Research

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    Important New CSU Study Reveals Shale Supply Chain Opportunities

    We are SUPER excited about a new study dated September 2015 but released just yesterday by economists and researchers at Cleveland State University (CSU). The study, broken into three parts, looks at economic development opportunities offered by Ohio’s Utica Shale. One of the three parts is titled, “Economics of Utica Shale in Ohio: Supply Chain Analysis.” We eagerly goggled it up and found that the authors use charts very similar to those developed by MDN and our own Supply Chain Tutorial (see Where Does YOUR Business Fit in the Marcellus/Utica Supply Chain? [FREE]). We have a copy of all three sections of the new CSU study (below). We *highly recommend* this study as worth your while to digest. Before we developed our own Supply Chain Tutorial we had not seen anyone mapping NAICS codes to each stage of the drilling and midstream process. The CSU study adopts MDN’s convention of mapping NAICS codes and goes well beyond our tutorial, which is why we’re so excited. If you work for a company that wants to see if there may be an opportunity to win business in the Marcellus/Utica industry, plan to spend some time with this study!…
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    Anti-Drilling MA Attorney General: We Don’t Need No Pipelines

    Is it us, or does it seem like all Democrat politicians have dictatorial aspirations? Obama clearly does. If he doesn’t like what the Constitution says, he just makes up his own Executive Orders–Constitution be damned. New York Gov. Andrew Cuomo is the same–just strip away the Constitutional property rights of everyone in his state by instituting an illegal frack ban. New York’s Attorney General, Eric Schneiderman, is the same. He’s abusing his office in an elaborate government shake down of fossil fuel companies like Exxon Mobil–rubbing his hands together at the thought of forcing them to pay him billions. Here’s another prominent Dem to add to the list: Massachusetts Attorney General Maura Healey. She’s appointed herself an expert on whether or not New England needs new natural gas pipelines to carry Marcellus Shale gas to the region. Yes, we know–an Attorney General should have nothing to do with such a decision–but that’s life in the People’s Republic of Massachusetts. Healey doesn’t care a whit about the free market or capitalism–she personally wants to control every aspect of the lives of New Englanders. But Dems like Healey know that unless you’re Obama with a group of gutless Republicans in Congress who won’t hold you accountable, you can’t get away with just ruling by fiat. You have to convince (i.e. hoodwink) people. So Healey has to go to the trouble of making things up. Here’s her latest: She just released a “study” to say New England’s electric supply over the next 15 years will be just fine without new natgas supplies to power electric plants–so long as everyone keeps their thermostats turned down to 50 degrees in the winter and layers up with three or four sweaters (that’s always the Dem solution). The study (full copy below) is, of course, a joke. It was created by a group of people with glaring conflicts of interest…
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    New Report Finds Less than 1% of Injection Wells Cause Earthquakes

    One of the news stories that is constantly recycled by anti-drillers and a sycophantic media is that “fracking causes earthquakes.” They intentionally perpetuate a knowing lie because, well, because it’s so effective. Who in their right mind would support an activity that causes earthquakes?! Here’s the thing: Fracking itself has been tied to earthquakes in less than five instances worldwide. Statistically zero. However, wastewater from fracking that’s disposed of via a deep injection well (sometimes called a saltwater well) has caused earthquakes. So antis try to link the two together, blurring the lines and claiming fracking itself is the cause. Our friends at the top notch Energy in Depth has just issued a research paper (full copy below) that quantifies just how often earthquakes are tied to injection wells. What they found is that earthquakes have been tied to (caused by) 218 wastewater injection wells. Know how many injection wells there are in the U.S.? Around 40,000. If you do the math, that’s about one-half of one percent of injection wells cause earthquake problems…
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    Dominion Investing $10.1B, Creating 20K New Jobs in VA Next 5 Yrs

