Industrywide Issues

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    TETCO Pipeline Up & Running Post-Explosion; Antis Exploit Accident

    Spectra blazeAn update on Spectra Energy’s Texas Eastern Transmission’s “Delmont Line 27” which exploded in Westmoreland County, PA on April 29 (see Texas Eastern Pipeline Explodes near Pittsburgh, Antis Celebrate). We previously told you that not only was Line 27 out of commission, so too were three other pipelines running through the same corridor, meaning 1 billion cubic feet of natural gas per day is not reaching certain mid-Atlantic markets (see Update on Spectra Pipeline Explosion Near Pittsburgh). The early evidence points to corrosion along welded seams, although the jury is still out and the exact cause may not be known for months (see Preliminary Guess on TETCO Pipeline Explosion Cause: Corrosion). That doesn’t stop antis from engaging in wild speculation and “I told you so” statements, as they are now engaged in. THE Delaware Riverkeeper, which opposed the expansion of horsepower/capacity at a compressor station close to the explosion, is now saying the increased flow rate through the pipeline caused the corrosion. Which all sounds reasonable–until you read the words “I can’t say for certain there is a cause-effect relationship between the increases in [compressor] horsepower and the pipeline explosion, but it is information that should be part of the public discussion about this incident and pipeline safety in general.” Translation: “We won’t let this crisis go to waste. It doesn’t matter what the real cause was, we’ll amp up this explosion in sympathetic anti-drilling news outlets like the Pittsburgh Post-Gazette and spread fear everywhere we can–so we can shut down natural gas in this country.” Below is an update from Spectra Energy that one of the four pipelines is now operating again, along with the latest attempt to demagogue and unfortunate accident with absolutely no evidence…
    Read More “TETCO Pipeline Up & Running Post-Explosion; Antis Exploit Accident”

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    Gov Cuomo Turns NY into Sacrifice Zone with Frack & Pipeline Bans

    Karen Moreau
    Karen Moreau

    Yesterday API (American Petroleum Institute) New York Executive Director Karen Moreau held a conference call with reporters to discuss the importance of investing in energy infrastructure in the Empire State. By the way, API New York used to be called the API New York State Petroleum Council. Moreau spoke about Gov. Cuomo’s reckless actions in banning shale drilling, and now in preventing an important pipeline project–the Constitution–from being built. She pointed out that New Yorkers pay an average of 50% more for our electricity than residents in other states–mostly because of lack of pipelines and infrastructure in the state. When everyone thought Cuomo was about to allow fracking in select counties on a trial basis, antis called those counties “sacrifice zones.” We’re going to borrow their own language and use it against them. Gov. Cuomo has turned upstate NY into one, big economic sacrifice zone–sentencing residents to a life of poverty and enslavement. Why? To appease the people who vote him into office every four years (mostly located in New York City). A quid pro quo. Here’s an update on what Moreau said yesterday to reporters…
    Read More “Gov Cuomo Turns NY into Sacrifice Zone with Frack & Pipeline Bans”

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    Latest Case of Duke U Bought & Paid “Research” by Park Foundation

    Duke logoIt’s good to know that “research” can still be purchased at the once-great Duke University. For years now the radical Park Park Foundation has been buying its research from a few select professors at a few select universities. One of the scientists for sale is Avner Vengosh, professor of geochemistry and water quality at Duke University’s Nicholas School of the Environment (see Duke Hit Piece on Shale Water Usage from Same Park-Sponsored Prof). Here’s how it works: Park funds Dr. Vengosh’s “research,” and he conveniently “discovers” all sorts of nasty things about shale fracking, publishing his “research” in obscure, peer reviewed journals. Mainstream media picks it up and runs it. Readers who only scan headlines get the impression fracking is evil. Mission accomplished for Park (another hit on fracking) and for Vengosh (another buck in his pocket). That’s how it works in the world of bought-and-paid-for fractivism. The latest is Vengosh’s claim that he found evidence of shale wastewater contamination downstream from a wastewater injection well in Fayette County, WV…
    Read More “Latest Case of Duke U Bought & Paid “Research” by Park Foundation”

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    Radical NJ Democrats Want to “Constitution” the PennEast Pipeline

