Industrywide Issues

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    3 MarkWest Utica “Build-Out” Pipeline Projects Now Up & Running

    In February MDN reported that Marathon Petroleum had begun to build a 49-mile condensate pipeline, called HALI–the Harpster to Lima Pipeline (see Marathon Begins to Build New 49-Mile Utica Pipeline in Ohio). The purpose of the project is a pipeline “for efficient and safe delivery of condensate from the Utica Shale to refineries where it can be processed into gasoline and diesel in order to meet the needs of producers, mid-streamers, marketers, diluent blenders, and refiners as the Utica Shale continues to develop.” At the time, the pipeline was expected to go online in July–this month. It beat the clock and went live last month (see Marathon Completes 49-Mile Utica Condensate Pipeline in Ohio). MarkWest, now owned by Marathon, issued an announcement yesterday to point out not only is HALI now up and running, but so too are two other liquids pipelines that MarkWest worked to expand: East Sparta to Heath, and Heath to Harpster. Together the three pipelines are moving liquids to refineries throughout the Midwest. Marathon is also working on a project to extend their service for diluents to western Canada…
    Read More “3 MarkWest Utica “Build-Out” Pipeline Projects Now Up & Running”

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    PA Big Green Groups Attack Mariner East PR Agency – Too Effective

    Totally biased, Big Green-backed mouthpiece StateImpact Pennsylvania, funded in part by taxpayers via PBS (a travesty), as well as funded in part by anti-drilling organizations like the Heinz Endowments and the William Penn Foundation (which appear to control StateImpact’s “reporting”), is targeting a PR agency because the agency has the audacity to do good work for Sunoco Logistics and the Mariner East 2 Pipeline project. You see, in liberal anti-drilling land, it’s OK for antis to smear and lie and fabricate all sorts of falsehoods about pipeline projects–but it’s not OK for the object of those smears (i.e. Sunoco LP) to fight back and to present its side of the issue. As soon as you fight back and tell your side of the story, you’re “targeting” innocent people, you’re attempting to bully the little guy. You’re mean. You’re pedaling fossil fuel death. That’s how it works in Big Green land. A recent article on StateImpact PA attempts a smear job on PR agency Bravo Group because Bravo has the gonads to say this on their website: “We’re helping Sunoco Logistics build public and policyholder support for its Mariner East projects, an infrastructure investment of more than $3 billion. The goal: secure regulatory approvals, neutralize opposition and develop the Mariner East projects on budget and without capital losses.” The “neutralize opposition” phrase in particular set off the anti-pipeline crazies, so StateImpact created an entire story focused on that phrase. You know you’re being effective when they attack you with a smear campaign…
    Read More “PA Big Green Groups Attack Mariner East PR Agency – Too Effective”

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    NASA, NOAA and UK’s Met Office Falsify Temp Data to Show Warmer Temps

    Something that we find to be an outrage is not even getting a passing acknowledgment by mainstream media: most of the climate data collected and pedaled by NASA, NOAA and UK’s Met Office is (our word) falsified. Let us explain. When collecting data, there will be times that a given data point (say a temperature reading) seems incorrect. Usually scientists will discard such “outlier” data, or make adjustments to compensate–so the outlier data doesn’t throw off what would otherwise be accurate. Climate scientists often apply “adjustments” to surface temperature thermometers (i.e. change the readings) to account for “biases” in the data. A new peer-reviewed study titled “On the Validity of NOAA, NASA and Hadley CRU Global Average Surface Temperature Data & The Validity of EPA’s CO2 Endangerment Finding” (full copy below) takes a close look at the adjustments made by NOAA, NASA and the UK in their global average surface temperature (GAST) datasets–and concludes the adjustments nearly always revise temps up. That is, the researchers are showing bias themselves. It is this revised (we call it falsified) data that is then used to proclaim the past three years are the warmest on record in the modern era. The peer-reviewed study, which was done by former rocket scientists, former EPA employees, economists, weather scientists and others, finds the “cyclical pattern in the earlier reported data has very nearly been ‘adjusted’ out of temperature readings taken from weather stations, buoys, ships and other sources.” That is, the warmers who work at NASA, NOAA and in the UK didn’t like the numbers they were getting (they didn’t like reality), so they put their finger on the scale and changed the result. It’s a lie. And now it’s exposed for the world to see…
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    Actor James Cromwell Going to Jail for Blocking NY NatGas Plant