    It’s a shame to have to prove to people what should be self-evident–that building new natural gas electric plants and natural gas pipelines will bring both new jobs and inject billions into a state’s economy–but that’s what you sometimes have to do. You have to prove it to counteract the negative drumbeat from radical anti-drillers and leftist mainstream media. So Dominion, a huge utility/pipeline company operating in 14 states including the Marcellus/Utica region, commissioned a study that looks at how many jobs and how much money will be pumped into the State of Virginia over the next five years if all of the pipeline and electric plant projects they have on the books happen. The study (full copy below) finds Dominion is set to invest $10.1 billion and create nearly 12,000 jobs over the next five years in the Old Dominion. A sizable portion of the new projects and jobs are tied to natural gas…
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    Update on Study that May/Might/Possibly Show Stressors from Drilling

    In September MDN told you about a newly published study that purports to evaluate potential “stressors” on streams from unconventional (i.e. shale) oil and gas drilling–including drilling in the Marcellus/Utica (see New Study Evaluates Stressors on Streams from Shale Drilling). As we said at the time, the study appears to be real science as opposed to the usual political science that passes for real science. The one great negative, in our opinion, is that it was published in a non-peer reviewed journal that publishes a lot of “fracking will kill you” bull–PLOS ONE. The study has popped back up in the news once again. We find it interesting that newspapers run this headline–“Study indicates gas drilling can impact rivers, streams”–and a few paragraphs into the story, one of the lead authors of the paper says this: “What we’ve developed is a predictive model…We have not proven anything about whether shale gas development is affecting streams or not.” You always see lots of “cans” and “maybes” and “mights” and “possiblys” when it comes to anti-drilling mainstream media. How about sticking to “does” and “will” and “proven” instead? In other words, let’s have some hard science instead of theoretical science. Prove your statements. Do some in-the-field research. Here’s the latest update on a study that “may” indicate “some” problems with shale drilling…
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    Fall 2015 List of Shale-Related Infra Projects in OH – $33.7B!

    We’re excited to share with you an update to a report we LOVE. The sharp researchers at law firm Bricker & Eckler produce a twice yearly called “Shale Economic Development Overview.” It is a list of projects details, by county in Ohio, of those projects started or planned because of shale drilling. The Spring 2015 edition is embedded below. The first edition of this list was published in October 2013 and showed projects worth $12.2 billion. In October 2014 that number had risen to a staggering $21.5 billion. In the Spring 2015 edition, the total rose to $28 billion. This new edition for Fall 2015 shows a total investment in Ohio’s economy of a staggering $33.7 billion! The fact that investments in Ohio continue to increase is a testament to the fact that although drilling has greatly slowed, the midstream (pipelines and processing plants) have not…
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    Another Devastating Critique of Fracking/Premature Birth “Study”

    In early October MDN brought you the story that a new so-called research study had been published claiming to show a connection between how close mommies live to a fracking site and an increase in premature births (see New Junk Science Claims PA Fracking Leads to Premature Births). We quickly debunked that study by showing the huge flaws in how it was “researched” (see EID’s Devastating Critique of PA Premature Birth “Study”). We have a further update. Dr. Gilbert Ross, senior director of medicine and public health at the American Council on Science and Health has weighed in with his own critique of the science behind the study. Dr. Ross says, “Realistically, there is no way hydraulic fracturing could have had an impact on pregnancy outcomes.” Here’s what else he says about this very flawed study…
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    The Right Road to Clean Power: Free Market & NatGas

    Whenever government gets involved with choosing the form of energy you should use–they screw it up. The utopian Obama Admnistration believes the lie that government knows best–that they are the smartest people in the room and therefore should tell you that coal is evil, solar and wind are good, and they want to force you to change how you get your energy. One of their arguments is too much carbon in the atmosphere comes from burning coal–and natural gas. The Obama Administration is attending the U.N. Climate Change Conference in Paris hellbent on forcing Americans to give up national sovereignty in the name of mythical global warming. Thing is, the free market (capitalism) always produces a better result than the cockamamie theories of egg-headed liberals like Obama and his ilk. Carbon emissions in the United States, unlike other countries of the world, has gone DOWN, not up. And it’s gone down bigtime. America’s shrinking carbon footprint is thanks to a change to natural gas–not in so-called renewables. Want proof? We have it…
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    Change Coming This Week in How EIA Reports NatGas Storage Data