    PennEast in NJ
    Click map for larger version

    Anti-drillers (most of them liberal Democrats) haven’t wasted any time in adopting Gov. Andrew Cuomo’s tactic of delay, deny and death. Antis in New Jersey took notice of how Cuomo first delayed, then denied the Constitution Pipeline stream crossing permits, effectively killing the project (see NY Gov. Cuomo Refuses to Grant Permits for Constitution Pipeline). The leaders of radical Big Green groups in NJ, including the New Jersey Conservation Foundation and the New Jersey Sierra Club, along with several Democrat members of the NJ legislature, want the state Department of Environmental Protection to deny permits for a different pipeline project–the PennEast Pipeline. Hey, if it worked in NY, why wouldn’t it work in NJ? Problem is, NJ has a Republican governor and the DEP is an executive agency. That won’t stop the antis from trying…
    Read More “Radical NJ Democrats Want to “Constitution” the PennEast Pipeline”

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    Sec. of Interior Calls “Keep it in the Ground” Protesters “Naïve”

    Sally Jewell
    Sally Jewell

    Sally Jewell, Obama’s Secretary for the Dept. of the Interior, has not endeared herself with anti-drilling zealots who inhabit (infest?) her own Democrat Party. Last week Jewell told a reporter that the “keep it [i.e. fossil fuels] in the ground” movement is “naïve” and there is NO WAY we will transition to 100% renewables any time soon. Oooo, harsh words! From an Obamadroid! One of the key issues, according to Jewell, is transportation. She said we don’t yet have solar-powered automobiles. And before someone embarrasses themselves to ask “What about electric cars?”…we’ll remind you that more than 70% of all electricity produced in the U.S. comes from burning fossil fuels. The electric in the battery of an electric car got there by burning coal and/or natural gas. If we “leave it in the ground” it won’t be long before you’re walking or riding horseback to get from point A to point B. You’d also have to give up television, radio and a host of other things powered by electricity. Unless you want to watch and listen when the sun is out. Here’s some tough words from Sec. Jewell for the crazies in her own party…
    Read More “Sec. of Interior Calls “Keep it in the Ground” Protesters “Naïve””

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    District Court Judge Tosses PA Landowner’s Lack-of-Drilling Case

    court-gavel.jpgThis is the tale of landowners who negotiated a lease without consulting a qualified oil and gas attorney, and later regretted the decision. In 2008 the owners of a small hunting and fishing camp in Tioga County, PA negotiated and signed a lease with East Resources, which was later sold to SWEPI (i.e. the shale drilling arm of Shell). The lease, so the landowners thought, guaranteed that 11 wells would be drilled on the 240-acre property, and that a pipeline would be used to flow gas only from those wells. The landowners got a nice signing bonus–$287,000. They also got $164,000 for a pipeline right-of-way. But only one well was ever drilled–and it’s capped. And there is a pipeline–flowing other people’s gas through it. The landowners sued and a district court judge ruled last week that the landowners don’t have a case for their “shattered dreams” as they thought they did. It all comes down to a poorly worded lease and signing a lease without running it by a lawyer first…
    Read More “District Court Judge Tosses PA Landowner’s Lack-of-Drilling Case”

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    Pittsburgh Paper Roasts Wolf Over Sky-High Severance Tax Proposal

    Sky HighPittsburgh, PA has two major newspapers–the Post-Gazette and the Tribune-Review. We’re talking general interest newspapers. There’s also the Pittsburgh Business Times, a great paper but niche and focused on business only. Of the two general interest newspapers, the Post-Gazette is obviously owned and operated by liberal Democrats. They tilt somewhere left of Vlad Putin on the editorial page. The Tribune-Review, however, is a balanced paper and not beholden to the Democrat machine in PA the way their rival is. There’s no better way to illustrate that then the Post-Gazette’s love and adoration of current Dem Gov. Tom Wolf and his proposed punitive taxes the Marcellus Shale industry. The Post-Gazette LOVES Wolf’s idea for a severance tax and berates the gas industry for not “doing its part.” The Tribune-Review, on the other hand, takes a more balanced approach. In a recent editorial, the Tribune-Review points out Wolf’s latest severance tax proposal, if passed, would be the highest in the nation. They also point out Wolf’s income tax increase and minimum wage proposal would decimate the state economically…
    Read More “Pittsburgh Paper Roasts Wolf Over Sky-High Severance Tax Proposal”

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    PennEast Pipeline Requests NJ’s Help with “Green Acres” Process

