Industrywide Issues

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    Obama and Man-Child Leo DiCaprio Talk Global Warming at WH Event

    sxsl-climate-talkRight at the top of our list of things that tick us off are uber-arrogant Hollywood actors who pretend to have gray matter in their heads, especially on the issue of man-made global warming. At the top of that list, for us, is the man-child pretender Leo DiCaprio. He parades around pretending that he’s some sort of expert on global warming. He nakedly states that if you have a different opinion from him on the topic of global warming, your right to free speech should be yanked away. He is, as most leftists are, a totalitarian at heart. Someone with more in common philosophically with Adolf Hitler than with Mahatma Gandhi. Man-child DiCaprio was parading his stuff on Monday at the White House, hosting a talk with Our Supreme Leader, B.H. Obama. Although Obama is a full-throated global warming fanatic who wants to end the use of fossil fuels, he is, nevertheless, a pragmatist. To his credit, Obama gave lukewarm support to natural gas as a “bridge fuel” that will (for now) lower carbon emissions, while waiting for his so-called precious renewables to become commercially viable and take over the energy world. Here’s how it went down on the South Lawn of the White House on Monday…
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    The Many Flaws with President Obama’s Clean Power Plan

    guest postStephen Heins, an energy and regulatory consultant for a Wall Street firm, and former vice president of communication for Orion Energy Systems, is an occasional guest blogger here on MDN. Steve calls himself a “luke warmer” when it comes to the fairy tale that mankind is causing Mom Earth to toast. That is, he’s not convinced that man-kind is causing a catastrophic warming up, but he’s also not ruling it out. That’s OK, we forgive him. A lot of intelligent people believe in such things. At least he’s a skeptic! Steve recently penned an article that finds “several flaws” with President Obama’s so-called Clean Power Plan (which has been challenged in court by 29 states). The CPP outright kills coal, and it mortally wounds natural gas, as we’ve previously written (see Obama’s CPP Targets Not Just Coal, but NatGas for Termination). Steve’s article does more than find flaws, it shreds the CPP into tiny atoms of carbon…
    Read More “The Many Flaws with President Obama’s Clean Power Plan”

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    Time to Start Prosecuting Towns that Pass Illegal Frack Bans?

    indictmentAs a general rule and principle, local control over decisions that affect an entire community is a good thing. Our great country as founded gives precedence to individual freedom. However, what do you do when two neighbors disagree on an important, community-changing issue? Our founding fathers wrestled with this concept and crafted an ingenious solution. If everyone in a community voted on every issue, the founding fathers recognized such a system descends into mob rule. However, in order to preserve democracy and cherished individual freedom, people should have the right to vote. Instead of voting on every issue, the founders created a system where citizens vote for small groups of representatives who act as a buffer between the “mob” and common sense/fairness for everyone–people who dedicate their time to understanding issues, how their constituents feel about those issues, and then voting in accordance with their own conscience and findings. Such a representative democracy is called a republic, which is the political system we have in the United States (NOT a straight up democracy). Even among the layers of elected representatives (local, state, federal) there is a pecking order. The founders recognized there are certain rights and issues best decided and enforced on either the federal or state level, rather than the local level. Each local community (lets call it a township) does NOT have the right to craft its own constitution and confer rights on individuals, corporations, eco-systems or any other entity. Conferring of such rights is the purview of either the federal or state government–NOT a local government. For example, in every state in the union oil and gas development is regulated by the state–not by local entities. In some states, Pennsylvania among them, zoning can affect and influence oil and gas development–where it happens, when it happens–but not control how it happens. So what if a community decides to ban oil and gas development (or pipelines, or injection wells)–in other words, “whether” such an activity happens? Such a ban is illegal. Introducing zoning regulations that result in a de facto ban is also illegal–but it’s happening in pockets across the Keystone State. Perhaps it’s time to criminally charge local representatives who pass these illegal laws (laws that trample individual property rights guaranteed under the U.S. Constitution) under a PA law called “official oppression.” That’s what the Pennsylvania Independent Oil & Gas Association (PIOGA) is considering right now…
    Read More “Time to Start Prosecuting Towns that Pass Illegal Frack Bans?”

