Industrywide Issues

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    Hillary Clinton’s War on Fracking

    Hillary ClintonSince we’re taking Donald Trump to task over his wrong-headed thinking on local frack bans, we’d like to be an equal opportunity basher. Hillary Clinton’s position on fracking is far worse than The Donald’s position. If Hill has her way, she’ll end the practice. Oh, not with an Executive Order banning fracking, as Crazy Bernie promised he would do if he got elected. No, Hill is promising to enact new regulations (either via Congress or via Executive Orders) so strict, that “By the time we get through all of my conditions, I do not think there will be many places in America where fracking will continue to take place.” Her words. Although Hillary is a known and proven liar, we happen to believe those words coming from her mouth. First up for Hill, “fix” the so-called “Halliburton loophole.” In 2005 Congress passed new environmental standards for the Safe Drinking Water Act (managed by the out-of-control Environmental Protection Agency) and chose not to include the oil and gas industry in those standards because the EPA has no right to regulate the oil & gas industry–only the states can regulate the o&g industry under the U.S. Constitution. The proper recognition of not expanding the EPA’s authority (illegally) somehow has been twisted into a “loophole” for the industry, and Halliburton’s name was applied to the loophole in an attempt to smear then-Vice President Dick Cheney, who was previously the CEO of Halliburton. Hillary has resurrected the same old Democrat lie and smear campaign from years gone by. She says if she becomes Prez (God forbid), she’ll jam the EPA right up the o&g industry’s….operations….as far as she can…
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    EIA: O&G Production Jobs Today are 26% Lower Than 2014

    EIALast week MDN highlighted a survey from Evercore ISI looking at attitudes and behaviors of displaced workers in the oil and gas industry (see Laid Off Workers Say “No Thanks” to New Oil & Gas Jobs). Many laid off workers have already found jobs in other industries, and they aren’t tempted to return to an oil & gas job due to the cyclical nature of the industry. We quoted a number we spotted from Evercore that there have been over 300,000 layoffs in recent years. We thought that a bit high, but they’re the experts. On Friday the U.S. Energy Information Administration (EIA), our favorite government agency, ran an article saying the job loss is closer to 142,000. We suppose it’s all in how you count jobs directly or indirectly related to the o&g industry. There are many jobs (hotel workers, restaurant workers, etc.) that can be highly dependent on the o&g industry, yet aren’t actually an o&g job. But when drilling gets cut, so too does eating at restaurants, staying in hotels, etc. The EIA is looking at direct jobs–those related to oil and natural gas production. What have (below) is the EIA’s reckoning that direct employment in the o&g industry today is down 24% from its high in 2014, just prior to the collapse of oil prices. That’s a drop of 142,000 and any way you slice it, it’s a lot of lost jobs…
    Read More “EIA: O&G Production Jobs Today are 26% Lower Than 2014”

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    Shakedown Complete: XTO Pays PA AG $400K to Make Case Go Away

    Make Him an Offer He Can't RefuseJust prior to going on trial for committing felonies while in office, Pennsylvania Attorney General Kathleen Kane (Democrat) needed something, ANYTHING, to distract the press from focusing on her own crimes. Since she took office in January 2013, Kane has targeted the Marcellus industry. One of the first high profile cases she manufactured (out of nothing) was to accuse XTO Energy of committing a crime in an accidental spill of a few thousand gallons of frack wastewater–an accident in Lycoming County, PA that happened years before she took office and didn’t have any long-term effects (see PA AG Abuses Her Authority, Files Criminal Charges Against XTO). The case Kane has tried to manufacture against XTO, launched in her first year in office, is finally over. Instead of dragging it out further, XTO decided to pay Kane $400,000 to make it all go away (called a shakedown in the organized crime world). Kane is settling with XTO using a “rehabilitation” program normally used for drunk drivers without a prior record–that’s how desperate she is to get this case settled and turn the focus away from herself for a few days. “Coincidentally” Kane’s own felony trial begins on Monday. It’ll be a sweet day to watch her frog marched out in leg irons when she’s convicted…
    Read More “Shakedown Complete: XTO Pays PA AG $400K to Make Case Go Away”

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    Marcellus/Utica Gas Heading to Georgia via FERC-Approved Pipeline

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    Transco Pipeline Simple map

