Supply Chain Co MMR Expanding in SWPA, Eye on Cracker Boom
Hey, it’s great when the oil and gas industry is booming (figuratively)–when the drill bits are chewing away at rock and dirt and when fracking is blasting rocks apart. Love it! But it really sucks when the drill bits go quiet–especially for companies in the supply chain, those who sell goods and services to the industry. Obviously it helps to be diversified–to sell your goods and services to customers outside the o&g industry. That’s the approach taken by the prescient MMR Constructors Inc. MMR services a number of industries, but they LOVE the oil and gas industry–upstream, midstream and downstream. MMR, based in Baton Rouge, LA, is building a sizable new office in Lawrence, PA. They sell to the Marcellus/Utica industry. MMR is “hoping” Marcellus/Utica activity picks up again. But what they really have their eye on is the coming manufacturing boom that will follow Shell’s ethane cracker plant, once it is up and running…
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You know how Democrats in Pennsylvania vilified and viciously attacked pro-energy Republicans over the past two years, especially with regard to a severance tax. PA Gov. Tom Wolf has been one of the worst. The media in PA has stood behind Wolf and his calls to enact a Marcellus-killing, so-called severance tax, on top of the existing impact fee + corporate income tax which amounts to a rate higher than a severance tax in states like Texas. We were told, repeatedly, that Republicans blocking Wolf’s desire for a new tax (to pay back teachers’ unions) would be political death for the Republicans. The Republicans, most of whom have held firm and resisted such severance tax lunacy, have been called every name in the book and told “at the next election, you’re gone.” Guess what? After Tuesday’s elections, Republicans in PA now hold the LARGEST MAJORITIES in both the House and Senate than they have held IN DECADES! The voters in PA have spoken, and anti-fossil fuel numskulls have been drummed out of power. And not just in PA…
Back in April the Federal Energy Regulatory Commission (FERC) told PennEast they would extend the amount of time they are taking until December of this year, rather than this past August, to complete their Environmental Review (see 
On Oct. 8, after five years in the making, Pennsylvania adopted new shale drilling regulations (see 
While 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…
In May MDN told you about a group of brave landowners in Wayne County, PA who have had their property rights stolen by the Delaware River Basin Commission (see 
The energy industry in our country is complicated and takes a while to wrap your brain around just how it works. Especially the utility industry. Companies that produce and then distribute electricity (and natural gas) are in some cases regulated by the government–meaning what they charge is strictly controlled–and in some cases not regulated. Some local utilities produce the electricity, via a nuclear plant, or coal-fired generating plant, or natural gas-fired plant, as well as distribute that electricity to customers. Other utilities just distribute the electricity. And still others just produce the electricity. Sometimes producing electricity is regulated by the government (i.e. price controlled) and other times it is not. Is your head spinning yet? FirstEnergy, based in Akron, OH, is one of the nation’s largest investor-owned electric systems, serving customers in Ohio, Pennsylvania, New Jersey, West Virginia, Maryland and New York. FirstEnergy owns a variety of regulated and non-regulated power generation plants. Last Friday the company announced it will sell six power generating plants in PA, four of them natural gas-fired plants. The plants being sold are non-regulated. This is part of FirstEnergy’s strategy to become a 100% “regulated” utility in the next 18 months. Which plants are going on the auction block?…
Lack of pipelines for natural gas and natural gas liquids (NGLs) in the Northeast has very real economic and financial consequences. Yesterday the Greater Philadelphia Chamber of Commerce held a program titled “Fueling A Downstream Economy” in downtown Philly. One of the speakers was from petrochemical giant Braskem America Inc. If the name looks familiar, it should. Braskem and their Brazilian parent company Odebrecht are still considering building an ethane cracker plant in West Virginia (see 
The well-funded Big Green radical movement–the movement that wants to end the use of all fossil fuels–thinks it has found a new legal tactic to use in their attempts to stop the Mariner East 2 (and other) pipeline in Pennsylvania. You may recall that in September the Democrat-controlled PA Supreme Court further eviscerated the 2012 Act 13 Marcellus drilling law (see 
On Monday, October 24, 2016, the Third Circuit Court of Appeals (in Western Pennsylvania) ruled that Marcellus driller ECA (Energy Corporation of America) did not prove a need for a new trial in the case it previously lost. Pennsylvania landowners sued ECA in federal court beginning in 2010, saying their royalty checks were shorted because ECA was improperly deducting post-production costs. Sound familiar? In February 2013 a federal judge upheld a split decision that said most of what ECA was deducting was OK, but the one thing they can’t deduct from royalty checks are charges for interstate pipeline transmission (for the full story, read our post