Industrywide Issues

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    TransCanada Sells 4 Northeast Powergen Assets, 1 in Marcellus

    Canadian-based TransCanada, famously known for wanting to build the Keystone XL oil pipeline from Canada to the Gulf Coast, didn’t want to be left out of the most important midstream story of the century (the Marcellus/Utica), so they bought Columbia Pipeline Group–closing on the sale in July 2016 (see TransCanada and Columbia Pipeline Tie the Knot Today). The original deal cost TransCanada $10 billion (U.S. dollars), and later TransCanada bought out the remaining portion of Columbia it didn’t own for another $915 million (see TransCanada Raising Big $ to Complete Buyout of Columbia Pipeline). In order to pay for everything, both the original purchase and buying out the rest of Columbia, TransCanada announced floated $3.2 billion (Canadian) in new stock, and entered an agreement to sell off their electric power assets in New England for $3.7 billion (U.S.). On Monday, TransCanada announced the closing of the deals and the transfer of their electric power assets–3 natgas-fired plants, including one located in the Marcellus region (Lebanon, PA), and one wind farm. According to their announcement, TransCanada will hit their asking price of $3.7 billion, using the money to pay off “bridge loans” involved in financing the Columbia Pipeline deal… Read More “TransCanada Sells 4 Northeast Powergen Assets, 1 in Marcellus”

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    Youngstown Antis Float New Ballot Measure to Rig Elections

    Anti-fossil fuel agitators in Youngstown, aided and abetted and whipped into a frenzy by the radical Community Environmental Legal Defense Fund (CELDF), have grown tired of losing. Six times now they have gotten enough signatures to put a so-called Community Bill of Rights (i.e. anti fracking) measure on the ballot for voters. And six times they have lost. As we reported in May, the nutters are making another run at it, placing an anti-fracking measure on the ballot for the seventh time. But this time there’s a twist–they want to legalize illegal actions of “civil” disobedience (see Youngstown Antis Seek to Legalize Anarchy with 7th CELDF Petition). That is, they want to break the law but not be held accountable for their actions. Now comes word the nutters aren’t stopping there. They plan to put a second measure on the Youngstown ballot in November. Both measures are loaded with anti-democratic regulations that would, if enacted, eliminate free speech by capping the amount of money that can be spent to campaign against their ballot measures. Nothing better than a loaded deck of cards when you sit down to play, right? The nutters also want to ban the use of money raised from wastewater treatment to be used on economic development projects. Let’s sum it up this way: Youngstown antis lose every time they float ballot measures related to fracking and fossil fuels, so know they want to change the rules (i.e. laws) to stack the deck in their own favor. What they can’t get at the ballot box, they now want to get by force, in legalizing civil disobedience. What they want to bring to Youngstown is, in a word, anarchy… Read More “Youngstown Antis Float New Ballot Measure to Rig Elections”

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    DOPEs Get Ready to Fight 13 Mile Pipeline Near Cincinnati

    As MDN previously reported, Duke Energy needs to replace an aging pipeline, built in the 1950s, near Cincinnati, OH–or some people in Cincy will have to go without natural gas (see Hearings Scheduled for Proposed Duke Pipeline in Cincinnati). Duke has proposed a 13-mile, 20-inch pipeline along two potential routes. Both routes are opposed by antis, including a group calling themselves NOPE–Neighbors Opposing Pipeline Extension. We call them DOPEs–Dummies Opposing Pipeline Extensions. Will the DOPErs volunteer to shut off the natural gas to their homes and businesses if the pipeline doesn’t get built? Not on your life! Two public hearings have now been scheduled, one for June 15 and the other July 12. Ahead of those hearings, the Ohio Power Siting Board recently released a 71-page report outlining the potential impacts of the pipeline (full copy below). In the report, staffers conclude that Duke Energy’s proposed Alternate Route represents the minimum adverse environmental impact (the best route) when compared to the Preferred Route. The staff recommend that a number of conditions become part of any certificate issued by the Board for the proposed pipeline. DOPErs are busy reading the report and gearing up to fight the pipeline at the two upcoming public hearings… Read More “DOPEs Get Ready to Fight 13 Mile Pipeline Near Cincinnati”

