Industrywide Issues

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    Pipeline Anarchy – Exposing True Motivation of Pipeline Protesters

    anarchyPaul Driessen is senior policy adviser for the Committee For A Constructive Tomorrow (CFACT), which is sponsoring the All Pain No Gain petition against global-warming hype. He also is a senior policy adviser to the Congress of Racial Equality and author of “Eco-Imperialism: Green Power – Black Death.” Driessen writes and publishes in a number of venues, including Townhall. A recent article penned by Driessen (below) absolutely nails the anti-pipeline movement in our country. We’ve long known that antis moved from fracking to piplelines, figuring they could stop the use of fossil fuels if they can strangle the pipeline network necessary to move oil and gas to market. But as Driessen explains, the real root of this movement, the thing that motivates them more than anything, is not saving Mom Earth. It is the total annihilation of capitalism (and our country). That’s what drives these anti-pipeline fanatics…
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    Study Claims Link Between Fracking & Earthquakes in W Canada

    fracking-and-earthquakes.jpgAnother week, another so-called research paper that purports to show a link between fracking and earthquakes. Two researchers at the University of Calgary looked at drilling and fracking of shale wells in Canada’s Duvernay Shale (western part of the country), looking for clues that might indicate fracking itself–if done near an underground fault–can lead to low-level earthquakes. The researchers claim they have found such a link–which is the first such study to make a connection between fracking and earthquakes. The researchers have just published “Fault activation by hydraulic fracturing in western Canada” (full copy below), in the journal Science. We have repeatedly reported, based on studies and observable facts, that disposing of high volumes of wastewater in injection wells near underground faults (large cracks in the rock layer) can lead to earthquakes. We’ve also chronicled that fracking directly over a fault can also lead to an earthquake–which has been documented to happen perhaps half a dozen times, ever, out of the hundreds of thousands of times wells have been drilled and fracked. Statistically zero. But this study claims there is a link and the inference is that fracking leads to more earthquakes that you may think. Should we be worried?…
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    Philly Approves New Power Plant as Antis Throw Temper Tantrum

    crybabyTurns out anti-fossil fuel protesters, behaving like the petulant children they are, couldn’t stop the adults in the room last night in Philadelphia. You may recall we told you yesterday that wackos from a fringe-left group called 350 Philadelphia threatened to “swarm” a meeting of SEPTA (Southeastern Pennsylvania Transportation Authority) where a vote was scheduled on a plan to build a Marcellus gas-powered electric plant that would provide electricity to SEPTA’s northern Regional Rail lines (see Antis Plan to Shut Down Philly Transit Meeting re NatGas Powergen). The plan would mean lower carbon and other pollution, but because the fuel for the electric plant is Marcellus Shale gas, the wackos objected. It’s (gasp) a “fossil fuel.” Last night about 50 crazies showed up and began shouting like spoiled rotten children, to try and drown out the vote. But the vote was taken, and the plan to build the power plant was approved–unanimously…
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    3 M-U Drillers Benefit from TransCanada’s Failed Pipeline Plan

    three-3Earlier this week we ran the news that Canadian pipeline giant TransCanada’s plan to radically lower the cost to pipe natural gas from the western regions of Canada to the eastern part of the country, in an effort to undercut Marcellus/Utica gas from flooding into the region, failed (see TransCanada Plan to Lowball M-U Gas Using Canada Pipeline a Bust). As we have pointed out, the plan had the potential to suppress an important new market for our gas, and the pipelines that will supply it (see Will TransCanada’s Lower Pipeline Rates Jeopardize Nexus/Rover?). TransCanada’s plan falling apart is good news for the Marcellus/Utica. The Bloomberg news agency agrees and ran a story that says three M-U drillers in particular will benefit from TransCanada’s decision to abandon their lowball pipeline plan…
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    IEA World Energy Outlook: NatGas Demand Increases 1.5% per Year