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    Lawyer Breaks Down PA Supreme Court’s Latest Act 13 Ruling

    one-more-timeWe’re not trying to beat a dead horse here with yet more coverage of last week’s PA Supreme Court ruling in yet another Act 13 case (see PA Supreme Court Rules Against Act 13 Drilling Law, Yet Again), but that decision is important enough that it bears viewing from multiple angles. Below is an article from the Saul Ewing law firm. It does a good job of breaking down the key items decided by the judges, and what it means for the drilling industry and for PA residents–in terms non-lawyers (like us!) can understand. The article also points out there is at least one more aspect of the Act 13 case that has yet to be decided…
    Read More “Lawyer Breaks Down PA Supreme Court’s Latest Act 13 Ruling”

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    Ohio Startup Plans to Convert Utica Drill Cuttings into Clean Fill

    energreen360enerGREEN360, a young Ohio company that cleans up material heading to landfills so it can get re-used instead, has a plan to clean drill cuttings from Utica drilling to reuse those cuttings as clean fill on brownfield sites. The company has its sights set on an industrial park south of Cambridge, OH as its first location to dump the treated drill cuttings. Everyone wins in this instance–less material filling up local landfills, fill needed at the industrial park, the cuttings get treated before being used (minimizing any potential exposure risks). The only ones who lose are radical environmentalists, who will try their best to demagogue this plan, painting it as unsafe and harmful to locals who live and work in the area. The only problem for enerGREEN360 is that the Guernsey County Board of Supervisors is unanimously opposed to the plan (see Guernsey County, OH Opposes Facility to Treat/Store Drill Cuttings)…
    Read More “Ohio Startup Plans to Convert Utica Drill Cuttings into Clean Fill”

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    How to Keep PA Livestock Safe During Pipeline Construction

    biosecurityMDN spotted an announcement that says PennAg and Sunoco Logistics (building the Mariner East 2 pipeline project) have collaborated to produce a “biosecurity education module.” What the heck is that?! It’s fancy language for “here’s how you keep farm animals safe when building a pipeline.” Building a pipeline is no easy thing. It starts with surveyors entering a property to map out a route–traipsing around the land, sticking markers in the ground. Eventually bulldozers, backhoes and truckloads of pipe show up. Then welders show up to stitch it together. Then it gets covered up, and later landscapers come along to replant, reseed, and re-whatever to restore the land to its former glory. With all of those people and equipment entering and exiting a property–particularly a farm–there’s an increased chance they will track something, or perhaps do something, that ends up being harmful to the livestock living on that land. So-called “biosecurity” is the name given to keeping the living things safe and free from harm from the people building (in this case) a pipeline. Sunoco has teamed up with PennAg Industries, a PA non-profit that promotes agriculture in the Keystone State, to make sure nothing bad happens when their workers show up at the farm. They’re creating an online course and making it available to anyone and everyone…
    Read More “How to Keep PA Livestock Safe During Pipeline Construction”

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    EIA’s 2015 Natural Gas Annual Report – Charts, Graphs & More

    EIALast Friday the U.S. Energy Information Administration, our favorite government agency, released its Natural Gas Annual 2015 report. Weighing in at 212 pages (yikes!), this report is full of data. It is a datamonger’s dream come true. Right off the bat the report shows record U.S. natural gas production levels for the fifth consecutive year, and record consumption levels for the sixth consecutive year. Natgas is growing in the U.S. and it’s growing big-time. Another interesting factoid from the report: For the first time since 2007 natural gas imports *increased* year over year. That’s interesting! The report has a number of fascinating charts and graphs. We list a few of them below, along with a full copy of the report…
    Read More “EIA’s 2015 Natural Gas Annual Report – Charts, Graphs & More”

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    PIOGA Makes Legal Play to Stop Chapter 78a Regs from Taking Effect

    appealLast Friday the Pennsylvania Independent Oil and Gas Association (PIOGA) filed a letter with the PA Joint House Senate Committee on Documents asking them to NOT publish the Dept. of Environmental Protection’s (DEP) final Chapter 78a Marcellus Drilling regulations, citing last week’s PA Supreme Court ruling on Act 13 as the basis. As MDN previously reported, the DEP plans to publish the final regulations in this week’s Oct. 8 Pennsylvania Bulletin (see PA’s New Article 78a Drilling Regs Go into Effect Oct 8). PIOGA previously sued asking the Commonwealth Court to block the new regulations based on the legal fact that key parts of Act 13, which Chapter 78a is based on, have been “enjoined” that prevent certain Chapter 78a provisions from being adopted in their current form. It kind of gets into the weeds with legal speak, but essentially PIOGA is (a) warning these agencies they should not publish the new regulations, which prevents the regs from going into effect, until the invalid provisions are removed, and (b) further litigating to keep the regulations stopped. Below is an overview of what’s happening, along with the letter sent by PIOGA to the Joint Committee, and a copy of the appeal filed to the Supreme Court…
    Read More “PIOGA Makes Legal Play to Stop Chapter 78a Regs from Taking Effect”

