Industrywide Issues

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    Baker Hughes Nov US Rig Count Up by 36; M-U Count Up 4

    The worldwide Baker Hughes rig count was up by 5 in November, from 920 in October to 925 in November. That reverses a brief slide back in October when rigs worldwide slide back by 14. However, the rig count in the U.S. went up for the fifth month in a row. The average U.S. rig count for November was 580, up 36 from the 544 counted in October. That’s a two month increase of 71! The Marcellus/Utica rig count was up for the fourth month running. In November the M/U rig count went up by 4 (second month in a row it’s gone up 4) with 2 additions in PA (now 27 rigs) and 2 in OH (now 16 rigs). WV stayed even running with an average of 10 rigs…
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    Report Sums Up 2016 Northeast Pipe Projects in One Word: Delayed

    The Northeast Gas Association (NGA) is a regional trade association that focuses on education and training, technology research and development, operations, planning, and increasing public awareness of natural gas in the Northeast U.S. NGA represents natural gas distribution companies, transmission companies, liquefied natural gas importers, and associate member companies. These companies provide natural gas to over 10 million customers in nine states. The NGA has just released a 96-page report called the 2016 Statistical Guide (full copy below)–a sort of “year in review” for the gas industry in the northeast. If you could boil it all down, the word that appears prominently throughout is “delay” with respect to important natgas pipeline projects. From the Constitution, which should have already been built by now, to smaller projects, delays were the prominent trend for 2016…
    Read More “Report Sums Up 2016 Northeast Pipe Projects in One Word: Delayed”

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    Short-Term Energy Outlook: NatGas Price Will Avg $3.27/Mcf in 2017

    Once a month our favorite government agency, the U.S. Energy Information Administration (EIA), issues a Short-Term Energy Outlook (STEO). The EIA issued their latest edition on Tuesday. We have a full copy below. We’ve grabbed out the section on natural gas because it includes a couple of key points: (1) EIA predicts that natural gas production in the U.S. for 2016 will see a healthy decline over 2015 levels–1.3 billion cubic feet per day (Bcf/d) less in 2016. That’s the first annual production decline since 2005! (2) The EIA predicts the average price for natural gas at the benchmark Henry Hub will climb from $2.49/Mcf (thousand cubic feet) in 2016 to a whopping $3.27/Mcf in 2017. Why the jump? Growing domestic natural gas consumption, along with higher pipeline exports to Mexico and liquefied natural gas exports. Here’s the natgas section of the STEO, along with a copy of the full report…
    Read More “Short-Term Energy Outlook: NatGas Price Will Avg $3.27/Mcf in 2017”

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    Penn State Goes Methane Migration Hunting – Using Big Data

    We’re always leery when we read about scientists doing data mining instead of real in-the-field research. So our radar was on alert when we read about the latest data mining project now under way at Penn State. Using a $1 million grant from the National Science Foundation, a cross-disciplinary team of Penn State computer scientists and geoscientists will study methane concentrations in the Pennsylvania’s streams, rivers and private water wells. They will look to see if wells and streams and rivers close to fracked Marcellus Shale wells have higher concentrations of methane than those not close to shale wells. In other words, does fracking cause methane to migrate into nearby water sources? That’s what they’re trying to prove, or disprove. The problem, from our perspective, is whether or not the data being analyzed contains readings of methane levels present in those wells, streams and rivers BEFORE any kind of shale drilling happened. If you don’t have the before and after, the data is useless. Drillers have discovered where the best locations are to drill–so that’s where they drill. (Brilliant, we know.) So it stands to reason naturally occurring methane already exists in those locations. Just because a nearby well or stream has higher levels of methane does not prove a shale well caused it. The methane may have already existed in the same quantities long before any shale drilling. You see the problem? At any rate, here’s the lowdown on another million dollar research project to give the Marcellus yet another anal exam…
    Read More “Penn State Goes Methane Migration Hunting – Using Big Data”

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    The (Un)Civil Disobedience of Anti-Fossil Fuel Extremists