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    Click for larger version

    Each year the International Energy Agency (IEA) issues a special World Energy Outlook report. The 2016 edition has just been published. This latest edition of the Outlook proclaims that renewables and natural gas are the big winners in meeting world energy demands from now until 2040. It also says “the era of fossil fuels appears far from over.” The Outlook predicts natural gas use will continue to rise, while coal will continue to fall. “We see clear winners for the next 25 years, natural gas, but especially wind and solar, replacing the champion of the previous 25 years, coal,” said Fatih Birol, IEA’s executive director. “But there is no single story about the future of global energy: in practice, government policies will determine where we go from here.” Birol also said global oil consumption will continue to increase between now and 2040. The Outlook sees natgas usage continuing to grow 1.5% per year, on average, for the next 25 years. Below is a press release about the report and a copy of the Executive Summary for the report. Sadly they don’t release the full report for free–it will cost you €120 (~$127) for the PDF version, and €150 (~$159) for a paper copy…
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    Politically-Motivated New Jersey Rate Counsel in Bed with Anti-Drillers

    drain-the-swampEarlier this week MDN brought you the news that the New Jersey Division of the Rate Counsel (NJDRC)–a state government agency responsible for representing the interests of residents, businesses and other rate payers in dealing with regulated public utilities and insurance firms–responded to PennEast Pipeline’s release of a study obliterating the NJDRC’s claims that the pipeline isn’t needed (see Tit for Tat: NJDRC Responds to PennEast’s Devastating Refutation). The NJDRC filed their response with the Federal Energy Regulatory Commission (FERC). However, NJDRC also issued a press release summarizing their FERC response. The press release is instructive. It proves that the NJDRC is populated with Big Green political hacks and is colluding with Big Green organizations in their “impartial” mission to protect NJ ratepayers (NOT)…
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    Mom Earth is Farting Methane Faster than Warmers Thought

    flatulenceIt seems old Mom Earth has a major case of flatulence (i.e. farting). Researchers who have been mapping the ocean floor have discovered “an active strip of seafloor called the Cascadia Subduction Zone is bubbling methane like mad” off the coast of Washington, Oregon and California. [Quick, somebody call Cornell prof Bob Howarth! There’s fugitive methane escaping!!] Big Green advocates get their knickers in a twist over fugitive methane because, ‘ya know, it causes global warming. But this time mankind is nowhere to be found as the cause. This massive methane leak off the West Coast is Mom Earth, all by herself, farting away and killing herself without even knowing it. How tragic. And how funny!…
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    Appalachia Resist Strikes Again – Nutjob Blocks Traffic in Columbus

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    Credit: Columbus Dispatch (click for larger version)

    In 2012 a group of what some call “aggressive” anti-drilling zealots flying under the name of Appalachia Resist ran a training camp in Athens County, OH to incite impressionable young idiots into criminal acts under the guise of saving the planet (see Anti-Drillers in Ohio Learn to Break the Law at Special Camp). They taught their lessons well. Three months later a small mob of 100 or so stormed a shale wastewater treatment facility in Washington County, OH, vandalizing equipment and terrorizing the workers (see Protesters Get Violent, Shut Down OH Frack Water Plant). These are not “peaceful acts of civil disobedience” as is claimed by some biased media reports. These are criminals acting and behaving like criminals. In 2014 they temporarily shut down an Ohio injection well (see Anti-Drilling Protesters Shut Down OH Injection Well – 1 Arrested), and in 2015 they vandalized a pipeline construction site (see Radicalized Ohio U Students Vandalize Pipeline Construction Site). With the recent total defeat of their cause in Ohio (community after community voting down so-called Community Bill of Rights resolutions), Appalachia Resist has run out of things to protest. So on Tuesday they decided to protest the Dakota Access Pipeline–in front of Ohio Gov. John Kasich’s office in Columbus, OH. We know we know–the Dakota Access Pipeline is some 1,200 miles (and 20 hours by car) from Columbus. But that didn’t stop a small group of a dozen or so from making horses rear-ends of themselves. One in particular decided to chain himself to the axle of his van, blocking traffic for an hour while law enforcement saved him from himself. Here’s the latest antics from Appalachia Resist…
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    Antis Plan to Shut Down Philly Transit Meeting re NatGas Powergen

