Industrywide Issues

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    IHS Report: Shale & Fracking Delivered U.S. Energy Independence

    IHS logoA new report just issued by Global consulting and research firm IHS, says that Canadian oil sands and U.S. “tight oil” (i.e. shale oil) production have “become the twin pillars of North American energy security.” Canada’s oil sands the shale in U.S. represent 95% of the growth in North American oil production from 2009-2015. Over the same time we reduced our dependence on offshore oil imports by 40%. Folks, this is HUGE. Fracking of shale is nothing short of a miracle in our country. For Crazy Bernie Sanders to shout, as he did at a rally in California last week, that “We are going to ban fracking all across this country” is insanity itself. Can you imagine if that fossil actually became President and signed an Executive Order banning all fracking? Hillary Clinton’s position is essentially the same as Crazy Bernie’s. Loony tunes. For the first time since the oil shocks of the 1970s when OPEC began to royally screw us over, we now can tell OPEC where to go pump their oil. You can see why Obama’s decision to deny the Keystone XL Pipeline from Canada is so stupid and damaging to our energy security…
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    NY AG Attempts to Cover Up His Collusion with Big Green Groups

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    NY AG Eric Schneiderman – the man who is hiding something

    It’s A.O.K. for the out-of-control Attorney General from New York, Eric Schneiderman, to go fishing and request all sorts of internal documents and communications from Exxon Mobil in his witch hunt to persecute (not prosecute) the oil giant because they don’t believe strongly enough as he does in the fairy tale of man-made global warming. Schneiderman and his cronies in other states are trying to shake down Exxon in a massive scheme, claiming the company “knew” mankind is causing global warming by burning fossil fuels that Exxon extracts from the ground (see Climate Change Hucksters, Incl. NY AG & Al Gore, Threaten O&G and Rise of the New (Environmental) Nazis – Free Speech Under Attack). But when the U.S. Congress tells Scheiderman it wants HIS internal communication documents to see how he is colluding with Big Green groups who are prodding him along in his witch hunt efforts, Scheiderman clams up and claims Congress has no right to go fishing in HIS communications pond. Hmmm. A tad bit hypocritical, no?…
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    PennEast Opponents Complain They’ve Been Outsmarted by UGI

    hypocrite.jpgIt’s always fun to point out just how hypocritical Big Green groups, like the Sierra Clubbers, actually are. The Sierra Club in New Jersey is all up in arms that utility company UGI has hired a former member of the Pennsylvania Public Utility Commission, Pamela Witmer, as vice president of government affairs. MDN was the first source to tell you the importance of her hiring, i.e. to help get the PennEast Pipeline approved (see UGI Hires PA PUC Commissioner in Brilliant Move for PennEast Pipe). The Sierra Club is “blasting” Witmer’s hire as “exactly what’s wrong with government and the incestuous relationship between utilities and corporations.” This is delicious. We will take you chapter and verse through two top Democrats in PA that have moved in and out, back and forth, between government jobs and jobs at Big Green organizations and corporations–Katie McGinty and John Hanger. The idiots at the Sierra Club make it too easy to point out their raging hypocrisy…
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    PennFuture Bullies PA Town over Lack of Fracking Ordinance

    PennFutureIn May 2015 MDN reported that after more than two years of acrimony and lawsuits between Range Resources and Mt. Pleasant (Washington County), PA., Range agreed to close four freshwater ponds (called “impoundments,” not to be confused with wastewater impoundments) the company was using to drill wells in nearby non-Mt. Pleasant locations (see Range Capitulates, Closing 4 Freshwater Ponds in Mt. Pleasant, PA). Mt. Pleasant is one of the original seven selfish towns that sued PA to overturn portions of the Act 13 oil and gas law. They won. Sooner or later a company can take a hint that a township is anti-business, so Range left town. Mt. Pleasant never followed up their victory in 2013 to fix a “hole” in their zoning ordinances. Not that it makes a whole lot of difference. MDN notices two permits issued in Mt. Pleasant Township in early 2015, and nothing since then, according to our Databook series. But the radicals at PennFuture have noticed. Even with little-to-no drilling, PennFuture is threatening to sue Mt. Pleasant unless they adopt far more restrictive ordinances on shale drilling in the town. Which points out PennFuture’s hypocrisy. It’s OK for a town to pass really restrictive zoning laws, but if the town chooses to not pass such laws, which is allowable under the Act 13 court case decision, that’s not OK by PennFuture. The door only swings one way for the radicals of PennFuture…
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    Any Day Now PA House May Vote to Kill Article 78 Drilling Regs