    With the election of Donald Trump, climate change radicals became unhinged. They’ve always been liars–predicting the end of Mom earth “in the next 10-15 years” for the past 40 years or so. Their predictions never come true. First it was global cooling–we’re all going to freeze. Now it’s global warming–we’re all going to toast. And of course it’s always mankind’s fault. If you deign to disagree and ask them for objective, science-based (not theoretical model-based) evidence, they call you “climate denier” and run around to gather up kindling to burn you at the stake. Their rabid and irrational beliefs are now leading to violence–witness the “protests” in North Dakota over a simple pipeline. Enough is enough. Robert Bradley Jr., founder and CEO of the Institute for Energy Research, recently published a great column on the Forbes website in which he skewers climate change radicals, calling them out for their outrageous accusations and their (un)civil disobedience. Give it a read–we promise it’s worth the time…
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    PA Anti-Drilling Auditor General Bashes Impact Fee Spending

    Since he assumed office in 2013, Auditor General Eugene DePasquale has had a chip on his shoulder when it comes to the Marcellus Shale (see Newly Elected PA Auditor General Targets DEP First Day on Job). He put together a sham report on the DEP, calling attention to “problems” fixed years earlier, before he assumed office (see DEP to DePasquale: Problems Fixed Years Ago, Where Have You Been?). He couldn’t discredit the Marcellus industry via the DEP, so he started on a new track–the millions of dollars raised in a severance tax-like fee called the impact fee (see PA Auditor General to Investigate “Lost” $30M Marcellus Impact Fee). In March 2016 DePasquale announced he will conduct a thorough anal exam, er, a, audit of all Act 13 impact fee money distributed to towns and municipalities (see PA Auditor General Commits to Half-an-Audit of Shale Impact Fee $). At the time we pointed out that 60% of the impact fee revenue raised goes to local towns and municipalities where drilling occurs, but the other 40% goes into the black hole of politicians’ sticky fingers in Harrisburg. If DePasquale doesn’t audit the other 40%, he’s only done half-an-audit. DePasquale has released his biased audit and yep, he didn’t bother to look at the 40% being spent by his cronies in Harrisburg–he only concentrated on the money going to local governments. And even then he didn’t find much, but he’s conflated it into a big press release and his sycophants in the media are regurgitating it with damning headlines…
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    PA DEP Asks Supreme Court to Overturn Stay on New Regs

    Justices of the PA Supreme Court – click for larger version

    On Oct. 8, after five years in the making, Pennsylvania adopted new shale drilling regulations (see PA’s New Chapter 78a Drilling Regs Go into Effect Oct 8). Although the regs were ready at the end of the Gov. Tom Corbett Administration, Corbett fumbled the ball and the regs didn’t get adopted, which left them vulnerable to the incoming left-leaning Tom Wolf. Wolf’s people mangled the regulations under the Dept. of Environmental Protection (DEP) Dictator/Secretary John Quigley, who got fired over unethical collusion with Big Green groups. Some of the good stuff remained, but onerous new elements were introduced. The Marcellus Shale Coalition (MSC), which represents PA’s biggest shale drillers, filed an appeal in Commonwealth Court to block the most onerous aspects of the new regulations (see Marc. Shale Coalition Files Lawsuit to Block PA Chapter 78a Regs). The judge agreed to temporarily block some of the items in the MSC list (see PA Judge Temporarily Blocks Some DEP Chapter 78a Drilling Regs). Yesterday the DEP escalated the case by asking the PA Supreme Court to undo the block on those regulations by the lower Commonwealth Court…
    Read More “PA DEP Asks Supreme Court to Overturn Stay on New Regs”

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    Vendors & Workers: Sign Up to Help Build Atlantic Coast Pipeline

    Calling all vendors (i.e. supply chain companies) and workers who want a piece of the action in building the Dominion’s $5 billion, 594-mile Atlantic Coast Pipeline–a natural gas pipeline that will stretch from West Virginia through Virginia and into North Carolina. Dominion is currently holding in-person “construction expos,” as well as hosting an online form for those where those with an interest in selling to or working for the project can register that interest. Yesterday Dominion held a construction expo in Bridgeport, WV. Today they’re holding one in Elkins, WV. And over the next week or so they will hold more construction expos–across Virginia and even in North Carolina. Dominion is looking for suppliers for things like gravel and concrete, vehicles, construction supplies, welding and more. Here’s the low-down on how you can sign up to help build the Atlantic Coast Pipeline…
    Read More “Vendors & Workers: Sign Up to Help Build Atlantic Coast Pipeline”

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    JobsOhio Picks Up the $17M Cost for Prepping OH Cracker Site