    In March 2015, Williams announced that its Transco pipeline subsidiary had filed an application with the Federal Energy Regulatory Commission (FERC) for its Dalton Expansion Project, which will expand the Transco and flow more Marcellus Shale gas from New Jersey all the way to Mississippi, primarily for electric generation plants, but also for local natural gas distribution by utilities (see Williams Files with FERC to Expand Transco Pipeline from NJ to MS). Most of the Dalton’s project will be built in and benefit the State of Georgia–delivering natural gas to an existing electric generating facility in northern Georgia operated by Oglethorpe Power Corp., gas for local distribution company Atlanta Gas Light, and gas for the City of Cartersville. Transco has customers signed up under binding contracts for 100% of the Dalton Expansion Project, which will increase Transco’s capacity by 448,000 dekatherms per day of natural gas. We have fantastic news: FERC has approved the project! Construction begins now and the project will be fully online next year…
    Read More “Marcellus/Utica Gas Heading to Georgia via FERC-Approved Pipeline”

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    LNG Summit 2017 Coming to Houston in February

    LNG summitLNG (liquefied natural gas) is a big deal and getting bigger–you know that if you’ve read MDN for any length of time. As the U.S. begins to shift into producing more natural gas than it can use here at home, exporting that gas, via LNG, is an important market–for the Marcellus, Utica and beyond.

    MDN is happy to partner with and promote a major LNG event being held in Houston, TX in February. We invite you to attend the LNG US Summit 2017 in Houston on February 23-24, 2017. Major companies like Cheniere, Worley Parsons, Excelerate Energy, Osaka Gas, Nigeria LNG, GLE, GTT, GE Oil & Gas and many more will present. The LNG Summit will give you the latest details on projects and innovations in the LNG market. Topics include: the outlook for LNG market for the upcoming decade; major LNG buyers and sellers; the latest developments in small and mid-scale LNG. You’ll also hear about the strategies of major companies like one of our favorites, Cheniere. Get the lowdown on marketing and trading, and an inside look at the LNG business, the perils and the possibilities.

    For a list of speakers and topics, check out the LNG Summit website: //www.lng-usa.com/

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    Spectra Energy 2Q16 – Access Northeast “Advancing Toward Execution”

    MAP-Access-Northeast-V1-02-11-2015
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    It sure pays to be in the pipeline business. One of the biggest pipeline (i.e. midstream) companies in the U.S. is Spectra Energy. Spectra has a number of existing and planned pipelines in the Marcellus/Utica region. Yesterday Spectra released their second quarter 2016 update, reporting a net income of $305 million for the quarter. Spectra provided a handy list of the ~$6 billion in expansion projects they have under way. One of those projects is the Access Northeast project–representing half of that $6 billion. Access Northeast is the surviving winner of a contest between Spectra Energy and Kinder Morgan to pipe Marcellus and Utica Shale gas to New England and Canada–the “last man standing” when Kinder and their Northeast Energy Direct project bowed out of the race (see NED is Dead – Kinder Morgan Suspends $3.3B New England Pipeline). With respect to Spectra and their Access Northeast project, Spectra CEO Greg Ebel had said yesterday during an earnings conference call that Access Northeast is “advancing towards execution this year” after recently achieving a “number of noteworthy milestones.” That is indeed good news! Here’s yesterday’s 2Q16 update from Spectra, along with an excerpt about Access Northeast from the earnings call…
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    Spectra Energy Expects to Pay ~$100M for Ruptured PA Pipeline

    Spectra blazeMDN felt that the big news today was word from Spectra Energy that their Access Northeast pipeline project is making excellent progress (see Spectra Energy 2Q16 – Access Northeast “Advancing Toward Execution”). However, a bit of news coming from Spectra disclosed on yesterday’s earnings call comes in at a close second. You may recall there was an explosion and fire in Spectra Energy’s Texas Eastern Transmission’s “Delmont Line 27” pipeline in May (see Texas Eastern Pipeline Explodes near Pittsburgh, Antis Celebrate). The explosion occurred in Salem Township (Westmoreland County), PA, about 30 miles east of Pittsburgh and knocked out four pipelines running through the same area. One man was seriously burned when his house caught on fire and was destroyed. Since that time we’ve tracked the story with a series of updates (see them here). One of the four lines affected was restored to service shortly after the blast. Our most recent update pegs a return to service for the other three pipelines sometime in November (see Ruptured TETCO Pipeline in PA Offline Until November). Until now, we didn’t have any numbers to talk about with respect to how much it’s costing Spectra to locate and fix the problem. Yesterday Spectra’s Chief Financial Officer, John Patrick Reddy, pegged the cost for investors, saying it could go as high as $100 million…
    Read More “Spectra Energy Expects to Pay ~$100M for Ruptured PA Pipeline”

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    CELDF Loses Case to Represent Ecosystem – Turtles Disappointed