    enviro naziIn true environmental Nazi fashion, a group of profoundly stupid people have pledged to “swarm” and shut down a SEPTA (Southeastern Pennsylvania Transportation Authority) meeting where a vote will be taken to build a Marcellus gas-powered electric plant that would provide electricity to SEPTA’s northern Regional Rail lines–a win/win for all Pennsylvanians. The reason the enviro Nazis want to shut down the meeting is to stop the vote because the clean-burning plant would burn a “fossil fuel” and these poor, lost souls grew up watching Captain Planet cartoons and believe burning natgas will toast Mom Earth. That is, they were brainwashed children who grew up to be maladjusted adults…
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    Maryland Publishes New Fracking Rules, 30-Day Comment Period

    going-through-the-motionsAs MDN reported in September, the Maryland Dept. of the Environment (MDE) beat the Oct. 1 deadline to release onerous new fracking regulations (see Maryland Beats Deadline, Submits Onerous New Fracking Rules). The new rules, for all intents and purposes, will result in a defacto ban on fracking in Maryland. Which is a shame. We couldn’t find a copy of the rules at the time. The MDE published the final rules in the Monday edition of the Maryland Register (see it below). What happens now? A 30-day public comment period begins, which will result (already has resulted) in lots of petulant bleating about banning fracking in the Old Line State, after which the regs will get adopted, and beginning next year when fracking can begin, it won’t. Frankly, Maryland is just going through the motions…
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    Panda’s 2nd Marcellus-Powered Electric Plant Goes Online in PA

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    Panda Power Patriot Plant – Montgomery, PA

    Last month Panda Power Funds held the official commissioning ceremony to launch the operation of Panda Liberty, a 829-megawatt Marcellus gas-fired electric generating plant in Asylum Township, Bradford County, PA (see First NatGas Power Plant in Marcellus, Panda Liberty, Goes Online). It was the world’s first built-from-scratch electric generating plant built specifically to use Marcellus Shale gas. Yesterday Panda Power commissioned the world’s second built-from-scratch-to-use-Marcellus-gas electric generating plant: Panda Patriot. Officials from across Pennsylvania joined Panda Power for the ceremony of their second 829-megawatt plant, this one in Lycoming County. One person attending described the reaction of those at the ceremony: “They were in awe.” As well they should be! This one plant is expected to contribute around $5.85 BILLION to the local economy. The economic impact will be staggering. (You see why these natgas-fired electric plants are such a big deal?) Here’s what went down yesterday at the Panda Patriot party…
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    Support to Regulate Unregulated Gathering Lines in PA Grows

    regulationLast month MDN wrote a post outlining an initiative to begin regulating small, low-pressure gathering pipelines–something not now done (see PIOGA Opposes Bill to Regulate Unregulated PA Gathering Pipelines). Media articles about this issue misstate and obfuscate, purposely, what is happening. Senate Bill (SB) 1235 would “enhance” the existing 811 law in PA. (811 is the number you call before you dig, to be sure there are no buried pipelines or electric lines or other underground structures.) One of the “enhancements” in SB 1235 is that it removes an exclusion for low-pressure natural gas gathering pipelines from being required to be part of the 811 system. Many owners of excluded lines voluntarily participate in the programs. The bill would also transfer regulatory enforcement power over the lines from the Department of Labor to the Public Utility Commission. The Pennsylvania Independent Oil & Gas Association (PIOGA) pushed back against the removal of the exclusion for conventional production lines and rural (“Class 1” under federal law) gathering lines. PIOGA is not against knowing where pipeline are buried and protecting PA citizens–they ARE against onerous new regulations on those pipelines, which would have happened under the proposed SB 1235. PIOGA instead pushed for another year to sort out the issue, instead of passing SB 1235 as/is and throwing the conventional oil and gas industry into regulatory chaos. PIOGA won (see PA Bill to Regulate Unregulated Gathering Pipelines Fails). However, the oil and gas industry is divided on the issue. Several industry reps participated in a pipeline safety hearing yesterday at the State Capitol in Harrisburg–and voiced their support for the provisions in the defeated SB 1235…
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    Update on Two Important ETE Projects: Rover and DAPL

