Research

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    Penn State Goes Methane Migration Hunting – Using Big Data

    We’re always leery when we read about scientists doing data mining instead of real in-the-field research. So our radar was on alert when we read about the latest data mining project now under way at Penn State. Using a $1 million grant from the National Science Foundation, a cross-disciplinary team of Penn State computer scientists and geoscientists will study methane concentrations in the Pennsylvania’s streams, rivers and private water wells. They will look to see if wells and streams and rivers close to fracked Marcellus Shale wells have higher concentrations of methane than those not close to shale wells. In other words, does fracking cause methane to migrate into nearby water sources? That’s what they’re trying to prove, or disprove. The problem, from our perspective, is whether or not the data being analyzed contains readings of methane levels present in those wells, streams and rivers BEFORE any kind of shale drilling happened. If you don’t have the before and after, the data is useless. Drillers have discovered where the best locations are to drill–so that’s where they drill. (Brilliant, we know.) So it stands to reason naturally occurring methane already exists in those locations. Just because a nearby well or stream has higher levels of methane does not prove a shale well caused it. The methane may have already existed in the same quantities long before any shale drilling. You see the problem? At any rate, here’s the lowdown on another million dollar research project to give the Marcellus yet another anal exam…
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    PA Anti-Drilling Auditor General Bashes Impact Fee Spending

    Since he assumed office in 2013, Auditor General Eugene DePasquale has had a chip on his shoulder when it comes to the Marcellus Shale (see Newly Elected PA Auditor General Targets DEP First Day on Job). He put together a sham report on the DEP, calling attention to “problems” fixed years earlier, before he assumed office (see DEP to DePasquale: Problems Fixed Years Ago, Where Have You Been?). He couldn’t discredit the Marcellus industry via the DEP, so he started on a new track–the millions of dollars raised in a severance tax-like fee called the impact fee (see PA Auditor General to Investigate “Lost” $30M Marcellus Impact Fee). In March 2016 DePasquale announced he will conduct a thorough anal exam, er, a, audit of all Act 13 impact fee money distributed to towns and municipalities (see PA Auditor General Commits to Half-an-Audit of Shale Impact Fee $). At the time we pointed out that 60% of the impact fee revenue raised goes to local towns and municipalities where drilling occurs, but the other 40% goes into the black hole of politicians’ sticky fingers in Harrisburg. If DePasquale doesn’t audit the other 40%, he’s only done half-an-audit. DePasquale has released his biased audit and yep, he didn’t bother to look at the 40% being spent by his cronies in Harrisburg–he only concentrated on the money going to local governments. And even then he didn’t find much, but he’s conflated it into a big press release and his sycophants in the media are regurgitating it with damning headlines…
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    Feds Dole Out $4.8M to National Labs for Fracking Research

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    The feds are falling in love with fracking. Who knew?! The National Energy Technology Laboratory (NETL) has just awarded six research projects to U.S. Department of Energy (DOE) national laboratories to advance fundamental shale research. The two-year projects, totaling $4.8 million, “will investigate the processes associated with hydrocarbon extraction from unconventional shale reservoirs and lead to a better understanding of factors affecting prudent resource development.” Lawrence Berkeley National Laboratory has three of the projects. The other three go to Los Alamos National Laboratory, Sandia National Laboratories and the Stanford Linear Accelerator Center (SLAC) National Accelerator Laboratory. The projects aim to fill in “knowledge gaps” and will ultimately, hopefully, lead to fracking done more safely and in an “environmentally responsible” way. Here’s a description of the studies the grants will fund…
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    PA DEP Says Ten Mile Creek Radiation-Free; Antis Still Peddle Lies

