Statewide PA

Beaver County | Economic Impact | Energy Companies | Ethane | Industrywide Issues | Jobs | Pennsylvania | Processing Plants | Shell | Statewide PA

Dow Disingenously Tells Shell to Forget About a PA Cracker Plant
October 8, 2013October 8, 2013

Manufacturing and labor leaders held a confab yesterday in Pittsburgh to discuss jobs, the economy, and how the Marcellus is lifting both in southwestern Pennsylvania (see our companion story today). One of the speakers at yesterday’s meeting was Peter Molinaro, vice president and senior advisor on government affairs for The Dow Chemical Co. One of Dow Chemical’s chief rivals and competitors is Shell Chemical. Shell, as MDN readers are well aware, is currently conducting a multi-year evaluation of whether or not to build a regional ethane cracker plant in Beaver County, PA, outside Pittsburgh about 30 miles.

It probably won’t surprise you that Dow’s Molinaro said at yesterday’s meeting that PA probably doesn’t need a cracker plant after all. Are Molinaro’s comments about a PA cracker wise and measured counsel from an industry participant who has a feel for the economics of U.S. manufacturing and what it truly needs? Or are his comments trash-talking a competitor in hopes of scuttling a deal and eliminating competition so more ethane will be pipelined to the Gulf–where Dow’s cracker plants are located? You decide…
Read More “Dow Disingenously Tells Shell to Forget About a PA Cracker Plant”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

PA Former Sec. Krancer: Frack Moratorium “Worse than Misguided”
October 8, 2013October 8, 2013

MDN editor Jim Willis had the great pleasure of meeting and speaking with former PA Dept. of Environmental Protection (DEP) Sec. Michael Krancer at Shale Insight 2013 a few weeks ago. Jim doesn’t mind telling you what he told Sec. Krancer to his face: “I’m a huge fan!” Krancer did some great work at the DEP during his too-short tenure. Since then, Krancer has moved on to private practice in Philadelphia, working on energy law for powerhouse law firm Blank Rome.

Sec. Krancer minces no words, which is what we love about him. He’s also extremely smart. And, he’s no fan of recently introduced legislation by PA Sen. Jim Ferlo who wants to ban fracking in Pennsylvania–Ferlo calls it a moratorium but it’s “open-ended,” meaning it’s really a ban (see PA Dems Go Over the Cliff – Introduce Statewide Frack Ban Bill). Krancer penned a devastating rebuttal to Ferlo’s bill and indeed to obtuse anti-fossil fuel advocates throughout Pennsylvania. Sec. Krancer sent along a copy of his sterling piece, first published on the Law360 website, with permission for MDN to distribute it far and wide. Forthwith, from the sharp pen of Sec. Krancer…
Read More “PA Former Sec. Krancer: Frack Moratorium “Worse than Misguided””
Allegheny County | Economic Impact | Industrywide Issues | Jobs | Pennsylvania | Statewide PA | Washington County | Westmoreland County

Pittsburgh Summit: Marcellus the WD-40 of SW PA Rustbelt Economy
October 8, 2013October 8, 2013

Yesterday a group of manufacturing and labor leaders gathered at the International Brotherhood of Electrical Workers headquarters on Pittsburgh’s South Side to talk about the creation of more manufacturing jobs in the greater Pittsburgh area–specifically about how Marcellus Shale is changing the landscape and is a tremendous jobs creator in the region. Several publications attended and each put their own angle on what was said at the meeting.

MDN picks through the stories to bring you the bits and pieces we found interesting–news about how the Marcellus is changing the picture in southwest PA and beyond. One of those interesting tidbits: the chairman of the PA Public Utility Commission said Marcellus Shale gas has been responsible for power prices dropping an average 52% across the state–for everyone. Incredible! And a comparison between the Marcellus and WD-40…
Read More “Pittsburgh Summit: Marcellus the WD-40 of SW PA Rustbelt Economy”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA | Susquehanna County

Gasland II Starlet Leaves Anti-Drilling Behind, Adopts “Realism”
October 7, 2013October 7, 2013

What’s this…one of the stars of Gasland II, someone who trash-talked the shale drilling industry in Dimock, PA has changed sides? Yep. Well, sort of. Victoria Switzer has given up what she calls “tunnel vision” and has adopted “realism.” She says, “Realism is good.” She no longer calls for a halt to drilling in PA and instead wants to ensure it’s done safely–by working with industry and regulators. Welcome to logic and sanity! Glad to have you on our side.

