Industrywide Issues

  • | | | | | |

    VA Sec Natural Resources Tells Dominion to Back Off re AC Pipeline

    A lot of communication (letters, phone calls, meetings) fly back and forth between a midstream (pipeline) company and regulatory agencies when an application is filed for a project. Particularly a project like the Dominion’s Atlantic Coast Pipeline, $5 billion, 594-mile natural gas pipeline that will stretch from West Virginia through Virginia and into North Carolina. Companies like Dominion send letters, make phone calls and meet with federal and state regulators, attempting to anticipate and answer questions and concerns. It’s a natural part of the process. So we found it interesting, indeed strange, that the Virginia Secretary of Natural Resources, Molly Ward, sent a letter to Dominion back in April (just now coming to light) in which she tells Dominion to back off and that people in the agencies that work for her “will not base their decisions on requests or suggestions from an applicant.” The Roanoke Times, “reporting” on the letter, opens their article with this sentence: “Attempts by Dominion Energy to sway regulators in the Atlantic Coast Pipeline permitting process prompted a top official under Gov. Terry McAuliffe to notify the utility that state agencies would not heed those efforts.” So now, when a company attempts to provide information, perhaps anticipating issues and concerns for regulators, and reaches out to contact them proactively, that’s called an attempt at “swaying” and is somehow nefarious and underhanded. Should Dominion contact regulators to ask them to NOT approve the project? Ridiculous! Of course Dominion is going to try and convince regulators that the project is worthy/sound/needed/safe/etc. That’s their job! Why would Ward not want her people to hear directly from Dominion? Her people hear plenty from the other side, anti-fossil fuel nutters opposed to the project…
    Read More “VA Sec Natural Resources Tells Dominion to Back Off re AC Pipeline”

  • | | | |

    True Colors of Politicized NY DEC Evident on Agency Website

    The Independent Oil & Gas Association of New York (IOGANY), sent an email last Friday to members alerting them to the profound bias evident for all to see on the state Dept. of Environmental Conservation (DEC) website with respect to renewable vs. fossil fuel energy. It seems the DEC has been politicized by Gov. Andrew Cuomo and now reflects his energy bias in promoting so-called renewable energy sources over fossil fuel energy sources. As IOGANY points out in their email (and as we’ve stated many times), nobody is against renewable sources of energy. They (and we) are, however, against the state choosing sides and promoting some sources over others, when it doesn’t make sense environmentally nor economically. IOGANY’s observations are compelling–showing just how biased agencies like the DEC have become…
    Read More “True Colors of Politicized NY DEC Evident on Agency Website”

  • | | | |

    Canadian Regulators Line Up to Support TransCanada Lowball Plan

    TransCanada, one of Canada’s leading midstream/pipeline companies, cooked up a deal last year to pipe natural gas from Canada’s West Coast to the East Coast in order to fend off cheap supplies of Marcellus/Utica gas that will flow into Canada when/if the NEXUS and Rover pipelines get built (see TransCanada Pipe Drops Price 42% to Compete with Marcellus/Utica). TransCanada dropped their pipeline price to lure drillers by (theoretically) making it less expensive to get gas from Western Canada, some 2,400 miles away, than from the Marcellus, just 400 miles away. In October, TransCanada launched an open season to lock up customers for the new, lower-priced option. The open season was a bust because TransCanada insists on a 10-year commitment (see TransCanada Plan to Lowball M-U Gas Using Canada Pipeline a Bust). TransCanada revived their plan in February. The original deal required a 10-year term with a long-term tolling rate between C$0.75/GJ to C$0.82/GJ. In February, the advertised deal was for a 10-year term and a simplified single rate of C$0.77/GJ (see TransCanada Revives Plan to Lowball M-U Gas Using Canada Pipeline). Although it looked almost like the same deal all over again with the same 10-year term and about the same price, TransCanada dropped a minimum amount to be shipped and is letting shippers opt out after five years under certain conditions. The changes worked (see TransCanada Says Plan to Lowball M-U Gas Worked, Shippers Sign Up). The plan needs a bevy of regulatory approvals, not only from the National Energy Board but also provincial agencies as well. Those agencies are now falling into line and giving their blessing, which has to happen by November 1st…
    Read More “Canadian Regulators Line Up to Support TransCanada Lowball Plan”

