• Marcellus & Utica Shale Story Links: Wed, Nov 15, 2017

    The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: PA Act 13 impact fees fund $15.7M of enviro projects; 2 permits issued in Columbiana County, OH; conservancies are for conservation, not politics; Alaskan LNG made possible by China; American shale gas the “silver bullet” to take out Vlad Putin; electric grid watchdog says natgas is reliable enough without nukes, coal; bullish market for shale oil exports; U.S. energy independence finally in sight; continuous disruption the “new normal” in o&g; LNG oversupply has fundamentally changed the market; China natgas demand will triple by 2040; and more!
    Read More “Marcellus & Utica Shale Story Links: Wed, Nov 15, 2017”

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    Out with the Old: Rice Energy Sign Comes Down Day of EQT Merger

    Yesterday the Marcellus/Utica experienced a fracking earthquake of historic proportions. That is, a fracking earthquake metaphorically speaking. Yesterday Rice Energy was merged into EQT, creating the largest onshore natural gas producing company in these United States. The $8.2 billion deal was first announced back in June (see EQT Buys Rice Energy in $8.2B Deal, Becomes #1 Gas Producer in US). There was plenty of drama along the way–primarily opposition to the deal by evil corporate raider Jana Partners, in collusion with Atlas Energy (see Proxy Fight: Jana Partners, Atlas Tries to Stop EQT/Rice Deal). Shame on both of them. Fortunately their effort to stop the deal didn’t gain traction. Yesterday was the day when the two companies became one. Two Rice Energy board members, Dan Rice IV and Bobby Vagt, joined the EQT board. Another two independent (outside either firm) board members were also added–Thomas Karam, founder and Chairman of Karbon Partners, and Norman Szydlowski, former president and CEO of SemGroup Corporation. Standing by the virtual water cooler, MDN has overheard that many Rice personnel were nervous about what yesterday would bring. You know the routine: Two rooms–one for those staying, and one for those getting the heave-ho. Everyone waiting to get “the call” to whichever room they’re assigned. We’ve been there. It sucks. But that’s the reality in today’s corporate world. One thing we found interesting is that the huge Rice Energy sign on the company’s (former) HQ building was taken down yesterday–the very day the two merged. An MDN friend caught some of it on a smartphone video (below). EQT isn’t wasting any time making a statement: In with the new, out with the old…
    Read More “Out with the Old: Rice Energy Sign Comes Down Day of EQT Merger”

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    3 Old Ladies Cause 3 Hr Delay in Atlantic Sunrise Construction

    When did little old ladies become climate jihadists? That’s what happened yesterday in Lancaster County when three old ladies, obviously radicalized at some point (maybe they’re old hippies who have always been radicalized?), tied themselves together with a plastic pipe device that needed to be cut away so they could be removed from the spot where they were blocking Atlantic Sunrise Pipeline construction equipment. The entire episode took three hours. When asked nicely by the police to remove the plastic device and unhook themselves, the old ladies refused. So the police had to carefully operate to cut them apart. We figure their stunt easily cost $3,000 in delays–so we sincerely hope Williams sends each of them a bill of $1K to cover the downtime. Plus the old ladies will need to compensate the police and court system for handling their unnecessary case. These three added to the 29 previously arrested in two other episodes now make 32 arrested opposing Atlantic Sunrise–out the “thousands” the clattering Clatterbucks (Mark and Malinda, the radicals spearheading these actions) claim said would rise up to illegally block construction. So much for the big boasts of radical antis…
    Read More “3 Old Ladies Cause 3 Hr Delay in Atlantic Sunrise Construction”

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    How Soon Will WV See Chinese Money? “Immediately” Says Official