    James Cromwell as Zefram Cochrane in Star Trek

    It looks like Hollywood actor and anti-fossil fuel activist James Cromwell will get to enjoy prison food for a week. For the last couple of years, MDN has reported on a $900 million Marcellus gas-fired electric generating plant coming to Orange County, NY (see Orange County, NY Marcellus-Fired Electric Plant OK’d by Judge). The CPV (Competitive Power Ventures) Valley Energy Center project has been vigorously opposed by local anti-drilling ninny nannies, including Cromwell. Cromwell is a spoiled rich kid from Manhattan who happens to own a home near the plant. He’d prefer to keep Upstate pristine, as his own private playground. Cromwell enlisted some neighbors and six of them got themselves arrested in December 2015 for blocking construction at the site (see Actor James Cromwell Arrested Protesting NY Power Plant Site). No matter. The plant is now under construction, as we reported in March. Construction of the plant is “moving full-steam ahead” and is on track to go online in early 2018. What about Cromwell and the other criminal protesters? The wheels of justice grind slowly. In June of this year, Cromwell and his fellow criminals stood before a judge, after being found guilty for their actions, and were fined $375. The judge told them to pay up by June 29 or go to jail. Cromwell defiantly said he won’t pay, he *wants* to go to jail (see ‘Wayawanda Six’ Convicted of Illegally Blocking NY Power Plant Project). Cromwell is going to get his wish–and get to sample jailhouse cuisine. Three of the “activists,” including Cromwell, have just been ordered by a judge to serve a one week sentence in Orange County Jail for refusing to pay the $375 fine–which is about how much Cromwell pays for a tip at one of his Hollywood power lunches. Cromwell’s lawyer begged and pleaded and got a tw0-week extension. Pay by July 14, or off to the clink…
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    Demand Picks Up for Pipeline Workers in PA Downstream

    Here on MDN we talk a lot about big interstate natural gas pipelines–like Rover and NEXUS, Atlantic Sunrise and Atlantic Coast. But we don’t talk so much about the tiny (in diameter) gas pipelines that connect to people’s homes. In oil and gas industry parlance, those pipelines belong to the “downstream”–or the end users of natural gas. From time to time we’ve covered stories about NiSource and other utilities spending big money to replace aging local distribution pipelines (see NiSource 3Q14: A Lot of Irons in the Fire, Spending Billions). However, we’re starting to see more such stories. The latest is from Philadelphia-based PECO, Pennsylvania’s largest electric and natural gas utility delivering gas to more than half a million customers. In a story about PECO’s project to replace gas mains near Philly, we learn there is so much work in replacing old gas lines, there is now a premium on contractors and qualified pipe mechanics…
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    Lawyer Says PA Budget Unconstitutional Based on Enviro Rights Law

    If the only tool you have is a hammer, you are tempted to treat everything as a nail (Abraham Maslow, 1966). Such is it with radical anti-drillers who recently won a case at the PA Supreme Court by the skin of their teeth. The case dealt with the narrow issue of how PA can spend revenue raised by leasing and allowing drilling for oil and gas under state-owned land (see PA Supreme Court Hands Antis Partial Victory re State Land Drilling). A divided court ruled that money from royalties must be used only for Big Green causes, and cannot be used even to fund operations at the Dept. of Conservation and Natural Resources (DCNR). The decision was based, in part, on PA’s so-called Environmental Rights Amendment, “guaranteeing” the “right” to “clean air, pure water, and to the preservation of the natural, scenic, historic and esthetic values of the environment”–without defining how those “rights” are to be administered. The radical lawyer who won the case is now attempting to use that narrow decision–in a case about funding the DCNR–to make the preposterous claim that PA’s budget, as drafted, is “unconstitutional.” Like a broken record, he keeps going on about the Environmental Rights Amendment…Environmental Rights Amendment…Environmental Rights Amendment…
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    The Man You Can “Thank” for PA’s Enviro Rights Amendment Mess