  • | | | | | |

    Radical Enviro Groups Ask FERC for Full Investigation of ET Rover

    Here is a short list of radical environmental groups that are despicable and loathsome in every sense of the word: Sierra Club, Center for Biological Diversity, Earthworks, Freshwater Accountability Project, Friends for Environmental Justice, Indigenous Environmental Network, Indigenous Iowa, Keep Wayne WILD, Louisiana Bucket Brigade, Ohio River Citizens’ Alliance, and Oil Change International. They have dedicated themselves to stopping work on, and ultimately blocking, Energy Transfer’s (ET) $3.7 billion, 711-mile Marcellus/Utica Rover natural gas pipeline that will run from PA, WV and eastern OH through OH into Michigan and eventually into Canada. The problem, however, is that ET has given these groups an open door to pedal their anti-fossil fuel nonsense. Indeed, ET has given them an open door to block further progress on building Rover. How? By rushing construction that has led to a string of accidents and incidents, alienating the thin-skinned Ohio Environmental Protection Agency (OEPA) and a number of landowners. One of the accidents, perhaps the most prominent accident that’s been the focus for much of the radical’s efforts, was a 2 million gallon spill of drilling mud into a wetland near the Tuscarawas River back in April (see Rover Pipeline Accident Spills ~2M Gal. Drilling Mud in OH Swamp). After receiving a tip, the OEPA tested some of the recovered drilling mud and claim they found diesel fuel mixed in (see OH EPA Says Diesel Fuel Found in Rover 2M Gal Drilling Mud Spill). That finding led the Federal Energy Regulatory Commission (FERC) to launch an investigation. On Wednesday, the radical groups we list above sent a five-page letter to FERC requesting a “formal and full investigation” of the entire Rover project. In other words, shut it all down and give Rover a detailed anal exam. Every day the Rover Pipeline goes over its projected online date, the company loses $10 million. If FERC agrees to the nutters’ request, well, let’s just say it’s not good news for ET…
    Read More “Radical Enviro Groups Ask FERC for Full Investigation of ET Rover”

  • | | | | |

    Radical Enviros Now the Tail Wagging the PA DCNR Dog re Funding

    As they so often do, radical environmentalists are creating chaos and confusion–this time in Pennsylvania. As MDN reported, earlier this week the Pennsylvania Supreme Court of Appeals, in a sharply divided 3-2 decision, sided with a virulent anti-drilling group, the Pennsylvania Environmental Defense Foundation, against the state in saying that any revenue generated from leasing and 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. Now the PA EDF is arrogantly telling 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. In the upcoming budget, due to be ratified by June 30th, PA Gov. Tom Wolf and the legislature had planned to use $100 million from the lease and royalty fund to “pay for DCNR’s daily operations or be transferred to another fund for statewide environmental and infrastructure projects.” But in an ominous threat, the EDF lawyer said spending money on DCNR operations “doesn’t comply with the court opinion on how the funds can be used.” Which begs the question: What in the world CAN you spend the $100 million raised from royalties and lease fees on?…
    Read More “Radical Enviros Now the Tail Wagging the PA DCNR Dog re Funding”

  • | | | | | | |

    Braskem Says Future Investment in Marcus Hook Still Possible

    Nearly five years ago, in July 2012, then-PA Gov. Tom Corbett announced that some of the Sunoco Marcus Hook Refinery assets had been purchased by Braskem America (see Marcellus to the Rescue: Marcus Hook Refinery to Reopen). Braskem, a division of Brazilian company Odebrecht, uses the Marcus Hook facility to manufacture polypropylene plastics. The facility gets some of (most of?) its raw materials (i.e. ethane) from the Marcellus Shale. Interestingly, Braskem’s US operations are headquartered in Philadelphia. When it came time to invest $675 million to build a new polypropylene plant–Braskem chose Texas as the site, not Marcus Hook in their own back yard. Which is a huge disappointment. Why the Texas Gulf Coast? Because of “a ready supply of raw material from nearby petrochemical operations.” But that may not be the end of the story. Braskem CEO Mark Nikolich said just because they chose Texas for this project, doesn’t mean they still don’t love Marcus Hook just as much–and it doesn’t rule out expanding the Philly plant in the future. Just as soon as there’s more ethane available (hello Mariner East 2!)…
    Read More “Braskem Says Future Investment in Marcus Hook Still Possible”

