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New USGS Study: Fracking Does Not Contaminate Water Wells

The U.S. Geological Survey has just done us all a big favor. USGS decided to do some in-the-field research to see if there’s any truth to the wild claims of anti-drillers that fracking somehow leaks up through a mile or more of solid rock to pollute water wells. We’ve heard that bogus claim for years–since shale drilling in the Marcellus began in 2004. Those claims were made popular by the Josh Fox and his fake documentary “Gasland.” So USGS researchers went down to Texas, Louisiana and Arkansas–where there’s a lot of oil and gas drilling–and randomly selected 116 domestic and public-supply water wells located as close as 360 feet to unconventional (i.e. shale) oil and gas wells. The researchers published their findings in a new study/paper in the journal Environmental Science & Technology in a paper titled “Methane and Benzene in Drinking-Water Wells Overlying the Eagle Ford, Fayetteville, and Haynesville Shale Hydrocarbon Production Areas” (full copy below). What did the USGS researchers conclude? “Using chemical, isotopic, gas and groundwater-age tracers to thoroughly evaluate those samples — USGS researchers concluded that low concentrations of methane and benzene detected were likely naturally occurring and not attributable to shale development.” Thank you USGS…
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Study: New England Electric Shortage from Lack of NatGas by 2025

There is a coming shortage of natural gas to fire electric power plants in wintertime in New England. So says an analysis presented last week to the ISO-New England Planning Advisory Committee. ISO New England Inc. is the independent, non-profit Regional Transmission Organization (RTO) that manages the electric grid for Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont. The study presented last week shows that there will be enough natgas reaching New England in summer for the foreseeable future, but in the winters of 2025 and 2030, almost every planning scenario shows New England will only have half (50%) of the gas it needs to operate electric generating plants. This is seriously bad news for New Englanders–and something we previously predicted (see Study Finds Dire Consequences if New England Pipelines Not Built). New England’s steadfast opposition to new pipelines will have a real, very tangible effect. They get to choose between no gas for heating, or no gas for electricity…Continue reading

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Fake Harvard Study Generates Fake News re NatGas Storage in M-U

Here we go again. A new “study” published today by Harvard University researchers supposedly indicates that Pennsylvania, Ohio, and West Virginia are loaded with underground natural gas storage sites that may leak like the Aliso Canyon debacle in California. The new study published in the journal Environmental Research Letters, titled “A national assessment of underground natural gas storage: identifying wells with designs likely vulnerable to a single-point-of-failure” (full copy below), says there are 14,138 active underground storage (UGS) wells in 317 locations/facilities in the U.S. The study identifies 2,715 active UGS wells across 160 facilities that, like the failed well at Aliso Canyon, were not originally designed for gas storage. (Gasp) Even worse: The majority (88%) of these repurposed wells are located in OH, MI, PA, NY, and WV. (Double gasp) Here’s the thing: Aliso Canyon was one facility that had a catastrophic failure (a failure which, by the way, hurt no one–it just released some extra methane into the air). While it may be interesting and useful to know (for accident prevention) that there are other facilities constructed years ago, like Aliso Canyon, that were later repurposed to be used for underground storage–each and every location is different, with unique characteristics. No two storage sites are the same geologically. It does not follow, as implied in the report, that because Aliso Canyon leaked, that these other “similar” facilities will eventually fail and leak. However, our main objection to this research–and why we call it fake research–is that the researchers never bothered to go into the field and take air samples to see if there is any ACTUAL leaking going on at any of these thousands of other sites! Fake mainstream news sources are just now picking up on the story and running it. Nothing sells newspapers (or grabs online eyeballs) like fear. And hey, it serves the mainstream narrative that fossil fuels are the ultimate evil. Here’s the kicker: This latest “research” was funded, in large part, by the virulent anti-fossil fuel Heinz Foundation and The Nature Conservancy. That tells you all you need to know about this latest bought-and-paid-for “research” study with a Harvard label slapped on it…
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PA NatGas Production for Jan-Mar 2017 Hits New High

It’s shaping up to be another banner year for natural gas production in Pennsylvania, going by the latest quarterly production report. The PA Independent Fiscal Office (IFO) released their latest quarterly Natural Gas Production Report for Jan-Mar 2017 (full copy below). It shows natgas production rose 1.7% compared to the same period last year. It also shows the number of producing wells is up 8% from last year. Total natural gas production volume was 1,305.7 billion cubic feet (bcf) and the number of producing wells in 1Q17 was 7,678. Perhaps the biggest news is that 1Q17 saw the highest quarterly production–ever. Another interesting fact from the latest report: Four counties (Susquehanna, Washington, Bradford and Greene) comprised two thirds of statewide production. The #1 county for natgas production in 1Q17? Susquehanna County. The #1 driller in that county? Cabot. You might say, with some justification, that the success of Cabot’s drilling program in Susquehanna County has translated into success for all of Pennsylvania…
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Moody’s: Canadian Companies Still in Hunt for More US Pipelines