    ete-energy-transferSomehow or other MDN wound up on the distribution list for Deutsche Bank’s Equity Research (North America) updates. Which we like! Germany-based Deutsche Bank (DB) is the world’s 11th largest bank. They have some sharp analysts who keep tabs on multiple industries, one of those industries being oil and gas. Given the recent happenings with the Dakota Access Pipeline (DAPL), and the happenings with the Ohio Rover pipeline–both pipelines projects of Energy Transfer Equity–DB decided to do a quick update on both projects, giving us the investor/trader view of what will happen over the next 2-3 months. We found the update interesting and think you will too…
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    Draining the EPA Swamp…Er…Wetland

    silhouette questionOne of the most important choices before President-elect Trump is who he will select to run the rogue, out-of-control Environmental Protection Agency. Who will Trump pick to, as he calls it, “drain the swamp”? It’s an important choice. We need someone who will dismantle the wild, lawbreaking regulations of an agency operating unchecked for the past eight years. If you believe Reuters (and we’re not sure we do), Trump is looking at two people to head the EPA. Both would, it seems to us, do a good job of draining the EPA swamp…
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    EIA: Record High Amount of NatGas Now in Storage

    EIAMDN’s favorite government agency, the U.S. Energy Information Administration, has just published a brief article denoting a milestone: the amount of natural gas in storage has reached a new, record high of 4.017 trillion cubic feet (Tcf). Our country does not use as much natural gas as we produce during the months of April through October–which is the time when we store the extra gas in (mostly) underground salt caverns. From November to March, when it’s cold, we withdraw gas from storage because we’re using more than we produce. Over the past few years we have produced, and stored, far more gas than we can use–leading to a crash in natgas prices. A buildup in storage is a signal to the market that once again we have too much supply and not enough demand. Which furthermore is a signal that the recent rise in prices for natgas (over $3/Mcf) isn’t likely to last. In fact, the price of gas over the past month has gone from $3.25/Mcf to (today) $2.75/Mcf–a $0.50 drop. Storage is a big part of the reason why. Here’s what the EIA had to say…
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    War: ETE Asks Fed Court to Overrule Corps of Politicized Engineers

    its-warYesterday MDN told you that a war of words has broken out between the Obama U.S. Army Corps of Politicized Engineers and Energy Transfer Equity (ETE) over the Dakota Access Pipeline (see It’s War: ETE vs. Obama’s Army Corps of (Politicized) Engineers). The war has quickly gone from words to litigation. ETE has filed a lawsuit in U.S. federal district court in Washington, D.C. asking the court to recognize the pipeline’s right to complete the project–a project now 90% complete–apart from final written approvals from the Corps of Engineers. ETE argues that the Obama Administration is politically interfering with the Corps, which had previously approved the project. ETE says: “…the Corps has never before declined to provide written documentation of the granting of an easement, a perfunctory ministerial act, to use federally owned land after granting regulatory permission for work on the very same land.” In other words, the Corps is using withheld paperwork to stop the project. Therefore, the lawsuit seeks the courts permission (called a declaratory judgment) to finish the pipeline apart from the politicized Corps’ written permission/paperwork. ETE wants to do what the Corps previously approved. They have a strong case…
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