    PA HouseWe are close to the endgame with respect to Pennsylvania adopting onerous new drilling regulations rammed through by the former Secretary of the Dept. of Environmental Protection, John Quigley. MDN reported in April that the state’s Independent Regulatory Review Commission (IRRC) voted to approve the new regulations (see PA Drillers Lose Vote to Stop Onerous New Regs in Partisan 3-2 Vote). The only thing stopping the regs from becoming law is a vote by the full PA House and Senate, which would send the measure to Gov. Wolf who would, in all likelihood, veto the “no go” resolution. Then the House and Senate would need to vote to override Wolf’s veto. It is a game of political chicken. Wolf is already an unmitigated disaster in his first year as governor. Can he afford to have the legislature override a veto, making him look even weaker than he already looks? The House has until June 13, next Monday, to vote against these onerous new regulations. Then the Senate has either 10 legislative days, or 30 calendar days (whichever is longer) to vote. This is a real nail-biter!…
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    Investment Firm Buying Talen Energy – PA Electric Generating Co

    bigger fish smaller fishLast July MDN told you that Talen Energy, an electric generation company based in Allentown, PA, had cut a deal to acquire MACH Gen, LLC, the owner of three natural gas-fired electric generating plants (see Talen Energy Picks Up Gas-Fired Electric Plants – Marcellus in View). A couple of the plants are likely to use Marcellus/Utica Shale gas. In all, Talen has 16,000 megawatts of electric generating capacity in eight states across the country. Last week investment firm Riverstone Holdings made a $1.8 billion offer for Talen in a deal that would take the public Talen private. Riverstone already owns 35% of the company and the offer is for the other 65%…
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    Good News for Marcellus: New Brunswick Commits Fracking Suicide

    New Brunswick, Canada
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    New Brunswick is a Canadian province that shares a border with the U.S. state of Maine. Since 2014 the brainiacs who run the province of New Brunswick have had a fracking moratorium in place–similar to what the State of New York had. Yep, you can see where this one is going. Last week those same brainiacs announced that the fracking moratorium in New Brunswick will go on “indefinitely.” Meaning it’s a ban, not a moratorium. The Canadian’s stupidity is a gift to the Marcellus/Utica because New Brunswick also shares a border with Nova Scotia and there are several LNG (liquefied natural gas) export facilities actively being planned. Those facilities will not get their gas from Nova Scotia or (now) from New Brunswick. The place those facilities will have to get their gas from is the Marcellus/Utica. So thanks, Canada!…
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    PA DEP Arbitrarily Extends Comment Period for Atlantic Sunrise Pipe

    Atlantic Sunrise econ impact
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    Yesterday MDN pointed out that the battle to build the Williams Atlantic Sunrise pipeline is on–and your help in showing your support to the Federal Energy Regulatory Commission is very much needed (see It’s Time to Voice Your Support for the Atlantic Sunrise Pipeline). There is now a second front in which your help is needed–by showing support for the project with the Pennsylvania Dept. of Environmental Protection (DEP). The DEP was supposed to have concluded public comments on water obstruction and encroachment permits related to the Atlantic Sunrise project on May 31st. But as they sometimes do, the DEP just arbitrarily decided to extend the comment period another 60 days–until August 1. No doubt because antis fussed about it. So it’s time to submit your comments of support to the PA DEP as well as FERC, to countermand what will surely be a tsunami of form letters coming from anti-fossil fuelers. Here’s how to make positive comments on Atlantic Sunrise to the PA DEP…
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    Coal Supporters Try to Stop Moundsville, WV NatGas Electric Plant