    Last week’s big news that China committed to invest $83.7 billion in shale and petrochemical projects in West Virginia continues to reverberate (see China Agrees to Invest Amazing $83.7 BILLION in WV Shale, Petchem). Almost as soon as the deal was announced, so-called experts came out of the swamp to say, “Won’t ever happen, ain’t a big deal, move along, nothing to see here.” Such was how Bloomberg reported it (see Why $84 Billion From China Can’t Buy a U.S. East Gas Hub), and how the sometimes-swamp dwelling Wall Street Journal reported it (see A U.S. Natural-Gas Bonanza in China Isn’t a Done Deal). Such is the irrational hatred of Donald Trump and anyone who supports him, like WV Gov. Jim Justice. This is a time for celebration. The Chinese are sending money HERE, instead of the other way around, as it has been under Lord Obama and presidents going back for decades. Yet the swamp dwellers attempt to throw excrement on the good news. Let them. They expose themselves for the shallow, leftist shills they are. Here’s an important question on everyone’s mind: When will Chinese money begin to flow for some of these projects? The answer, according to WV Commerce Secretary Woody Thrasher, is “immediately”–meaning within the next six months when ground will be broken on one, possibly two, natural gas-fired electric plants in the state. Below are insights into when the state will see the money, how the money will get distributed, and how this deal actually came together in the first place…
    Read More “How Soon Will WV See Chinese Money? “Immediately” Says Official”

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    EIA Nov ’17 Drilling Report: Record-Breaking Year-End on the Way

    History will have been made this year in America’s shale plays. That’s according to our favorite government agency, the U.S. Energy Information Administration. Yesterday the EIA issued our favorite monthly report, the Drilling Productivity Report (DPR). The DPR is the EIA’s best guess, based on expert data crunchers, as to how much each of the U.S.’s seven major shale plays will produce for both oil and natural gas in the coming month. Last month was a record-breaker when total shale gas output blew by 60 billion cubic feet per day (see EIA Oct Drilling Report: NatGas Production Flies by 60 Bcf/d). EIA says in December production will fly by 61 Bcf/d! A new record. Not only that, EIA predicts that Appalachia (the Marcellus/Utica shale region) will increase its output by 394 million cubic feet per day (MMcf/d). Put another way, M-U output will go up close to another 1/2 Bcf/d–all by itself. Incredible. Finally, as almost every news story about the DPR is pointing out, December will be the 12th month in a row that shale output has gone up. Welcome to the miracle of American shale energy…
    Read More “EIA Nov ’17 Drilling Report: Record-Breaking Year-End on the Way”

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    Penn Twp Ninny Nannies File Lawsuit to Block Apex, H&H Wells

    A group of ninny nannies calling themselves Protect PT (Penn Township, Westmoreland County), backed with money and legal help from Big Green group PennFuture, filed a lawsuit to try and stop Apex Energy and Huntley & Huntley (H&H) from drilling wells in the township. We first alerted you to the lawsuit in October, when we were only aware of Apex being in the group’s sights (see Judge to Rule on Apex Energy Well Drilling in Westmoreland County). Since then, we’ve learned that the partial injunction blocking well drilling not only bars Apex drilling wells, but H&H as well. Gillian Graber, Executive Director of Protect PT, fibbed when she said, “We’re not saying don’t frack in Penn Township or ban fracking. We never took that position. We disagreed with where [the drilling companies] put it.” We think that’s BS–Barbara Streisand. They want all drilling stopped period. That’s the aim of the lawsuit. Below is a somewhat biased article, but useful nonetheless, with insight into the legal tactics (bastardizations) being used by Protect PT’s PennFuture lawyers, hoping to overturn settled Act 13 law. We also have a copy of a brief filed by H&H, pushing back against this latest assault on Marcellus drilling in southwestern PA…
    Read More “Penn Twp Ninny Nannies File Lawsuit to Block Apex, H&H Wells”

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    “Health Experts” Meet in Pitt. to Demonize Shale, Shell Cracker

    A group of so-called “health experts” pontificated at an event yesterday hosted by the League of [Liberal Democrat] Women Voters in Pittsburgh. They were supposedly there to discuss shale and public health. One of the gripe sessions took aim against Shell’s now-under construction ethane cracker facility. Speakers tried hard not to come right out and curse shale and the cracker–but they couldn’t help themselves. In the end they made untrue statements that imply the cracker will poison the community and make it unlivable. One speaker’s solution? “Don’t build it.” Typical. All you need to know about yesterday’s meeting is that one of the panelists is the staff attorney for the radical enviro organization Earthjustice. Truth was the main casualty at yesterday’s meeting…
    Read More ““Health Experts” Meet in Pitt. to Demonize Shale, Shell Cracker”

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    Little Green Takes 1st Step in Suing to Block Atlantic Coast Pipe

