Industrywide Issues

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    Preliminary Guess on TETCO Pipeline Explosion Cause: Corrosion

    Spectra blazeThere was an explosion and fire in Spectra Energy’s Texas Eastern Transmission’s (TETCO) “Delmont Line 27” pipeline last Friday (see Texas Eastern Pipeline Explodes near Pittsburgh, Antis Celebrate). The explosion occurred in Salem Township in Westmoreland County, PA, about 30 miles east of Pittsburgh. Although the cause of the explosion is still not known for sure, investigators do have a working theory–corrosion along welded seams in the pipeline. Investigators from the U.S Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA) still say, officially, that the cause is “unknown” and the investigation “ongoing.” However, those same investigators have said they found evidence of corrosion and they’ve ordered another section of the pipeline in the area to be dug up, removed, and sent for analysis. Here’s the latest on the situation, along with an estimate of when service might be returned on this very important pipeline…
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    Shell Says PA Cracker Decision Coming < 12 Months - Looking Good

    Shell.jpgThe muckety-mucks from Shell held their quarterly earnings phone call with analysts yesterday–and there is what we consider big news to report coming from that call. In response to a question from an analyst, Shell’s Chief Financial Officer, Simon Henry, commented there are four major “chemicals” projects currently under consideration by Shell. He also said a decision on the PA cracker plant project planned in Beaver County will likely be the first decision to be made because of “the timing of certain commitments that are already in place.” He added these glowing words about the PA cracker: “It’s an excellent project…[that] provides quite some portfolio resilience relative to the rest of the opportunities.” He later said “It’s a very strong and robust project.” If the price of oil were higher than the current $40, pulling the trigger on the PA cracker would be “a very easy decision.” When you read his comments, it’s hard to miss the enthusiasm at the highest echelons inside Shell…
    Read More “Shell Says PA Cracker Decision Coming < 12 Months - Looking Good"

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    PTT Global Says OH Cracker Decision “Delayed” Until 2017

    PTT Global logoIt’s only been one year since Thailand-based PTT Global Chemical announced they are interested in building a $5 billion ethane cracker plant complex in Belmont County, OH (see It’s Official: Belmont County Chosen as POSSIBLE Cracker Plant Site). Since that time PTT has been busy, spending (by our estimates) at least $150 million on the project (see our list of PTT stories here). However, from the very beginning, PTT let it be known a final decision on whether or not to invest the whole $5 billion would not come until 2016 or 2017. We know have confirmation from PTT that the final decision will (disappointingly) come in 2017. The reason for the “delay” in the decision? Falling oil prices…
    Read More “PTT Global Says OH Cracker Decision “Delayed” Until 2017″

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    TransCanada to Refile FTC Merger Notification in Columbia Deal

    TransCanadaIn March MDN reported that Canadian midstream giant TransCanada wants a bigger piece of the Marcellus/Utica midstream (i.e. pipeline) pie and has decided to buy Columbia Pipeline Group for $10 billion (see TransCanada Makes Play to Buy Columbia Pipeline for $10B). Columbia Pipeline shareholders are due to vote on the deal in June (see Columbia Pipeline Shareholders to Vote on TransCanada Deal June 22). But what’s this? Apparently there’s been a small bump on the road to a happy union. TransCanada announced yesterday they have withdraw their pre-merger notification with the U.S. Federal Trade Commission (FTC) and will refile the notification again on May 6 (tomorrow). Why? To restart the clock for FTC regulators who are reviewing the deal. Apparently there is a 30-day period at the end of which the FTC must render an opinion. Sometimes big, complex deals like this one take longer than 30 days, so a common practice is to pull the notification and re-file to buy the FTC more time…
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    South Fayette, PA Restrictive Drilling Ordinance Tossed by Judge

