Statewide PA

Commodity Price | Industrywide Issues | Pennsylvania | Statewide PA

Why Do Marcellus Drillers Continue Drilling with Prices in the Basement?
December 28, 2015December 28, 2015

If a company that makes a product can no longer make that product at a profit, why would it keep making that product? Put another way, if Marcellus drillers can’t make money by selling natural gas for 75 cents per thousand cubic feet (and they can’t), why would they keep drilling new wells? And why would they keep pumping gas from existing wells? That’s the question asked–and answered–by an excellent Oil & Gas 360 article…
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Commodity Price | Industrywide Issues | Ohio | Pennsylvania | Statewide OH | Statewide PA | Statewide WV | West Virginia

2016: Fewer Rigs Operating, Less Gas Flowing in Marcellus/Utica
December 28, 2015December 28, 2015

This is the time of year when prognosticators come out of their prognostication holes to prognosticate about the rapidly-approaching New Year. Some of those predictions involve the Marcellus/Utica industry and what we may see coming our way in 2016. And what might we see? Most believe we’ll see cut-backs in drilling–most companies have announced such plans. However, one thing we won’t see is all drilling stop. As we highlight in a companion story today (see Why Do Marcellus Drillers Continue Drilling with Prices in the Basement?), drillers will keep drilling in the Marcellus in 2016. Perhaps not as much as they drilled in 2015–but make no mistake, the industry is not finished. So if they will continue to drill, even though prices are in the basement, where will they get the money to do so? That’s the focus of this particular piece of prognostication…
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Industrywide Issues | Pennsylvania | Regulation | Statewide PA | Taxation

PA Auditor General to Investigate “Lost” $30M Marcellus Impact Fee
December 23, 2015December 23, 2015

On Monday MDN told you about the case of bureaucratic incompetence in keeping track of reports that detail where and how much money is getting spent from the Pennsylvania Act 13 impact fee (see $30M in PA Act 13 Money Missing – Theft or Bureaucratic Cock-up?). Local municipalities say they’ve filed reports with the state Public Utility Commission (PUC), but the PUC can’t seem to locate those reports. Typical. But what’s this? We have a knight in shining armor riding to the rescue to figure out this financial potential malfeasance. Our hero is (ta da ta da, trumpet fanfare): State Auditor General Eugene DePasquale (Democrat). DePasquale, you may recall, is an anti-driller who targeted the Marcellus industry from the very first day he took office (see Newly Elected PA Auditor General Targets DEP First Day on Job). Most of DePasquale’s ire seems to be directed at the state Dept. of Environmental Protection (DEP). He conducted a very thorough anal exam of the agency, over a period of years, and issued a “report” critical of the agency for shortcomings that were already fixed by the time the report was issued (see Anti-Drilling PA Auditor General Criticizes DEP in “Report”). DePasquale would like nothing better than to find a new Marcellus scab (i.e. issue) and pick it until it bleeds in an effort to smear the industry. DePasquale is a bully if ever there was one. In particular he likes to target charter schools, trying to shut them down with audit after audit. Nice guy. It’s that “hero” who has ridden in on his black horse to conduct an “investigation” (more like an inquisition) of local towns and how they are spending his, er, um, the state’s money…
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Economic Impact | Industrywide Issues | Jobs | Ohio | Pennsylvania | Statewide OH | Statewide PA | Utica Shale

Turns Out “Foreigners” Working in OH are a Good Thing After All
December 23, 2015December 23, 2015

For years MDN has poked fun at RINO Ohio Gov. John Kasich for his jingoistic talk about not wanting “foreigners” in his state working at Utica drilling sites (see this story from three years ago – OH Gov. Kasich Continues Trash Talk Out-of-State Workers). Don’t tell Kasich, because he hates hearing this, but some are now saying that because Ohio has been employing “foreigners” from exotic places like Texas and Louisiana to work at Utica drilling sites, it has actually turned out to benefit the state. Why? Because in this downturn Ohio businesses are not as adversely affected. If all of those people now laid off had been Ohioans, the Ohio economy would have taken a much harder hit than it has. That’s one of the points in a Cleveland Plain Dealer article. Another point in the article is that because the Ohio Utica is much smaller and was just ramping up as the current price crash hit, when prices recover (and they will recover, eventually), Ohio will take off much faster than the big, old, decrepit Marcellus in Pennsylvania…
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Pennsylvania | Statewide PA

