Cabot O&G to Supply NatGas for All of Scranton/Wilkes-Barre
As we pointed out in January, UGI, a large northeast Pennsylvania utility (and midstream) company persevered against anti-progress, anti-drillers and eventually won and built the Auburn pipeline (see UGI Wins! Auburn Pipeline with Marcellus Gas in NEPA Goes Live). As we pointed out last week, UGI is building two more pipelines that will increase their delivery capacity by another 300 million cubic feet per day–all of it being supplied by Cabot Oil & Gas from Susquehanna County (see UGI Energy Building 2 New Pipelines in NEPA for Cabot O&G).
Now comes word from UGI that by this fall, “most” of the natural gas supplied and used by consumers in the Scranton/Wilkes-Barre area will be Marcellus Shale gas supplied by those two new pipelines. That means, in essence, that a single company–Cabot Oil & Gas–drilling in a single northeastern PA county–Susquehanna–will be supplying enough gas to meet all of the needs of NEPA’s largest metro area. Very cool. Ever cooler–Cabot has plenty of gas leftover to pipeline to New York, New England and other points in the U.S. and beyond. Behold the miracle of safe, effective and efficient hydraulic fracturing…
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Everyone knows how mercenary and evil those oil and gas companies are. They’re just in it for the buck. Rape and pillage poor Mother Earth–pollute the air, pollute the water, pollute everything! Those shale drillers are actually some of the worst, ya know. That’s what the anti-drilling left would have you believe. That’s the meme constantly drummed by mainstream media. Throw in a “Halliburton loophole” and “Dimock” or maybe a “Pavillion, Wyoming” and you’re good to go with the typical mainstream coverage of our industry. Just a teeny, tiny problem…none of it is true.
Last Monday a little known anti-driller with a potty mouth from northeast PA–Vera Scroggins–had her day in court. You may recall that Vera had repeatedly trespassed on drilling sites owned by Cabot Oil & Gas in Susquehanna County and a judge slapped her with a restraining order last year. Vera said the court order prevented her from sipping lattes at the local Price Chopper grocery store (land leased by Cabot) so she got herself a lawyer from the American Civil Liberties Union and asked the judge to reconsider (see 
A newly published peer reviewed study in the February Bulletin of the American Association of Petroleum Geologists (AAPG) offers new research that we believe comes close to, if not fully, exonerating Cabot Oil & Gas over the now infamous case of methane migration into water wells in a small area of Dimock, PA. The new study has no connection to Cabot. It is written by three experts and uses (gasp) actual science–you know, in the field data? The data comes from “more than 2,300 gas and water samples collected from 234 gas wells and 67 private groundwater-supply wells” in northeastern PA and is the largest such data set ever analyzed. What did the authors find? Shallow (near the surface) methane with the same identical chemical “fingerprint” as deeper Marcellus Shale gas is naturally occurring in large quantities in northeastern PA. That is, the shallow methane under the microscope looks exactly like the methane found more than a mile below the ground, but it isn’t gas from the Marcellus because the methane near the surface that looks just like Marcellus gas, with the same chemical “fingerprint,” was lurking in water wells long before there was any shale drilling in the area.
No less than three press releases were issued by Cabot Oil & Gas yesterday. In fact, the news is coming so fast and furious from all corners, it’s hard to keep up! First, Cabot announced a deal with the Transco pipeline to ship up to 850,000 MMBtu per day on the Transco once a new section is built–estimated to go online in 2017. Second, Cabot announced proved reserves at the end of 2013 were up 42% from 2012–to 5.5 trillion cubic feet. And third, the company’s production for 2013 was up 55% over 2012 to 413.6 billion cubic feet equivalent (Bcfe)–virtually all of it in the Marcellus Shale–and all of that from a single northeastern PA county, Susquehanna County. Cabot is an incredible story. No wonder their fourth quarter 2013 profit soared 91%!