    court-gavel.jpgSomething noteworthy has happened in western Pennsylvania and (so far) local media has chosen not to cover it. So MDN is happy to break the following story about South Fayette Township in Allegheny County (near Pittsburgh). South Fayette is one of seven PA towns that sued the state after the Act 13 law was enacted in 2012 (see Lawsuit Filed: PA Towns Sue State over Marcellus Act 13 Law). Ultimately the towns won their case at the PA Supreme Court level, winning the right to enact their own ordinances with respect to oil and gas drilling. A nutty concept that towns have the necessary skills to regulate a complex industry like oil and gas–but there you go. Range Resources and landowners in the town, including Cuddy Partners, have had a long-running feud with the town over their hyper-restrictive ordinances (see Pittsburgh Post-Gazette article Drilling regulations face challenge in South Fayette). In 2015 South Fayette decided to revise their ordinance yet again with respect to shale drilling, making the ordinance even more restrictive than before. Cuddy Partners and Alpine Partners (landowners in the town) sued over the revised ordinance. The lawsuit alleged the ordinance was improperly enacted–rushed through without proper public notice. Last week Allegheny Court of Common Pleas Judge Joseph James agreed and ruled that the South Fayette revised ordinance is “invalid, null and void”…
    Read More “South Fayette, PA Restrictive Drilling Ordinance Tossed by Judge”

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    PennEast Responds to Sham NJ Lawsuit Re Surveying w/o Permission

    PennEast Pipeline Route Map
    PennEast Pipeline Route Map – click image for larger version

    A couple of radical anti-fossil fuel groups, aided and abetted by a few landowners (members of said groups) have filed a frivolous lawsuit on Monday in New Jersey Superior Court against PennEast Pipeline claiming surveyors have illegally trespassed on private property to conduct surveys–against the wishes of said radicals, some of whom happen to be landowners in the path of the proposed pipeline. PennEast Pipeline is a $1 billion, 118-mile pipeline project that will run from near Wilkes-Barre, PA to near Trenton, NJ. The two groups behind this latest sleazy lawsuit are Homeowners Against Land Taking – PennEast Inc. (HALT PennEast) and the New Jersey Conservation Foundation. There’s nothing like a good lawsuit to drive more donations. “Help! We’re David and we’re suing Goliath. We need YOUR money.” Pathetic. PennEast has responded that the claims of trespassing to survey are (our words) horse manure. PennEast checks carefully before entering a property to survey. The pipeline company said when they get a copy of the frivolous lawsuit they will mount a vigorous defense. The radicals just may have bitten off more than they can chew this time…
    Read More “PennEast Responds to Sham NJ Lawsuit Re Surveying w/o Permission”

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    Customer Announced for Primus Green Energy’s GTL Methanol Plant

    Primus Green EnergyIn March MDN brought you the news that Primus Green Energy, a gas-to-liquids (GTL) technology company announced they would build a 160 metric tons per day (MT/day) methanol plant using the company’s proprietary technology at “a manufacturing site in the Marcellus shale region” in 2017 (see Primus Building GTL Methanol Plant in Marcellus Region in 2017). The plant will convert abundant and cheap Marcellus Shale gas into methanol. At the time we commented that the Primus announcement didn’t say as much as it says–namely, who is the customer for the plant? We now have that answer….
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    New Study Proves Shale Gas has Big Impact on Manufacturing Sector

    NAM logoEverybody knows, anecdotally, that the shale revolution has been great for U.S. manufacturers. Empty plants have roared back to life and new plants have been built, bringing back millions of jobs, due to the huge quantities of natural gas being extracted from shale in the U.S. Now we have a research study to prove what we already knew anecdotally. Yesterday the National Association of Manufacturers (NAM) released a new research report from IHS titled “Energizing Manufacturing: Natural Gas and Economic Growth” (full copy below). The research finds that shale gas has put an extra $1,337 back in the pockets of the average hard-working American family. Wow! Shale gas has also contributed to the creation of 1.9 million jobs throughout the economy. Double wow! Just building natural gas transmission lines has meant more than 347,000 jobs with 60,000 of those jobs in manufacturing. Here’s the best part: All of it is without a government program or taxpayer expense. Read on for more good news about how the shale revolution and the miracle of fracking has benefited every single American…
    Read More “New Study Proves Shale Gas has Big Impact on Manufacturing Sector”