    Gavel-falling.jpgScore an important victory against the forces of darkness. The radical leftist PA-based group Community Environmental Legal Defense Fund (CELDF) does its best to trick townships into passing illegal bans on fracking and injection wells. In 2013 the CELDF fooled Highland Township in Elk County, PA into passing a ban on wastewater injection wells. They also tricked Grant Township in Indiana County, PA to do the same thing. Both towns are in court defending their illegal actions. One of the idiotic legal tactics used by the CELDF in both cases is to claim that an ecosystem is a “person” under the law–a person who can file to join the town’s lawsuit in an effort to protect itself (see It Speaks! An “Ecosystem” has Filed to Join a Lawsuit in PA). Of course the CELDF appoints itself as the representative of said ecosystem. It’s an asinine notion. Will the tree in my front yard sue me for cutting a branch off it? Will my gravel driveway sue me if I decide to pave it? Get real. Back to declaring victory. Pennsylvania General Energy (PGE) filed a lawsuit against Grant Township for $1 million for blocking construction of PGE’s legally permitted injection well. That CELDF has already said it won’t help Grant taxpayers foot the bill if they lose the lawsuit–after adopting the CELDF’s very own ban language (see Anti Group CELDF Won’t Help Grant Twp Pay $1M Judgement). Last week the Third Circuit Court of Appeals in PA ruled that a so-called ecosystem (the Little Mahoning Watershed) does NOT have standing in the case, completely rejecting the CELDF and their arguments. Grant Township taxpayers should be prepared to open up their wallets, they’re about to get soaked (note that the CELDF has already snuck out of town)…
    Read More “CELDF Loses Case to Represent Ecosystem – Turtles Disappointed”

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    15 States File Lawsuits to Block EPA O&G Methane Rule

    lawsuitIn May the federal Environmental Protection Agency (EPA) once again far overstepped its charter by seizing power that doesn’t belong to it. They 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). North Dakota was the first state to sue the EPA over the new standard. Not long after Texas also sued. And last week, another 13 states joined together to sue over the standard–to block it from taking effect. All 15 are now combined into a single case. Below is a list of the states with spine, standing up to the bullies at the EPA, along with the paltry, precious-little reporting we can find about the lawsuit launched last week by a group of 13 states joined, to the lawsuits by ND and TX…
    Read More “15 States File Lawsuits to Block EPA O&G Methane Rule”

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    PA’s Annual Oil and Gas Reports for 2013, 2014 & 2015

    PA DEPOn Tuesday MDN brought you what we thought was the very first Annual Oil and Gas Annual Report from the Pennsylvania Dept. of Environmental Protection (see PA Releases 2015 Oil & Gas Annual Report (Very Cool)). In pretty short order we heard from several MDN readers that the DEP’s excellent report was, in fact, started in 2014 under then-Gov. Tom Corbett. We should have known such a useful report would be the creation of a Republican administration. MDN heard from Pat Henderson, formerly PA Gov. Tom Corbett’s Energy Executive and now Director of Regulatory Affairs for the excellent Marcellus Shale Coalition, about the report. The very first report was issued by the DEP in 2014 and covers 2013. Unfortunately the DEP under current Democrat Gov. Tom Wolf removed that report from the DEP website. But Pat kept a copy and sent it to us. Below we have all three Annual Oil and Gas Reports for PA, covering the years 2013, 2014 and 2015 (dated 2014, 2015 and 2016). Thanks Pat!…
    Read More “PA’s Annual Oil and Gas Reports for 2013, 2014 & 2015”

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    Getting NEPA Gas to Market – Go West, Young Molecule!

    go west young manMDN spotted what we thought was an interesting article on the Seeking Alpha investors website about the existing pipeline bottleneck in Northeastern PA and what can be done about getting all of that gas to market. Pipeline delays out of NEPA, including the delayed Constitution Pipeline and projects currently underway but taking a long time, like the Atlantic Sunrise, are forcing producers like Cabot Oil & Gas, Southwestern Energy and Chesapeake Energy to look for other ways to move their abundant supplies of natgas out of the region. Eastbound routes out of NEPA are full, but westbound routes *may* be a possible solution–at least in the short-to-medium term. National Fuel Gas’s pipeline system has expanded recently to allow more gas to flow west. NFG has additional projects in the coming years to build on that capacity. Is it time to Go West, Young Molecule?…
    Read More “Getting NEPA Gas to Market – Go West, Young Molecule!”