    It may sound dry as unbuttered toast, but the issue of natural gas storage is a serious business. So serious that the U.S. Energy Information Administration (EIA) tracks natural gas storage each week (see Weekly Natural Gas Storage Report). Natural gas traders, buyers and sellers all watch the numbers closely. As we’ve told you over the years, natural gas is about as pure of a commodity as you can get. It is a classic supply and demand kind of business. The more supply you have (as indicated by how much gas is in storage), without corresponding demand–the lower the price goes. We are, as of right now, hitting record storage levels at this point in the year. That means the price of gas isn’t going higher any time soon. There is an important change coming in the way the EIA reports storage data. Beginning this Thursday, Nov. 19, the EIA will move from reporting storage data in three regions in the U.S. to reporting it in five regions…
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    EIA Report Predicts NatGas Will Average $2.59/MMBtu This Winter

    Our favorite government agency, the U.S. Energy Information Administration (EIA), publishes mountains of data and reports and analysis each day/week/month/year. So much if we did nothing but brought you only stuff published by EIA it would fill our daily reports! We always struggle with how much to share from the EIA. We bring you the monthly DPR (Drilling Productivity Report) because it details EIA’s predictions about what the seven major U.S. shale plays will produce in both oil and gas in the coming month (see the latest one published yesterday, EIA November DPR: Marcellus Production Down Again, Utica Increases). A report also just released is the monthly Short-Term Energy Outlook, a report that looks at the recent history of oil, natural gas, coal, renewables, etc., and predicts what will happen in the coming months/up to one year out. Below we’ve pulled and display the “Highlights” section along with the full section for natural gas. We also include a copy of the full report. It’s important to have the entire context in which natural gas (and oil) exists. We don’t live in a vacuum. The price and abundance (or scarcity) of other forms of energy influence the price and availability of natural gas and oil. Less coal coming? Likely means more natgas. More solar and wind capacity coming online? Likely means less natural gas. The energy market is fascinating and complex and shale energy is but one piece of a very large puzzle. This report helps us wrap our brains around it…
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    IEA World Energy Outlook Predicts $80 Oil by 2020

    Each year the International Energy Agency (IEA) issues a special World Energy Outlook report. The 2015 edition has just been published. This newest report examines the critical role of price for crude oil in “rebalancing” supply and demand. The authors note the process of rebalancing (getting to higher prices) is rarely a smooth adjustment. Indeed! In the central scenario of this year’s report, a tightening oil balance leads to a price around $80 per barrel by 2020–just five short years away (hang in there small independents!). The report also examines the conditions under which prices could stay lower for much longer, an all-to-real possibility. Below is a press release about the report and a copy of the Executive Summary for the report. Sadly they don’t release the full report for free–it will cost you €120 (~$129) for the PDF version, and €150 (~$161) for a paper copy…
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    EIA November DPR: Marcellus Production Down Again, Utica Increases

    Yesterday our favorite government agency, the U.S. Energy Information Administration (EIA), issued our favorite government report, the Drilling Productivity Report (DPR). The November report predicts what production will show in the month of December for both oil and natural gas from the seven biggest commercial shale plays in the U.S. The numbers EIA predicts shows natural gas production dropping once again–down another 100 million cubic feet per day (Mmcf/d) across all the plays combined. However, as with last month, the Utica Shale and Permian Basin are the exceptions–both predict an increase in natgas production for the month of December. Several major drillers have changed focus in the northeast from the Marcellus to the Utica (EQT and CONSOL Energy come to mind), which may help explain some of those numbers. The Permian is an oil play and doesn’t produce much natural gas–but since natgas comes out of the hole along with oil, and since oil drilling in the Permian is picking up lately–that explains why there’s an increase in “associated gas” for that play. Gas production in the mighty Marcellus continues to drop. It’s the biggest gas producer, so perhaps that’s why it’s dropping the most–down 215 Mmcf/d last month, and predicted to be down average 229 Mmcf/d in December…
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    Report: Fracking Reduces CO2 Emissions 13x Faster than Solar

