API Says Completions Down 44% Y/Y, What About Marcellus/Utica?
Yes, we know “it’s bad out there” in the oil and gas industry. We know that rig counts went over a proverbial cliff starting in January of 2015 (see the graph below from Baker Hughes). Along with dropping rig counts comes a corresponding drop in the number of wells drilled and completed. According to research conducted by the American Petroleum Institute, U.S. oil and natural gas well completions decreased 44% in the third quarter of 2015 compared to year-ago levels. We wondered if those numbers held true for the Marcellus/Utica too. Here’s what we found…
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As we’ve previously mentioned, the most recent issue of the 
Once more the Obama Environmental Protection Agency (EPA) violates the U.S. Constitution by creating an unlegislated law and declaring it in effect for the oil and gas industry–thereby regulating oil and gas, even though according to the U.S. Constitution the individual states are the ones with power to regulate the oil and gas industry. And barely a peep. Everyone just lays down and takes it. No push-back. What a shame. Last week the EPA published a final rule in the Federal Register amending reporting on mythical greenhouse gases that will now be required by oil and gas drillers–particularly those who use horizontal hydraulic fracturing (i.e. fracking). Not to be left out–if you build and maintain pipelines to gather natural gas and oil, you’re affected by the new rules too. Another massive federal power grab which goes into effect on January 1st. One more freedom dies under Barack Hussein Obama…
More electricity is disappearing from the electrical grid thanks for Barack H. Obama’s war on coal. AES had considered converting a coal-powered electric plant is operates in Potter County, PA into burning natural gas–indeed had applied for and received permits to do it–but instead they reversed course and have now shuttered the plant they operate in Potter known as the Bear Valley plant…
MDN told you back in April that OH Gov. John Kasich’s insistence that the state budget include a higher severance tax would not happen as part of the 2015 budget (see 
Good old fracked Pennsylvania Marcellus Shale gas will begin powering passenger trains in Philadelphia starting in 2017, if all goes according to plan. SEPTA (Southeastern Pennsylvania Transportation Authority) announced as part of its “sustainability” efforts they plan to build their own electric generating plant powered by Marcellus Shale gas. The $26.8 million plant will save them money, be better for the environment, and heat SEPTA’s largest bus garage (with excess heat from the plant) to boot. It’s a win/win/win all the way around…
The Keystone Sanitary Landfill is Pennsylvania’s third busiest landfill–located on the outskirts of Scranton. The Keystone Landfill accepts drill cuttings from Marcellus drilling. Last year Keystone applied for a permit to expand the landfill once again–but instead of outward, they want to expand it upward, making it higher, to gain more capacity. At present about 10% of the incoming waste stream at the landfill is shale waste. The Pennsylvania Dept. of Environmental Protection (DEP) had, as of last summer, delayed granting the expansion request pending more study (see 
Last week 17 top Marcellus Shale-related executives–including those from CONSOL Energy, Chevron, Huntley & Huntley, MarkWest Energy, Williams and Columbia Pipeline Group–sent a letter to the Pennsylvania legislature and to PA Gov. Tom Wolf. The letter point blank said don’t slap a new/high severance tax on Marcellus Shale in addition to the already-high tax (called an impact fee). We couldn’t find a copy of the letter to share with you. However, we do have reaction from America’s most liberal governor, Tom Wolf, whose office responded with the “same tired argument” always trotted out by Wolf: he still wants to tax shale to give the money away to teachers’ unions in return for electing him to office. We don’t know how many times we have to say this: these are not empty threats by the industry. The industry is telling Wolf exactly what will happen if he institutes the tax–they’ll leave town…
Duke Energy, the largest electric power holding company in the United States and a utility with 7.3 million customers in the southeast and Midwest, announced today they are buying Piedmont Natural Gas for $4.9 billion in cash and the assumption of $1.8 billion in existing debt–for a total deal price of $6.7 billion. Piedmont is a midstream and natgas LDC (local distribution company, or utility) with operations primarily in North Carolina, South Carolina and Tennessee. This is the story of a big southern electric utility buying a smaller southern natural gas utility. So why is it important for the Marcellus/Utica? Because Piedmont has been active in two very important pipeline projects in the Marcellus/Utica–and that project ownership will now go to Duke…
Part of the ongoing hit series in the Democrat-owned Harrisburg Patriot-News that attempts to smear the Marcellus industry (see 
Here’s a thought: Why doesn’t the Philadelphia Gas Works (PGW) convert more of the gas it buys to take gas from the nearby Pennsylvania Marcellus Shale and dump buying gas from the Gulf Coast–because PA’s gas is closer and much cheaper, it will result in lower costs for PGW and lower bills for consumers. Now, where do we go to collect our $1.5 million consulting fee for that fine idea? The Pennsylvania Public Utility Commission contracted with Michigan consulting firm Schumaker & Company, Inc. to perform a top to bottom audit of the PGW. While we don’t know how much the audit cost, we did find a 2008 proposal from Schumaker to New York State touting the same kind of audit, with a total price tag (back then) of $1.3 million. So we figured with a little inflation the audit just turned in by Schumaker must have run at least $1.5M. The chief, number one suggestion by Schumaker? PGW can save $6-$7 million a year by buying more of its gas (60% more) from the Marcellus Shale region, upping it from the current 33% they buy from the Marcellus now. Maybe we should get into the consulting business. Sure pays better than blogging!…
In August our Dear Leader, Barack Hussein Obama, introduced his latest edict called the Clean Power Plan. The plan uses the federal Environmental Protection Agency to completely eliminate coal-fired electric plants, and greatly diminish natural gas-fired electric plants (see 
In August MDN brought you the news that Antero Resources has decided to build a new state-of-the-art frack wastewater treatment plant in Doddridge County, WV for $275 million (see 
It’s not often it happens, so we like to make a big deal out of it when it does–praise for a group of Democrats! Kudos to the Mahoning County Democrat Party for their stand AGAINST the no fracking ballot initiative on the November ballot–otherwise known as the Youngstown Community Bill of Rights initiative. As we’ve previously reported, this is the fifth time this idiotic ballot measure has come up for a vote in the City of Youngstown. The OH Supreme Court ruled it should be on the ballot in November (for a fifth time), even though the same Supreme Court ruled against such “home rule” laws earlier in the year (see