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    Rhode Island Commies Oppose “Fracked Gas” LNG Plant

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    A group of politicians from the Rhode Island Politburo are opposed to a plan by utility giant National Grid to construct a very small facility in the state to liquefy natural gas–turn it into LNG. Eight members of the RI Politburo (all of them socialist Democrats) are calling on the Federal Energy Regulatory Commission (FERC) to reject National Grid’s plan. Why? You guessed it. Because that facility will accept and liquefy evil, vile nasty “fracked gas” from the Marcellus. And EVERYBODY knows that fracked gas is causing catastrophic global warming, right? What a group of dunces. Here’s who they are and what they’re claiming…
    Read More “Rhode Island Commies Oppose “Fracked Gas” LNG Plant”

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    Opposition to PennEast Pipeline Fading Away, Anti Meetings Shrink

    ShrinkingWe found this story amusing. A group of 40 anti-fossil fuel nutters met at the Towamensing Township fire hall Tuesday night to “hone their arguments and strategies on how to derail or at least delay construction” of the $1.2 billion PennEast Pipeline. Why is that amusing? Because if the media is reporting there were 40 there, that means there were really 20-25. And when you read the story, you get the distinct impression that a very small group of hardened anti-fossil fuelers move these meetings around–it’s the same small group–and that their movement to stop PennEast is dying. Rapidly. Here’s the latest evidence…
    Read More “Opposition to PennEast Pipeline Fading Away, Anti Meetings Shrink”

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    Millennium Pipe Asks FERC to Approve Eastern System Upgrade in NY

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    Millennium Pipeline Map – click for larger version

    The Millennium Pipeline stretches ~244 miles from Independence in Steuben County, NY to Buena Vista in Rockland County, NY. The Millennium, which is supplied by local production and storage fields and interconnecting upstream pipelines, serves customers along its route in New York’s Southern Tier region and helps meet the energy needs of northeast markets. Earlier this year, the Millennium pre-filed an application for what it calls its Eastern System Upgrade (ESU). The ESU would add 7.8 miles of extra looped pipeline in Orange County, upgrade a compressor station in Delaware County, build a new compressor in Sullivan County and make some minor tweaks to metering stations in Rockland County (see Millennium Pipeline Files with FERC to Upgrade Eastern Region). The ESU will pump another $275 million into the New York economy with the end result of increasing the flow of natural gas for New York and beyond by fall 2018. Last Friday the Millennium officially filed and asked the Federal Energy Regulatory Commission (FERC) for permission to move forward and build. That’s despite the best efforts by THE Delaware Riverkeeper to stop this (and all other) pipeline project…
    Read More “Millennium Pipe Asks FERC to Approve Eastern System Upgrade in NY”

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    Trump’s Disappointing Position on State & Local Frack Bans

    poopWe will confess it up front: We voted for Donald Trump in the primary. We think he stands the best chance of defeating Hillary Clinton. Clinton would, in our opinion, be very bad for the oil and gas industry (as well as bad for the country in general). To each his own, right? We will not extensively cover the election–that’s already being done everywhere else. Most everyone has a strong opinion one way or the other. Trump has given some bang-up speeches supporting the fossil fuel industry (see Trump’s Energy Speech Hits a Home Run: Regulate Less, Drill More). There’s even talk that a President Trump would nominate fracker Harold Hamm as his Secretary of Energy (see Fracking Legend Harold Hamm – Next Secretary of Energy?). All very positive signs. But then he goes and puts both of his feet in a big pile of doo-doo. Last week Trump was interviewed by a Denver television station (watch it below). It was a brief 45 seconds of that interview that we take issue with. In it, the reporter asks Trump about fracking–whether towns and states should be able to ban it. Trump said “Yes.” He said he supports fracking–but that “if the voters” want to ban it, they should have that right. Which is, quite frankly, mob rule. Voters should not have the right to trample on other voters’ Constitutional rights. That is what is at stake here–whether or not a simple majority (mob rule) will take away the property rights of other citizens. Trump has failed to grasp that–and we sincerely hope he gets his head right on the issue before the election…
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    Laid Off Workers Say “No Thanks” to New Oil & Gas Jobs

    cutting jobsOne of NGI’s ace reporters, Carolyn Davis, got her hands on a new report/survey conducted by Evercore ISI that looks at attitudes and behaviors of displaced workers in the oil and gas industry. The results are quite interesting. You may recall that something like 300,000+ o&g workers were laid off over the past several years. Many of them worked for oilfield services companies (OFS), like Halliburton, Baker Hughes and Schlumberger. In fact, our back-of-the-envelope tally says the vast majority of those layoffs came from just a handful of companies, namely those three. The Evercore survey found that many (most?) workers are not returning to the oil and gas industry, now that hiring has begun again. And that’s a problem. It means that there aren’t enough bodies to do the work. It seems the laid-off workers didn’t appreciate getting canned, tossed overboard like a piece of trash at the first sign of trouble–and many of them have gotten jobs in other industries. Who can blame them?! Here’s a few highlights from the survey…
    Read More “Laid Off Workers Say “No Thanks” to New Oil & Gas Jobs”