Shell Working on 94-Mile Ethane Pipeline to Feed PA Cracker
All the way back in February MDN brought you exclusive news that Shell had begun approaching landowners in Beaver County to get them to sign easements for two ethane pipelines to feed the mighty cracker plant they plan to build in the county (see Exclusive: Shell Leasing Land for 2 Pipelines to PA Cracker Plant). At that time Shell had still not fully committed to building the cracker–something they finally did in June (see Breaking: Shell Pulls the Trigger, PA Ethane Cracker is a Go!). NGI’s Shale Daily has broken a story that gives us new details. Shell is working on a 94-mile ethane “pipeline system” with two “legs” to feed the cracker, confirming the tip we received in February. The new ethane pipeline system has a name: the Falcon Ethane Pipeline System. Here’s brief details about the new ethane pipeline system…
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While the number of permits issued to drill new wells in Ohio and Pennsylvania was down in July 2016 compared with July 2015, permit activity has picked up from earlier in the year. Finally. The question is, where are the new permits being issued? You have to have a permit before you have drilling. Permits are the best indicator of where drilling (and economic) activity is about to pick up. Below is a rundown of which counties are likely to soon see drilling–and which drillers will be doing the drilling…
It has been a loooooong road to adopting new drilling regulations in Pennsylvania–for both conventional and unconventional (shale) oil and gas drilling. The process is rumored to have begun during the Jurassic Period, when dinosaurs were still dying to produce current oil and natural gas supplies, picking up steam following the 2012 Act 13 legislation that called for an update to drilling regs (under then Gov. Tom Corbett). More recently, with the prospect of starting the process over again for both shale and conventional regs, Gov. Tom Wolf cut a deal to accept “half a loaf”–accept new regs for the shale industry and start over again with conventional drilling regs (see 
Indisputable fact #1: With the increased use of natural gas to generate electricity, the air is getting cleaner. That has been proven by both private and government studies. Indisputable fact #2: With the increased use of natural gas to generate electricity, less carbon dioxide is emitted (for those who believe in the fairy tale of man-made global warming). If you’re a warmer, you ought to love natgas use in electric plants for those two reasons alone. However, so twisted is the thinking of radical anti-fossil fuelers, they can’t bring themselves to endorse natural gas because it’s an evil, hated, awful fossil fuel. And so otherwise smart people become idiots–like those who belong to Pennsylvanians Against Fracking (PAF). The PAF gang is harassing the state Dept. of Environment Protection because the DEP has approved either the conversion of coal to natgas, or the building of new natgas power plants some 42 times since January 2014. The PAF gang are smart enough to realize more natgas-fired power plants leads to more drilling (and fracking) and their irrational philosophy dictates they must oppose it…
Former Pennsylvania Governor Ed “fast Eddie” Rendell made an off-the-cuff remark at a bull session at the Democrat National Convention last month that far-left media types tried to twist. He said, “I made a mistake in the rush to get the economic part of fracking delivered to Pennsylvania. We didn’t regulate well construction and…frack water as well as we should.” So-called reporters at propaganda outlets like StateImpact Pennsylvania immediately jumped on that and declared Rendell admitted to making a mistake, and getting it wrong, with fracking in the Keystone State (see 
The Federal Energy Regulatory Commission (FERC) has issued a favorable environmental assessment (EA) for three Spectra Energy projects: Access South, Adair Southwest and Lebanon Express. The three are part of an expansion of the Texas Eastern Transmission (Tetco) pipeline. The combined projects will transport an additional 662,000 dekatherms per day (or 662 million cubic feet) of Marcellus and Utica Shale gas from Pennsylvania to Ohio, Kentucky and Mississippi. This is great news indeed!…
We’d never heard this before, but apparently the Marcellus/Utica has been known for some time as the “Beast of the East.” Fitting! However, our region has gone from “Beast of the East” to “Beast on a Leash.” Very true. Low prices have suppressed new drilling projects. But according to experts on a recent webinar held by S&P Global Platts, new Marcellus/Utica drilling “is imminent.” Now that’s REALLY good news! Here’s some other things said on the webinar…
