, 198-mile pipeline project running through 10 Pennsylvania counties to connect Marcellus Shale natural gas from northeastern PA with the Williams’ Transco pipeline in southern Lancaster County. The lawyers on the panel peppered Blair with questions about his strategy for securing rights. Blair’s strategy boils down to this: if/when you need to file for eminent domain, do so in federal, NOT Pennsylvania state court (and certainly not with appointed commissions). Blair finds federal judges know the law and stick to the law–and the case law with regard to eminent domain, whether you like it or not, is quite clear when it comes to pipelines. Atlantic Sunrise began with needing leases from about 950 landowners. In the end, just under 50 of them had to be settled with eminent domain proceedings in court. Here’s an overview of what Blair said on the panel…
Landowners in Wayne (and Pike) counties in northeastern Pennsylvania are not going to stand by and allow their property rights to be stripped away from them. Two weeks ago the Delaware River Basin Commission (DRBC), which has had an ongoing, “temporary” ban on fracking within the Delaware River Basin since 2010, voted to begin the process of implementing a permanent ban (see 
Lone Pine Resources, a U.S.-based driller, has a huge amount of Canadian Utica Shale acreage in the province of Quebec. As we reported in 2012, they own 398,850 gross (240,320 net) acres of leases (see 
On Wednesday, EQT announced the company has floated $3 billion (yikes!) of IOUs–called “notes” in the financial industry–with various due dates and interest rates payable, in order to make a cash payment due as part of their purchase of Rice Energy. The total deal is worth $8.2 billion, with EQT paying $6.7 billion and assuming Rice’s existing debt of $1.5 billion (see 
One of the major themes at this year’s Shale Insight, emphasized several times, is that “We need pipelines, and we need them asap.” MDN heard that refrain a number of times, in different sessions. The good news is that there is more than $23 billion in planned pipeline investment to build more than 3,200 miles of pipelines–either planned or under development–for the Marcellus/Utica region. If you add these 15 project together, they will move another 17 billion cubic feet of Marcellus and Utica natural gas, and 345,000 barrels of natural gas liquids (NGLs), PER DAY! Some of these pipeline projects are already under construction, nearing completion. Some have just begun construction. Some will begin construction soon. And some are still waiting for regulatory approvals. A few are tied up in court, attempting to overcome state bans in New York. Any way you slice it and dice it, more pipelines ARE on the way, asap. And that’s very good news. Below is a list of the 15 projects, courtesy our friends at Energy in Depth…
A group of Catholic nuns in Lancaster County called Adorers of the Blood of Christ have tried several strategies to derail the Williams Atlantic Sunrise Pipeline (ASP) project. One of stunts they have pulled, in league with a radical Big Green group, is to stick a few wooden park benches in the middle of a corn field that they own (leased to a local farmer), and call it a “chapel” (see 
Shale Insight 2017 is now in the books. Another year, another great show. MDN editor Jim Willis is back in the office, chained to his computer. Next week Jim will share notes he took at the conference. For now, below are highlights from other news source from Day Two of the event. Unfortunately Jim had to leave before the closing keynote, given by former Trump White House Press Secretary Sean Spicer. But others were there to hear what Spicer had to say. Day Two began with a focus on the Shell ethane cracker. Members of the Shell team were on hand to describe how this critical project affects the region, and where it fits in the Marcellus/Utica landscape. One of the Shell team members said the skyline at the Beaver County site will change dramatically over the next 12 months as the buildings housing the various components are built. It was a fascinating talk with lots of information. Below is a roundup from Day Two…