  • | | | |

    Mountain Valley Pipeline Final Enviro Impact Statement Due Today

    The Mountain Valley Pipeline (MVP) is a $3.5 billion, 303-mile pipeline that will run from Wetzel County, WV to the Transco Pipeline in Pittsylvania County, VA. The project, which filed an official application with the Federal Energy Regulatory Commission in October 2015, is being built by EQT, NextEra Energy and several other partners. The project has faced stiff opposition from landowners in both West Virginia and Virginia. Although the project is not yet fully approved by the Federal Energy Regulatory Commission (FERC), the project did get a favorable Draft Environmental Impact Statement from FERC last September (see FERC Gives WV to VA Mountain Valley Pipeline Provisional Thumbs Up). MVP had wanted a final Environmental Impact Statement by March 10th, but that didn’t happen. Instead, FERC delayed a final EIS until today, June 23rd. What happens after MVP gets a (presumably) favorable final EIS? Right now FERC doesn’t have a quorum of commissioners who can vote to allow construction to begin. However, the hope around Washington, DC is that the Senate will take a final vote on two new commissioners before the July 4th holiday. If that happens, FERC may well vote to allow MVP to begin at any time following a quorum…
    Read More “Mountain Valley Pipeline Final Enviro Impact Statement Due Today”

  • | |

    Trump DOE Investing $18M to Figure Out How to Frack Better

    The Trump Dept. of Energy (DOE) wants to make better frackers. What does being a “better” fracker mean, and how is the DOE further that cause? The DOE is doling out $20 million, of which $18 million will be used on research to “address critical gaps in the understanding of reservoir behavior and optimal completion, stimulation, and recovery strategies for unconventional oil and gas.” That is, figure out how to frack cheaper, faster and in a way that impacts the environment less. And the government is willing to spend some coin to help figure it out…
    Read More “Trump DOE Investing $18M to Figure Out How to Frack Better”

  • | |

    NOAA, Natl Labs Say 100% Renewables Not Possible by 2050

    Anti-frackers like Josh Fox (maker of the propaganda film Gasland) have long relied on a single, flawed research “study” that purported to make the case that the entire country could, if it wanted to, switch over to using 100% renewable energy sources by 2050. The study, titled “100% clean and renewable wind, water, and sunlight (WWS) all-sector energy roadmaps for the 50 United States” (full copy below), presents “roadmaps for each of the 50 United States to convert their all-purpose energy systems (for electricity, transportation, heating/cooling, and industry) to ones powered entirely by wind, water, and sunlight (WWS).” This week a group of 21 independent experts, including the former associate director at Lawrence Livermore National Laboratory and a NOAA researcher who specializes in renewables, issued a devastating rebuttal of the earlier “renewable roadmap” study–saying it has “significant shortcomings,” using “invalid modeling tools” with “modeling errors” and makes “implausible and inadequately supported assumptions.” In the rebuttal study, titled “Evaluation of a proposal for reliable low-cost grid power with 100% wind, water, and solar” (full copy below), the authors rip the earlier “renewable roadmap” study to shreds, exposing the lie that fossil fuels can be phased out within our lifetimes. It’s simply not possible. And it’s time that lie is debunked in the public square. But don’t look for mainstream media to give one drop of ink to this study. It doesn’t fit their renewables-are-nirvana-and-fossil-fuels-are-evil narrative…
    Read More “NOAA, Natl Labs Say 100% Renewables Not Possible by 2050”