Last year Canadian companies went on a midstream (pipeline) buying spree, snapping up major U.S. companies. In March 2016, MDN reported that Canadian midstream giant TransCanada, lusting for a bigger piece of the Marcellus/Utica pipeline pie, decided to buy Columbia Pipeline Group for $10 billion (see TransCanada Makes Play to Buy Columbia Pipeline for $10B). That deal closed in July (see TransCanada and Columbia Pipeline Tie the Knot Today). Then in September, MDN reported Canadian pipeline operator Enbridge Inc. announced an all-stock deal to buy out pipeline operator Spectra Energy, based in Houston, for $28 billion (see Canadian Enbridge Buying US Spectra Energy for $28B). Spectra has a number of critical pipeline infrastructure projects under way or planned in the Marcellus/Utica region, including the planned Access Northeast pipeline to New England, the mighty NEXUS pipeline planned to span Ohio, the currently under construction Algonquin Incremental Marketing (AIM) pipeline project, and three projects (Access South, Adair Southwest and Lebanon Express) under way to expand one of the largest natural gas pipelines in the U.S. (and in the northeast)–the Texas Eastern Transmission (Tetco) pipeline. The merger was completed in February (see Spectra Energy is No More – $28B Merger with Enbridge Complete). According to a new report by Moody’s Investors Service, last year Canadian companies spent $89 billion to snap up utility and pipeline companies across the U.S. The report’s authors say they “anticipate more” such purchases this year…Continue reading

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Study: Appalachia New Gulf Coast for Petchem, WITH Storage Hub

An economic report released yesterday by the American Chemistry Council (ACC) shows that the Appalachian region could become a second center of U.S. petrochemical and plastic resin manufacturing, similar to the Gulf Coast. ACC President and CEO Cal Dooley presented the findings at a Capitol Hill press event with lawmakers including Senator Shelley Moore Capito (R-W.Va.), Senator Joe Manchin (D-W.Va.) and Rep. David McKinley (R-W.Va.). “The Appalachian region has distinct benefits that could make it a major petrochemical and plastic resin-producing zone,” Dooley said. “Proximity to a world-class supply of raw materials from the Marcellus/Utica and Rogersville shale formations and to the manufacturing markets of the Midwest and East Coast has already led several companies to announce investment projects, and there is potential for a great deal more.” What will it take to turn our region into another Gulf Coast petchem powerhouse? According to the report, an NGL (natural gas liquids, i.e. ethane) storage hub. You may recall Sens. Capito and Manchin recently introduced a bill to study an Appalachian NGL storage hub (see WV/OH Senators Intro Bill to Study Appalachian Ethane Storage Hub). The study, titled “The Potential Economic Benefits of an Appalachian Petrochemical Industry” (full copy below), says by 2025, the four-state region could see 100,000 permanent new jobs, including 25,700 new chemical and plastic products manufacturing jobs, 43,000 jobs in supplier industries and 32,000 ‘payroll-induced’ jobs in communities where workers spend their wages (restaurants, hotels, etc.). The new investment could also lead to $2.9 billion in new federal, state and local tax revenue annually. It’s huge! There’s a lot riding on an ethane storage hub, which was the point of the report and the political dog and pony show yesterday in Washington, D.C….Continue reading

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MDN Guide to the PA DEP 2016 Annual Oil & Gas Report

The Pennsylvania Department of Environmental Protection (DEP) yesterday published its 2016 Oil and Gas Annual Report. This year the DEP has published the report in an interactive, electronic (i.e.online) format ONLY, with a stated purpose “to improve public access to well information.” This is the first time the report has been published electronically. While it’s interesting to have the report issued online only, it’s not as useful as a PDF or printed document, in our humble opinion. DEP Acting Secretary Pat McDonnell said, “Pennsylvania is the second-largest producer of natural gas in the country and one of the most transparent states in making oil and gas data publicly accessible. Making the Annual Report completely digital is just the next step in our continued effort to share as much information as possible.” We’ll give the DEP an “A” for effort, but a “C” for execution. What does the report show? The number of unconventional (shale) well drilling permits issued in 2016 decreased 59% since 2014. The total number of conventional well drilling permits issued in 2016 decreased 87% since 2014. It is a dramatic drop. There were 1,321 unconventional well drilling permits issued in 2016, and 158 conventional well drilling permits issued in 2016. Even though the number of permits to drill new wells dropped from 2015 to 2016, the number of well inspections hit an all-time high in 2016–some 35,556 inspections. The boys and girls at the DEP have been busy beavers. Below we have the DEP announcement about the new report and its format, along with select charts & information–so you don’t have to wade through the (somewhat confusing) report yourself. We call it the MDN Guide to PA’s 2016 Oil and Gas Annual Report…
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New Study: 1 Million New Jobs Coming in Gas/Oil Thru 2035