Watch out Josh Fox: Switzer is not the only former anti-driller now whistling a different tune…
Read More “Gasland II Starlet Leaves Anti-Drilling Behind, Adopts “Realism””
Carlyle Group | Energy Services | Energy Transfer Partners | Industrywide Issues | Pennsylvania | Philadelphia Energy Solutions | Processing Plants | Statewide PA

Philly Refinery Processes 190K Barrels/Day of Shale Oil
October 4, 2013October 4, 2013

My how times change. A year ago the then-Sunoco Philadelphia refinery was set to close its doors with a loss of 850 jobs. But something happened on the way to closing down: shale. Shale oil, in particular. Today, the refinery is called Philadelphia Energy Solutions (PES), a joint venture between the Carlyle Group and Sunoco (Sunoco merged with and is now known as Energy Transfer Partners). As MDN chronicled in July 2012, three shale plays will ultimately play an important role for the refinery–the Bakken, the Marcellus and the Utica (see Sunoco & Carlyle Group Ink Joint Venture for Philly Refinery). However, PES is also eyeing other shale plays, like oil from the Permian Basin (in Texas). That would be a hoot–Pennsylvania refining Texas oil!

More than half of the refinery’s 350,000 barrel per day capacity now comes from the Bakken Shale in North Dakota. How? Mostly by railroad, with the rest by barge. According to PA Gov. Tom Corbett, on hand for a ribbon-cutting ceremony at the refinery earlier this week, the Marcellus and Utica will soon play a role at the refinery too: “There’s a pipeline coming over here soon that’s going to be bringing natural gas over. You’re using natural gas now to fuel some of your efforts here but also to create a propane and ethane facility here”…
Read More “Philly Refinery Processes 190K Barrels/Day of Shale Oil”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Indiana County | Industrywide Issues | Pennsylvania | Research | Statewide PA | Wastewater

What’s Missing in Latest Duke “Radioactive” Study? Real Science
October 3, 2013

Those crazy, anti-drilling kids at Duke University are at it again. They released a “study” in a “peer-reviewed” journal yesterday (a study funded in part by the anti-drilling Park Foundation) that took samples from a creek downstream from a wastewater treatment plant that used to (but no longer does) treat Marcellus fracking wastewater. Republican Michael Krancer put an end to frack wastewater treatment by such facilities in early 2011, something the Rendell administration couldn’t or wouldn’t do. Krancer and the Marcellus Shale Coalition said municipal plants processing frack wastewater was creating an issue (see PA DEP, Marcellus Shale Coalition Admit Drilling Wastewater Likely Contaminating Drinking Water). So the Park/Duke kids sampled a single creek before the practice had ended and found, not surprisingly, high (but not dangerous) levels of radioactivity in the stream bed. In other words, they’re reporting what we’ve known for the past three years.

What do the headlines in hundreds of newspapers and online sources (with lazy reporters) blare out today? Fracking causes radioactivity in streams and rivers (plural) in Pennsylvania. Even though the Duke study only looks at a single location in a single creek and the data predates when the practice ended. Real science would have investigated multiple wastewater treatment plants, not just cherry-picking one. Real science is not funded by an avowed anti-drilling organization like the Park Foundation. And real science would have pointed out frack wastewater treatment at these plants ended several years ago. But then, no one ever accused Park/Duke kids of performing real science…
Read More “What’s Missing in Latest Duke “Radioactive” Study? Real Science”
Blue Ridge Mtn Res/Magnum Hunter | Energy Companies | Energy Services | Eureka Midstream | Ohio | Pennsylvania | Statewide OH | Statewide PA

Magnum Hunter CEO Gary Evans Charts a Marcellus/Utica Future
October 1, 2013October 1, 2013

Gary Evans, CEO of Magnum Hunter, presented at the IPAA Oil and Gas Investment Symposium yesterday in San Francisco. He did a deep dive into MH’s Marcellus and Utica Shale operations and plans moving forward. Evans said the company now owns 490,000 net acres in the northeast (Appalachia) with 81,000 net acres in the Marcellus Shale and 80,000 net acres in the Utica Shale. They have investments and operations in both drilling and in the midstream (pipelines) segment via subsidiary Eureka Hunter.