    no-radiationIn 2014 Pennsylvania anti-drillers from a local chapter of the Izaak Walton League, a so-called conservation organization, attempted a smear job on the Marcellus Shale industry. They alleged that shale drillers were illegally dumping frack wastewater in an abandoned coal mine, the Clyde Mine, which sits near the Ten Mile Creek where the creek joins the Monongahela River. According to the smearmeisters, the illegally dumped wastewater was leaking out of the mine and into Ten Mile Creek (see Is Shale Wastewater Causing Radiation Spike in Ten Mile Creek?). They claimed testing they had done showed high levels of radioactivity that could not come from just acid mine drainage, that it is radioactivity typically seen in shale wastewater. Of course the allegations got a lot of media attention. The Pennsylvania Dept. of Environmental Protection (DEP) investigated and echoed their concerns with initial tests also showing high radioactivity. Except the testing done by the DEP, and the testing done by the Izaak Walton League, WAS THE WRONG TYPE OF TEST. They blew it. Researchers from West Virginia University came in and tested using the appropriate type of test and found no elevated radioactivity (see PA DEP Screws Up Water Test at Ten Mile Creek – Egg on Face). After the humiliation of being outed as using the wrong test, the DEP re-ran tests for six months in 2015–the right kind of tests–and found NO elevated radioactivity in Ten Mile Creek nor anywhere else in the area (see PA DEP Admits No Radiation in Ten Mile Creek, Closes Investigation). The DEP has continued to run tests since that time and issued a final report in November (full copy below) finding, once again, NO elevated levels of radiation in Ten Mile Creek. The response by anti-drilling radicals with an agenda to smear the Marcellus industry? Unbelievably, they once again repeated their allegation of illegal wastewater dumping…
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    Study: Do PA Towns Spend Impact Fee Revenue on Stated Purpose?

    spendOne of the lasting, positive legacies of Pennsylvania Gov. Tom Corbett, predecessor to the current disaster of a governor, Tom Wolf, is signing into law Act 13, which updated PA’s laws for Marcellus Shale drilling. Among the provisions of Act 13 is something called an impact fee–far better and more fair than a so-called severance tax. As we wrote at the time, the impact fee is really 60% fee and 40% tax. Most of the revenue raised, 60% of it, stays local in the communities impacted (hence the name) by drilling. Those communities have higher expenses for first responders, water and sewer, and other government expenses, due to an increase in drilling activity. But in order to get the deal done in Harrisburg, Corbett and the Republicans had to agree to grease the palms of bureaucrats with 40% of the revenue raised from the fee, to be spread around to various agencies (see PA’s New Tax on Drilling (er Sorry, Impact Fee)). Whatever. At least 60% of the money stays local. The question is, are the local towns and communities receiving their portion of the money using it for what it was intended? A pair of University of Pittsburgh at Bradford professors received a grant to study that very question. The resulting report, “Analysis of Act 13 Spending by Pennsylvania Municipalities and Counties” (full copy of 68-page report below) was published in July. What did it find?…
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    LNG Slowly Changing the NatGas Game in the Marcellus/Utica

    game-changer.jpgEach month the U.S. Dept. of Energy’s Office of Fossil Energy issues a report on LNG exports and imports. We check in on the report from time to time. This month’s report (with data through September) is particularly interesting. It shows the rapid scale-up of Cheniere’s Sabine Pass export facility on the coast of Louisiana. Sabine Pass is exporting U.S. shale gas, including some Marcellus/Utica gas, which is why we are interested in the LNG story. November is predicted to set a new record on the export of U.S. shale gas from Sabine. The LNG import picture, increasingly small, is also interesting and instructive. All of the LNG coming into the U.S. (via ship, not via pipeline from Canada) this year has come from one country: Trinidad. And there is a single import terminal that receives almost all incoming, non-pipeline LNG: Everett, MA (near Boston). Which is why GDF Suez, the operator, has been agitating against new pipelines to New England (shame on them)…
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    Study Claims Link Between Fracking & Earthquakes in W Canada

    fracking-and-earthquakes.jpgAnother week, another so-called research paper that purports to show a link between fracking and earthquakes. Two researchers at the University of Calgary looked at drilling and fracking of shale wells in Canada’s Duvernay Shale (western part of the country), looking for clues that might indicate fracking itself–if done near an underground fault–can lead to low-level earthquakes. The researchers claim they have found such a link–which is the first such study to make a connection between fracking and earthquakes. The researchers have just published “Fault activation by hydraulic fracturing in western Canada” (full copy below), in the journal Science. We have repeatedly reported, based on studies and observable facts, that disposing of high volumes of wastewater in injection wells near underground faults (large cracks in the rock layer) can lead to earthquakes. We’ve also chronicled that fracking directly over a fault can also lead to an earthquake–which has been documented to happen perhaps half a dozen times, ever, out of the hundreds of thousands of times wells have been drilled and fracked. Statistically zero. But this study claims there is a link and the inference is that fracking leads to more earthquakes that you may think. Should we be worried?…
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    IEA World Energy Outlook: NatGas Demand Increases 1.5% per Year