A couple of weeks ago the American Petroleum Institute (API) released a new study that shows private investment in U.S. natural gas and oil infrastructure could (and likely will) create over 1 million new U.S. jobs. That is an incredible number! The study also shows that private investment may exceed $1.3 trillion for new oil and natural gas infrastructure. Wow! Over the past five years, U.S. oil and gas infrastructure development proceeded at a rapid pace. Many have wondered whether the trend can continue. API wondered too, so they contracted the experts at ICF to undertake a study that investigates the amount of oil and gas infrastructure development possible in the U.S. through 2035. The result is the report, “U.S. Oil and Gas Infrastructure Investment Through 2035” (full copy below). The report focuses on the amount of infrastructure needed for two different scenarios, a Base Case and a High Case, each of which are plausible scenarios for future market conditions. While the Base Case represents a most likely scenario, the High Case is included to assess infrastructure development in a more robust environment that is fostered by a larger hydrocarbon resource base and more rapid advancements in technology. The study looks at capital expenditures associated with, and the resulting economic consequences of, oil and gas infrastructure development…Continue reading

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EIA Drilling Report: More Record Production Coming in June

On Monday, MDN’s favorite government agency, the U.S. Energy Information Administration (EIA), issued our favorite monthly report–the Drilling Productivity Report (DPR). The DPR is the EIA’s best guess, based on expert data crunchers, as to how much each of the U.S.’s seven major shale plays will produce for both oil and natural gas in the coming month. Get ready to break new records–again! In June, we will once again hit the highest output of shale gas we’ve seen, ever. Output in the Marcellus/Utica region is set to once again reach new highs. In the Marcellus, output will pass 19 billion cubic feet per day (Bcf/d). Astonishing! In the Utica, output will hit 4.4 Bcf/d. Shale oil output across all seven major plays is set to hit 5.4 million barrels per day, up 122,000 barrels in just one month. Perhaps the biggest eye opener is that the shale play with the biggest uptick in natural gas production will be–the Permian. An oil play! When you drill like crazy for more oil, you also get natural gas out of the hole along with the oil. It’s called “associated gas.” And because the Permian (in Texas) is red hot with drilling, it makes sense natural gas production will spike up too. Buckle up and get ready for another wild ride in the month of June…
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Natgas Replaced Coal in Northeast Powergen in Last 10 Yrs

To say that how electricity in the Northeast gets generated has shifted dramatically over the past 10 years is an understatement. In the nine Northeast states, natural gas doubled its share of the region’s total generation to 41% in 2016, up from 23% in 2006. Coal-fired generation fell from 31% to 11% of generation over the same period. Nuclear-powered generation as a share of total generation remained relatively constant near 34%. And so-called renewables like wind and solar are almost undetectable as a percentage of electricity generation. Which means Andrew Cuomo’s insistence that New York get 50% of its electricity from “renewable” sources by 2030 is not only fantasy–it’s lunacy. The man is a crackpot if he thinks that will actually happen. Anyhow, the point of this post, which contains an article recently released by our favorite government agency, the Energy Information Administration, is that over the past 10 years, natural gas has essentially replaced coal in electric generation in the Northeast…Continue reading

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Report: Marcellus Shale Gas “Wreaks Havoc” on PJM Power Market

Moody’s Investors Service issued a report earlier this week saying an abundance of cheap, clean-burning Marcellus Shale gas threatens to “wreak havoc” in the electric generation market in the PJM area, which covers all or parts of DE, IL, IN, KY, MD, MI, NJ, NC, OH, PA, TN, VA, WV, and Washington, DC. According to Moody’s researchers, a large influx of natural gas power plants entering PJM Interconnection, due to cheap gas supplies from the Marcellus Shale, will pose “severe challenges for generators operating in the region” in the next few years. Because of the Marcellus “glut,” new plants coming online will drive down power prices, which “could lead” to widespread closures of coal power plants, and pressure operating margins for all generators, including other gas-fired plants. The prediction is that a low-price Armageddon will result in widespread corporate casualties. What can be done to avoid this hideous future? Nothing. The only thing power plant operators can do is cut their debt load, which they are doing. In other words, good old American competition (coming from Marcellus Shale gas) is making the PJM electric industry get leaner and more efficient. Imagine that…Continue reading

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Turn So/So Shale Wells into High Performers with Refracking