    Franklin Kury was a young lawyer and PA House of Representatives member back in the late 60s/early 70s. He was, at that time, the author of Pennsylvania’s so-called Environment Rights Amendment (Article I, Section 27 of the PA Constitution). For 40 years the ERA didn’t have much of an impact–but then activist, liberal, leftist judges got ahold of it and (ab)used it to screw with the Marcellus Shale industry in the state. Things “all changed” on June 20 when the PA Supreme Court (ab)used the ERA to tell the Dept. of Conservation and Natural Resources (DCNR) it can’t use money raised from shale drilling to help fund itself–a bass ackwards view of things if ever we’ve heard of one (see PA Supreme Court Hands Antis Partial Victory re State Land Drilling). The court based their decision, in part, on the ERA. And that has 80-year old geezer Kury doing cartwheels…
    Read More “The Man You Can “Thank” for PA’s Enviro Rights Amendment Mess”

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    Ohio State Research Finds Microbes in Utica Well May be Corrosive

    Last year MDN brought you the story of researchers who found microbes (bacteria) living nearly two miles down in Utica Shale wells. They dubbed one of the never-before-seen bacterial “lifeforms” in the well Frackibacter. We immediately labeled it a different name: Frackenstein (see Frackenstein! Researchers Find New Life Form in Fracked Utica Wells). One of the Ohio State researchers who helped discover Frackenstein, Mike Wilkins, has continued his work. In a newly published study, titled “Sulfide Generation by Dominant Halanaerobium Microorganisms in Hydraulically Fractured Shales” (full copy below), Wilkins says a different bacteria he studied, that appeared in multiple Utica wells (called Halanaerobium) may be a cause for concern. In this new study, Halanaerobium was found to convert thiosulfates found in the environment to sulfide–which can be toxic to workers and corrosive to pipes and cement in the ground. Bear in mind this latest study appears to be pretty theoretical–and based on observations at a single Utica well. However, the research seems legit to us, and was not funded by anti-drilling organizations…
    Read More “Ohio State Research Finds Microbes in Utica Well May be Corrosive”

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    Green Energy Device Generates Electric from Compressor Station Fans

    Click for larger picture

    Green electric generation has just come to pipeline compressor stations across the fruited plain–potentially in the Marcellus/Utica. If you’ve ever visited a pipeline compressor station–used to pressurize pipelines to keep the gas flowing along–one thing you will immediately notice is a ginormous fan (or more than one fan if there are multiple compressors at the site). Those fans are there to help cool the machinery working to compress and flow the gas. Here’s a genius observation: fans move air. Now let us tell you about some real genius. What if you attached something to that moving air, say a small turbine, and that turbine powered an electric-generating motor–so you could produce electricity. Maybe even enough electricity to power the entire compressor station. Now that IS genius! CEGEN (Clean Energy Generation) conceptualized, built, tested and is now selling such a device. Their “generator in a box” device has a constant, 24/7/365 source of “wind” to power it. It is green energy meets fossil energy–and it’s a match made in heaven…
    Read More “Green Energy Device Generates Electric from Compressor Station Fans”

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    Wind & Solar Powergen 3-4x More Expensive to Build than NatGas

    Our favorite government agency, the U.S. Energy Information Administration, has done us all a huge favor. Yesterday we brought you a post by EIA’s Today in Energy that points out in 2016 some 81% of all the energy we used in the US of A came from fossil fuels (see Fossil Fuels Continue to Dominate American Energy – 81% in 2016). Today we bring you another post from the EIA. This one compares the cost to build new electric generation plants, as measured by how much it costs per megawatt hour produced, to build the plant. What the post points out is that the only source of new electric power that’s cheaper to build/produce than natural gas, is hydroelectric power. Dams. And even at that, hydro is not all that much cheaper than natgas. Wind is nearly triple the price of natgas to build, and solar is four times as much! So much for the renewable nirvana future that awaits us…
    Read More “Wind & Solar Powergen 3-4x More Expensive to Build than NatGas”

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    France Commits Energy Suicide – No New Oil & Gas Exploration, Ever

    Click chart for a readable version – France’s energy mix (as of 2013)

