Analyst Predicts 6 Big Cracker Plants Coming to Marcellus/Utica!
At last year’s Utica Summit III event held in Stark, OH, Tom Gellrich of consulting firm TopLine Analytics, a company that “closely follows ethane markets,” said he thinks the first ethane cracker to get built will be the Shell cracker plant in Beaver County, PA. He was right. Shell announced their official decision to move forward earlier this year. At that same event Gellrich said he thinks the Marcellus/Utica region will see three, possibly four, ethane crackers built (see Expert Tells Utica Conference NE Will See “3 or 4” Cracker Plants). The Utica Summit IV was just held, this time in North Canton, OH. Gellrich once again addressed the conferees and this year he’s upped the number. Now Gellrich believes it is “likely” that a “half-dozen multi-billion-dollar plants” will get built in PA, OH and WV…
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Kinder Morgan’s UTOPIA (Utica To Ontario Pipeline Access) pipeline is a 12-inch ethane pipeline that will run ~240 miles and will only be built in Ohio–therefore the Federal Energy Regulatory Commission (FERC) won’t be involved in permitting the project. In September we noted that Kinder Morgan is still facing opposition from some Ohio landowners (see 
Gas Natural Inc., a local distribution company (LDC), or “gas utility” company has operations in four different states, including Ohio. Gas Natural also owns pipelines and processing facilities. Gas Natural has just sold itself to energy investment firm First Reserve for $139 million…
The Baker Hughes rig count, watched closely by those in the industry (the benchmark used across the world) has been trending up in the U.S. since July. BH released their venerable count for September on Friday and once again the counts have gone up–very good news indeed. BH is reporting an average of 509 active rigs in the U.S., up 28 from August. MDN performs its own rig count for the Marcellus/Utica, using BH’s numbers for Pennsylvania, Ohio and West Virginia. The Marcellus/Utica rig count was up for the second month running. In September the M/U rig count jumped up by 7. The biggest gainer was Pennsylvania, up by 5. West Virginia was up by 2, and Ohio stayed even…
Oilfield services company Mammoth Energy Services, headquartered in Oklahoma City, OK, operates in both the Utica Shale and Permian Basin. Mammoth offers services like “completion and production services, natural sand proppant services, contract land and directional drilling services and remote accommodation services.” Mammoth is a baby company, formed in 2014, but already booking $243 million in revenue for the 12 months ended June 30th. Mammoth announced yesterday an initial public offering (IPO) of stock, which will trade under the ticker TUSK (keeping with the theme of a woolly mammoth–clever). The company plans to raise between $128-$169 million (call it $150M) by offering 7.75 million shares. What is noteworthy is that this is one of the very few new IPOs to be offered this year in the o&g sector…
At last week’s Shale Insight conference, MDN editor Jim Willis had the opportunity to listen to three top legislators, one each from PA, WV and OH. We reported on their panel discussion, titled “Pennsylvania, Ohio and West Virginia Legislative Leaders: The Future of the Industry” (see 
When Aubrey McClendon first trumpeted his find in the Ohio Utica Shale, he famously said the Utica Shale could be worth $500 billion, and the “biggest thing economically to hit Ohio, since maybe the plow.” Not quite as famous, but on the same day at the same event, McClendon also said the Utica “is likely most analogous, but economically superior to, the Eagle Ford Shale in South Texas.” That one turned heads and got tongues flapping. McClendon made those remarks five years ago this month at the Ohio Governor’s 21st Century Energy & Economic Summit in Columbus, OH. The reason Aubrey was so excited was because of the oil potential in the Utica. But fate is a funny thing. As it turns out, it is natural gas that’s turned out to be the big story in the Utica. Last Friday the U.S. Energy Information Administration (EIA) published an article that chronicles the development of the Utica and illustrates, with charts and graphs, how the Utica has turned out to be a gas rather than an oil play–at least so far…
Ohio’s Ninth District Court of Appeals has upheld the right of NEXUS Gas Transmission to enter onto private land in order to conduct surveys for a potential pipeline route. Ohio’s Sixth District Court previously made a similar ruing in favor of NEXUS. Top energy law firm Bricker & Eckler argued for NEXUS in both cases and turns in the following report:
The Ohio Business Roundtable (BRT) is a partnership of the CEOs of leading Ohio companies that collectively account for more than $1 trillion in annual revenues, $1 trillion in market value and $2.6 trillion in assets. BRT’s members employ 2.6 million men and women, invest hundreds of millions of dollars annually in combined charitable contributions and research and development, and generate billions of dollars in sales for small and medium-sized businesses that are part of the supply chain. When the BRT in Ohio talks, people had better listen. Here’s the latest in what the BRT has to say: The state (i.e. Gov. Kasich) needs “a comprehensive reworking of the state’s energy policies in order to accelerate shale gas development.” No more tiptoeing around. Build those pipelines and build them NOW. That’s the upshot of a new report from the BRT titled, “Improving Ohio Energy Competitiveness” (full copy below). The report is backed up by detailed research from powerhouse consulting company McKinsey and Co. (their research is also embedded below). The BRT’s report points out the importance of the state’s natural gas-fired electric generating plants and says without more pipelines, new power plants won’t get built. The two issues are joined at the hip–vitally important for Ohio’s shale drillers, midstream companies, electric generators and yes Ohio’s electric ratepayers as well. LISTEN UP: Here’s what the BRT had to say…
American Electric Power is selling four electric generating plants to a newly formed joint venture of Blackstone and ArcLight Capital Partners. Three of the plants are natural gas-fired–two of them in Ohio and one in Indiana. One of the plants is coal-fired, located in Ohio. Total sale price for all four: $2.17 billion. While the announcement doesn’t say, we expect at least the gas-fired plants in Ohio, and perhaps the one in Indiana, are fed in part by Utica/Marcellus natural gas. Which is why the story caught our eye. The plants are already up and running–this is simply a transfer of ownership and (we presume) management of the plants. The larger story is just how important these types of plants are in the Marcellus/Utica ecosystem–because they use a huge amount of gas. Here’s the details of the deal…
Anti-fossil fuel zealots in Athens, Meigs and Portage counties in Ohio are spitting and sputtering after the Ohio Supreme Court on Tuesday once again shut down their childish frack ban ballot measures–ruling that Secretary of State Jon Husted and the election boards of those counties did not violate the law in tossing out the ballot measures. The radical Pennsylvania-based Community Environmental Legal Defense Fund (CELDF) is particularly torqued off. It’s not the first time the Supremes have slapped them down. Their frack ban ballot measures were also tossed last year by the Supremes (see 
Spectra Energy’s NEXUS Pipeline, a $2 billion, 255-mile interstate pipeline that will run from Ohio through Michigan and eventually to the Dawn Hub in Ontario, Canada, continues to build support and a good head of steam. In July the Federal Energy Regulatory Commission (FERC) issued a favorable draft Environmental Impact Statement for the project, a sure sign that FERC intends to approve it (see