    Green AcresThe PennEast Pipeline, a $1 billion, 118-mile pipeline from Luzerne County, PA to Mercer County, NJ, continues to bend over backwards, forwards and into yoga knots in order to accommodate the wishes of various special interest groups. The latest in that effort is PennEast’s invitation to several New Jersey municipalities and non-profit groups to provide feedback on PennEast’s open space initiative. Part of the PennEast route will traverse 15 acres of encumbered “Green Acres” parcels–open spaces meant to stay open and not be developed. PennEast plans to lay their pipe four feet down, cover it up, and the green/open spaces will remain green and open, forever. In fact, according to PennEast, when the pipeline installation is done and dusted, there will be “significantly more open space” than there is today. Look for THE Delaware Riverkeeper (Maya van Rossum) and other radical leftists to demagogue this latest effort by PennEast to be a good neighbor…
    Read More “PennEast Pipeline Requests NJ’s Help with “Green Acres” Process”

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    9 of 10 Biggest Marc/Utica Drillers Increase Production in 1Q16

    Achilles_heel
    Statue of Achilleas thniskon (Dying Achilles) at the Corfu Achilleion.

    Although we often read of drillers in the northeast curtailing (shutting in) production to wait for higher natural gas prices, nine of the top ten publicly traded drillers in the Marcellus/Utica produced MORE natgas in the first quarter of 2016 than they did in the first quarter of 2015. Some of them, like Gulfport and Rice Energy, produced a LOT more (up 63% and 53% respectively). However, the Achilles heel for some drillers in our region is lack of pipeline capacity to get their gas out of the immediate region. The winners in the Marcellus/Utica are those drillers who have locked in pipeline capacity to move their gas to other regions–the northeast, south, Midwest and Gulf Coast. The losers are those who haven’t–and (potentially) those who were relying on pipeline projects that are either dead or delayed–including the Constitution and Northeast Energy Direct…
    Read More “9 of 10 Biggest Marc/Utica Drillers Increase Production in 1Q16”

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    Energy Law Firm Blank Rome Lands 2 Big Fish

    Big FishBlank Rome is a big, important energy law firm. The firm went on our radar in 2013 when then-Secretary of the PA Dept. of Environmental Protection Mike Krancer resigned his post to rejoin his old law firm, Blank Rome (see Developing… PA DEP Sec. Krancer Resigns). Blank Rome has just landed two more big fish: former Senator from Michigan and former Secretary of Energy Spencer Abraham, and former Vice-Chairman of the International Energy Agency and former Chief of Staff at the U.S. Department of Energy Joseph McMonigle. Blank Rome is an important player in the Marcellus/Utica, so this announcement is important for our region…
    Read More “Energy Law Firm Blank Rome Lands 2 Big Fish”

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    CO2 Emissions over Past 10 Years Drop – Thx to Shale Gas

    trending-down.jpgIf you happen to believe in the fairy tale of man-made global warming, you no doubt know all about CO2–carbon dioxide. CO2 is the stuff you exhale with every breathe you take, as every mammal does on God’s green earth. Somehow CO2 has been twisted into becoming a dreaded “greenhouse gas”. Go figure. At any rate, aside from breathing, when we burn fossil fuels it creates CO2–which is at the core of the neurosis of anti-drillers. Their kindergartenish solution to “solving” the “problem” of “global warming” is to stop burning fossil fuels. But the thing is, not all fossil fuels are created equal. Natural gas burns relatively clean and produces far less CO2 than other fossil fuels. You might think people who really care about the planet would welcome more natgas–but you would be wrong. The U.S. Energy Information Administration has just published an analysis of the biggest non-breathing cause of CO2 generation–burning fossil fuels to generate electricity. The EIA says in 2015 CO2 emissions were down 12% from baseline levels in 2005. With more population and more electricity being generated, how can that possibly be? Because of the shale revolution–that’s how. So-called renewable forms of electric power generation are still minuscule compared to burning fossil fuels to generate electricity. Because we now use more natgas instead of coal to generate electricity, the amount of CO2 being produced has dropped dramatically. Thanks to the miracle of fracking…
    Read More “CO2 Emissions over Past 10 Years Drop – Thx to Shale Gas”