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    Each year the International Energy Agency (IEA) issues a special World Energy Outlook report. The 2016 edition has just been published. This latest edition of the Outlook proclaims that renewables and natural gas are the big winners in meeting world energy demands from now until 2040. It also says “the era of fossil fuels appears far from over.” The Outlook predicts natural gas use will continue to rise, while coal will continue to fall. “We see clear winners for the next 25 years, natural gas, but especially wind and solar, replacing the champion of the previous 25 years, coal,” said Fatih Birol, IEA’s executive director. “But there is no single story about the future of global energy: in practice, government policies will determine where we go from here.” Birol also said global oil consumption will continue to increase between now and 2040. The Outlook sees natgas usage continuing to grow 1.5% per year, on average, for the next 25 years. 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 (~$127) for the PDF version, and €150 (~$159) for a paper copy…
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    Mom Earth is Farting Methane Faster than Warmers Thought

    flatulenceIt seems old Mom Earth has a major case of flatulence (i.e. farting). Researchers who have been mapping the ocean floor have discovered “an active strip of seafloor called the Cascadia Subduction Zone is bubbling methane like mad” off the coast of Washington, Oregon and California. [Quick, somebody call Cornell prof Bob Howarth! There’s fugitive methane escaping!!] Big Green advocates get their knickers in a twist over fugitive methane because, ‘ya know, it causes global warming. But this time mankind is nowhere to be found as the cause. This massive methane leak off the West Coast is Mom Earth, all by herself, farting away and killing herself without even knowing it. How tragic. And how funny!…
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    EIA: Record High Amount of NatGas Now in Storage

    EIAMDN’s favorite government agency, the U.S. Energy Information Administration, has just published a brief article denoting a milestone: the amount of natural gas in storage has reached a new, record high of 4.017 trillion cubic feet (Tcf). Our country does not use as much natural gas as we produce during the months of April through October–which is the time when we store the extra gas in (mostly) underground salt caverns. From November to March, when it’s cold, we withdraw gas from storage because we’re using more than we produce. Over the past few years we have produced, and stored, far more gas than we can use–leading to a crash in natgas prices. A buildup in storage is a signal to the market that once again we have too much supply and not enough demand. Which furthermore is a signal that the recent rise in prices for natgas (over $3/Mcf) isn’t likely to last. In fact, the price of gas over the past month has gone from $3.25/Mcf to (today) $2.75/Mcf–a $0.50 drop. Storage is a big part of the reason why. Here’s what the EIA had to say…
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    EIA Nov Drilling Report: Marcellus Production Up for 2nd Month

    EIAYesterday 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. Last month was a bit of a surprise, with the Marcellus reversing the trend and producing more gas than it did the month before (see EIA October Drilling Report: Marcellus Reverses, Increases Production). This month that trend continues. Marcellus production is predicted to go up an average of 130 million cubic feet per day (MMcf/d)! Utica production continues to decline, predicted to drop another 12 MMcf/d from the previous month’s estimate. Even with a big bump up in production in the Marcellus (and an increase month over month in the Permian), it’s still not enough to reverse the trend that overall, production from all of the shale plays cumulatively will go down in the coming month–a drop of 94 MMcf/d. Drilled but uncompleted wells (DUCs) went down for the Marcellus by 7, meaning there are 7 fewer wells to complete (inventory dwindling). The Utica added 1 DUC well to its inventory…
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    New Research Helps Locate Abandoned O&G Wells in PA

