Research

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

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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… Read More “Turn So/So Shale Wells into High Performers with Refracking”

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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?…
    Read More “Study Finds Fugitive Methane from O&G 97% Less than EPA Estimates”

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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…
    Read More “Fracking is Legal in New York? Yes! Using LPG”

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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!…
    Read More “Getting More Gas & Oil from Shale – Important New Research”

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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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    NETL Researchers Find Tiny Earthquakes Help Marcellus Production

    Broadband seismometer used for surface seismic monitoring

    We hesitated to use the headline that we did, given the way virulent anti-drillers bastardize the issue of fracking and earthquakes. But we used it to make a point. Quick history: The headline-grabbing “fracking causes swarms of earthquakes” in places like Oklahoma is about frack wastewater that is injected in special saltwater injection wells, deep below the surface. There are, literally, hundreds of thousands of such wells across the country. Unfortunately, when such a well is located directly over or very close to an underground fault (large crack), the fluid getting injected acts like grease, allowing rock layers to slip and slide–in some cases causing low level earthquakes–typically earthquakes under 2.0 on the Richter scale (can’t be felt on the surface). Is fracking itself ever the cause? Statistically, no. But it has been documented to happen in a handful of cases–under 10 times in the entire world, out of millions of fracked wells. And again, it only happened because of fracking directly over an underground fault. However, any time you explode charges underground, which is what fracking is, if you have equipment sensitive enough, you can detect it. Is that an “earthquake”? We’d say no. Perhaps it is considered an “earthquake” according to a technical definition, but those extremely low vibrations are brief–typically 30-60 seconds–and they never cause any kind of harm on the surface. In fact, the vibrations can’t be felt at the surface. So our headline referring to “tiny earthquakes” is somewhat tongue-in-cheek, a way to tweak antis. Researchers at the National Energy Technology Laboratory (NETL) have discovered that those vibrations from fracking–what they call “low frequency tremors”–can be measured and used to figure out how to get more production out of Marcellus Shale wells in PA and WV…
    Read More “NETL Researchers Find Tiny Earthquakes Help Marcellus Production”

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    NRDC Study Finds No Groundwater Contamination from Fracking in WV

    MDN has previously chronicled bought-and-paid-for research done by Duke University’s Avner Vengosh, professor of geochemistry and water quality at Duke University’s Nicholas School of the Environment (see Duke Hit Piece on Shale Water Usage from Same Park-Sponsored Prof and Latest Case of Duke U Bought & Paid “Research” by Park Foundation). Here’s how it works: Park funds Dr. Vengosh’s “research,” and he conveniently “discovers” all sorts of nasty things about shale fracking, publishing his “research” in obscure, peer reviewed journals. Mainstream media picks it up and runs it. Readers who only scan headlines get the impression fracking is evil. Mission accomplished for Park (another hit on fracking) and for Vengosh (another buck in his pocket). But last October that pattern changed. Vengosh released new research that found there’s really nothing to worry about after all when it comes to Marcellus Shale wastewater (see Duke U Researcher Tries to Repair Reputation with Wastewater Study). He’s just done it again. Vengosh and researchers from Penn State, Ohio State, and Stanford University published a study on Monday in which they declare fracking “has not contaminated groundwater in northwestern West Virginia.” They did find that on occasion wastewater spills have fouled creeks–something everyone knows. But then, on occasion rail cars overturn with nasty chemicals not related to fracking that foul local water supplies. This is not news. Still, the fact that this study, which contains real research in monitoring water wells over a three-year period, coming from Duke University and Vengosh, marks a turnabout. The really interesting news is that the study was funded, in part, by the virulently anti-drilling National Resources Defense Council (NRDC). The NRDC did not get their money’s worth with this one! We doubt Vengosh can expect any more funding from the NRDC in the future. Below are details about, and from, the study that finds fracking in WV is peachy-keen…
    Read More “NRDC Study Finds No Groundwater Contamination from Fracking in WV”

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    Report: Blocking Pipelines in Northeast an Economic Disaster

    Last year the U.S. Chamber of Commerce, via their Institute for 21st Century Energy intiative, launched a “What If…?” series to counter the radical “keep it in the ground” movement–a movement that irrationally hates the use of fossil fuels. In August 2016, the Chamber released their first such report, titled “What If…Energy Production was Banned on Federal Lands and Waters?” (see Chamber Report Details Why ‘Keep it in the Ground’ a Disaster). In September 2016, the Chamber released their second report (see Report: What If America’s Energy Renaissance Never Happened?). In October 2016, they released the third report (see Report: What If the U.S. was Forced to Pay EU Energy Prices?). And in November 2016, just prior to election day, the Chamber released the fourth report, titled “What If…Hydraulic Fracturing Was Banned?” (see Report: What if Fracking was Banned, as Hillary Wants?). The Chamber is back with a fifth report, titled “What if…Pipelines Aren’t Built Into The Northeast?” (full copy below). Like the Chamber’s other reports, it offers sobering details about what’s coming with a lack of pipeline construction. In the states examined–New England plus New York, New Jersey, Pennsylvania, Ohio, and West Virginia–the report finds that lack of additional pipeline infrastructure would cost over 78,000 jobs and $7.6 billion in GDP by 2020. New York State alone would see $1.6 billion less in state GDP, and the loss of 17,400 jobs. Scary stuff…
    Read More “Report: Blocking Pipelines in Northeast an Economic Disaster”