Unfortunately a Pittsburgh-area newspaper, the Washington (PA) Observer-Reporter, has fallen prey to a lie. Somehow the paper’s editors think because there’s not something called “severance tax” in the tax code of Pennsylvania, that means the state doesn’t have one–when in fact they do. It’s called an Impact Fee coupled with a corporate income tax. Add the two together, and PA’s drillers pay a “severance tax” rate that is higher than Texas and other shale states. In a recent editorial published in the Observer-Reporter, the editorial board admits that a severance tax is (for now) dead in PA. That’s the good news. When your opponent admits defeat, that’s a good sign. However, the editors still whine for a nosebleed-high severance tax anyway, accusing the drilling industry of getting a “sweetheart deal” that, they say, should end when gas prices go up again…
Time to do a happy dance. THE (arrogant) Delaware Riverkeeper has lost yet another court case–one of many such cases they continuously file to stop any fossil fuel-related project in the northeast. In March MDN told you that THE Delaware Riverkeeper had sued the Federal Energy Regulatory Commission, challenging their decision to approve the Williams Transco Pipeline’s Leidy Southeast Expansion from PA to New York City (see 
Last week MDN highlighted and shared with you a top notch new report just issued by the Pennsylvania Dept. of Environmental Protection–the PA Oil and Gas Annual Report for 2015 (see 
Guess who’s back with a case now before the Pennsylvania Supreme Court? Yep, the odious nutters from Big Green Groups PennFuture, THE (arrogant) Delaware Riverkeeper, and the Peters Township gang. You may recall we reported last September of the humiliating defeat suffered by these groups in the “Gorsline” case (see 
Last week MDN reported on National Fuel Gas Company’s quarterly recently-filed quarterly report (see 
On Tuesday MDN brought you what we thought was the very first Annual Oil and Gas Annual Report from the Pennsylvania Dept. of Environmental Protection (see 
Yesterday the Pennsylvania Dept. of Environmental Protection (DEP) issued what we believe is the first-ever Oil and Gas Annual Report, covering last year (2015). We’ve never seen one of these reports before (full copy below). [UPDATE: MDN subscriber Michele W. wrote to tell us the DEP has been producing annual o&g reports since 2013. Thanks Michele!] Our hat is off to the DEP. This is an EXCELLENT report! It’s chock full of very cool graphs and tables and useful information–in particular about the unconventional (shale) drilling industry in the state, but also about the conventional oil and gas industry in PA. At a very high level, we learn that total production of natural gas in PA for 2015 was 4.6 trillion cubic feet (Tcf), versus 4.05 Tcf in 2014–and that’s with less drilling! Most of the production came from the Marcellus Shale layer, but the Utica and Point Pleasant formations are showing a noticeable uptick in production. Among the many charts and graphs is a table showing the Top 25 producers of natgas in the state (see our separate post today on that); the number of shale and conventional well permits issued, by year; number of permits issued by county in 2015 (and a table with the Top 5 counties); number of wells drilled by year for both shale and conventional; number of wells drilled by county in 2015; the list goes on! Take time to read through this fascinating report about the most productive natural gas shale play in the second highest-producing natgas state in the country…
Below is a chart from the just-released 2015 Oil and Gas Annual Report for Pennsylvania, from the state’s Dept. of Environmental Protection (DEP). The report is full of great charts and graphs and useful details about both the shale and conventional drilling industry in the state (see today’s lead story, PA Releases 2015 Oil & Gas Annual Report (Very Cool)). It’s hard for us to select a favorite chart/graph from the report, there’s so many of them! However, the table below is on the short list. It is a table showing the Top 25 natural gas producers, along with the amount of natgas produced, for 2015. It may or may not surprise you to learn that the #1 natgas producer in PA for 2015 was….Chesapeake Energy! It certainly didn’t surprise us to see the company in the #2 slot–Cabot Oil & Gas. Here’s the full table…
StateImpact Pennsylvania is populated with partisan hacks who pretend to be reporters. One of them is Marie Cusick (who has a degree in political science, not journalism). We’ve often pointed out the extreme left-tilting political bias in StateImpact’s “articles” (i.e. propaganda). What really galls is that taxpayers help fund it, since StateImpact is a project of the Public Broadcasting Service. We hate having our tax money fund such skewed reporting. But we digress. Yesterday Marie Cusick did an interview with the Acting Secretary of the Pennsylvania Dept. of Environmental Protection (DEP), Pat McDonnell. You may recall that Pat’s predecessor, John Quigley, was fired for colluding with Big Green groups and using a private email address to do it (see