Research

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    New Study: How Businesses Can Plug in to Marcellus Supply Chain

    plug inKatie Klaber, principal of the Klaber Group consulting firm and former president of the Marcellus Shale Coalition, was hired to write a white paper/study for the Ben Franklin Shale Gas Innovation and Commercialization Center (SGICC) on the topic of how small Pennsylvania companies can be successful in delivering new products and services to the oil and gas industry. That is, how can your company plug into the supply chain? The white paper, titled “Technology Adoption in the Shale Energy Industry + the Role of SGICC” (full copy below) focuses mainly on technology companies–those with a new innovation. How do such companies get noticed? Get their first customer? Katie’s company surveyed 24 such companies that have worked with the SGICC to get noticed and get plugged in. She brings the lessons learned to this report. You might think, “Yeah, but I have a fencing company–nothing high tech about it. Would this report help me?” Yes, it would. There’s plenty of great marketing insights, an update on where things stand for the Marcellus/Utica specifically, and the oil and gas industry in general. We think this is a great report for any business that wants a better understanding of how to market to the upstream, midstream and downstream in the oil and gas industry…
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    Sham Study: Folks Won’t Visit Public Parks with Fracking Nearby

    unscientificSo four anti-drillers are sitting at a bar…no wait–that’s another story. Four anti-drilling activists who teach at three different colleges–University of Florida, Florida State University, and North Carolina State University (none of them nowhere near the Marcellus/Utica Shale)–got together and concocted a sham study that used an ONLINE survey of 225 people (i.e. unscientific) in the Marcellus/Utica region who visit public parks. Based on the GIGO survey results, the researchers say one-third of Appalachian folks ain’t a goin’ to no park with frackin’ nearby, nosiree. Of course, it’s likely they wouldn’t even know whether or not there is fracking nearby since you typically can’t tell from more than a few hundred feet away where a well is being drilled. We wonder if the researchers also asked the same 225 if they would fly in to or out of an airport with fracking nearby? If that’s your criteria for whether or not to do something, whether there’s fracking nearby, you won’t be using Pittsburgh International Airport where some 47 wells are being drilled as we write this…
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    Antis Publish Study Revealing How They Manipulate Public Opinion

    Mark Twain quoteWe shouldn’t be, but we’re stunned. We’ve discovered that anti-drillers are funding studies to discover how best to fool you. What words, phrases, stories and lies will resonate the best, and move low information types, to oppose fossil fuels. They study it and actually publish their findings (crow about it) for all the world to see! We’ve known for a long time that so-called peer reviewed research is nothing more than bought-and-paid-for propaganda (read this recent story in the New York Times: Many Psychology Findings Not as Strong as Claimed, Study Says; and this NY Times editorial: Scientists Who Cheat). A new study appearing in the October issue of American Sociological Review looks at how the propaganda in Josh Fox’s fictional movie Gasland, along with social media efforts, tangibly moved the dial in favor of anti-fracking sentiment among those who refuse to think for themselves. The study was originally titled “No Fracking Way!” Media Activism, Discursive Opportunities and Local Opposition against Hydraulic Fracturing in the United States, 2010-2013, but in good propaganda fashion, the authors changed the name, removing “Media Activism” (because that cuts a little too close to the truth) replacing it with “Documentary Film.” They also made the plural “Opportunities” into the singular “Opportunity.” The published title became: “No Fracking Way!” Documentary Film, Discursive Opportunity, and Local Opposition against Hydraulic Fracturing in the United States, 2010-2013. Below we connect the dots to the anti-fossil fuelers who funded the “study”…
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    Study Finds Dire Consequences if New England Pipelines Not Built

    dire consequencesThe New England Coalition for Affordable Energy, a pro-fossil fuel group backed by business groups and unions in throughout all six New England states, issued the results of a study they commissioned that asks the question, What will happen in New England if energy infrastructure, like natural gas pipelines, does not get built? The study, titled “The Economic Impacts of Failing to Build Energy Infrastructure in New England” (full copy below), finds the impacts–if these projects are not built–are dire: Electric ratepayers will pay $5.4 billion in higher electricity costs; 52,000 private sector jobs will be lost; household spending will go down a collective $12.5 billion; $9 billion of investment and 115,600 jobs that would have been created by such projects will never happen; and the list goes on. Here’s the announcement and summary of the findings, followed by a full copy of the study…
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    OH Utica Production for 2Q15 Breaks Record – Highest in 100 Years!