  • | | | | |

    RINOsaurs Enlist Help from Big Oil to Push Insane Carbon Tax

    A group of creaking, tottering old RINO (Republican in Name Only) dinosaurs (i.e. RINOsaurs) left the golf course long enough to lobby President Trump on the insane idea of a so-called “carbon tax” back in February (see RINOsaurs Lobby Trump to Enact Socialist “Carbon Tax”). Two of them were from the Ronald Reagan Administration–George Shultz and James Baker III, both former Secretaries of State. A carbon tax is nothing more than a way to slap a regressive tax on every citizen of the country–as if we aren’t already taxed enough. If you live in the great middle class of this country, you already pay close to 50% of your income in various federal, state, local, property, sales and other taxes. Add it up sometime, you’ll see we’re not exaggerating. A group of Republican “elder statesmen” (as fake news source CNN calls them) met with Team Trump at the White House to push this disastrous plan, calling it (be careful not to vomit), “conservative.” There’s nothing conservative about it. We thought perhaps that was the end of it, and the the RINOsaurs lumbered back to the golf course. Unfortunately, that’s not the case. Somehow the old farts have now enlisted the help of some Big Oil companies, including Exxon Mobil and BP, to help push a carbon tax in the U.S. We have little doubt Trump will go for it (he’s not stupid, like establishment swamp dwellers around DC). However, we find it troubling that people in our industry are buying into the hype around man-made global warming, and see a tax as the potential fix…
    Read More “RINOsaurs Enlist Help from Big Oil to Push Insane Carbon Tax”

  • | | | | | | | | |

    Marcellus/Utica Region Could Support 4 More Crackers, but Will It?

    In March of this year, the Team Pennsylvania Foundation released a report called “Prospects to Enhance Pennsylvania’s Opportunities in Petrochemical Manufacturing” (see PA Study Finds Marcellus/Utica Can Support 4 More Ethane Crackers). The report is derived from a comprehensive study conducted by powerhouse oil & gas consulting firm IHS Markit. According to the report, Pennsylvania can easily handle another two ethane cracker plants (aside from the already under construction Shell cracker), and Ohio and West Virginia can handle another two cracker plants between them, for a total regional capacity of another four ethane cracker plants. But realistically, will another four actually get built in our region? That was the topic addressed during the Northeast U.S. Petrochemical Construction conference held earlier this week in Pittsburgh. PA officials talked openly and honestly about the challenges in attracting more crackers–and about their mission, which is “the development of sites” to attract more crackers. It was an interesting, and candid, discussion with helpful information about what crackers look for in a potential site…
    Read More “Marcellus/Utica Region Could Support 4 More Crackers, but Will It?”

  • | | | | | |

    Shell’s Ethane Pipeline “Right on Track,” Construction Starts 2019

    Falcon Ethane Pipeline map – click for larger version

    Quite a bit of news came from the recent Northeast U.S. Petrochemical Construction conference held earlier this week in Pittsburgh. One session featured a Shell rep talking about Shell’s Falcon Ethane Pipeline, a pipeline with two “legs” that will feed Shell’s mighty ethane cracker plant in Beaver County, PA (see Shell Working on 94-Mile Ethane Pipeline to Feed PA Cracker). Steady progress is being made in signing up landowners to allow the pipeline across their property. With so many anti groups opposing simple natural gas pipelines, like the CORNballs who oppose NEXUS (see CORNballs Strike Again, File Lawsuit to Stop NEXUS Pipeline), radicals trying to stop active construction on Rover (see Antis Ask Army Corps of Engrs to Yank Rover Pipeline Blanket Approval), and the DOPEs opposing Duke’s tiny pipeline into Cincinnati (see DOPEs Get Ready to Fight 13 Mile Pipeline Near Cincinnati), what Shell is reporting about how they are striking deals with landowners–landowners who actually support Shell and the pipeline–stands out as unique. What’s different about Shell’s ethane pipeline? For one thing, the Shell ethane pipeline is a private project, so it can’t use eminent domain. This is a high stakes gamble for Shell. If one landowner won’t deal and the pipeline doesn’t get built, how will Shell feed the cracker beast? So Shell deals with landowners (i.e. pays them big bucks) in order to get easements signed. Perhaps there’s a lesson here for other pipelines to follow? The Shell rep reported to conference attendees that the Falcon project is “right on track” and construction will begin in 2019, with completion set for 2020. That’s about two years ahead of when the cracker will go online…
    Read More “Shell’s Ethane Pipeline “Right on Track,” Construction Starts 2019″