    MDN editor Jim Willis had the pleasure of visiting France in 2006. It is a breathtakingly beautiful country. Jim found the French people to be personable and easy to deal with (contrary to the popular myth they are arrogant and hate Americans). But hey, that was just one guy’s experience. Maybe you have had a different experience? We’ve written about France’s on again, off again frack ban over the years (see our stories about France here). You won’t have to worry about whether or not France will ever allow fracking. Beginning this fall, the country will stop issuing ANY/ALL permits to drill for ANY/ALL oil and gas–conventional, shale, doesn’t matter. France says it will “transition” to “environmentally-friendly energy.” You know, like solar and wind–even though discarded solar panels are about the same thing as disposing of nuclear waste (an ecological disaster). But appearances are everything for French President Emmanuel Macron and his certifiably-insane government. France currently (as of 2013) gets 44.5% of its energy from oil and gas, the single largest block of energy powering the country. Nuclear is second, at 41%. Wind and solar? Together they make up less than 1% of France’s energy supply! Why is France’s energy suicide an MDN story, other than Jim’s walk down memory lane? Because it’s easy to predict that France will not be able to operate on 100% renewable energy. Not now, not in our lifetime. It is a fact. If France doesn’t allow oil and natural gas exploration INSIDE their country, they will need to import oil and gas from OTHER countries. Enter the Marcellus/Utica with plenty of gas via LNG exports to sell. This is a tip to producers reading MDN to begin negotiating now to sell your gas to France. They’re going to need it…
    Read More “France Commits Energy Suicide – No New Oil & Gas Exploration, Ever”

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    Would Antis Oppose Pipelines If They Flowed Beer Instead of Gas?

    Installing Belgium’s beer pipeline

    Antis have lots of excuses for why they don’t want pipelines built. Digging trenches will cause erosion. Drilling mud may get spilled into ecologically sensitive areas, like swamps (i.e. wetlands). Landowners are “forced” to accept easements on their property and can’t build things over top of where a pipeline runs. But mostly, it’s because of what’s inside the pipeline that antis get their knickers in a twist. They irrationally hate fossil fuels–and pipelines flow fossil fuels (natural gas, gas liquids, oil, etc.) through them. And that runs counter to the gospel of renewable energy. But what if you replaced natural gas with, oh, chocolate? Or what about replacing it with beer? Yeah, that’s the ticket! What if there were a pipeline flowing beer instead of natural gas. Would antis still oppose it? You no longer have wonder. There IS such a pipeline–in Belgium. Plenty of antis inhabit Belgium. When it came time to build a new bottling plant some two miles from the Half Moon brewery, there was a problem: How to get the beer to the bottling plant. So Half Moon built a pipeline–under the streets of Bruges, a World Heritage Site full of historical sites. Yep, right underneath–and not a single protest…
    Read More “Would Antis Oppose Pipelines If They Flowed Beer Instead of Gas?”

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    Proxy Fight: Jana Partners, Atlas Tries to Stop EQT/Rice Deal

    So-called “activist investor” (i.e. corporate raider) Jana Partners, in league with the Cohen family (Atlas Energy) has started a proxy fight and is trying to block EQT’s takover/merger with Rice Energy. Jana is the same company that recently helped Amazon buy Whole Foods. In a filing with the Securities and Exchange Commission on Tuesday (embedded below), Jana disclosed the company has purchased ~5% of EQT’s stock and is launching an effort to block EQT’s proposed buyout of Rice Energy (see EQT Buys Rice Energy in $8.2B Deal, Becomes #1 Gas Producer in US). As a quick reminder, here’s what corporate raiders (aka “activist investors”) do: They buy up enough stock in a company to control board decisions, getting several of their own people appointed to the board of directors. Typically corporate raiders will collude with another large stockholder or two to accomplish a board coup d’état. The corporate raider then forces the target company to sell off assets and layoff people. The resulting company is, they claim, “healthier” and more streamlined. The stock price bumps up, the raider sells its stock, pocketing a nice profit. And then moves on to the next target. Meanwhile, good people are standing in the unemployment line, in the wake of the raider’s “improvements.” There is nothing moral or righteous or just about the actions of corporate raiders. It is immoral, unjust and disgusting. In the words of Whole Foods CEO John Mackey, Jana are “greedy bastards.” That about sums it up. It’s distressing to see the Cohen clan collude in this kind of behavior. They should stick to their own knitting. Maybe if they had, their own company (Atlas Energy) wouldn’t have gone bankrupt (see Atlas Resource Partners Filing for Bankruptcy Tomorrow). Here’s the developing story of the effort to derail EQT’s deal with Rice Energy, and force EQT to break itself into pieces…
    Read More “Proxy Fight: Jana Partners, Atlas Tries to Stop EQT/Rice Deal”