    On Monday MDN reported that the future site for an ethane cracker in Belmont County, OH is now cleared and ready for construction to begin (see OH Cracker Final Decision Coming Soon, Site Now Cleared & Ready). Clearing the site, which once hosted the R.E. Burger coal-fired power plant, was no small task. The power plant site, owned and (until 2011) operated by FirstEnergy cost $14 million for demolition, remediation and general cleaning up. An adjacent site (not owned by FirstEnergy) cost another $3 million to tidy up. All told it took $17 million to clean up the site and get it ready to begin construction. FirstEnergy is reported to have said they were “excited” by the opportunity to spend $14 million to clean it up. Wait, what? They wanted to spend the money? Well actually, no, they didn’t. FirstEnergy spent the money to clean up the site because they have been/are being reimbursed for the cost by JobsOhio. So FirstEnergy (and PTT Global, the company that will build the cracker) doesn’t have to spend a dime to get the site ready to go. What is JobsOhio and where does it get all this money? Glad you asked! JobsOhio is a private, non-profit with a board appointed by Ohio Gov. John Kasich, which gets most of its operating revenue from taxes on liquor sales in Ohio. So raise a glass to the cracker, Ohioans. Your imbibing is helping to build it…
    Read More “JobsOhio Picks Up the $17M Cost for Prepping OH Cracker Site”

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    New England Gets Small Increase in NatGas Pipeline Capacity

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    For the first time in six years, New England’s natural gas supply coming from pipelines is increasing. Slightly. On November 1, Spectra Energy placed part of the Algonquin Incremental Market (AIM) project into service, following a late-October approval from the Federal Energy Regulatory Commission (FERC). The remainder of the project is expected to be completed in December. Spectra placed another pipeline project, the Salem Lateral, into service on November 1 as well, but it is not expected to be used until June 2017. The AIM project, when it is fully online later this month, will flow an extra 342 million cubic feet per day (MMcf/d) of Marcellus/Utica natural gas to New England. Cool! However, as we pointed out just yesterday, New England continues to balance on a razor’s edge. According to the regional electrical grid operator, ISO New England, given the supplies they now have (and expect to have via AIM), the region “should” (maybe, might, possibly, theoretically) have enough natgas to skate by this winter (see Lack of NatGas Pipelines Casts Doubt on NE Winter Electric Rates). But, if it turns really cold and snowy and stays cold and snowy in New England, all bets are off. Here’s the good news about the added capacity now (or soon will be) flowing to New England…
    Read More “New England Gets Small Increase in NatGas Pipeline Capacity”

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    Will Venezuelan NatGas End Up in New England?

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    This is one of those purely speculative types of posts–based on nothing but our own curiosity and reaction of “Huh, that’s odd,” in learning that Venezuela has signed an agreement with the island nation of Trinidad and Tobago to supply the country with natural gas via a 400-mile pipeline (already in existence). The “that’s odd” reaction comes from knowledge that Trinidad and Tobago is, itself, a natural gas producer and exporter. Why would they need to import gas? One of Trinidad’s main customers is, yes, GDF Suez which imports LNG at a facility near Boston–for sale to New England. GDF Suez has been fighting against new pipelines from the Marcellus, based on their own selfish interests, arguing that it’s far better to import LNG than build new pipelines (see Guess Why GDF Suez Doesn’t Want Marcellus Pipeline to New England). But perhaps this development is not surprising. As we’ve pointed out before, Trinidad’s gas supplies are dwindling and export volumes dropping (see Is New England Heading for Huge NatGas Price Spike this Winter?). It appears Trinidad has a new supplier to keep the LNG exports going. Our question: Will Trinidad simply repackage and resell Venezuelan gas to New England? Our further question: Is it a good plan to depend on natural gas supplies from an antagonistic (i.e. enemy) country like Venezuela? Wouldn’t it make more sense to rely on domestically produced gas from a few hundred miles away?…
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    Bowling Green, OH Votes to Deny NEXUS Pipe Easement for City Land

    unwiseAll seven members of the Bowling Green City Council (Wood County) unwisely voted to reject an offer from Spectra Energy’s NEXUS Pipeline to lease 4 acres of city-owned land for the pipeline. Why unwise? Because the project is close to receiving its final federal approval, which will give it the right to use eminent domain to use the land anyway (see FERC Approves NEXUS Pipeline, Project on Track for 2017). Spectra offered $151,000 for the easement and was willing to follow an existing easement already in place for power lines. When (not if) NEXUS gets built, Bowling Green can expect to receive far less in the way of a lease payment. Even though the fix was in before the vote was taken, one lawless resident–Joe DeMare, a Green Party candidate for U.S. Senate in the most recent election (loser)–wouldn’t shut his yap and had to be escorted out by security. Apparently he thought there should be more public comment (i.e. camera and microphone time for himself) before the vote was taken. Whatever. Big Green antis celebrated the vote. We predict it will be a short-lived celebration…
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    Talen Puts Coal-to-Gas Powergen Conversion on Hold in Mountour, PA