Below are Evans’ comments from yesterday along with a PowerPoint presentation which we believe is likely the one he used (or very similar to the one he used). Slides #13-#27 cover the Marcellus and Utica–well worth your time to review, some great maps and charts. Also included, a nifty picture of MH’s new robotic drilling rig (slide #26)…
Read More “Magnum Hunter CEO Gary Evans Charts a Marcellus/Utica Future”
Energy Services | Industrywide Issues | Pennsylvania | Philadelphia Energy Solutions | Pipelines | Statewide PA | Sunoco Logistics

A Novel Approach to Deliver Cheap Marcellus Shale Gas to Philly
September 30, 2013

Problem: How can Philadelphia benefit from cheap, abundant Marcellus Shale natural gas being produced in such large quantities in Pennsylvania that the state can’t use it all and is now a net exporter? Yes, as Drexel president John Fry said at Shale Insight last week, Philly can provide education and research to assist the shale revolution (see Shale Insight 2013: Final Wrap-Up, The Big Surprise). But aside from education and research, how can Philly realize the tangible benefits of low-cost shale gas? Answer: Install a big, fat pipeline into Philly to deliver cheap Marcellus Shale gas to residents and businesses that can use it.

New Problem: Where do you run a new pipeline in a densely populated city like Philly? New Answer: Under the Delaware River (?!?!)…
Read More “A Novel Approach to Deliver Cheap Marcellus Shale Gas to Philly”
Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

PA DEP’s O&G Division Gets High Marks from Independent Review
September 30, 2013September 30, 2013

An independent, third-party peer review organization–State Review of Oil and Natural Gas Environmental Regulations, Inc.–has given the Pennsylvania Dept. of Environmental Protection’s (DEP) Office of Oil and Gas Management a very close examination. What did they find? They found it to be “proficient” and “ready to address the increase in oil and gas operations in Pennsylvania.” The review gave the DEP high marks for the actions they’ve taken (and new regulations instituted) over the past two years under Gov. Tom Corbett.

DEP Acting Sec. Chris Abruzzo said this independent review proves that PA’s world class shale drilling is matched by world class oil and gas management and regulations…
Read More “PA DEP’s O&G Division Gets High Marks from Independent Review”
Energy Companies | Hydraulic Fracturing | Industrywide Issues | Litigation | Pennsylvania | Regulation | Statewide PA | XTO

Exclusive: MDN Interviews PA DEP Sec. Chris Abruzzo
September 27, 2013September 27, 2013

MDN became aware that newly nominated (and currently Acting) Secretary of the PA Dept. of Environmental Protection, Chris Abruzzo, would be attending Shale Insight 2013. So we requested an interview with the Secretary, and he obliged! To our knowledge, we were the only media interview he granted during a brief walking around the show visit on Wednesday.

MDN editor Jim Willis asked Sec. Abruzzo some tough questions, including his take on the PA Attorney General’s criminal lawsuit against XTO (see PA AG Abuses Her Authority, Files Criminal Charges Against XTO); his biggest challenge since holding the office in April; how he responds to the charge that the DEP is sometimes too cozy with the drilling industry; an update on the DEP’s study of air quality near drilling sites and compressor stations (see DEP Marcellus Air Study in SW PA Extended Extra Half Year); and his response to John Hanger (former Secretary of the DEP) about his remarks that Abruzzo’s appointment was “bizarre and irresponsible”…
Read More “Exclusive: MDN Interviews PA DEP Sec. Chris Abruzzo”
Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Soil | Statewide PA | Wastewater

Pittsburgh Water-Testing Lab’s Certification Pulled, $60K Fine
September 27, 2013September 27, 2013

We don’t know if any Marcellus drillers in Pennsylvania were previously using Pittsburgh-based Microbac Laboratories to test water or soil for drilling purposes–but we do know they aren’t using them now. The PA Dept. of Environmental Protection (DEP) investigated Microbac and found 50 violations at their Baltimore, Maryland lab. Microbac has voluntarily relinquished its accreditation and will pay a $60,000 fine. Ouch. They will also pay to have an independent third-party audit (i.e. someone will come in and tell them what they’re doing wrong)…
Read More “Pittsburgh Water-Testing Lab’s Certification Pulled, $60K Fine”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Meetings | Pennsylvania | Statewide PA

Shale Insight Philadelphia: Day One (Tuesday)
September 25, 2013September 25, 2013

MDN editor Jim Willis is in Philadelphia for the next few days attending the Marcellus Shale Coalition’s Shale Insight event. Jim is taking copious notes, as he does when visiting such events–so you’ll get to read about it in the coming days. Yesterday (Tuesday) was the “pre-conference” day. Of special interest was the Technology Showcase where established and up-and-coming companies shared their technologies for treating water, dealing with silica dust and a variety of other applications. If you’re “into shale,” it was fascinating.