    pnasIn March we highlighted the issue of abandoned oil and natural gas wells in Pennsylvania (see Who Pays for Abandoned O&G Wells in PA?). PA state officials estimate there are as many as 200,000 abandoned oil and gas wells in the state–the vast majority of them conventional wells drilled over 50 years ago. Most of them are not mapped or known. Some of them are hazards for shale drillers who stumble across them when drilling new wells. If you drill horizontally and clip an old/abandoned well, it becomes like an elevator pumping fluids and gas to the surface. Not good. Everyone is committed to finding and marking and capping these old wells–the question is, how do you pay for it? The shale industry says it’s not fair to put the economic burden solely on the shoulders of the Marcellus industry. A new study just published in the Proceedings of the National Academy of Sciences (PNAS) by researchers at Stanford and Princeton says the number of abandoned PA wells is actually much higher–as many as 700,000! The paper is titled “Identification and characterization of high methane-emitting abandoned oil and gas wells” (full copy below). The researchers are motivated by global warming flummery–desiring to locate abandoned wells which emit varying amounts of methane into the atmosphere. Whatever. The useful thing about this research is that they have discovered a way of sniffing out abandoned wells and determining which ones are emitting the highest levels of methane. Our interest is in the ability to locate, map and avoid drilling through old wells–we welcome this research…
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    Baker Hughes Oct US Rig Count Up by 35, M-U Count Up 4

    Baker Hughes logoWhile the worldwide Baker Hughes rig count slide back a bit in October, from 934 in September to 920 in October, the rig count in the U.S. once again, for the fourth month in a row, went up. The average U.S. rig count for October was 544, up 35 from the 509 counted in September. However, the rig count was down 247 from the 791 counted in October 2015–so we still have a long ways to go. The Marcellus/Utica rig count was up for the third month running. In October the M/U rig count went up by 4 with 3 additions in PA (now 25 rigs) and 1 in WV (now 10 rigs). OH stayed even running with an average of 14 rigs…
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    IHS Markit Says October Saw Historic Drop in US NatGas Production

    ihs-markitIHS Markit, an information and analytics company that keeps a close eye on the energy industry, says its analysis shows natural gas production in the U.S. went down “nearly 2%” in October from September. It doesn’t sound like much, but it’s a big deal. Production levels in South Texas and the Northeast, according to VP Jack Weixel, “fell off a combined 1.3 Bcf/d from September to October.” That is the largest regional month over month decline IHS Markit has seen since it began tracking these numbers. What does it mean? Typically it means higher prices are coming–less supply, the same or increasing demand equals higher prices (classic economics 101 stuff). However, there are so many complex and contributing factors, it’s not as simple as less supply = higher prices. Not anymore! Here’s what IHS Markit is saying…
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    Report: What if Fracking was Banned, as Hillary Wants?

    Chamber of CommerceThe U.S. Chamber of Commerce recently 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 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 Sept. they released their second report (see Report: What If America’s Energy Renaissance Never Happened?). In Oct. they released the third report (see Report: What If the U.S. was Forced to Pay EU Energy Prices?). Last Friday the Chamber released the fourth report in the series, very timely considering the election tomorrow. The newest in the series is titled, “What If…Hydraulic Fracturing Was Banned?” (full copy below). Under a Hillary Clinton presidency, that’s a very real possibility. Clinton said during the Democratic debates not many months ago: “By the time we get through all of my conditions, I do not think there will be many places in America where fracking will continue to take place” (see A President Hillary Clinton Would Ban Most Fracking). Either she didn’t really mean what she said and she lied, or she did mean it. We tend to think it’s the later. So what would happen if fracking were essentially banned nationwide? According to research by the Chamber, by 2022 the country would lose 15 million jobs now created by fracking (in addition to the 94 million workers without jobs now), and everyone would pay twice (or more) than they do now for electric & gasoline. Not a pretty picture…
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    EIA: Horizontal Fracked Wells Superior Performers

    EIAWe laugh every time we read about peak oil and peak natural gas theorists, and mainstream “reporters” from places like the New York Times trumpeting that any day now natural gas is going to peter out. It’s just a flash in the pan. “Everybody” knows that shale wells are weak, pathetic performers than run out of juice almost as fast as their drilled. We’ve read stories about how shale drilling is a ponzi scheme. We’ve read stories that very soon we’ll run out of new places to drill, and then it’s all over. Except…except it’s all not true. None other than the U.S. Energy Information Administration has just posted a brief article that details, using real research, that horizontally drilled shale wells are MORE productive over the long-term than conventional wells. That is, they are more productive for longer than a conventional well. But that won’t stop the peakers and ponzi schemers from pedaling their pap…
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