    Moundsville PowerIt’s been a while since we’ve checked in on the proposed 549 megawatt, $615 million electrical generating plant to be built near Moundsville (Marshall County), WV. At last check almost a year ago, Moundsville Power was on schedule for an opening in 2018 (see Moundsville (WV) Electric Plant on Schedule for 2018 Opening). At that time project developer Andrew Dorn said he expected the project to break ground in early 2016. That didn’t happen. What’s the holdup? A group supporting coal-fired electric generation called Ohio Valley Jobs Alliance filed an objection to the West Virginia Air Quality Board’s permit issued for the project. Coal plants are dying almost daily, thanks to President Obama’s war on coal. People who support those dying plants are waging war on natural gas in a desperate attempt to stem the inevitable. Will the delay in construction mean the timeline for Moundsville Power slips?…
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    Virginia Group Proposes Alternative Routes for Atlantic Coast Pipe

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    Atlantic Coast Pipeline Alternative Route – click for larger version

    There’s nothing more frustrating than engaging in a debate with people who fight dirty. The vast majority Big Green groups fight dirty when it comes to opposing natural gas drilling and infrastructure projects. They attempt use arguments about dirty air and dirty water and pollution to confuse the general population. But they can’t back up their words with any proof. The antis true motivation often stays hidden in the background–an irrational hatred of using fossil fuels of any kind. But they can’t help it–their true motivation often leaks out in their statements. There is no reasoning with an unreasonable person. So when we notice a group of antis that actually uses rational, well-thought-out arguments, it’s very much the exception to the rule–and worth noting. We have respect for those on the other side of the fossil fuel debate when they fight fair and challenge us using science and facts instead of innuendo and outright lies. Such is the case with a group opposing the existing route of Dominion’s Atlantic Coast Pipeline (ACP) project through Virginia. The group, called Friends of Wintergreen, submitted a detailed, 128-page analysis of four alternate routes for the ACP to the Federal Energy Regulatory Commission (FERC) using analysis from national environmental, legal and pipeline engineering firms. Friends of Wintergreen is not demanding that ACP not get built–they’re recommending other routes and supporting their recommendations with lots of analysis. Cool. We applaud them. Here’s what the group said in a recent press release, along with a copy of their 128-page analysis sent to FERC…
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    Constitution Pipeline Doles Out Another $50K in Grants, Despite NY

    money-bag.jpgSince announcing the project in 2012, the Constitution Pipeline has handed out more than $2 million in community grants to fire departments, police departments and a variety of nonprofit organizations that benefit the community. Recently New York Gov. Andrew Cuomo decided to block the Constitution Pipeline to placate his radical left supporters (see NY Gov. Cuomo Refuses to Grant Permits for Constitution Pipeline). Williams and its partners in the project have taken NY to court to overrule their blockage (see Williams Sues NY Over Constitution Pipe – DEC May Lose Authority). Even though Cuomo’s dastardly action has thrown the project’s future into some doubt, Williams and the Constitution are expressing no doubts. They’ve just handed out another $50,000 in grants (the eighth time they’ve done it) to worthy organizations along the pipeline’s proposed route. Here’s who got the money, and how much…
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    SemGroup Buying Units of its MLP Subsidiary Rose Rock Midstream

    Rose Rock Midstream logoWe often debate whether or not a bit of news is actually interesting for the MDN audience. Will this bit of news help either a landowner, driller, midstreamer, supply chain company or investor if they knew about it? The following story comes down right on the line for us. We could go either way, but we elected to include it. We don’t know when, exactly, but at least two years ago SemGroup Corporation, a publicly traded (shares of stock) midstream company that moves mostly oil from the wellhead to market, started up a master limited partnership (MLP) subsidiary called Rose Rock Midstream. An MLP issues “units” instead of shares of stock. MLPs have certain tax advantages for investors. We ran a story in June 2014 about Rose Rock buying some of Chesapeake Energy’s assets, including a trucking operation that services the Utica Shale in Ohio (see Chesapeake Dumps More Assets: Crude Truck Fleet & 200 Employees). SemGroup, the parent company, has just announced they are buying out the MLP units in Rose Rock and folding it into the stock-issuing parent company. From a practical standpoint, day to day operations at Rose Rock will not change. However, if you’re an investor in Rose Rock, your units will be forcibly purchased from you and you are about to enjoy a stiff tax bill…
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    Siluria Gets Partner to Convert Methane Directly into Petrochems