Rather than recount it all for you right now, we’ll share a good story (very fair and balanced, surprisingly) written by the Philadelphia Inquirer who had a reporter on hand. The write-up does a good job of recounting the Technology Showcase, and in forecasting the coming protest from anti-drillers. One thing we can tell you–security is really, really tight at the Philadelphia Convention Center. They clearly believe there’s going to be a sizable crowd of antis parading out front…
Read More “Shale Insight Philadelphia: Day One (Tuesday)”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

PennEnvironment Supports PA Dem Frack Ban Bill, Gins Up Report
September 25, 2013September 26, 2013

Editor’s Correction: We slipped up! The original version of this story contained a headline and introduction (below) that said PennFuture was the organization that issued the report. It was not. It was PennEnvironment. Our sincere apologies to PennFuture.

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In a pathetic attempt to give political cover to their anti-drilling collaborators in the PA legislature, yesterday anti-drilling group ~~PennFuture~~ PennEnvironment issued a so-called report that demands that Pennsylvania turn the lights out on fracking for shale gas–at least for now and the foreseeable future–until…we don’t know, just until. Until they say so.

Last week MDN told you about PA Democrats who decided to leap over the cliff hoping a net (of public support) would appear by introducing legislation to ban fracking in the state (see PA Dems Go Over the Cliff – Introduce Statewide Frack Ban Bill). Thunk. No net appeared and the Dems now face annihilation at the next election. So ~~PennFuture~~ PennEnvironment is attempting to throw out a lifeline with a ginned up “report” that supports a loony frack ban…
Read More “PennEnvironment Supports PA Dem Frack Ban Bill, Gins Up Report”
Chesapeake Energy | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Litigation | Pennsylvania | Statewide PA

Lawyers Say Don’t Ignore Chesapeake’s PA Lawsuit Settlement Letter
September 24, 2013September 23, 2013

Chesapeake Energy recently settled a lawsuit with Pennsylvania landowners in which they agree to pay (a pitifully small) $7.5 million to landowners after shorting them on royalty payments (see Chesapeake Settles PA Royalty Lawsuit for Pittance: $7.5M). The National Association of Royalty Owners Pennsylvania chapter is telling landowners to pay “very close attention” to the settlement letter when it comes.

The settlement letter may have much broader implications than just getting a check for a few bucks from Chesapeake. It may set the rules for how your future royalties will be calculated…
Read More “Lawyers Say Don’t Ignore Chesapeake’s PA Lawsuit Settlement Letter”
Electrical Generation | Industrywide Issues | Pennsylvania | Statewide PA

PA Electric Generation Plant Will Get its Own Marcellus Well
September 24, 2013September 23, 2013

GEI Global Energy Corp announced yesterday they have signed a letter of intent (LOI) with Owl Eco Group to build a 100 megawatt electric generation plant in western Pennsylvania that runs on Marcellus Shale gas.

Not only will this be a massive project taking several years and costing $470 million to build, but GEI says the plan calls for the power plant to get its very own Marcellus Shale well drilled to supply it. Smart…
Read More “PA Electric Generation Plant Will Get its Own Marcellus Well”
Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Statewide PA

Vertical/Shallow Gas Wells in PA Try Going Horizontal
September 23, 2013September 23, 2013

A fascinating story in Sunday’s Pittsburgh Post-Gazette about a developing trend in Pennsylvania’s gas (and oil) fields–the trend of smaller drillers and even some larger drillers who are now targeting shallow rock layers with horizontal drilling. Vertical or conventional natural gas drilling produces a lot less gas than deeper unconventional/horizontal drilling. A LOT less. So how can “mom and pop” vertical drillers compete against the big boys? By going horizontal too.

Seems that some vertical drillers are giving horizontal drilling in their existing vertical wells a try. Instead of drilling down 5,000 feet to the Marcellus, they’re drilling down only 2,000 feet before turning the bit horizontal. The rock layers they’re targeting won’t be anywhere near as productive as the Marcellus–but hey, if you can goose production by 5-10X that of a traditional vertical-only well, it’s very profitable for a tiny fraction of the cost it takes to drill a Marcellus well. Thing is, we won’t know just how productive (or profitable) until next year because these shallower wells only self-report annually…
Read More “Vertical/Shallow Gas Wells in PA Try Going Horizontal”