    No doubt being advised and funded by national Big Green groups, a group of backbencher local green groups (Little Green) have taken the first step in what will no doubt turn into a lawsuit to try and stop the Atlantic Coast Pipeline project from getting built. The Federal Energy Regulatory Commission (FERC) approved Atlantic Coast, a $5 billion, 594-mile natural gas pipeline that will stretch from West Virginia through Virginia and into North Carolina, in October (see FERC Approves Atlantic Coast, Mountain Valley Pipeline Projects). A group of 21 backbencher local green groups located in VA and NC filed a petition with FERC on Monday, asking the agency to “rehear” (reconsider) it’s approval of the project. Among the claims made by the backbenchers: “Federal regulators cut corners, ignored environmental injustice and climate destruction, and usurped state authority in approving construction,” according to NC Warn, one of the backbenchers. Of course all of this is political theater. Grandstanding. Showboating. They don’t really believe FERC will change it’s mind. What happens next is FERC will tell the backbenchers they’re full of beans and to go away, and then the backbenchers can legally file a lawsuit with the Federal Court of Appeals (preferably with the liberal DC Circuit). Filing a petition for a rehearing with FERC is Step #1. Federal lawsuit is Step #2. Below is news about the petition, a copy of the 40-page petition, and a press release from one of the backbencher groups…
    Read More “Little Green Takes 1st Step in Suing to Block Atlantic Coast Pipe”

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    Longer Laterals Major Trend in 2017 Marcellus-Utica Drilling

    Yesterday MDN updated you on Eclipse Resources’ program of drilling looooong laterals–the horizontal part of shale wells (see Eclipse Res. 3Q17: Super-Laterals Proving to be Super Productive). Eclipse is the reigning champ, having drilled the three longest onshore horizontal wells–in the WORLD. Upward of 3.5 miles underground! All three of Eclipse’s record-breakers are Utica wells. However, Eclipse isn’t the only driller hopping on the long lateral bandwagon. In June, Range Resources reported drilling the longest Marcellus lateral well (see Range Resources Drills Longest Marcellus Well Ever – in Washington Co.). If you compare the lateral length of Range’s wells from 3Q17 with 3Q16, they are drilling laterals 90% longer than they were just one year ago! EQT and Antero Resources are also experimenting with longer laterals. All of which leads us to christen 2017, “the year of the longer lateral”…
    Read More “Longer Laterals Major Trend in 2017 Marcellus-Utica Drilling”

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    1st Marietta College Oil and Gas Technical Exposition Big Success

    Credit: Marietta College

    Hats off to the smart and ambitious kids at Marietta (OH) College. A group of students in the college’s oil and gas program planned and hosted the first Marietta College Oil and Gas Technical Exposition (MCOGTE) last Friday. There were 51 companies exhibiting at the event. The event drew over 400 attendees–students, members of the oil and gas industry, and members of the local community. There were five large pieces of equipment prominently on display: Halliburton’s Data Van, a Halliburton 30-foot long mud motor, a Nine Energy wireline truck, a Wagner torque and test unit, and an Aqua Source lab. These kids know how to put on a good show! The event offered opportunities to learn and network. Callum Streeter, COO of EdgeMarc Energy and president of Appalachia AADE (American Association of Drilling Engineers) was the keynote speaker. Below is a roundup of what happened at the event…
    Read More “1st Marietta College Oil and Gas Technical Exposition Big Success”

  • Marcellus & Utica Shale Story Links: Tue, Nov 14, 2017

    The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: New energy milestone thx to natgas; value of OH oil & natgas increased sharply in 2016; FERC permits Cove Point LNG commissioning cargo; Norfolk debates allowing Atlantic Coast Pipe under water reservoir; Gulf Coast natgas export hub for years to come?; US rig count up by 9, WV loses 1 rig; natgas prices “on a tear”; friends and foes oppose Trump energy plan; should U.S. limit natgas exports?; natgas demand to see big growth this year–in China; Pakistan starts looking for shale oil & gas; and more!
    Read More “Marcellus & Utica Shale Story Links: Tue, Nov 14, 2017”

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    Tyler County, WV Mentioned as Candidate for $10B NGL Storage Hub