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    Earth Day 2017: Research Shows Fracking is Good for Mother Earth

    Earth Day is the day Big Green has a collective orgasm over Mom Earth and their efforts to keep her clean. We have no issue with responsible stewardship of our natural resources and keeping the environment clean. Everyone (with a brain) aspires to that. We do have a problem with worshiping the creation instead of the Creator. Worshiping the earth is what Earth Day is all about. Each year it gets more nutty than the last. It was with some glee we noticed that our friends at Energy in Depth have done their own bit for Earth Day–by compiling a list of scientific studies that prove fracking has been good for cleaning up the environment. It’s true! We’re not joking. Because of fracking, and because of the growing use of natural gas, our air is cleaner. Fracking and horizontal drilling has resulted in fewer drilling locations dotting the landscape–prettier to look at, and healthier for the environment. There’s a fair amount of fake science floating around out there, funded by anti-drilling organizations. EID has compiled a list of real science studies. Have a look…
    Read More “Earth Day 2017: Research Shows Fracking is Good for Mother Earth”

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    Penn State Researchers Claim Too Many Pipelines Threaten Forests

    Researchers from the Department of Ecosystem Science and Management at Penn State have just published a new study/paper in the Journal of Environmental Management titled, “Linear infrastructure drives habitat conversion and forest fragmentation associated with Marcellus shale gas development in a forested landscape” (abstract below). Their thesis: “Fragmentation of ecologically important core forests within the northern Appalachians — driven by pipeline and access road construction — is the major threat posed by shale-gas development, according to researchers, who recommend a change in infrastructure-siting policies to head off loss of this critical habitat.” This isn’t the first time we’ve heard about the hazards of so-called forest fragmentation. Back in 2013 the U.S. Geological Survey published a meme on it too (see USGS Study: Marcellus Drilling Fragmenting Forests in PA). The Penn State researchers maintain clearing pathways for pipelines, and keeping them cleared of trees, is damaging the habitat of some species. The study mentions a lot of other studies, but nowhere (that we could find) does it identify a single, specific species that has supposedly been harmed by such “fragmentation” in forests. The aim, the upshot of this research, seems to be an appeal to regulators to clamp down on the siting of pipelines on PRIVATE (not public) land. It aims to be something the DEP can clutch in its hand and say, “Sorry, we can’t authorize that pipeline ’cause it will cause a break in the forest canopy and certain canopy-dwelling species will be affected.” Right. Excuse us Ms. & Mr. researchers: What about the species that BENEFIT from fragmentation? We didn’t read anything about that in the study. The telltale sign that this is bought-and-paid for propaganda and not real research comes at the end, when you find out it was funded, in part, by the virulently anti-drilling Heinz Foundation…
    Read More “Penn State Researchers Claim Too Many Pipelines Threaten Forests”

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    Homeland Security Report Warns of Eco-Terrorism Against Pipeline

    A report compiled and written by the U.S. Dept. of Homeland Security (unclassified) has turned up in the public. The report, titled “Potential Domestic Terrorist Threats to Multi-State Diamond Pipeline Construction Project” (full copy below), warns about eco-terrorism and the potential for “mass casualties” from radicalized environmentalists who are now targeting the Diamond Pipeline Construction Project, due to run from Cushing, OK to a refinery in Memphis, TN–most of it located in the state of Arkansas. “Law enforcement are assessing what environmental extremists did to disrupt Dakota Access Pipeline – Molotov cocktails, rocks, arson, roadblocks, chaining themselves to equipment, improvised explosive devices, etc – and seeing many of the same activities potentially happening around Diamond pipeline,” according to a police representative. The report sees potential danger on two fronts: radical environmentalists, and anti-government militias that don’t like eminent domain being used to force landowners to accept the pipeline across their land. We’ve previously reported on numerous instances of vandalism against drilling and pipeline operations. It’s good to see the government taking such acts of crime seriously–to the point of labeling it domestic terrorism. Why mention a report about a pipeline nowhere near the Marcellus/Utica? Because bombs, equipment vandalism, shootings and all of the things mentioned in this report have happened here before. And because the nutjobs who were active in engaging in such acts against the Dakota Access Pipeline (now built and flowing oil), have promised to bring their lawlessness to our area (see Dakota Access Pipeline Protesters Turn Violent; Coming Here Next?). In fact, some antis are trying to import the Dakota troublemakers into Lancaster County, PA (see PA Anti Hopes to Bring Standing Rock Disaster to Lancaster County). Here’s the lowdown on what may be coming to other states, and eventually, to ours…
    Read More “Homeland Security Report Warns of Eco-Terrorism Against Pipeline”