    A new report out from the conservative think tank Manhattan Institute finds that fracking–and NOT so-called renewables like solar–is the “single most effective tool” for reducing carbon dioxide emissions. The report, much to the consternation of the greenies, finds that fracking helped reduce CO2 emissions 13 times faster than solar power. Did you know that solar and wind together generated LESS electricity in the first half of 2015 than they did in the first half of 2014? Here’s the report the greens don’t want you to know about…
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    Bought & Paid For: NY Anti-Drilling Researcher Gets $1.25M Grant

    There’s a new thing going around–it’s called “advocacy science.” And boy oh boy does it ever pay big bucks! Here’s how it works: Attend an Ivy League school like Cornell, do some “research” with a pre-determined outcome (i.e. ignore real science), wait a few years–and collect $1.25 million?! That’s how it worked out for Elaine Hill, currently a University of Rochester Medical Center researcher who did sloppy research that she published as a Cornell student (without peer review) in 2012. The “study” found babies born near fracked wells are allegedly more likely to have low birth weights than those not born near fracked wells (see her paper here). Later studies that grabbed headlines used her work as its foundation (see MSC Devastating Critique of “Low Birth Weight Near Fracking” Study). Hill is now being richly rewarded for her efforts in aiding the anti-drilling cause. The National Institutes of Health (your tax dollars at work) have just awarded Hill–yes Hill, one person–a staggering $1.25 million grant to do more “research.” In essence, she’s set for life. Bought and paid for. A millionaire. All it took was trading on the name of Cornell University and ignoring real science to get there. Here’s the kicker–her degree isn’t in biochemistry or biology or medicine or any hard science. Hill’s degree is in economics…
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    New BP Technology Report Predicts O&G Supplies will Double by 2050

    researchPeak Oil theorists like Art Berman won’t be happy with the latest report just published by oil giant BP. BP and other large energy companies publish annual energy outlook studies that we’ve highlighted in the past (see BP’s Annual Energy Report: Smallest Demand Increase since 1990s). For the first ever, BP has just published a report called the BP Technology Outlook (full copy below) that reveals much of their internal research on new technologies that will keep energy supplies plentiful and affordable, “enough to meet projected demand many times over” according to the study’s authors. While BP pays much lip service to so-called renewable sources of energy in this new study, here’s the part that will give Berman and other Peak Oil fanatics heartburn: “applying today’s best technologies to discover oil and gas resources could significantly increase ‘proved reserves’ from 2.9 trillion barrels of oil equivalent to 4.8 trillion barrels – nearly double the 2.5 trillion barrels required to meet projected cumulative global demand through to 2050.” Did you catch that? New tech available today can and will double the amount of recoverable oil and gas. So much for Peak Oil and Gas! We’re awash in it and will remain so for generations…
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    Dartmouth Research: Fracking’s Benefits Extend Hundreds of Miles

    crickets chripingIt’s always fascinating for us to see which universities tout the research papers published by their professors and students, and which don’t. And which papers they decide to promote, and which they don’t. Publish a study that knocks fracking as somehow damaging the environment? That’s worth a full-blown press release and calls to the New York Times to see if you can get some juicy PR. Publish a paper that concludes, oh, the economic benefits of fracking actually extend out for hundreds of miles? Not a peep. In fact such a study was released by Dartmouth researchers called “Geographic Dispersion of Economic Shocks: Evidence from the Fracking Revolution” (full copy below). The report concludes: “Every million dollars of oil and gas extracted produces $66,000 in wage income, $61,000 in royalty payments, and 0.78 jobs within the county. Outside the immediate county but within the region, the economic impacts are over three times larger. Within 100 miles of the new production, one million dollars generates $243,000 in wages, $117,000 in royalties, and 2.49 jobs.” You might think such good news would be emblazoned on major newspapers across the country. Nope. Nothing. Nada. Zippo. That kind of objective research, that finds fracking benefits society, doesn’t fit the liberal bias of mainstream media. So they ignore it. If they don’t cover it, it essentially doesn’t exist. What a shame…
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