Industrywide Issues

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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…
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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…
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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…
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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…
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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…
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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…
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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…
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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…
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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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    Liberal DC Court Tells EPA It MUST Adopt Obama Methane Rules

    The federal Environmental Protection Agency (EPA) wisely move to begin the process of rolling back Obama-era regulations on methane, designed to regulate the oil and gas industry, last month (see Beginning of the End: EPA Issues 90-Day Stay for Methane Rule). Big Green groups with deep pockets sued a few days later, claiming the agency that instituted the rules in the first place (the EPA) shouldn’t be able to roll back the rules they themselves made up. Egregious, over-reaching rules. A liberal federal court in DC somewhat agreed, telling the EPA they have to justify themselves (see Liberal DC Court Asks EPA to Respond to Lawsuit by Radical Enviros). Now, the liberal DC court has decided the EPA can’t un-decide what it previously decided, even though it clearly has the right and power to do so. On Monday, the U.S. Kangaroo Court of Appeals for the District of Columbia Circuit ordered to EPA to move forward with the Obama-era methane rules…
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    Fracker Keane Group Completes Buyout of RockPile Energy for $276M

    Keane Group is a Texas-based oilfield services company that provides fracking, wireline and top-hole air drilling services to oil and gas companies in the Marcellus/Utica as well as several other major basins. In January 2016, Keane announced they were buying out Canadian-based Trican Well Service for $247 million (see Oilfield Serv. Co. Keane Group Buys Trican Well Service for $247M). The expansion tripled Keane’s fracking capacity and gave it access to proprietary new technology. The buyout, and Keane’s hard work, bore fruit. Last December the privately-held company announced it will go public with an initial public offering (IPO) of stock, hoping to raise $287.5 million with the IPO (see Oilfield Services Co. Keane Group Floats $288M IPO). Then in May of this year, Keane announced it is expanding again, buying out fracker RockPile Energy Services for $284.5 million (see Fracker Keane Group Continues Expansion, Buys RockPile Energy). The deal has closed, although for slightly less money than the original announcement. RockPile is no more after merging with Keane for $276 million. RockPile’s former CEO, Curt Dacar, is now the COO (Chief Commercial Officer) at Keane…
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    Fossil Fuels Continue to Dominate American Energy – 81% in 2016

    Here’s a fact: Fossil fuels have provided more than 80% of total U.S. energy consumption for more than 100 years. Here’s another fact: Fossil fuels provided 81% of America’s energy consumption in 2016–last year. What about all those precious so-called renewables? They provided a little over 10% of our energy needs. However, don’t confuse “renewables” with “solar and wind,” because renewables also include biomass and hydro. If you look only at wind and solar, they provided around 2.5-3% of our overall energy needs last year. When some crackpot claims we could just flip a switch and begin using all renewables anytime before the next 100 years, you know they’re delusional. Ain’t, gonna, happen. You read it here first…
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    Judge Orders “Eco-Terrorists” to Vacate PA Property, Allow Pipe

    MDN has extensively covered the story of a family in Huntingdon County, PA radicalized by the Big Green movement into opposing the Mariner East 2 pipeline across their property. The Gerhart family, with the assistance of what Sunoco Logistics Partners calls “eco-terrorists,” have pledged to illegally block construction of the pipeline. So a few weeks ago Sunoco asked a Huntingdon County judge to grant an injunction against the Gerharts AND the interloping eco-terrorists–to have them forcibly removed if they attempt to stop construction which is about to begin (see Sunoco Seeks Injunction Against Radicalized ME2 Pipe Protesters). The good news is that late last week the judge granted the injunction. The Gerharts and their eco-terrorist friends will sit their butts in jail if they scarper up a tree to sit, or stand in the way when the bulldozers rev their engines…
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    ME2 Begins Building Pipeline in Lancaster County, PA

    Click for larger version – Clay & West Cocalico in northern tip

    Mariner East 2 (ME2), Sunoco Logistics Partner’s 350-mile NGL (natural gas liquids) pipeline that will run from Eastern Ohio to the Marcus Hook refinery near Philadelphia, has begun construction in northern Lancaster County, PA. Currently the work is getting done in the townships of Clay and West Cocalico. Which is great news. Here’s the even bigger news, that most mainstream news outlets are not reporting: “Officials for the two townships…[said] the pipeline faced no opposition.” Huh. Who woulda thunk? Lancaster County, home of the nutjobs who have threatened to establish an eco-terror camp to block Williams’ natural gas pipeline called Atlantic Sunrise–and yet with ME2, an NGL pipeline, no opposition. Nothing. Of course there are still pockets of resistance to ME2 (see today’s lead story about the eco-terrorists in Huntingdon County). But perhaps lack of opposition to ME2 in Lancaster County is a sign that Big Green is running out of steam (or money to pay protesters)…
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    Mich. Official Says She’ll Stand in Front of Dozer to Stop Rover

    A liberal Democrat County from the Washtenaw County, Mich. Board of Commissioners, someone who obviously ignores the rule of law, has pledged to break the law in her misguided attempt to stop Energy Transfer’s Rover Pipeline project from coming through her county. Lib Dems often like to pick and choose which laws they will obey and which they’ll ignore, so we’re not surprised by the mouthy reaction from Commissioner Michelle Deatrick, D-Superior Township. She’s like many other radical anti-fossil fuelers. Michelle is an Al Gore fan and has apparently overdosed on trailers for Gore’s forthcoming Inconvenient Truth Part Deux fictional flick, called “Truth to Power,” because that’s the exact phase she used at a recent board meeting. Here’s what mouthy Michelle had to say…
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