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    DTE’s Reason for Buying M-U Pipes: NatGas-Fired Electric Plants

    gasfiredpowerplantillustration1x1-largeLast week MDN brought you the news that DTE Energy, a BIG utility and midstream company based in Detroit, MI, is buying 100% of M3 Midstream’s Appalachia Gathering System (AGS), located in Pennsylvania and West Virginia, and 40% of M3’s Stonewall Gas Gathering (SGG), located in West Virginia (see DTE Energy Buys Marcellus/Utica Pipelines for $1.3B). MDN speculated that DTE wants the pipelines because DTE wants a reliable source cheap, abundant, clean-burning Marcellus/Utica natural gas for its utility customers in the Midwest. While that’s true, there’s a bigger reason why DTE is making a play for the pipelines–because they intend to build $1.5 billion of new natural gas-fired electric plants in Michigan. Since that price tag will build one, maybe two plants, and because DTE is shutting down three of its five coal-fired plants in the state, we think there’s a good chance DTE will build more new gas-fired plants–powered by Marcellus/Utica gas…
    Read More “DTE’s Reason for Buying M-U Pipes: NatGas-Fired Electric Plants”

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    FERC Tells Columbia to Open Valves on Utica Access Pipeline in WV

    Proposed_Utica_Access_Pipeline-20150212
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    In January 2016 the Federal Energy Regulatory Commission (FERC) approved a plan by Columbia Pipeline to build five miles of new pipeline and an upgrade to a compressor station in Kanawha County, WV (see Columbia Pipeline Gets FERC Approval for WV Utica Access Project). The $45 million “Utica Access” project will transport 205 million cubic feet per day (MMcf/d) of Utica Shale gas for Eclipse Resources Corporation to trading points on the Columbia Gas Transmission interstate pipeline system. Last Thursday FERC gave Columbia (now owned by TransCanada) the green light to open the valves on the new pipeline…
    Read More “FERC Tells Columbia to Open Valves on Utica Access Pipeline in WV”

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    130 Tanker Trucks/Day in Ohio End as Cornerstone Pipe Begins

    Cornerstone Pipeline Route Map
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    Last week MDN shared the good news that Utica Shale condensate (very light oil) had begun flowing through the new Marathon Petroleum Cornerstone Pipeline (see Utica Condensate Begins Flowing Through Cornerstone Pipeline). The Cleveland Plain Dealer published an interesting story about the pipeline on Saturday, explaining in depth what condensate is and how/why Marathon upgraded its refinery in Canton to handle it. However, it was another point made in the story that caught our attention. The MarkWest Energy (now a part of Marathon) processing plant in Cadiz, Ohio cleans and separates out condensate from other natural gas liquids (like ethane and propane) before sending the condensate to the Canton refinery. Until the Cornerstone went online, it took 130 tanker trunk trips PER DAY, operating around the clock, to cart the condensate from Cadiz some 60 miles to Canton (and then back for another pickup). While the trucks are still operating, for now, once the pipeline is fully operational and pumping at full capacity, it will end those truck trips…
    Read More “130 Tanker Trucks/Day in Ohio End as Cornerstone Pipe Begins”

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    Post Carbon Institute’s Peak Marcellus Gas Theories Obliterated

    post-carbon-instituteIn 2014 David Hughes from the so-called Post Carbon Institute made one of the stupidest remarks he’s ever made when he said, “I think the Marcellus is getting pretty close to the peak in [total] production…I wouldn’t be surprised to see a peak in the Marcellus this year, maybe next year at the latest.” Dumb. Marcellus (and Utica) production has done nothing but go up since that time. Oh, the last few months the EIA has reported that Marcellus production is declining–a little bit. But that’s because of a lack of new drilling due to low low prices, a situation that is right now turning around. You can expect Marcellus production to pick up again very soon. The fact is, there is decades (perhaps centuries) of Marcellus/Utica Shale gas supplies waiting to be tapped–with no let-up in sight. Forbes contributor Jude Clemente, one of our favorite Forbes writers, goes on a riff to talk about the huge amount of gas available in the northeast, and its key role in U.S. production…
    Read More “Post Carbon Institute’s Peak Marcellus Gas Theories Obliterated”