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    April 2016 Rig Counts Continue to Slide in World, US, Marc/Utica

    chart going downThe rig count–both internationally and domestically here in the U.S.–continues its historic slide. Last Friday Baker Hughes announced the average rig count numbers for April. Rigs operating outside the U.S. slide another 39, from 985 in March to 946 in April. In the U.S., the count slide 41 from 478 in March to 437 in April. In the Marcellus/Utica, the count was down another 2–both rigs lost came in Pennsylvania, which now has the lowest count in decades: just 16 rigs operating in the state. Ohio and West Virginia held constant month over month with 11 rigs operating in the Buckeye State and 12 rigs operating in the Mountain State. Here’s the sad news of the continuing decline in rig counts…
    Read More “April 2016 Rig Counts Continue to Slide in World, US, Marc/Utica”

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    What Can We Learn from Spectra’s Success with Pipeline Projects?

    Spectra Energy logoWith pipeline projects like Kinder Morgan’s Northeast Energy Direct (NED) deciding to call it quits (see NED is Dead – Kinder Morgan Suspends $3.3B New England Pipeline), and projects like the Constitution Pipeline that runs through New York State on life support (see NY Gov. Cuomo Refuses to Grant Permits for Constitution Pipeline), you have to ask an honest question: What pipeline projects can and do get approved and built? There’s one company that seems to enjoy more success than others when it comes to getting new projects built–Spectra Energy. Kinder’s NED was arguably the superior project when it comes to getting natural gas to New England, yet Spectra’s competing Access Northeast project seems to have won. Why? What can we learn from Spectra that might help the rest of the industry when it comes to getting projects built?…
    Read More “What Can We Learn from Spectra’s Success with Pipeline Projects?”

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    PA Democrat Senator Calls for Frack Ban in Lake Erie Watershed

    Sean_Wiley
    PA State Sen. Sean Wiley

    Yet another Pennsylvania Democrat in the state legislature is calling for a frack ban. What is it about PA Dems and their allergies to fossil fuels? This time the pandering Dem is State Sen. Sean Wiley–and he’s calling for a ban on fracking in the Lake Erie watershed of western PA. His reasoning for illegally seizing the property rights of his constituents is really kind of funny. He says there should be a ban until we “see what are the risks associated with unconventional drilling.” Even though PA has been using unconventional drilling (i.e. horizontal drilling with hydraulic fracturing) in the Marcellus Shale since 2004. Apparently 13 years of intense drilling in the Keystone State is still not enough for Sen. Wiley to know what the risks associated with such drilling are. Either Wiley is lying, or he’s a dope. We doubt he’s a dope…
    Read More “PA Democrat Senator Calls for Frack Ban in Lake Erie Watershed”

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    EIA: Explosion on Texas Eastern Pipeline in PA Cuts Natgas Flow

    TETCO NE
    TETCO Pipeline – click for larger version

    As we have been reporting, Spectra Energy’s Texas Eastern Transmission Company (TETCO) pipeline exploded in Westmoreland County, PA on April 29 (see our stories here). Prior to the explosion there was an average of 1.4 billion cubic feet of natural gas per day flowing through the Delmont compressor station located near the explosion. Right now? Zero. So far the main affect of no gas flowing through that area has been a price spike in the Mid-Atlantic region. Natgas supplies are being handled by other pipelines and by drawing from storage. The U.S. Energy Information Administration weighed in last week with their analysis of how the TETCO explosion has impacted the northeast–both with physical gas supplies and with price for that gas. Here’s how the industry is coping…
    Read More “EIA: Explosion on Texas Eastern Pipeline in PA Cuts Natgas Flow”

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    Bank Wipes Out Marcellus Welder’s Bank Accounts “Without Warning”

    BB&TBe careful who you bank with. That’s the lesson from welding/fabricating company NuWeld Inc., headquartered in Williamsport, PA, NuWeld does a lot of business with the oil and gas industry, and lately that industry has been in decline in the Keystone State. The decline led to NuWeld’s bank, BB&T, getting skittish. BB&T, according to NuWeld, cleaned out their bank accounts. Took all of the money in them–and without money, NuWeld had to lay off all 150 employees. Apparently the money was the bank’s to take–but the reason they took it (cold feet instead of unpaid bills), is what grates. And the way they took it, without any warning, really grates. Here’s the story of “be careful who you bank with”…
    Read More “Bank Wipes Out Marcellus Welder’s Bank Accounts “Without Warning””