PA NatGas Production Slowing Down Ever So Gradually
December 23, 2015December 23, 2015

Natural gas production in Pennsylvania is, ever so gradually, slowing down. This year the Pennsylvania Dept. of Environmental Protection (DEP) began monthly reporting of natural gas and oil production in January of this year. The most recently report available is October (they are delayed by several months). What does the October report show? Average production of natgas was 12.5 billion cubic feet per day (Bcf/d), down 1% from September. Some producers (i.e. drillers) are cutting back–shutting in wells. But others are pumping full speed ahead. It just depends on the producer and where their wells are located. Prices in the northeastern part of the Marcellus are in the basement right now (see today’s companion story). Here’s a high level overview of PA production as of October…
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Industrywide Issues | Pennsylvania | Regulation | Statewide PA | Taxation

$30M in PA Act 13 Money Missing – Theft or Bureaucratic Cock-up?
December 21, 2015December 21, 2015

Nearly $30 million of Act 13 shale tax money that comes from an impact fee (i.e. tax) on Marcellus drilling in Pennsylvania is “unaccounted for.” The media is playing this up as “the money has gone missing” with the implication something nefarious is going on. The truth is a little more mundane. Some local municipalities receiving the money are confused as to which forms they have to file, and which agencies they need to file the forms with. It appears to be a bureaucratic cock-up–not theft, as implied by some in the media…
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Anti-Drilling/Fossil Fuel | Industrywide Issues | Pennsylvania | Research | Statewide PA

Dela. Riverkeeper Attempts to Discredit PA DEP Shale Radiation Report
December 21, 2015December 21, 2015

Stay tuned for five feet of snow. No, it’s not a weather report, it’s the snow job THE Delaware Riverkeeper (i.e. Maya van Rossum) is attempting with respect to a research report issued by the Pennsylvania Dept. of Environmental Protection (DEP). In January 2015, the DEP filed a report following two years of intense study to determine whether/if/how much radiation exposure is an issue in shale drilling. While the DEP found there is sometimes some low levels of radiation, the report concluded there is “little harm” from radiation in shale drilling (for the study results, see PA DEP Completes Fracking Radiation Study, Concludes “Little Harm”). When real science is published that contradicts the political science of global warming advocates like Maya van Rossum, the real science must go. And so van Rossum hired a discredited scientist to produce a review of the January 2015 report by the DEP, calling it “inaccurate and incomplete.” Van Rossum dragged out Dr. Marvin Resnikoff, who was humiliatingly slapped down by none other than the U.S. Geological Survey in 2012 (see Radon Debate: USGS Responds to Marvin Resnikoff Accusation). Resnikoff is the scientist-for-hire van Rossum used in concocting the latest snow job coming from her outfit…
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Anti-Drilling/Fossil Fuel | Industrywide Issues | Pennsylvania | Pipelines | Regulation | Statewide PA

The One Thing Everyone Agreed on at PA Pipeline Task Force Mtg
December 17, 2015December 17, 2015

Yesterday saw another in a series of meetings by the Pennsylvania Task Force on Pipeline Infrastructure Development–the penultimate meeting for the group of 48 members appointed by Gov. Tom Wolf and the PennFuture Dept. of Environmental Protection Secretary John Quigley. At the last meeting, in November, the group introduced a list of 184 “recommendations” in a 335-page document that would “guide” future gathering pipeline development in the state (see PA Gathering Pipeline Draft “Recommendations” from Wolf Task Force). At yesterday’s meeting the usual anti-fossil fuelers were present to complain, which is what they always do. Seems they’re only happy when they can make other people’s lives miserable–and they did their best to do just that at yesterday’s meeting. According to one report, there was one thing (amazingly) everyone agreed on yesterday…
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Anti-Drilling/Fossil Fuel | Industrywide Issues | Pennsylvania | Statewide PA