    on holdIn June Talen Energy announced that one of its coal-burning electric generating plants, located in Montour County, PA, will get an upgrade to burn natural gas in addition to burning coal (see Talen Energy Converting Moutour, PA Plant to Burn Coal AND NatGas). The Montour Power Plant went online in 1972/73 and generates 1,504 megawatts of electricity. The $70 million upgrade planned by Talen (requiring a 15-mile pipeline) will continue to produce the same amount of electricity, but will give the plant the option to power it with either natgas or coal, depending on which is cheaper. However, those plans are now on hold. Talen has just announced it will not, for now, move forward with the upgrade. Why? Talen says it wants to evaluate the results of a similar project already completed in York County, PA before moving forward with the project in Montour County…
    Read More “Talen Puts Coal-to-Gas Powergen Conversion on Hold in Mountour, PA”

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    New Head of WVONGA Pushes for Forced Pooling Law

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    Anne Blankenship

    In November the West Virginia Oil & Natural Gas Association (WVONGA) hired Anne C. Blankenship, an attorney with Babst Calland, to serve as executive director (see WVONGA Hires Babst Calland Attorney as Executive Director). As we noted at the time, she has some big shoes to fill following the sudden death of WVONGA’s former director Corky DeMarco (see WVONGA Executive Director Corky DeMarco Dead at 68). Anne becomes the standard-bearer for shale drilling in the Mountain State. She’s not wasting any time. The Charleston Gazette-Mail published an editorial by Anne today, a column in which she introduces herself and lays out her priorities for the coming year. One of those priorities is to push for a forced pooling law. She’s also pushing hard for new pipelines to get built…
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    Lack of NatGas Pipelines Casts Doubt on NE Winter Electric Rates

    iso-new-englandContrary to the assurances of charlatans like Massachusetts Attorney General Maura Healey who tells us new natural gas pipelines are not needed, New England is once again looking down the throat of potential electricity shortages this winter–if we have another winter like that of 2013/2014. ISO New England Inc. (ISONE), the electrical grid operator in the region, issued a statement last week to say they are implementing a 2016-17 Winter Reliability Program to guard against potential electricity shortages because there’s not enough natural gas in the region to power electric plants if much of that gas is also heating homes and businesses on cold days. According to ISONE, “Electricity supplies should [not a reassuring word] be sufficient to meet consumer demand for electricity in New England this winter.” They then go on to say, “but constraints on the region’s natural gas pipelines could pose a challenge to reliable operations.” In other words, if it gets really cold and snowy, we’re screwed. So, to fend off that screwing, ISONE has devised a program to load up on oil, of all things, and LNG, to help produce electricity if natgas runs short. Don’t say we haven’t repeatedly warned New England that without new pipelines they will not only continue to pay 4x what everyone else pays for electricity, at some point there just won’t be enough fuel sources to produce electricity and sooner or later New England will have brownouts and/or rolling blackouts–because THEY’RE FOOLS and continue to reject safe, reliable natural gas pipelines…
    Read More “Lack of NatGas Pipelines Casts Doubt on NE Winter Electric Rates”

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    Liberal PA News Media Wants ND Pipeline Protesters to Come Here

    mob-ruleAnd so it begins. So-called “reporters” who are either too stupid or too lazy to examine important issues closely, like the issue of paid, out-of-state protesters who descended on Standing Rock, ND and have engaged in multiple lawless acts, are now beginning to hold up Standing Rock as the model for how to defeat important oil and gas infrastructure projects in the Marcellus/Utica region. The editorial writer(s) at the Delaware County Daily Times has deigned to compare Standing Rock and the temporary block on completing it by the politicized Obama Administration to the Mariner East 2 NGL pipeline slated to be built across Pennsylvania. The writer(s) express their hope to see the lawless criminals from Standing Rock to “pop up here if and when construction on Mariner East 2 begins.” You see why the newspaper industry in this country is crashing and burning? Because of such blatant bias and misstatements of fact (i.e. lies)…
    Read More “Liberal PA News Media Wants ND Pipeline Protesters to Come Here”