Statewide PA

Energy Services | Industrywide Issues | Pennsylvania | Philadelphia Energy Solutions | Processing Plants | Statewide PA

Owner of Former Sunoco Refinery Speaks on Marcellus, Future
December 10, 2013December 10, 2013

The new owner of the former Sunoco refinery in South Philadelphia says purchasing the refinery did not start out as a rescue operation (saving 850 jobs), but it did end up being one. Philip Rinaldi, CEO of Philadelphia Energy Solutions, was the guest of honor at a United Steelworkers Local 10-1 banquet last Saturday. His comments reveal him to be plain spoken and not without a surprise or two. Rinaldi fancies himself an old-style industrialist–he likes businesses that make things, saying you can’t have a society that only flips hamburgers.

Rinaldi also said the Marcellus will play a key part in his future plans. Here’s the interesting Q&A with Philip Rinaldi, his comments about why he chose the Philly refinery and about what the future may hold:
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Anti-Drilling/Fossil Fuel | Industrywide Issues | Pennsylvania | Statewide PA

PA Media Continues to Henpeck Corbett Admin on Warming Mythology
December 9, 2013December 9, 2013

The reliably anti-drilling StateImpact Pennsylvania (left-leaning NPR affiliate) continues to henpeck PA Gov. Tom Corbett’s administration over the fantasy of “global warming.” They’re trying to fabricate an issue out of the fact that some on the Corbett team don’t believe in global warming as strongly as they do. Some in the Corbett administration have the temerity (we’d say the guts) to challenge the notion that Planet Earth is about to fry to a crisp because of the carbon-producing activities of humans. The whole notion is so silly it’s beyond belief, but saying so out loud will earn you the badge of being a quack–a badge that MDN proudly wears.

StateImpact PA tried to tar & feather Acting Secretary of the Dept. of Environmental Protection Chris Abruzzo last week (see PA DEP Sec. Abruzzo Grilled by PA Senate on Global Warming). StateImpact PA thought they might as well do a 2-for-1 drive-by reporting special, so they also went after Corbett energy adviser Patrick Henderson. Here’s how that went…
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Industrywide Issues | Pennsylvania | Regulation | Statewide PA

PA DEP Sec. Abruzzo Grilled by PA Senate on Global Warming
December 5, 2013December 5, 2013

We already had a high opinion of Acting Secretary of PA’s Dept. of Environmental Protection (DEP), Chris Abruzzo. But our already high opinion just went higher. Abruzzo has been “acting” secretary since the spring. He finally had his hearing yesterday before the PA Senate where senators got to grill him on various issues before they vote to confirm him as the real-deal secretary. At the hearing Abruzzo was asked about the global warming mythology and whether or not he believes in ~~Santa Claus~~ global warming.

Abruzzo had the unmitigated gall to speak the truth (always a dangerous thing to speak truth to politicians). He said he thinks global warming is happening a teeny bit, but it’s not adversely affecting humans or animals or plants. It’s minor. Not a big deal. And it’s certainly not something PA can or should address with heavy-handed government policies. Well! You would think he had grown two heads right there before their very eyes! Some of the warmers were ready to roll out the old elevated platform they used to hang people from who were thought to be witches! Three cheers for Abruzzo, who has brass…er, Christmas ornaments…for not sugarcoating his views. Here’s how his grilling was reported by the reliably anti-drilling StateImpact Pennsylvania:
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Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

Who Dat Sneakin’ Around my Well Pad…PA DEP?!
December 4, 2013December 4, 2013

We’re not quite sure what to make of this one… PA State Sen. Scott Hutchinson (Republican from Butler County) has introduced legislation to prohibit the state Dept. of Environment Protection (DEP) from using video surveillance cameras, some of them with “night vision”, to monitor and enforce environmental laws at oil and gas sites. DEP also uses “unmarked cars” in drive-by inspections and Hutchinson wants that fixed too.