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    Crystal Ball: Marcellus/Utica Production Over the Next 5 Years

    When it comes to analysts and those who evaluate the oil and gas industry, one of the brightest stars in the firmament is RBN Energy. RBN is founded and directed by Rusty Braziel, one of the co-founders of Bentek Energy (now owned by Platts). Jim Cramer, host of Mad Money on CNBC, calls Rusty “the smartest man on the oil patch” and the only person he consults with when it comes to the price of oil and gas and what’s happening (see The Smartest Man in the Oil (& Gas) Patch: Rusty Braziel). Rusty has assembled a top notch team that writes and consults on oil and gas. In a series of posts on the RBN Energy website, Rusty’s team has looked at “takeaway capacity” for pipeline projects planned in the Marcellus/Utica, taking into account which projects have been canceled, delayed or are on track. Rusty and the team predict how much new capacity is coming to cart our gas to various outside regions. Based on that analysis, RBN has just released their best guess for how much natural gas will get produced in the Marcellus/Utica over the next five years. In fact, RBN runs four different scenarios for how much gas might get produced, from pessimistic to optimistic. Even under the most pessimistic scenario, RBN predicts natgas production will grow by 9 billion cubic feet per day (Bcf/d) by 2022. Let’s haul out the RBN crystal ball and predict the future of our region’s production…
    Read More “Crystal Ball: Marcellus/Utica Production Over the Next 5 Years”

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    Beginning of the End: EPA Issues 90-Day Stay for Methane Rule

    The federal Environmental Protection Agency (EPA), under the Obama/McCarthy reign of terror, far overstepped its charter by seizing power that didn’t belong to it. In May 2016, the EPA issued new methane rules in a back-door way to try and regulate the oil and gas industry (see EPA Does it Again: Tries to Destroy O&G with New Methane Rule). In pretty short order several states sued to stop the order, which eventually turned into 15 states (see 15 States File Lawsuits to Block EPA O&G Methane Rule). The EPA claimed, at that time, that methane is leaking out of bore holes, pipelines, valves–just about everywhere on a well pad. And methane (as the fairy tale goes) is a gajillion times more “potent” than carbon dioxide when it comes to causing man-made global warming. The problem is, the EPA used estimates, calculations, algorithms, and spreadsheets as their “evidence.” They never went into the field and actually measured anything. Such a field study was done–by the EPA–in the Uinta Shale Basin in Colorado. In research published just last month, the EPA found it had overestimated methane leakage by 97% (see Study Finds Fugitive Methane from O&G 97% Less than EPA Estimates). The only rational thing to do is to stop the EPA’s rule and reevaluate it in light of this new evidence, which the EPA did last week. The EPA put a 90-day “stay” on implementing the Obama methane rule–which marks the beginning of the end for this terrible rule. Earlier this week, a group of radical environmental organizations (some of the worst of the worst) sued the EPA for stopping implementation of this illegal rule based on faulty science…
    Read More “Beginning of the End: EPA Issues 90-Day Stay for Methane Rule”

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    Sec. Perry: Obama Talked Clean Energy, Trump Will Actually Do It

    So often, what passes for “action” in the land of liberal Democrats is talk. As long as you mouth the right words, and as long as your intentions are “good,” that’s good enough. They never seem to be held to the standard of evaluating whether or not all of their hot air actually *produces* the intended result. The Obama administration was full of that kind of well-intentioned talk–but no results to show for all of their talk. Take the jobs and economy-killing Paris climate treaty as an example. Secretary of Energy Rick Perry said, in a recent editorial, that Trump’s decision to pull the US out of the Paris agreement is the right decision, one he fully supports. In responding to the hysterical Chicken Little “the sky is falling” enviro weenies now running around apoplectic about Trump’s action in ending a very poor agreement, Perry said: “Our work and deeds are more important than unenforceable words in a nonbinding agreement. Rather than preaching about clean energy, this administration will act on it.” Lib Dems just hate it when the truth is exposed for all to see… Read More “Sec. Perry: Obama Talked Clean Energy, Trump Will Actually Do It”