  • |

    Drilling Costs Rise in Marcellus/Utica; Workforce Becomes Issue

    The petrochemical conference in Pittsburgh earlier this week wasn’t the only event in town. The DUG (Developing Unconventional Gas) East conference and exposition took place at the David L. Lawrence Convention Center, several blocks from the petchem event. The reporting from one session in particular caught our attention. A panel of drillers and service companies (upstream focus) talked about the prices that service companies (that is, oilfield service companies, like Halliburton and Baker Hughes) charge has gone up 10-15% over rates from last year, when service companies had to slash prices. While that’s good for service companies, but not so good for drillers and may, yet again, lead to a decline in active rig counts. The panel also discussed the increasingly critical shortage of workers in the Marcellus/Utica industry…
    Read More “Drilling Costs Rise in Marcellus/Utica; Workforce Becomes Issue”

  • | | |

    Anti 2fer: Nutters Rally & March at 2 Marcellus Events in Pittsburgh

    It’s kind of humorous when a small group of insane anti-fossil fuelers participate in a march that they call “Stop the Madness.” Kind of meta, dontcha think? An anti reporter from the Pittsburgh Post-Gazette tagged along (who could tell the difference?) to “report” on a group of “about 100 protesters from 11 organizations” who rallied and marched from one Marcellus event to another being held in Pittsburgh on Tuesday. The protesters, dressed in clothes made from petrochemicals, wearing sneakers made from petrochemicals, and holding signs made from petrochemicals (after arriving at the “rally” and “march” in fossil fuel-powered transportation), rallied outside of the Northeast U.S. Petrochemical Construction conference–to protest petrochemicals, and then marched across town to the convention center to protest fracking outside of the DUG (Developing Unconventional Gas) East event. The group was a mish mash of the usual suspects–hard left nutters who pop up again and again to grab a headline bashing fossil fuels, before scarpering home using the fossil fuels they just bashed, going to houses and apartments heated and cooled using fossil fuels. Typical…
    Read More “Anti 2fer: Nutters Rally & March at 2 Marcellus Events in Pittsburgh”

  • | | |

    Primoris Lands Another Pipeline Contract for $53M in PA Marcellus

    Primoris Services Corporation, a pipeline building company based in Dallas, TX, has built a number of gathering pipelines in the Marcellus region. We’ve been covering some of the projects Primoris has been involved with since 2013 (see our Primoris stories here). Their announcements don’t name the customer. The amounts are typically in $10-$90 million range. Sometimes it’s easy to figure out who they are doing the work for. Sometimes not. This morning Primoris issued a press release to trumpet the fact they’ve just landed another project to build 27 miles of gathering pipelines in the PA Marcellus–for $53 million. This release is pretty thin. We don’t have good speculation on what part of PA (although in the recent past it’s been in the northeastern part of the state). We reached out to Primoris for more details and got this back: “I’m sorry, but we don’t share that information.” Here’s the piddly bit of information they do share, from the press release…
    Read More “Primoris Lands Another Pipeline Contract for $53M in PA Marcellus”

  • |

    Fixing the Nearly Unfixable EPA – Abuses, Collusion & Coverups

    The federal Environmental Protection Agency has been a rogue agency for years under the previous Obama administration. To be fair, the agency has been a problem long before that–pretty much since its inception. Now that President Trump is attempting to reign in the EPA by trimming its budget and focusing it on its original intent–to clean up America’s air and water–leftists are having a cow. In a devastating column published by Dr. Jack Rafuse, a former White House energy adviser, Rafuse exposes some of the egregious collusion and criminal cover-ups perpetrated by the EPA. Rafuse lays bare the swamp that needs draining at the EPA, providing justification for Trump’s actions in reigning in this rogue agency. This is the real news that fake newsers in mainstream media won’t tell you…
    Read More “Fixing the Nearly Unfixable EPA – Abuses, Collusion & Coverups”