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    PTT Global Buys Land for Belmont, OH Ethane Cracker Plant

    Although a final investment decision (FID) is still months away, Thailand-based PTT Global Chemical decided spending $13.8 million to buy 168 acres at the proposed site for a second Appalachia ethane cracker, in Belmont County, OH, would be a good investment. Which they have now done. The deal, which closed in June, is just now coming to light. PTT bought the land for the site from FirstEnergy Corporation. The deal was recorded at the Belmont County Courthouse on June 14. This is yet another sign that PTT will make a positive FID later this year. Even though PTT just bought the land, work was previously done on the site to clear it and get it ready for construction, as we reported in December (see OH Cracker Final Decision Coming Soon, Site Now Cleared & Ready). Fingers crossed that this $5 billion project gets the go-ahead later this year…
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    Baker Hughes and GE Complete Merger, World’s 1st Fullstream Co.

    The new Baker Hughes logo, released Monday

    As of Tuesday, the world now has its first and (so far) only “fullstream” company–a company that ticks all of the boxes in the oil and gas section–upstream, midstream and downstream. In October 2016 MDN brought you the news that GE Oil & Gas was making a play to buy out and merge in Baker Hughes Inc. (see Breaking: Who Needs Halliburton? Baker Hughes Merging with GE O&G). The merger faced its share of challenges, but compared to Halliburton’s attempt to buy Baker Hughes, which was denied by the Obama Dept. of Justice, this merger was a piece of cake. The newly merged company, flying under the name Baker Hughes, a GE company (NYSE ticker symbol of BHGE) has sailed by oilfield services company Halliburton to become #2 OFS company in the world. It may even be larger that #1 Schlumberger (we haven’t heard yet). As we pointed out in June, this is not some sort of 50/50 merger, this is a takeover/buyout of Baker Hughes by GE. Most of the new top management at the merged company comes from GE (see Baker Hughes, GE Release Roster of Coming Management Changes). Today is the first day the newly merged company’s stock begins to trade. It will be interesting to see at what price it trades…
    Read More “Baker Hughes and GE Complete Merger, World’s 1st Fullstream Co.”

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    Radical Enviros Continue to Make Trouble for PA DCNR re Lease Rev

    As MDN reported in June, the Pennsylvania Supreme Court of Appeals, in a sharply divided 3-2 decision, sided with virulent anti-drilling group Pennsylvania Environmental Defense Foundation against the state in saying that any royalties generated from drilling on state-owned land MUST be used solely for conservation and the environment (see PA Supreme Court Hands Antis Partial Victory re State Land Drilling). The aim of the PA EDF is to disrupt Marcellus Shale drilling by any means necessary. This is one of those means. The three liberal justices who rendered the decision say the law is clear on intent–that money raised from leasing state-owned lands for drilling must be used for environmental purposes. The PA EDF arrogantly told the State of Pennsylvania that the money raised from drilling can’t be used for general operating expenses of the Dept. of Conservation and Natural Resources (DCNR)–the very organization that oversees the state lands and is in charge of said leasing (see Radical Enviros Now the Tail Wagging the PA DCNR Dog re Funding). But the Supremes, in their “wisdom,” decided to send the case back to the lower Commonwealth Court for a decision about the disposition and spending of money raised from signing bonuses. The decision the Supremes made in June only affects royalties. Now the radicals at the PA EDF are telling the Commonwealth Court that signing bonuses are in the same camp as royalties–that PA should not be able to use them for anything other than Big Green causes. Since there is no new leasing of PA state land under lib Dem Gov. Tom Wolf, a decision by the court will affect money already received and spent, from 2009-2010…
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