PA’s Conventional Oil Industry Goes from Bad to Worse
The double shock of less demand for oil because the COVID-19 coronavirus crisis has shut pretty much everything down (worldwide) AND the Saudis and Russians pumping oil to the outer limits, continues to cause the price of oil to remain at historically low prices. The Russians are trying to bankrupt American shale oil drillers by driving prices into the basement. The Saudis are trying to bankrupt Russia for leaving the OPEC+ fold (and the Saudis certainly don’t mind if American shale oil drillers are put out of business in the process). The low price resulting from the double shock is affecting not only big American shale oil drillers but also mom and pop conventional oil drillers too. Particularly small conventional drillers in western Pennsylvania.
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As we told you last Friday, there was some confusion over whether or not construction of the Mariner East 2 (ME2) pipeline, which is nearing completion, is included under Pennsylvania Gov. Tom Wolf’s “stop work” order to prevent PA residents and workers from further spreading the COVID-19 coronavirus (see 
Many states in the northeast and in Appalachia are now in lock-down mode with most businesses shuttered to prevent the spread of COVID-19 coronavirus. However, certain activities and businesses continue to operate. They are called “life-sustaining” or “critical” or “essential.” On the list of essential businesses in both Pennsylvania and Ohio are shale drillers. Although drillers continue to work, at least one Marcellus/Utica driller, CNX Resources (we suspect others) is making changes to keep its employees and contractors protected against the virus.
Yesterday Pennsylvania Gov. Tom Wolf issued an executive edict that all “Non-Life-Sustaining Businesses” will close as of 8 pm last night. Notwithstanding the sleazy attempt by State Sen. Andy Dinniman to shut down construction of the Mariner East 2 (ME2) pipeline project by using the virus as an excuse (see today’s companion story), there appears to be some confusion as to whether or not ME2 construction is subject to Wolf’s edict to stop construction. The Pennsylvania Public Utility Commission (PUC) refuses to tell ME2 to stop building. However, in Wolf’s list of what is “life-sustaining” and what isn’t, all construction, including “Utility Subsection Construction” is in the stop-work category. Is ME2 or isn’t it still actively under construction at this point?
Pennsylvania House Bill (HB) 1100, aimed at attracting new petrochemical investment to the state, was passed by the PA Senate in early February (see 
Adelphia Gateway is a plan to convert an old/existing 84-mile oil pipeline stretching from Northampton County, PA through Bucks, Montgomery, and Chester counties, terminating in Delaware County at Marcus Hook, into a natural gas pipeline–flowing Marcellus gas to southeast PA. Roughly half of the pipeline was previously converted and already flows natgas. In December the Federal Energy Regulatory Commission issued final approval for the project (see 
In a disappointing decision, Pennsylvania Commonwealth Court recently ruled a long-running lawsuit filed against Grant Township (Indiana County, PA) will continue on through the court system. For the past several years we’ve reported on the case of Grant Township, a town that passed an ordinance cooked up by the radical Community Environmental Legal Defense Fund (CELDF) to try and block a state-approved injection well. Part of the ordinance was tossed. However, Commonwealth Court has decided the town can continue to try and make a case that it should be able to override state law with its home-cooked regulations because by doing so they will somehow protect citizens’ health, which the town says is allowed under PA’s poorly-written Environmental Rights Amendment (ERA).
In January PennEast Pipeline, a $1.2 billion new greenfield pipeline project from Luzerne County, PA to Mercer County, NJ, asked the Federal Energy Regulatory Commission (FERC) for permission to break the project into two phases (see 
Last week MDN brought you news (from the Associated Press) that Cabot Oil & Gas had “abandoned” negotiations to settle a lawsuit they brought against attorneys who had sued Cabot for something already settled in a previous lawsuit (see 
On Monday there were dueling rallies at the Capitol in Harrisburg, PA, for and against a new petrochemical bill, House Bill (HB) 1100, that promises to bring thousands of new jobs and billions of dollars of investment to the Keystone State (see 
Dueling rallies at the Capitol in Harrisburg, PA yesterday provide the perfect picture of the difference between reasonable and unreasonable, between behavior that is adult and behavior that is juvenile, between pro-fossil fuel and anti-fossil fuel. It was also the perfect picture to describe why there is now an open civil war in the PA Democrat Party, and why trade union members are leaving the Dems in droves. The two rallies were there to support (or oppose) House Bill (HB) 1100, aimed at attracting new petrochemical investments to the state.
Mudrock Energy is a consulting company based near Pittsburgh that provides specialized geoscience analysis and market research across the energy industry. Mudrock founder and CEO Dave Boyer, an AAPG Certified Petroleum Geologist, recently worked up an analysis of Pennsylvania’s shale production. He published his research on the Medium website and sent us a link with an encouragement to share it with the MDN audience. In his analysis, Boyer makes the case that PA’s continuing expansion of ever more production needs to stop. NOW.
Some Pennsylvania state Democrats are obviously feeling the political heat over their opposition to House Bill (HB) 1100, meant to attract brand new business and jobs to the state in the petrochemical industry (see 
In what has to be unethical at a minimum, and perhaps even illegal at the maximum, Pennsylvania Attorney General Josh Shapiro spoke on the phone with two anti-drilling “reporters” from the Pittsburgh Post-Gazette (Don Hopey and David Templeton) to let them know he is on an official witch hunt launching “more than a dozen investigations” to turn fracking and anything connected with fracking into a crime.