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    EIA Drilling Report: New Production Highs Again Coming in May

    Yesterday 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. This latest report shows that an upswing in production–for both natural gas and oil–will continue over the next 30 days. In fact, get ready to break new records! Output in the Marcellus/Utica region is set to once again reach new highs. In the Marcellus, output will come within striking distance of 19 billion cubic feet per day (Bcf/d). Astonishing! In the Utica, output will hit 4.2 Bcf/d. Shale oil output across all seven major plays is set to hit 5.2 million barrels per day, with almost all of the increase coming from the Permian and Eagle Ford plays in Texas. Buckle up and get ready for another wild ride in the coming month…
    Read More “EIA Drilling Report: New Production Highs Again Coming in May”

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    FERC State of the Markets Report 2016 – Pipelines to the Rescue

    Late last week the Federal Energy Regulatory Commission (FERC) released its annual “State of the Markets Report” for 2016 (full copy below). Among the choice tidbits we found this statement: “Natural gas production from the Marcellus and Utica shales accounted for 30 percent of the U.S. total in 2016, due to the prolific nature of these formations, relatively low production costs, and proximity to the large Northeast markets. In addition, new pipeline infrastructure reduced bottlenecks allowing additional gas to reach the demand centers.” We also spotted this interesting factoid: “In 2016, 7.1 Bcf of FERC jurisdictional pipeline capacity went into service, with 43 percent designed to move natural gas from Appalachia to markets in the Northeast and Midwest. Staff expects the new natural gas pipeline capacity to continue contributing towards shrinking price differentials between regions throughout the U.S., and help keep natural gas prices relatively low.” Translation: hang in there Marcellus/Utica drillers–prices are going to rise soon because of these new pipelines. Here’s the update from FERC…
    Read More “FERC State of the Markets Report 2016 – Pipelines to the Rescue”

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    Survey Predicts Shale Drillers Will Borrow & Spend More in 2017

    Lately we’ve noticed a plethora of stories in mainstream media about the oil and gas industry spending more money this year. That certainly seems to jibe with our own anecdotal observations. In reporting 2016 results and drillers’ comments about what to expect in 2017, almost all of the companies we’ve reported on have said their spending this year will go up. And that’s a good thing. We now have something better than just anecdotal evidence. Energy law firm Haynes and Boone recently completed a survey of oil and gas borrowers and lenders–drillers, service companies, and banks–to gauge their predictions about “borrowing base redeterminations” and spending in 2017. What is a borrowing base? A company’s borrowing base is the value of its assets. In the case of drillers, it is the value of the leases and oil/gas wells they own. Those assets are used as collateral to back up loans and IOUs. A lower borrowing base means they must borrow less money, and they will pay more in interest for the money they do borrow. Lower borrowing base = bad, higher borrowing base = good. Each spring and fall (twice a year) banks take a look and “redetermine” or reevaluate the value of those assets. What did the Haynes and Boone survey find about bankers’ and drillers’ predictions on spring redeterminations of borrowing bases? That the borrowing base for most drillers will either stay the same, or increase slightly. The survey also found a vast majority of drillers plan to spend more money this year (89%). Here’s the encouraging results…
    Read More “Survey Predicts Shale Drillers Will Borrow & Spend More in 2017”

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    ALLARMing – Volunteer Water Samplers Find No Impacts from Fracking

    An MDN reader and friend recently forwarded along an email newsletter from the ALLARM Shale Gas Program. ALLARM stands for Alliance for Aquatic Resource Monitoring. With the rapid growth of the Marcellus industry in Pennsylvania shale drilling in neighboring states, “concerned citizens” wanted ways to collect data on water quality impacts from shale gas activities. As a response to requests from communities, ALLARM developed a volunteer-friendly protocol in 2010 to assess small streams for the early detection and reporting of surface water contamination by shale gas extraction activities. Volunteers (i.e. anti-drillers) monitor water quality throughout the year, including conductivity, barium, strontium, and total dissolved solids–and physical parameters, including stream stage and visual observations prior to, during, and after shale gas well development. Monitors also participate in a quality assurance, quality control program which includes in-person trainings, routine meter calibration, and sample testing via split-sample analysis two times a year. Since they began monitoring local streams, nearly 5,000 observations have been logged. And what have we learned from all of this monitoring? That shale gas drilling is safe for local streams…
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