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    “Endangered” Bumble Bee May Slow/Stop O&G Projects in Northeast

    rusty-patched-bumble-beeOver the years MDN has watched various threatened and endangered species get listed, which impacts drillers and midstreamers. Most notably in the northeast has been the northern long-eared bat (see US Fish & Wildlife Fixes Wrong Problem for Northern Long-Eared Bat). The U.S. Fish and Wildlife Service (USFWS) is responsible for recommending and listing varies species, empowered to do so under the Endangered Species Act (ESA). USFWS admitted the long-eared bat is threatened because of something called white nose syndrome–which has nothing to do with habitat destruction. Yet drillers and midstreamers are hamstrung with regulations to “save the bats”–even though they are not the ones causing harm to the bats. It’s a typical Washington solution: “fix” the wrong problem. The USFWS is about to do it all over again, this time with the lowly bumble bee. On September 22, 2016 the USFWS published a proposed rule to list the rusty patched bumble bee (Bombus affinis) as “endangered” under the ESA. The rusty patched bumble bee is found in the Midwest and eastern parts of the country. If it gets listed, it will have SIGNIFICANT impacts on drillers and midstreamers, according to the lawyers at top international law firm Locke Lord…
    Read More ““Endangered” Bumble Bee May Slow/Stop O&G Projects in Northeast”

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    AccuWeather Winter Forecast: “Frequent Snow” Will Blast Northeast

    accuweatherWeather is a major driver in the natural gas markets and primary cause for ups and downs in the price of natural gas. The hotter or colder it is, the more natgas is used for cooling (in the summer) or heating (in the winter). Some of the best weather forecasters in the business can be found making predictions for the energy markets–specifically in the natgas market. One of the country’s top weather outfits is AccuWeather. The forecasters at AccuWeather have just released their long-range forecast for the winter months in the U.S. Their forecast shows much colder and snowier conditions in the northeast than we experienced last year. If their prediction comes true, it means gas prices in our region may move higher (watch out pipeline deficient New England, your gas AND electric rates will skyrocket again), and it means drillers will face challenges with drilling through the winter months. Here’s what AccuWeather says (and shows, via maps) about the coming 3-4 months across the country…
    Read More “AccuWeather Winter Forecast: “Frequent Snow” Will Blast Northeast”

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    Will Marcellus/Utica Grow Fast Enough to Offset Declines Elsewhere?

    spg_plts_rgb_pos_210x92What if a couple of really smart analysts who work next to each other, guys who challenge each other every day, analysts who study and focus on natural gas production, were to pull the curtain back and reveal to the world what kinds of discussion and repartee they engage in? In particular, disclose their discussions and debate about the Marcellus/Utica? For those of us who eat/sleep/breath shale energy in the northeast, that would be wicked cool. And that’s just what MDN editor Jim Willis was treated to at S&P Global Platts’ Benposium East event in New York this past Wednesday. Luke Jackson, senior energy analyst with Platts Analytics, and Jeff Moore, also a senior energy analyst with Platts Analytics (the Bentek Products division) both live and work in Denver, CO. Their session at Benposium was titled, “Opposing Views–Northeast Production: Boom or Bust?” The two decided it would spice up what is normally a pretty dry conference presentation by standing on the stage and conducting a classic Oxford-style debate, where a motion is offered and one person argues “for” the motion, the other “against.” The motion they put forward was this: “Will Northeast production remain the sole engine of US natural gas production growth in the next 1-3 years, offsetting declines from the rest of the US and allowing overall US production to push higher?” In other words, can the Marcellus/Utica keep expanding production fast enough that it offsets declining production in other plays, or will those other plays need to increase their output too–to meet growing US demand? Luke argued for the motion and Jeff against. What was the conclusion? Keep reading! The boys used a dynamite PowerPoint slide deck. We asked for and got a copy of it and share it with you below. You need to take time to review the slides–they are awesome! Loaded with details. Below we also have some of our notes–quips and tidbits of information that caught our attention as the boys debated…
    Read More “Will Marcellus/Utica Grow Fast Enough to Offset Declines Elsewhere?”

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    Utica Condensate Begins Flowing Through Cornerstone Pipeline

    Cornerstone Pipeline Route Map
    Cornerstone Pipeline Route Map – click for larger version

    In December 2013 MDN first reported a new $250 million pipeline on the way in the Utica Shale from Marathon Petroleum Corporation, the largest refiner in the Utica Shale region (see Marathon Petroleum’s Newly Announced “Cornerstone” Utica Pipeline). The Cornerstone pipeline will stretch nearly 50 miles from the MarkWest cryogenic processing plant in Cadiz, OH northwest connecting to M3’s fractionator plant in Scio and M3’s cryogenic processing plant in Leesville along the way as it terminates and connects to Marathon’s refinery in Canton, OH. The pipeline will carry, at various times, crude oil, condensate and natural gasoline. From Canton, Marathon plans to move condensate and NGLs to Midwest refining centers and into Canada. In July the company said Cornerstone would be online by the end of this year (see MPLX Cornerstone NGL Pipe Done by End 2016, New Projects Coming). Yesterday the pipeline went online–at least part of it did–when Cornerstone flowed condensate from Cadiz to East Sparta…
    Read More “Utica Condensate Begins Flowing Through Cornerstone Pipeline”