Is the DEP being shifty? Are they sneaking around? Should they better announce themselves? Or is this just a tempest in a teapot as DEP says it is? You decide…
Read More “Who Dat Sneakin’ Around my Well Pad…PA DEP?!”
Industrywide Issues | Pennsylvania | Pipelines | Statewide PA | Supply Chain

Steel Building Manufacturer Hits it Big in the Marcellus
December 4, 2013December 4, 2013

A small regional company that builds steel buildings, located in western PA, has rocketed from the minor to the major leagues in their industry. Steel Nation Inc. is now ranked as the 11th largest metal building construction company in the country–thanks to the Marcellus Shale.

Steel Nation’s story is interesting, and instructive, for those looking to crack into the shale supply chain. It’s a story of creativity and determination…
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Economic Impact | Industrywide Issues | Pennsylvania | Statewide PA

Most PA Residents Pay Lowest NatGas Rates in 10 Years
December 4, 2013December 4, 2013

Limbo! How low can you go? Two-thirds of Pennsylvanians who heat their homes with natural gas will, this heating season, pay the lowest prices they’ve paid in the past 10 years, according the PA Public Utility Commission (PUC). Why? The Marcellus Shale, of course…
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Economic Impact | Industrywide Issues | Ohio | Pennsylvania | Statewide OH | Statewide PA | Statewide WV | West Virginia

List of U.S. Shale Plays Ranked by Profitability (IRR)
December 3, 2013December 2, 2013

Thanks to our ever-helpful second set of eyes, Chris Acker, MDN was alerted to a Seeking Alpha article with a table showing the Internal Rate of Return (IRR) for commercially developed U.S. shale plays. It is a way of ranking shale plays (specific regions within plays) that shows the profitability of the plays. The higher the IRR percentage, the better/more profitable that play is. A dollar of investment goes further with a higher IRR.

And what did we spot in scanning the chart? The top spot–the most profitable shale play in America–is the “Marcellus Super Rich” area located in southwest PA and the northern panhandle of WV. The second most profitable play, virtually tied with the Marcellus? The “Utica Liquids Rich” region in eastern OH. It’s a fascinating table. Have a look…
Read More “List of U.S. Shale Plays Ranked by Profitability (IRR)”
Economic Impact | Hydraulic Fracturing | Industrywide Issues | Ohio | Pennsylvania | Pipelines | Processing Plants | Research | Statewide OH | Statewide PA | Statewide WV | West Virginia

Deloitte & EIA: 90,000 Marcellus Wells Drilled in Next 20 Years
November 25, 2013November 25, 2013

A new report published by consulting powerhouse Deloitte references (and affirms) U.S. Energy Information Administration’s predictions that it will take at least $5 trillion of investment in the oil and gas sector between now and 2035 to main current levels of oil and natural gas production and meet future demand as it rises. The report is titled “The challenge of renaissance: Managing an unprecedented wave of oil and gas investment.” Unfortunately we couldn’t locate a copy–but reportedly it’s full of interesting facts–like the $5 trillion number.

Another eye-popping number from the report: Current estimates are that 90,000 Marcellus Shale wells will be drilled over the next 20 years. That kind of activity will spur an unfathomable economic revival in the northeast like we haven’t seen in since, well, forever! The study says while “trillions” will be spent on upstream (drilling), “hundreds of billions” will need to be spent on midstream (pipelines & processing plants) in order to keep up with the production. More from the Deloitte study…
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Energy Services | Industrywide Issues | NGLs | Pennsylvania | Pipelines | Statewide PA | Sunoco Logistics

Sunoco Logistics Planning Second Mariner East Pipeline for NGLs
November 22, 2013November 22, 2013

More than a year ago MDN brought you the news that Sunoco Logistics’ Mariner East pipeline–an existing pipeline being upgraded to convey propane and ethane from western Pennsylvania all the way to the Marcus Hook refinery near Philadelphia–was completely spoken for (see Mariner East Pipeline to Philly Refinery 100% Committed). Range Resources announced at the time that they would be the main user of the pipeline (see Range Announces They’re Main Shipper for Mariner East Pipeline). Upgrades to the Mariner East are under way now and will be online beginning in 2014.