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    Rover Pipeline Helps OH Short Line Railroad Expand

    For some reason we’ve always loved stories about how shale energy has revitalized the short line railroad industry. Maybe it’s from some deep-seated psychological connection of playing Monopoly as a child and loving to own the railroads on the board–including the Short Line. Who knows? We’ve just stumbled across another such shale energy story connected to a short line railroad. This one involves the mighty Rover Pipeline, now under active construction across Ohio and in Michigan. When Energy Transfer, the company building the $3.7 billion, 711-mile Marcellus/Utica natural gas pipeline began to look at logistics and where they would store all of the pipeline and other materials needed to construction the mammoth project, they happened across a rail yard and transloading facility located in Massillon (Stark County), OH. Massillon Logistics, founded in 2004 by Steve and Dave DiPietro, had launched Republic Short Line Railroad (RSL), along with four other subsidiaries, to operate at a former steel mill site (465 acres) now called the Massillon Energy & Technology Park. RSL and the expansive park were just what Energy Transfer needed for Rover. The pipeline project has provided RSL with a boatload (or rather, rail yard) of business and money to grow… Read More “Rover Pipeline Helps OH Short Line Railroad Expand”

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    Baker Hughes, GE Release Roster of Coming Management Changes

    Yesterday MDN provided an update about the fast-approaching merger/buyout of Baker Hughes by GE Oil & Gas (see Europe Approves GE Takeover of Baker Hughes, Co Gets a New Name). We noted that it appears the new company, when launched, will have a new name: Bear Newco. However, would GE (and Baker Hughes) throw away the brand they’ve created over the past 100+ years in the Baker Hughes name? No, very doubtful. Which was more-or-less confirmed yesterday when Baker Hughes (and GE Oil & Gas) released the official leadership roster for the new company. We had already mentioned a few of the top names. This new list fleshes it all out–who will do what in the newly merged company, a company that will be bigger than current #2 in the world, Halliburton. The infographic (we call it a roster) of who will do what contains this name emblazoned across the top: “Baker Hughes, a GE Company.” The press release headline includes it too. So that’s what the new company name will be for branding/public purposes. Even though Bear Newco will be the company name filing paperwork with the government, the public-facing name will be Baker Hughes, a GE Company. Here’s the leadership roster for the new Baker Hughes (which doesn’t contain very much Baker Hughes)…
    Read More “Baker Hughes, GE Release Roster of Coming Management Changes”

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    Antis Ask Army Corps of Engrs to Yank Rover Pipeline Blanket Approval

    Several radical environmental groups, including the Sierra Club, Michigan Residents Against the ET Rover Pipeline, and the Ohio-based nutters at FreshWater Accountability Project filed an official request with the U.S. Army Corps of Engineers to pull the Corps’ issuance of a “blanket” approval for the Rover Pipeline to use underground horizontal directional drilling (HDD) and instead require Rover to get a permit for each of the 45 bodies of water they intend to drill under with the technique. Which would, of course, bring the project to a halt–the intended outcome by the radicals. The groups are attempting to capitalize on several leaks experienced by Rover using HDD, including a 2 million gallon drilling mud spill in April that continues to generate headlines today (see OH EPA Says Diesel Fuel Found in Rover 2M Gal Drilling Mud Spill). So far the Corps is keeping mum, only acknowledging receipt of the request. Here’s a bit of news you won’t get in mainstream media: Rover continues to use HDD actively, every day, even now. Yes, HDD activity in a few locations (under waterways) has been halted, but HDD activity continues in 23 other locations. In addition to the news about the request by anti groups to the Corps, we’ve pulled the latest weekly construction report from Rover, embedded below… Read More “Antis Ask Army Corps of Engrs to Yank Rover Pipeline Blanket Approval”

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    As Deadline for Mountain Valley Pipe Final EIS Nears, Antis Squirm