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    Anti Fossil Fuel Fanatics Kick Off 12 Days of Lawless Acts

    anarchyIt seems that anarchy is all the rage these days. In vogue. Popular. At least among the non-thinking radical left. Witness Crazy Bernie Sanders and his mind-numbed robot followers. Also witness the radical environmental movement, which whips up emotions among the enviro faithful like a Pentecostal preacher from the back hills. Many of these environmental Nazis are young and haven’t grown a brain yet. But there’s a fair number who are old hippies, burned out from drug use in the 60s and 70s. A group of these dangerous fanatics have begun what they call 12 days of “breaking free” from fossil fuels–a campaign to force law-abiding companies to abandon certain pipeline and drilling projects. The radicals are calling it “peaceful” and “civil disobedience.” However, going by previous such protests, we expect there will be violence associated with this movement–far from the peaceful veneer they hope to project. A number of the most radical, law-breaking groups are behind the effort: 350.org, Greenpeace, Climate Action Network and others. Here’s some of the lawbreaking they have planned for 12 days beginning yesterday…
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    Updated Maps for the Utica Shale Play – from EIA

    UticaPlay_MajorFeatures
    Click for larger version

    The more you drill in a given shale play, the more you know about it based on the performance of the wells you’ve drilled. And so it is with the newest, youngest, and fastest-growing play in the U.S.–the Utica Shale. Aubrey McClendon (God rest his soul) once said the Utica Shale is “the biggest thing to hit Ohio since the plow.” He was right. But the Utica extends beyond Ohio into West Virginia, Pennsylvania and even into New York. Since active drilling began in the Utica in 2011, more than 1,700 shale wells have been drilled in the Utica/Point Pleasant layer. That gives us (and our favorite government agency, the U.S. Energy Information Administration) a lot of useful information. The EIA has just released a series of revised Utica Shale maps based on the data accumulated over the past five years. We have their updated maps and insights below…
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    Update on Spectra Pipeline Explosion Near Pittsburgh

    Spectra blazeYesterday MDN told you about the Texas Eastern Transmission Company (TETCO) pipeline explosion last Friday in Westmoreland County, PA (see Texas Eastern Pipeline Explodes near Pittsburgh, Antis Celebrate). We still don’t know what caused the explosion. Spectra Energy, TETCO’s owner, is working with the Pipeline and Hazardous Materials Safety Administration (PHMSA) to investigate the incident and several pipelines in the area back to service. Spectra shut down the flows of our pipelines in close proximity to the explosion “out of an abundance of caution.” The stoppage means about 1 billion cubic feet per day of natural gas is not going to New York and New England, causing a price spike in the region. One local homeowner was seriously burned and sent to the UPMC Mercy Hospital burn unit in Pittsburgh. His condition has been upgraded from critical to serious. Below is an update with the latest we can find about the explosion and aftermath…
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    Critical Project for Canadian LNG Exports Gets Favorable FERC Review

    map_atlantic_bridge_full
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    Spectra Energy’s Atlantic Bridge project has just gotten an important “favorable” Environmental Assessment (EA) from the Federal Energy Regulatory Commission. A favorable EA is a signal that FERC will, later this year, grant a full approval for the project. And that’s really good news for Canadian LNG export plants–and equally good news for Marcellus drillers. Here’s how this news all ties together. The Atlantic Bridge project is a series of upgrades to two different pipeline systems already in existence: the Algonquin Gas Transmission (AGT) pipeline and the Maritimes & Northeast Pipeline (M&NE). The two pipelines will be connected along the coast of Massachusetts, near Boston. Thing is, right now the M&NE flow gas from north to south, from Canada to the U.S. Part of the Atlantic Bridge project is to make M&NE bidirectional, able to flow gas from south to north. The AGT will collect gas from the prolific Marcellus via a third Spectra-owned pipeline–the Texas Eastern Transmission Company (TETCO) pipeline–delivering Marcellus gas to New England. Yes, much/most of the gas will go to New England, but excess gas produced during periods of the year when not as much gas is used in New England will then be available to flow on up to Canada and to one of several new LNG export facilities either in planning or under construction. It all starts with a favorable EA…
    Read More “Critical Project for Canadian LNG Exports Gets Favorable FERC Review”