Time to Revoke Tax Exempt Status of Anti-Drilling Non-Profits
December 16, 2015December 16, 2015

MDN friend and ace blogger Tom Shepstone, writing on his always-excellent Natural Gas Now website, makes a strong case for the IRS to investigate and revoke the tax exempt status of the anti-drilling non-profit “charity” Clean Air Council (based in Philadelphia). The Clean Air Council is nothing more than a front group that uses money from the Heinz Endowments and William Penn Foundation in a shell game to keep their anti-drilling activities at arm’s length. Plausible deniability. We would add one more organization to the list for investigation and revocation of tax exempt status: THE Delaware Riverkeeper, which is also funded in part by Heinz and William Penn. Here’s a re-posting of Tom’s excellent article…
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Economic Impact | Ethane | Industrywide Issues | Ohio | Pennsylvania | Processing Plants | Statewide OH | Statewide PA | Statewide WV | West Virginia

Poly(ethylene) Wants a Cracker: OH Study Predicts Ethane Tsunami
December 14, 2015December 14, 2015

A researcher and “Executive in Residence” from Cleveland State University, Andrew Thomas, writes about a new study produced by the University “to better understand the ramifications of huge quantities of natural gas and liquid ethane being produced in Ohio.” Unfortunately we were unable to track down a copy of the full study and its results, but we do have the summary as contributed by Thomas in writing for Crain’s Cleveland Business. And wow, what insights we gain! Thomas says the study he worked on concludes that even in this down market, Ohio’s production of natural gas liquids (NGLs), specifically ethane, is on a rocket ride to the moon. He says, “Ohio’s about to see an ethane tsunami.” He also says if all four ethane crackers that have been floated as possibilities for the region get built, that would only sop up one-third of the ethane supply projected to be produced in the Marcellus/Utica. Here’s the high-level but very exciting and insightful news coming from this study…
Read More “Poly(ethylene) Wants a Cracker: OH Study Predicts Ethane Tsunami”
Pennsylvania | Statewide PA

Gov. Ed Rendell & Tom Wolf Support Philly Energy Hub Plan
December 14, 2015December 14, 2015

Looks like former Pennsylvania Gov. Ed Rendell and current Gov. Tom Wolf won’t be getting Christmas cards from rabidly anti-fossil fuel organizations like THE Delaware Riverkeeper (Maya van Rossum), the Philly Clean Air Council, the odious Food & Water Watch and others. Why? Because Rendell has just outted himself and Wolf as supporters of the Philadelphia Energy Hub concept. MDN has covered the push by Philly over the past few years to position itself as an “energy hub” which means a couple of things. It means a push to bring oil and gas produced in Pennsylvania (and Ohio, and even in the North Dakota Bakken) to Philly for processing in Philly’s refineries and then shipped domestically and exported internationally. It also means a push to build new petrochemical plants in the Philly area to take advantage of NGLs (natural gas liquids)–turning them into plastics and other products that use hydrocarbons as their feedstock. Such petrochemical plants would attract thousands of new jobs and potentially create billions in economic impact. It is a big, bold and ingenious plan. Smart people are for it. Dumb people, well you know (see Anti-Drillers Pressure Philly City Council to Dump Energy Hub Plan and Gang of 20 Anti-Fossil Fuel Groups Attack Philly Energy Hub Plan). In a guest editorial in the Philadelphia Inquirer, former Gov. Rendell (also known as Fast Eddie) gives his full-throated support for an energy hub in Philly. He also indicates Wolf is on board with it too…
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Economic Impact | Industrywide Issues | Jobs | Pennsylvania | Statewide PA | Supply Chain

Here’s How Drilling Slowdown Affects the Marcellus Supply Chain
December 14, 2015December 14, 2015

Yes, the slowdown in drilling IS having effect–everywhere, including the Pennsylvania Marcellus Shale. Supply chain companies–those companies not directly involved with drilling but supply goods and services to other companies that are directly involved–are feeling the effects. From hotels and restaurants to a men’s clothing store, the slowdown is having an effect. But it’s not all bad news…
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Anti-Drilling/Fossil Fuel | Industrywide Issues | Pennsylvania | Statewide PA