Hold that decline curve! Researchers at Los Alamos National Laboratory have done “extensive data mining” and analysis of 20,000 shale gas wells. In a paper published in the journal Applied Energy titled “The shale gas revolution: Barriers, sustainability, and emerging opportunities” (full copy below), Los Alamos researchers say that refracking existing wells with new technology can transform those wells from “diminished producers” (so/so wells) into “high-performers” long after the wells had supposedly hit peak production. “We hypothesize that manipulating tail production could re-revolutionize shale gas extraction,” said lead author of the study, Richard Middleton. Refracking eliminates the cost of drilling a new bore hole, and provides a smaller environmental footprint. What’s not to love! Let’s get refracking…Continue reading

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Study Finds Fugitive Methane from O&G 97% Less than EPA Estimates

The federal Environmental Protection Agency (EPA), under the Obama/McCarthy reign of terror, far overstepped its charter by seizing power that doesn’t belong to it. Last May the EPA issued new methane rules in a back-door way to try and regulate the oil and gas industry (see EPA Does it Again: Tries to Destroy O&G with New Methane Rule). In pretty short order several states sued to stop the order, which eventually turned into 15 states (see 15 States File Lawsuits to Block EPA O&G Methane Rule). The EPA claimed, at that time, that methane is leaking out of bore holes, pipelines, valves–just about everywhere on a well pad. And methane (as the fairy tale goes) is a gajillion times more “potent” than carbon dioxide when it comes to causing man-made global warming. The problem is, the EPA used estimates, calculations, algorithms, spreadsheets as their “evidence.” They never went into the field and actually measured anything. Such a field study has now been done–by the EPA–in the Uinta Shale Basin in Colorado (full copy below). And guess what the researchers have found? While there is some methane leakage here and there, the EPA previously OVERESTIMATED the leakage–by 97%! Yes, “EPA researchers found methane emissions from intermittent bleed devices were 97 percent lower than the standard emission factor for intermittent pneumatic control devices EPA uses for estimates in its Greenhouse Gas Inventory(GHGI).” In other words, the entire methane rule the EPA forced on the industry was based on lies…a foundation of sand…a house of cards. Why does that not surprise us?…
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Fracking is Legal in New York? Yes! Using LPG

Every now and again a gift lands in our lap, unexpectedly. Such is the case today. A third year law student at the University of Buffalo School of Law, Kelsey Hanson, has researched and written a masterful paper on the potential for LPG (liquefied propane) fracking in, yes, New York State. The paper, titled “Hey New York, You Can Frack: An Examination of How Liquefied Petroleum Gas Sidesteps New York’s Fracking Ban to Provide a Legal and Practical Approach for Horizontal Drilling in New York’s Marcellus Shale” (full copy below) has just been published in the Buffalo Law Review (how did that happen?!). In the paper, Hanson first gives a background of traditional fracking, then zeros in and explores LPG fracking–its benefits and its pitfalls. She concludes that the NY Dept. of Environmental Conservation (DEC) has left the door open, legally, for shale LPG fracking in the Empire State. She also gives us a much-needed update on the question MDN gets asked frequently: Whatever happened to LPG fracking in Tioga County, NY? The article is eminently readable, full of great information, and worth your time…
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Getting More Gas & Oil from Shale – Important New Research

Did you know that even with our super-productive fracking methods, we still only pull out an estimated 5% of oil found in shale, and an estimated 20% of natural gas? That’s abysmal! Can’t we do better? Indeed, perhaps we can. Shale oil and gas is locked up in teeny tiny pores in shale rock–very small “pockets” if you want to think of it that way. The reason we don’t currently do a better job of accessing more of those small pockets is lack of understanding in how fluids flow through these small pores, which measure nanometers across. It takes one billion nanometers to make up one meter, or roughly three feet. Exciting new research shared this week in the journal Physics of Fluids sheds new light on the physics of fluids flowing through shale rock. The research paper, “Many-body dissipative particle dynamics modeling of fluid flow in fine-grained nanoporous shales” (full copy below). This new research means we are on the path to learning how to extract even more oil and gas from the same shale rock. Now that’s something to celebrate!…
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Fake Science: SWPA Enviro Health Registry for Those Near Fracking

More fake “research” is on the way courtesy of the anti-drilling Southwest Pennsylvania Environmental Health Project. The Project is launching a so-called public health registry. Log in to the website and if you live within five miles of a drilling site, you can report your latest headache in an attempt to link it to (and smear) shale development. Yep, just blame everything on drilling. Got allergies? Blame drilling. Headache? Blame drilling. Earache? Blame drilling. Er, a “performance issues?” Blame drilling. (Maybe they’ll give you some free Viagra.) That’s the purpose of this latest sham initiative by the same group that has brought us such glittering examples of “research” as “The List of the Harmed”…
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