StateImpact: PA Pipelines “Risky” & “Mystery” – Might Kill ‘Ya Too
Yet another hit piece against the shale industry from the taxpayer-funded, left-leaning, anti-drilling PBS StateImpact Pennsylvania. This time it’s about pipelines. Reporter Susan Phillips says there’s so darned many of the stupid things under our feet, we don’t even know where they all are and “POOF!” they may explode at any minute if you look at ’em wrong. Case in point: A man operating a bulldozer whose company called One Call before digging, dug up a pipeline that wasn’t mapped and had evil, nasty natural gas running through it. It exploded and sent the man to the hospital with burns over 70% of his body. We’re not making light of the accident or this man’s plight (which is truly tragic). We are making light of the silly notion implied by Phillips in her wide-ranging hit piece that pipelines are “risky” and a “mystery” with the implication we shouldn’t build another single pipeline until we can get pipelines already in the ground fully mapped down the square centimeter. This is a new, coordinated attack on the industry from the usual suspects. Stop the pipelines and you stop the evil fossil fuel natural gas from getting to market…
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Something really big is about to happen in the Marcellus/Utica region. Starting August 1, the Rockies Express Pipeline (REX), originally built from Colorado and Wyoming to Monroe County, OH to bring natural gas from west to east, will reverse the flow for a large and important section of the pipeline. On August 1, the section of REX from Monroe County, OH to Mexico, MO will reverse the flow and carry 1.8 billion cubic feet per day (Bcf/d) of Utica and Marcellus Shale gas to the Midwest, including to the greater Chicago area. This flow reversal has the power to a) increase prices northeast drillers receive for their natural gas, and b) lower the cost of natural gas for consumers (and industrial companies, and electric generating plants, etc.) in places like Chicago. It is a win/win scenario. It is so important, and will have such a profound affect on natgas prices in the Midwest, that our friends at NGI’s Daily Gas Price Index have created a “REX Tracker”–a free daily chart updating the price of natural gas along the REX’s Zone 3 section…
Last Friday during the Cabot Oil & Gas quarterly earnings call update with analysts, Cabot’s CEO Dan Dinges provided an important update on the Constitution Pipeline, a 125-mile pipeline that will stretch from the gas fields of Susquehanna County, PA into New York, to Schoharie County. It is a critically needed pipeline to get Cabot’s natural gas in Susquehanna County to markets throughout the northeast and New England. Although Williams is the lead company building the pipeline, Cabot is the other primary partner in the project. Currently the Constitution is 100% FERC authorized and they have 100% of the rights of way leases signed for the project. The only hold-up is the New York State Dept. of Environmental Conservation in granting 401 Water Quality Certificates that allows the Constitution to lay pipe through and under swamps, creeks and other bodies of water. According to Dinges, they expect NY to issue those permits any day now…