    Siluria TechnologiesA company we’re keeping our eye on is Siluria Technologies. We wrote about them a few weeks back (see New Tech Converts NatGas into Ethylene, Bypassing Cracker Plants). In a nutshell, Siluria doesn’t need to use ethane to crack it into ethylene (the raw material used in plastics). Instead, Siluria has invented a process to go directly from methane to ethylene, bypassing the need for a cracker plant to crack ethane. How cool is that? Siluria is building on their early success by partnering with Italian company Maire Tecnimont to “combine their respective technologies and expertise to bring to the marketplace a unique process to convert natural gas directly into commodity chemicals and their derivative products.” What does it mean? Does it mean Siluria has gotten an Italian partner to sell its technology in Europe? Does it mean Siluria will be able to convert methane into petrochemicals other than ethylene? No idea! But we’ll keep a sharp eye out for more details when/if they become available. In the meantime, here’s the Maire Tecnimont announcement…
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    KM’s Elba Island LNG Export Plant Approved by FERC

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    Elba Express Interconnects – click for larger version

    Great news! Kinder Morgan’s Elba Island, Georgia (near Savannah) proposed LNG export facility has gotten a green light from the Federal Energy Regulatory Commission (FERC). What does the Georgia Elba LNG plant have to do with Marcellus/Utica? Maybe nothing, but we suspect something. Kinder’s arch rival Williams owns the mighty Transco pipeline that connects, via the Elba Express pipeline, to the LNG facility. Currently Elba Island imports LNG. However, Williams has been on a mission to send Marcellus gas south–including to Georgia (see Marcellus Gas Heading to Georgia via Transco Pipeline). We don’t think it’s much of a stretch that Marcellus Shale gas, via the Transco, will be at least some of, if not the primary, source for gas exported from the Elba Island facility. FERC’s approval clears the way for construction to begin. The Savannah region will be the happy recipient of some $2 billion of investment to build the plant…
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    Study: The High Cost of Capturing Every Last Molecule of Methane

    liar.jpgA few weeks ago MDN brought you the news that the federal Environmental Protection Agency (EPA) has issued onerous new regulations on capturing every last molecule of methane all along the route from wellhead to burner tip (see EPA Does it Again: Tries to Destroy O&G with New Methane Rule). The EPA issued 600 pages of new regulations that requires the industry to install expensive new equipment to locate so-called fugitive methane that may or may not be leaking from wells, pipelines, etc. And if they find such microscopic amounts of methane, they need to capture it. All in the name of preventing non-existent man-made global warming. The EPA reassures the oil and gas industry it’s no big deal. Just install some new equipment, jump through a bunch of hoops, and in no time ‘t all you’ll be making money instead of spending it to comply with the new regs. That is a flat, outright, BS (Barbara Streisand) lie. We have proof. A new study from ICF International has run the numbers from some actual operations and finds the cost to comply with these onerous new regs is 5 times more than what the EPA has estimated. Let’s put it in very understandable terms. The ICF study finds in order to comply with the regs, it will cost $3.35 per thousand cubic feet (Mcf) for the volume of gas it will save. Producers are only able to sell their gas at an average of $3/Mcf. In other words, the industry will lose money to comply with the regulation, contrary to the line of bull the EPA has tried to feed us…
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    S&P Global Platts Acquires RigData

    RigDataRigData is one of the oil and gas industry’s most trusted sources for information on drilling activity in the U.S. RigData provides details on drilling rigs–where they are, who’s operating them, what kind of well they’re drilling. RigData publishes reports daily, weekly and monthly. We’ve seen their web and mobile phone app–seriously cool stuff. The company has been around for 25 years. So it was like a fracking-induced earthquake to discover that RigData has been sold–to S&P Global Platts. Financial terms of the deal were not disclosed. Here’s the earth-shaking announcement…
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