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    Another Baby Step in Fracking Ohio’s Wayne National Forest

    Wayne National Forest
    Wayne National Forest – click for larger image

    Wayne National Forest (WNF) is the only national forest in Ohio and portions of it are found in Athens, Gallia, Hocking, Jackson, Monroe, Morgan, Noble, Lawrence, Perry, Scioto, Vinton, and Washington counties. WNF is a “patchwork” of public land scattered among private land. Some 60% of the mineral rights below WNF are privately owned. Those mineral rights owners have been denied the use of their property rights going on a decade. The federal Bureau of Land Management (BLM) controls drilling on federally-protected lands like WNF. Last November the BLM held a series of hearings about finally beginning to drill in WNF. In January we told you that the BLM is working on a draft Environmental Assessment for drilling in WNF (see Small Progress with Drilling in Ohio’s Wayne National Forest). The BLM is ready to share the draft EA and wants public input–which means we now take another baby step toward drilling in WNF. As we previously pointed out in January, the BLM has decided to wait on pursuing drilling in the “Athens Unit” until 2017. However, the BLM is taking the next step in the “Marietta Unit” now. The draft EA is for the Marietta Unit (full copy of the draft EA embedded below)…
    Read More “Another Baby Step in Fracking Ohio’s Wayne National Forest”

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    The Road Ahead for Baker Hughes – Post Halliburton Deal

    Baker Hughes logoYesterday MDN brought you the news that the Halliburton buyout of Baker Hughes is now officially dead (see Obama DOJ Kills Halliburton/Baker Hughes Merger, Deal “Terminated”). So what’s ahead for Baker Hughes? First up is that they will get a $3.5 billion (with a “b”) payment from Halliburton tomorrow. At least, they’re supposed to. Baker Hughes says they will use $1.5 billion of the money to buy back company stock, and the other $1 billion to pay off certain debts. The company will also “rationalize” (i.e. downsize/cut) certain segments of its business–like the onshore pressure pumping business. You have to wade through lots of euphemisms and management gobbledygook speak, but here’s the Baker Hughes “path to the future” statement they issued yesterday…
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    Low Emissions Goals “Out of Reach” Without Shale & Nuclear Energy

    Bernie SandersCrazy Bernie Sanders believes that we can just stop fracking for oil and gas, and turn off our nuclear plants, and sing Kumbaya to each other and usher in the nirvana age of Bernie renewable energy. What a dope. The people who support him are bigger dopes (sorry if you’re a Bernie supporter–but you need to wise up, quick). Below is a column that points out that shale gas and nuclear are the PROVEN path to a lower carbon emissions future–not reverting back to the stone ages with everyone parking their cars and turning down the thermostat. Carbon emissions in the U.S. have gone down faster than anywhere else in the world–BEFORE Obama’s idiotic Clean Power Plan and BEFORE any of the draconian measures cooked up by the out-of-control federal Environmental Protection Agency. Why? Because of the dramatic increase in the use of shale gas to power energy plants. And because nuclear powers energy plants. Here’s the story Crazy Bernie doesn’t want you think about (thinking not a requirement to be a Bernie supporter)…
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    The Rolls-Royce of Fracking Technology

    Rolls-RoyceEPIX is on the way. What is it? A joint venture between Weir Oil & Gas, the world’s leading provider of upstream pressure pumping equipment, and Rolls-Royce Power Systems subsidiary MTU, a market leader in heavy-duty industrial power systems based on diesel and gas engines. EPIX will provide the drilling industry’s first integrated system for hydraulic fracturing. Here’s the low down on the Rolls-Royce of fracking…
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