    record breakingYesterday the Ohio Dept. of Natural Resources (ODNR) released quarterly production numbers for second quarter 2015 for OH’s Utica oil and gas wells. The report shows 5.6 million barrels of oil and 221 billion cubic feet of natural gas were produced in 2Q15. According to the ODNR, these numbers break all previous production reporting records for the last 100 years! Numbers for 1Q15, by comparison, were 4.4 million barrels of oil and 183.6 billion cubic feet of natural gas. Below we have the ODNR’s high level overview of the numbers, along with our own analysis showing: the top 25 producing gas wells, the top 25 producing oil wells, and then the top 25 gas and oil wells as ranked by average production per day. There is a difference! The longer an oil or gas well is online, the less it produces. Newer wells produce more. So we show you which wells are not just producing the most quantity overall, but which wells are producing at the fastest (most productive) rates–even if they haven’t yet been online a full three months (91 days). We also include a link to the complete list of 1,020 wells that had at least some Utica oil or gas production in 2Q15 in a more usable format than that provided by the ODNR…
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    Quigley Believes Study that PA Will Fry from Global Warming by 2050

    stupid people are dangerousA hilarious “Boo! Scared Ya” report has just been issued by the brainiacs at Penn State that says Pennsylvanians are all going to fry by 2050 because of mythical man-made global warming. Never mind these are the same people who have made the same predictions going back 25 years (average temps haven’t gone up now for 18 years and counting). Never mind these are the same people who can’t predict the weather next week, let alone 35 years from now. We’re just supposed to believe them because they have letters after their names, supposedly indicating they’re smart. One person has fallen for this erroneous garbage: the PennFuture Secretary of the Dept. of Environmental Protection, John Quigley. Unfortunately Quigley has the power to make drillers’ lives miserable by enacting draconian regulations to control their activities because he believes in the fairy tale of global warming. That not only makes him stupid, it makes him dangerous…
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    EIA’s Old News About September Slide in NatGas Production

    old newsOur favorite government agency, the U.S. Energy Information Administration (EIA), has just published an article in their Today in Energy online publication recapping what the August Drilling Productivity Report (DPR) showed: cumulative natural gas production from the country’s largest seven commercially active shale plays will decrease in September for the first time since the EIA began producing the DPR. As we already highlighted two weeks ago, the August DPR, which predicts production volumes for September, shows a decrease in production across all seven major shale plays, which includes both the Marcellus and the Utica (see August EIA DPR: NatGas Production Declines in All 7 Shale Plays). The article in yesterday’s Today in Energy (read it below) simply points out that in addition to a decrease in production across all seven shale plays, if you add up their cumulative production, the cumulative amount will be less in September than it was in August–meaning this is the first since the beginning of the shale revolution that natural gas production output from shale has decreased in the United States…
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    Study Finds PA Wastewater Volumes in 2014 Same as 3 Yrs Ago

    researchThe Ben Franklin Shale Gas Innovation & Commercialization Center (SGICC), affiliated with the Pennsylvania Department of Community and Economic with a mission to accelerate technology breakthroughs related to shale gas in PA, has just released an updated report on shale wastewater treatment and disposal in PA. The report, titled “Shale Gas Development – Summary of Shale Gas Wastewater Treatment and Disposal In Pennsylvania 2014” (full copy below) finds that drillers in PA produced about 1.8 billion gallons of gas and oil wastewater in 2014–a figure largely unchanged since 2011. The study also finds the shale industry in PA is recycling 91% of the wastewater it produces. Interestingly, the updated report shows “produced water” (or brine, naturally occurring water from the depths) volumes far exceeded volumes for “frac fluid” (or the fluid originally pumped into the well when drilling and fracking). That’s a reversal from the data evaluated in 2011 when frac fluid represented the bulk of the wastewater stream…
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    3 PA Economics Profs Predict When Marcellus Employment Will Peak

    crystal ballA favorite pastime for people who support and for people who oppose fossil fuels is to throw around estimates of how long the Marcellus Shale will be around. How long will there be enough gas in the ground that drillers will actively pursue getting it out of the ground? On the anti-fossil fuel side you have discredited peak oil theorists like Art Berman who says we’re going to run out of gas in the next 10 years (see Peak Oil Theorist Art Berman Says Shale Gas is Peaking Too), and discredited “reporter” from the New York Times Ian Urbina who tries to make the case that shale drilling is nothing but a house of cards, a Ponzi scheme, ready to collapse at any time (see Unnamed Source in New York Times Anti-Gas Articles was…an Intern?!). On the pro-drilling side, we’ve personally heard Marcellus drillers state that they expect to still be drilling at least 40 years into the future, and possibly longer. Three economic professors from Indiana University of Pennsylvania recently published a research paper (copy below) in which they model employment in the coal industry to determine “peak employment” for coal and when it started to decrease–and they then applied the same model (with tweaks) to the Marcellus natural gas industry to predict when the industry will start to decline. What did they find?…
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    Flawed Analysis by (Gasp) the EIA on Severance Taxes

    flawed logicOur favorite government agency, the U.S. Energy Information Administration (EIA), published an article on Friday that appears to “take sides” in the Pennsylvania debate over whether or not to institute a severance tax. Which is a disappointment. Until now the EIA has stayed above the fray in such issues. The EIA article from Friday offers a grossly misleading side-by-side comparison of where states get their primary source of revenue to feed their voracious appetites to transfer wealth from those who earn it to those who don’t–and how much is contributed by oil & gas severance taxes. The EIA compares tax revenues from five major fossil fuel generating states–Alaska, North Dakota, Wyoming, Texas and Pennsylvania. The graphic they use is powerful (and misleading) and appears to support calls to increase a severance tax in Pennsylvania. We disagree–strongly–with that position. Here is the EIA post from Friday, followed by MDN’s explanation of how it is grossly flawed…
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    The One Graph that Exposes the EPA Lie re Methane Regulation