    Local anti-drilling reporters in Virginia are breathlessly hyping the fact that the Federal Energy Regulatory Commission (FERC) is set to issue a final environmental impact statement (EIS) on June 23 for the Mountain Valley Pipeline (MVP), a $3.5 billion, 301-mile pipeline that will run from Wetzel County, WV to the Transco Pipeline in Pittsylvania County, VA. Antis are only too happy to provide a load of bull for local reporters to use in articles to scare the general public. For example, when talking about the pipeline, it’s always the “deeply controversial” Mountain Valley Pipeline. Of course it’s only “deeply controversial” to a few hundred people. Everyone else couldn’t care less. A bunch of pipeline opponents, who don’t like how the system works, want to change the rules. Funny, isn’t it, when the other side can’t win in the realm of public opinion, or in the courts, they resort to demanding the rules get changed–to favor them. Antis now want FERC to do something it has never done: Issue a revised or supplemental draft EIS, instead of a final EIS–which would restart a public comment period and seriously delay the project. Which is the point. We expect FERC will ignore this latest transparent effort to stop the project…
    Read More “As Deadline for Mountain Valley Pipe Final EIS Nears, Antis Squirm”

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    Ridgetop Energy Services Buys Keystone Wireline Inc.

    You know those Russian nesting dolls, which are called matryoshka dolls, where you open one and inside you see another? And you open that and inside is yet another? And on it goes four or five times. That’s how we felt when digging into this story. The news is that Ridgetop Energy Services, headquartered near Pittsburgh, has purchased Keystone Wireline Inc., located in Bradford (McKean County), PA. Who is Ridgetop and how does Keystone Wireline fit into the picture? That’s what leads us to a matryoshka doll…
    Read More “Ridgetop Energy Services Buys Keystone Wireline Inc.”

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    Is Virginia Governor Race a ‘Referendum on Pipelines’?

    Will Virginia in the south become what New York is in the north: a block to Marcellus/Utica gas leaving the region? Perhaps. At least, that’s what radical environmentalists are hoping is what happens. On June 13 Virginia will hold a primary. We recently wrote about its importance (see Fate of 2 Important Pipelines May Rest in Virginia Governor Race). Former Congressman Tom Perriello (far-left Democrat) says he’ll block both the $5 billion Atlantic Coast Pipeline and the $3.5 billion Mountain Valley Pipeline if he wins the primary and the general election. He may well win it. Antis are positioning this primary and the election as “a referendum on pipelines.” The brutal truth is that most people in the Old Dominion could care less about pipelines. It is only a small cadre of gentry-class horse farmers and radical anti-fossil fuelers who oppose the pipeline projects. But if you read local news, you wouldn’t know that. We’d like to say, “Hey, it doesn’t matter who wins, the law is the law and a governor can’t stop a federal pipeline project.” But then, we’re from New York where that is exactly what has happened! At least so far. Both the Constitution Pipeline (Williams) and the Northern Access Pipeline (National Fuel Gas Company) have been blocked by Democrat Gov. Andrew Cuomo for political reasons. Both pipelines have taken the state’s Dept. of Environmental Conservation to court, where it’s quite possible, even likely, the state will lose. However, nothing is 100% certain–and because of Cuomo’s actions, both pipelines are now years delayed. Our concern is that a major delay may happen in Virginia too, if the state elects someone like Perriello…
    Read More “Is Virginia Governor Race a ‘Referendum on Pipelines’?”

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    Sleazy: Former EPA Head Gina McCarthy Joins Pegasus Capital

    One of the things we admired about Donald Trump and his candidacy was his pledge that members of his administration would agree to a lifetime ban against lobbying for foreign powers, and a five-year ban on lobbying for American companies after leaving their jobs. It’s about time we cleaned up the sleaze in Washington–the revolving door of achieving power and then using (we’d call it abusing) their former position of power by becoming a lobbyist, or as it is sometimes called, an “advisor” in a firm. Advisor is just another name for lobbyist. Companies, oh say like Pegasus Capital (investment firm with boatloads of money) hires a former high-level official who has long tentacles still reaching into the agency they once worked in, oh say like Gina McCarthy at the Environmental Protection Agency. What do you know? It’s just happened. Pegasus has hired McCarthy as an “operating advisor.” Disgusting and sleazy… Read More “Sleazy: Former EPA Head Gina McCarthy Joins Pegasus Capital”

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    OH EPA Says Diesel Fuel Found in Rover 2M Gal Drilling Mud Spill

