NY Attorney General Asks FERC to Investigate Constitution Pipe
Apparently the lawless attorney general of New York State, Eric Schneiderman, suspected Williams would sue the state over the Constitution Pipeline (see today’s lead story). In anticipation of such a lawsuit, last Friday Schneiderman sought to provide the corrupt Gov. Cuomo and his corrupt Dept. of Environmental Conservation (DEC) with political cover by demanding a federal investigation into the Constitution Pipeline. Schneiderman petitioned the Federal Energy Regulatory Commission (FERC) accusing Williams of (gasp) cutting down some trees along the pipeline route before New York’s dictatorial governor granted his “Mother, May I?” permission to do so. The petition/request is a not-so-transparent attempt to smear the Constitution project and deflect attention away from the lawless way in which the state has acted in not allowing this federally-approved project from advancing. In this case the feds trump the state–and that very issue will now play out in court…
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The Constitution Pipleine from northeastern Pennsylvania into east-central New York State is not the only pipeline project to get delayed. It is one of five highly important projects for drillers in the Marcellus/Utica region that are either delayed–or even canceled. What are the other four projects? Read on…
What will it take for drillers to begin drilling again? That’s a question getting asked frequently by analysts on quarterly earnings calls with Marcellus/Utica drillers. The short answer is for the price of natural gas to go up and stay up. How high? Here’s some interesting economics from Southwestern Energy CEO Bill Way: every time the price of natural gas increases another quarter ($0.25), it translates into $185 million in cash flow for his company. If the price went up 50 cents, Southwestern would reactivate two drilling rigs. Another key factor in when drillers will start drilling again are DUCs–drilled but uncompleted wells. The DUC inventory is going down–but many drillers still have a year’s worth of DUCs they can leverage before they have to sink new holes…
Yesterday MDN’s favorite government agency, the U.S. Energy Information Administration (EIA), issued our favorite monthly report–the Drilling Productivity Report (DPR). The DPR is the EIA’s best guess, based on expert data crunchers, as to how much each of the U.S.’s seven major shale plays will produce for both oil and natural gas in the coming month. Our first interesting observation from the May report: The EIA projects that in June (the report is a forecast looking forward) that once again the Utica Shale will be the only play out of the seven major plays that will continue to produce more natural gas than it did the month before. In April the EIA said the Utica would produce 1 million cubic feet per day (Mmcf/d) of natural gas above what it did the month before, and this report says the Utica will produce 4 Mmcf/d more than it did last month. Second interesting observation: Production in the Marcellus Shale, while it continues to produce each month than it did the month before, is slowing down. That is, the rate of decline is slowing, which means we may be getting close to the point when Marcellus production begins to pick up again. Keep a close eye on Marcellus production, because it’s the largest producing shale play in the country…
We’ve heard of microwaving popcorn (one of our favorite things to microwave), but we’ve never heard of microwaving “nanoribbons.” We suspect you haven’t either. All’s it takes is a 30-watt microwave to nuke nanoribbons and voila–drillers have a new, cheap and better way to seal up tiny fractures in wellbores. Researchers at Rice University have discovered wellbores drilled to extract oil and gas can be “dramatically reinforced” with a small amount of modified graphene nanoribbons–added to a polymer and microwaved. Think of it as nuking a tiny bit of plastic over a rock and the plastic melts into and firms up the rock. It’s quite possible there will be a microwave coming to a well pad near you!…
You may recall a few months back when President Barack Hussein Obama signed the Paris climate treaty, referred to as COP21. As we wrote at the time, the treaty is not binding on the U.S. because it’s not been ratified by the Senate (see 
Energy Transfer Equity (ETE) pushed and prodded and poked and cajoled and insisted, and finally with the help of an inside corporate raider, forced Williams to agree to a buyout/merger (see 
The U.S. Dept. of Energy’s National Energy Technology Laboratory (NETL) selected Penn State University to lead a consortium of nine universities in all that will study fossil fuel technologies for the next six years. NETL is giving Penn State $20 million of your money (i.e. taxpayer’s money) “to accelerate the development and deployment of fossil fuel-based technologies.” We can certainly think of worse uses for the money. Penn State will lead the Lucky University CoalItion for Fossil Energy Research (LUCiFER). Uh no! That’s not right! Let’s try it again: Penn State will lead the University Coalition for Fossil Energy Research (UCFER). There, that’s it! Here’s what the feds said, and what Penn State said, about the new grant and the new UCFER coalition…
Fitch Ratings, one of the world’s top ratings services (rates stocks, bonds and more), issued a press release/opinion on Friday that tackles the issue of LNG (liquefied natural gas) and how the LNG market is rapidly and radically changing because of U.S. shale gas. Historically the price for LNG and oil have been linked. When the price of oil goes up or down, so too does LNG. But that’s now changing, because of the super abundance of U.S. shale gas. Fitch points out that with the U.S. now in the LNG export game, the link between LNG, natural gas and oil has “weakened.” They also say the U.S. natural gas market is “too big and too well supplied” for LNG exports to affect natgas prices here at home. In other words, we can export all of the LNG we want and it still won’t raise the domestic price of natural gas for consumers…
A general warning and heads-up on the newest/latest attack in the Federal Energy Regulatory Commission (FERC). Well, maybe it’s not all that new–it’s been going on for a few years–but the intensity and pace of the attacks have picked up. We’re talking about the argument being made by anti fossil-fuelers that FERC doesn’t, by law, consider all pipelines when it evaluates a single pipeline–i.e. “cumulative effects.” For example, if three different pipeline requests for the same region are filed with FERC, FERC does not have the authority to decide only one of the three is really “needed” and that building all three would be “overbuilding.” FERC evaluates them one by one and (properly so) and lets the free market (i.e. capitalism) decide which one(s) will get built. FERC is not in the business of Communistic command-and-control decisions over private companies. FERC’s concern is that a given, single pipeline project doesn’t harm the environment and shows a need. Period. Antis, detecting an opportunity, want to force FERC, either by social pressure or by the courts, to take into consideration larger regional concerns–and even mythical global warming concerns–before making decisions. Here’s the latest example, from Virginia…
Yesterday the federal Environmental Protection Agency–a rogue agency that is out of control and drunk on its own power (and needs reigning in)–issued more shale-killing regulations, designed to suppress the very revolution that has kept the United States out of an economic depression despite Obama’s wild spending spree. The EPA issued 600 pages of new regulations that require drillers 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. What a lark. But it’s no laughing matter. You can tell it’s a bad regulation because the oil and gas industry has lined up against it, and radical, leftist environmental groups have lined up to support it. They should–they helped create it…