PA Big Green Groups Fully Unmasked – Want to Ban All Fossil Fuels
December 14, 2015December 14, 2015

Just when you thought the nutty anti-drillers couldn’t get any nuttier–they have. An op-ed running in a major Pennsylvania newspaper, the York Dispatch, penned by the heads of two radical green organizations (PennFuture and Conservation Voters of PA) calls for Pennsylvania “to move with deliberate speed to a zero-carbon economy that relies on clean energy and energy efficiency to power our future.” This is certifiable insanity–like bring out the straitjackets time. The letter writers believe that it’s time to dump the use of all fossil fuels as energy sources. The problem is, there are a whole lotta stupid people who will read it and agree–people who are totally ignorant of how the world works–in particular how energy works and how fossil fuels have led to the best conditions mankind has ever experienced on Planet Earth. By the way, three top lieutenants in the PA Gov. Tom Wolf administration are from PennFuture–so that gives you an idea of why his administration is crashing and burning…
Read More “PA Big Green Groups Fully Unmasked – Want to Ban All Fossil Fuels”
Bradford County | Chesapeake Energy | Energy Companies | Energy Services | Industrywide Issues | Lease & Royalty Payments | Litigation | Pennsylvania | Statewide PA | Williams

PA Atty General Sues Chesapeake Energy, Williams for Royalty Fraud
December 10, 2015December 10, 2015

Pennsylvania Attorney General Kathleen Kane, who has been indicted on numerous felony charges and likely to be forced from office any day now, filed a lawsuit yesterday against Chesapeake Energy in Bradford County Court over the issue of shorting landowners out of royalties. What every story we’ve seen (thus far) misses is this: The lawsuit also names Williams as participating in the scheme to defraud landowners out of royalty payments. So this is not just a Chesapeake story, it’s a Williams story too. Landowner groups are “hailing” the decision, jumping up and down with glee. Let us throw a little cold water on your face. Note to landowners and the groups that represent them: When you (metaphorically) crawl into bed with Kathleen Kane, you’re crawling into bed with a rattlesnake. Sooner or later she’s going to turn on you too. Mark it down. It’s in her nature. With that disclaimer in place, we’ll break down the news for you, and show you a copy of the lawsuit Kane’s office filed yesterday…
Read More “PA Atty General Sues Chesapeake Energy, Williams for Royalty Fraud”
Air Quality | Industrywide Issues | Jobs | Pennsylvania | Regulation | Statewide PA

Federal EPA’s New Ozone Standard: Air Not Cleaner, PA Jobs Killer
December 10, 2015December 10, 2015

In the name of protecting us, the federal Environmental Protection Agency (EPA) continues rogue actions in regulating the oil and gas industry–against the express dictates of the U.S. Constitution. The latest violation from the EPA is a new regulation lowering ozone levels. As David Williams from the Taxpayers Protection Alliance and a Pennsylvania native explains below, the “simple” act of lowering the ozone standard from 75 parts per BILLION to 70 ppb won’t do much at all to actually clean the air, but will directly result is lost jobs in Pennsylvania…
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Bradford County | Chesapeake Energy | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Litigation | Pennsylvania | Statewide PA

Packed Meeting in Towanda Discusses Chesapeake Royalty Settlement
December 9, 2015December 9, 2015

Last week MDN told you about a very important class action lawsuit that is about to be settled against Chesapeake Energy. It’s called the “Demchak” case and it involves thousands of Pennsylvania landowners who are currently, or even formerly, signed with Chesapeake (see Decision-time for Landowners in Demchak/Chesapeake Royalty Case). Landowners are automatically part of the settlement unless they opt out by December 17. A big confab was held last Wednesday (Dec. 2) at the Towanda (Bradford County), PA High School. It was a packed house with ~650 landowners attending. MDN had our very own reporter, Johnny Williams, on the scene. He files the following report, with important information for landowners…
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