    Rover is Energy Transfer’s $3.7 billion, 711-mile Marcellus/Utica natural gas pipeline that will run from PA, WV and eastern OH through OH into Michigan and eventually into Canada. On April 13, Rover workers experienced an “inadvertent return” of “horizontal directional drilling fluid”. That is, they sprung a leak and spilled nearly 2 million gallons of drilling fluid (see Rover Pipeline Accident Spills ~2M Gal. Drilling Mud in OH Swamp). The leak did not spill into the Tuscarawas River (thankfully), but into a swamp (i.e. “wetland”) next to the river. As we pointed out at the time, “Fortunately the primary component of said drilling fluid is nontoxic bentonite–the same ingredient used to make shampoo, deodorant, toothpaste and kitty litter.” On Friday, the Columbus Dispatch reported the Ohio Environmental Protection Agency (OEPA) investigating the spill has found the presence of diesel fuel in the spilled mud. Diesel fuel IS toxic–and its presence is not a good thing. Furthermore, OEPA Director Craig Butler, who has been combative against Energy Transfer and the Rover project, claims an anonymous source tipped them that diesel fuel was being added to the drilling mud. So OEPA tested the spilled mud, and mud not yet used, and found “very very low levels” of diesel fuel, whatever that means. The original “proposed” (i.e. not yet officially assessed) fine by the OEPA was $431,000. Then OEPA said it would up the fine to $714,000 after storm water runoff became an issue (see OEPA & Rover at Odds Over Storm Water Runoff, “Fine” Now $714K). With the diesel fuel “revelation,” OEPA is upping their proposed fine to $914,000. Pretty soon we expect it will sail on by a cool $1 million. OEPA has presented their findings to the Federal Energy Regulatory Commission (FERC), and the two remaining FERC commissioners have launched an investigation…
    Read More “OH EPA Says Diesel Fuel Found in Rover 2M Gal Drilling Mud Spill”

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    NFG’s Northern Access Pipeline Wins Eminent Domain Case…in NY!

    Talk about mixed signals. In April, MDN brought you the sad (and angering) news that once again Gov. Andrew Cuomo has caved to political pressure and instructed the Dept. of Environmental Conservation (DEC) to deny stream crossing permits for National Fuel Gas Company’s (NFG) Northern Access Pipeline project (see Cuomo’s Corrupt NY DEC Blocks NFG Northern Access Pipeline Permit). Not long after, NFG filed a lawsuit against the DEC for their arbitrary, capricious and politically-motivated denial of the permits (see NFG Sues NY DEC in Fed Court re Northern Access Pipe Rejection). Meanwhile, another series of court cases has been working its way through NY’s court system–eminent domain cases against a few holdout landowners who refuse to allow the Northern Access Pipeline across their properties. Some 97% of all landowners along the proposed route have signed easements with NFG, but there’s always a few holdouts. Last Thursday one of those holdouts lost in New York Supreme Court in Cattaragus County. (Don’t be confused, in NY, “Supreme Court” is just one level up from county court. The state’s highest court is called the Court of Appeals.) Camp Duffield in Cattaraugus County lost its court case against NFG, and consequently is now being forced, by court order, to submit to the pipeline–when and if it gets built. And that’s the conundrum. The courts obviously recognize NFG’s right, under a FERC (Federal Energy Regulatory Commission) order to build the pipeline. But the Cuomo-corrupted DEC does not… Read More “NFG’s Northern Access Pipeline Wins Eminent Domain Case…in NY!”

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    Plethora of Pipelines Means New Jobs at OH Construction Firm

    Bolt Construction builds compressor, dehydration and metering stations for pipelines that serve the oil and gas industry. According to Bold VP Todd Miller, this year the company has experienced its biggest surge in construction activity since the shale boom first started. Since November, Bolt has been “bidding nonstop” on pipeline jobs. And in fact, the company has had to “turn down quite a few” of those jobs. Why? Not enough skilled workers. Bolt is looking for welders, pipe-fitters, superintendents and foremen to keep up with the work they do have… Read More “Plethora of Pipelines Means New Jobs at OH Construction Firm”