    The graph below puts to rest the lie that the EPA’s action in trying to control oil and gas drilling via the back door of controlling methane emissions will do anything to help so-called global warming. It won’t. Not a thing. Why? One-third of all methane emissions are naturally occurring–coming from “wetlands” (i.e. swamps, representing 22%), the ocean (3%) and yes, termites (4%). Who knew termites fart that much? But wait, there’s even more farting. Of all “man-caused” methane emissions, cow farts, otherwise referred to as “enteric fermentation” represent 16% of all methane emissions, and “animal waste” (i.e. cow manure) represents another 5% of all methane emissions. That is, agriculture is responsible for 21% of all “fugitive” methane emissions. Oil & gas and coal extraction? That represents 19%. So the EPA is focusing on 19% of the problem and ignoring the other 81% of the problem, claiming that will magically reduce global warming. What utter cow manure…
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    Marcellus/Utica Tied to $43.8B in New NE Industrial Projects

    How much of an impact does Marcellus and Utica Shale drilling (and its associated activities) impact the northeast economically? We now have a pretty good idea, thanks to research done by Industrial Info Resources, a research company based in Sugarland, TX. Industrial Info is tracking more than $43.8 billion in industrial capital and maintenance projects that are set to kick off from now through 2016 in the Northeastern U.S. and New England. Industrial Info says, “Abundant natural gas from Marcellus Shale wells in Pennsylvania are responsible for much of the activity”…
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    PA Releases Study on Bakken Crude Shipments Passing Through

    God protect us from politicians whose “top priority” is to protect us. MDN previously told you that America’s most liberal governor, PA Gov. Tom Wolf, hired a high-priced consultant from the University of Delaware in April to do a top to bottom review on railway safety with a focus on how PA might better “protect” (i.e. prevent) Bakken shale oil shipments traveling through the state on the way to refineries (see PA Gov Wolf Takes Aim at Bakken Oil Trains Traveling Thru PA). The high-priced consultant, Dr. Allan Zarembski, has turned in his assignment with 27 recommendations (full copy of his report below). In eyeballing the list some of the recommendations certainly look reasonable: slow down to 35 mph if you’re passing through a city with a population of 100,000 or more; test the tracks three times a year; hire inspectors who know what they’re doing; etc. We suspect when the experts at Norfolk Southern and CSX have had a chance to review the report we’ll hear how these recommendations are intended to slow or stop crude by rail (CBR) shipments through PA. We’d like to be wrong about that, but given Wolf’s behavior an uppity attitude toward the railroads so far, we’re pretty sure we aren’t wrong…
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    Moody’s Says Oil & Gas Prices Staying Low Another 3 Years

    How long will oil and gas prices still in the basement? Isn’t that the quadrillion dollar question! A new report from Moody’s Investors Service says, after evaluating data on 90 companies, it expects oil and gas prices to stay low for another three years. Ouch. Here’s some insights from the wizards of smart at Moody’s…
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    Frack Wastewater Treatment Market Still Worth $1.9 Billion

    Even though we’ve had a dramatic decline in global oil prices–a price collapse from near $100 per barrel to less than $45 per barrel in under a year, and even though that price collapse is directly related to less shale drilling and fracking everywhere–including the Marcellus/Utica, water reuse/recycling in the Marcellus Shale is still in demand says a new report by Lux Research. In fact, the market for frack water management across the country is still estimated to be worth $1.9 billion, not including water transportation and disposal…
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    Moody’s: NatGas Will Trump Coal & Nuclear in PJM Electric Auction

    Increasingly the natural gas and electricity markets are becoming bosom buddies. Why? Because natural gas is displacing coal and even nuclear power as the preferred fuel to power electric generating plants. This is a profound change happening right now–important for you to understand as it will play a key role in new markets for Marcellus/Utica Shale gas now and into the future. Lesson #1: PJM Interconnection is a regional transmission organization (RTO) coordinating the movement of wholesale electricity in all or parts of 13 states and the District of Columbia (essentially Appalachia). PJM’s electric transmission grid covers all or parts of: Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia and the District of Columbia. Electricity moving through those areas is coordinated by PJM–meaning new electric generating plants that get built, or existing plants that get upgraded/converted to burn other fuel sources, must go through a PJM approval process. From time to time PJM conducts capacity auctions to increase the amount of, and reliability of, electric supply for the grid. PJM is currently conducting such an auction, and according to a new research report from Moody’s Investors Service, coal and nuclear electric generating plants will likely lose out to natural gas-fired electric plants thanks to the low price of Marcellus Shale gas…
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