In re-reading those stories from last year, we should have noticed something we did not. Sunoco said they were considering a second “open season” for Mariner East. If the pipeline is already 100% committed, how can they take on even more customers? Answer: Build a second Mariner East pipeline. Thanks to an excellent bit of reporting in the Harrisburg Patriot-News, we now understand what that statement meant last year. In a story published yesterday, the Patriot-News says Sunoco is working on a plan to build a second Mariner East pipeline across PA. Although there are currently few details, the outlines of where the pipeline may go are taking shape thanks to notifications received by PA landowners in the Susquehanna Valley area…

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Economic Impact | Hydraulic Fracturing | Industrywide Issues | New York | Ohio | Pennsylvania | Research | Statewide NY | Statewide OH | Statewide PA | Statewide WV | West Virginia

Marcellus/Utica States Slip in Global Petroleum Survey
November 21, 2013November 21, 2013

Each year, the Canadian-based Fraser Institute surveys petroleum industry executives and managers (864 of them for 2013) asking them their opinions on the barriers to investing in exploration and production in various geographies across the globe. That is, what makes them more likely or less likely to spend money drilling in a particular location? It’s vitally important to understand what drives investors because without money, drilling doesn’t happen.

The Global Petroleum Survey, as it’s called, tallies the survey responses and ranks each geography from most desirable place to invest, to least desirable. MDN reported the rankings last year (see Energy Execs Rank Drilling Locations Including WV, OH, PA, NY). A copy of this year’s full report/rankings is embedded below. How did Pennsylvania, Ohio, West Virginia and (yes) New York fare this year, compared to last?…
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Energy Companies | Forced Pooling | Hilcorp Energy | Industrywide Issues | Litigation | Pennsylvania | Regulation | Statewide PA | Utica Shale

Ironic: PA Enviro Court Forcing DEP to Rule on Forced Pooling
November 21, 2013November 21, 2013

A 51-year old forced pooling law in Pennsylvania that strangely does not apply to the Marcellus Shale layer, but does apply to the deeper Utica Shale layer, is being put to the test. In early October, MDN told you that Hilcorp had decided to take “the low road” and sue a landowner in Lawrence County, PA to force that landowner to allow his 14.6 acres to be drilled under using the old law (see Hilcorp Uses PA Forced Pooling Law Against Lawrence Cty Landowner).

The PA Dept. of Environmental Protection balked at invoking the old law to force the landowner and instead tossed this hot potato to the Environmental Hearing Board. The Hearing Board ruled this week that it doesn’t have jurisdiction and that the matter properly does belong back at the DEP. So what will the DEP do now?…
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Coterra Energy (Cabot O&G) | Energy Companies | Pennsylvania | Statewide PA

Cabot’s NE PA Wells “Some of the most productive on Earth”
November 18, 2013November 18, 2013

The mainstream media catches up to MDN and other industry-focused publications–eventually. On October 14, 2013, MDN gave you the details for the top 10 most productive wells in the Marcellus Shale with respect to natural gas production. We told you eight of those top 10 are found in one northeastern Pennsylvania county–Susquehanna–and are drilled by the same driller: Cabot Oil & Gas (see PA’s Top 10 Marcellus Shale Wells – Full Details). A Wilkes-Barre newspaper has finally come along to also blow the trumpet about how productive Cabot has been in Susquehanna County. They too make the observation that Cabot’s natural gas wells may be “some of the most productive on Earth.” Indeed.

But this mainstream story also brings to light information MDN is sometimes asked and until now didn’t have a ready answer for: When it comes to Cabot in the Marcellus with “dry gas,” or companies like Gulfport in the Utica, very successful with “wet gas,” are they just lucky in hitting the “sweet spot”? Or are they smart about the geographies where they decide to lease and drill? Although luck plays a role, this article, in talking about Cabot’s work in the Marcellus, says they fully knew what they were doing when they leased up thousands of Susquehanna County acres. Forthwith, a really good story from a mainstream media source!…
Read More “Cabot’s NE PA Wells “Some of the most productive on Earth””
Economic Impact | Industrywide Issues | Pennsylvania | Roads | Statewide PA

PA’s Roads Vastly Improved – Thanks to Marcellus Drilling
November 18, 2013November 18, 2013

The new president of the Marcellus Shale Coalition, Dave Spigelmyer, has hit the ground running. He’s making the rounds (recently in Scranton, see Cabot’s Big CNG Celebration at Johnson College in Scranton, PA). Now, he’s hitting the editorial pages of major state newspapers, like the Harrisburg Patriot-News.

In an editorial published yesterday, Spigelmyer makes a strong case for the enormous positive impact shale drilling has had on the state’s infrastructure–roads in particular. He points out over the past several years Marcellus drillers have spent 3/4 of a billion dollars to improve PA’s roadways. That’s money that didn’t come out of taxpayers’ pockets. And in addition to now $400+ million raised from an impact fee/tax, another $1.8 billion has flowed in to local and state coffers from taxes on Marcellus-related activities. It’s hard to overstate the huge economic impact the drilling industry has had in PA…
Read More “PA’s Roads Vastly Improved – Thanks to Marcellus Drilling”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Mifflin County | Pennsylvania | Statewide PA

TU: If You Can’t Beat Shale Drillers, Try a New Lie
November 18, 2013November 18, 2013

An interesting twist. Apparently the devout anti-drilling group Trout Unlimited has at least one leader and one chapter that isn’t quite so anti-drilling. Either that or they’re trying a new tactic: bald-faced lying (wouldn’t be the first time).

At a local Penns Creek chapter meeting of TU in Lewistown, PA, Paula Piatt, a “sportsmen organizer” for the group said she doesn’t want to tell landowners not to lease and not to drill–well, she really does want to tell them that, but she isn’t, not right now anyway. No, what she does want to tell them is this is how you should drill. To which we say, the utter arrogance of these people….
Read More “TU: If You Can’t Beat Shale Drillers, Try a New Lie”
Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA | Taxation

PA Dems Continue to Beat the “Tax & Regulate Marcellus” Drum
November 18, 2013November 18, 2013

Here’s not a surprise: The eight (or ten or twelve) Democrats who have announced they’re running against incumbent Republican PA Gov. Tom Corbett next year want to more than double the taxes on Marcellus Shale drilling and slap super-strict and unnecessary new regulations on drilling. Ever hear of an elected Democrat who wasn’t in love with taking YOUR money and giving it to other people? Or an elected Democrat who doesn’t love micromanaging your life for you–telling you what you can and can’t eat, drink, smoke, do? (Everything except sex–you can have all the risky sex you want.) No, we haven’t either, which is why we NEVER vote for them. EVER.

We won’t make this an anti-Democrat diatribe–MDN has lots of Dem subscribers (and friends) and we appreciate them all–and we hear from them when we make these kinds of comments. 🙂 Have no fear–we will not cover the upcoming PA governor’s race ad nauseam. However, every now and again we’ll bring you an illustrative story of the PA governor’s race just to remind you of the philosophical Grand Canyon that exists between those who truly support drilling and those who would, by intent or ignorance, crush it with ill-advised over-tax and over-regulate policies…
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Beaver County | Braskem | Economic Impact | Energy Companies | Energy Services | Ethane | Industrywide Issues | Jobs | Odebrecht | Pennsylvania | Processing Plants | Shell | Statewide PA | Statewide WV | West Virginia | Wood County

Clash of the Ethane Cracker Titans: PA vs WV Smackdown
November 15, 2013November 15, 2013

As MDN mentions in today’s companion story about the newly announced potential ethane cracker plant complex to be built near Parkersburg, WV, there is angst in Pittsburgh about whether or not a WV cracker plant will help or harm the potential cracker plant to be built by Shell northwest of Pittsburgh in Beaver County, PA.

The Pittsburgh Business Times, a bit critical and skeptical of the WV cracker (no surprise there), tackles the question of, “Is you a friend or is you foe?”…
Read More “Clash of the Ethane Cracker Titans: PA vs WV Smackdown”