    In May 2016, MDN brought you the news that a researcher at West Virginia University (WVU) believes a natural gas liquids (NGL) storage hub is what the Marcellus/Utica region really needs (see WVU Researcher Says Marcellus/Utica Needs an Ethane Storage Hub). According to Brian Anderson, director of WVU’s Energy Institute, without ethane storage (and pipelines) the Marcellus/Utica region risks seeing its abundant ethane leave the area, mostly heading to the Gulf Coast. We need that ethane here, in our area. Kevin DiGregorio, executive director of the Chemical Alliance Zone, also took up the cause in an editorial in July 2016 (see WV, OH, PA, KY Should Cooperate on $10B NGL Storage Hub). Since that time we’ve run a number of stories about the proposed $10 billion NGL storage hub for the Marcellus/Utica. In particular, West Virginia’s two U.S. senators, Shelley Moore Capito (Republican) and Joe Manchin (Democrat) have been pushing hard for such a hub (see WV Senators Ask Trump to Create NGL Storage Hub Commission). It has been thought that WV and PA and OH would need to cooperate to help fund such a project. Even the mighty Shell cracker is “only” costing $6 billion! So $10 billion is almost incomprehensible. But then everything changed last week when we told you we now have a pretty good idea of how the project will get funded–by the Chinese (see China Agrees to Invest Amazing $83.7 BILLION in WV Shale, Petchem). West Virginia has, from the beginning, been the state most often mentioned as the location for such a storage hub–but until now no specific site has come across our radar. That’s changed. With money flowing from China for a bevy of shale-related projects, different locations across the Mountain State are speaking up. Tyler County is the latest, saying they are under consideration for the $10B NGL storage hub, and they will do “whatever needs to be done” to win the project. There are, however, two other locations in WV also under consideration…
    Read More “Tyler County, WV Mentioned as Candidate for $10B NGL Storage Hub”

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    Antero’s $275M WV Wastewater Recycling Facility Ready to Launch

    By our reckoning, Antero Resources’ $275 million wastewater recycling facility in Doddridge County, WV is either already operational, or will be within the next few days (sometime this week). In 2015 Antero hired Veolia Water Technologies Inc. to build a new shale wastewater recycling facility in Doddridge County (see Antero Building New 60K Bbl Wastewater Recycling Facility in WV). The facility, called the Clearwater Facility, will process 60,000 barrels of wastewater per day, separating water, salt and radioactive particles. The salt can be sold to municipalities for use as road salt–but frankly there’s not enough of a market to sell it all. And not all of it will be of sufficient quality to be sold that way. So Antero also spent $20 million to build a landfill next to the plant for the salt (see Update on Antero’s $275M Wastewater Facility in WV). According to the Clarksburg Exponent-Telegram, an Antero official recently said the Clearwater Facility is set to open in “the first part of November.” If you consider the first 15 days of the month the first part of the month, that leaves two days for the facility to be up and running. Hence our speculation it either already is open, or will be this week…
    Read More “Antero’s $275M WV Wastewater Recycling Facility Ready to Launch”

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    Pittsburgh-based Water Provider for Shale Drillers Expanding

    HydroEdge Solutions is on the grow. The company designs and operates temporary water lines for Marcellus/Utica drillers. The company started in 2013 in Pittsburgh with three employees, and today they have 92 employees! HydroEdge is looking to add another 20 employees using $8 million of debt financing they just received from an unnamed “independent, third party lender.” That money breaks down as a $5 million one-year loan and a $3 million line of credit. Some of HydroEdge’s A-list customers include EQT, CNX/CONSOL, Rice Energy, Statoil, and EdgeMarc Energy. Impressive list. Here’s the lowdown on an up-and-coming service provider in the Marcellus/Utica, flush with cash and ready to hire…
    Read More “Pittsburgh-based Water Provider for Shale Drillers Expanding”

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    Update on Proposed 60-Mile Pipeline from NW Pa. to NE Ohio

    Click for larger version of map

    We have some progress to report, and a pair of public hearings coming up, for a pipeline project proposed to run from Meadville, PA area (Crawford County) and extend in a northwest direction to Ashtabula County, OH. Three weeks ago MDN brought you details about the proposed Risberg Line Project, to be built by RH energytrans (see New 60-Mile Pipeline Proposed from NW Pa. to NE Ohio). The project will use approximately 32 miles of existing pipeline in an established Right of Way originating in the Meadville, PA area. Approximately 16 miles of new pipeline will be installed in Pennsylvania and approximately 12 miles of new pipeline will be installed in Ohio–meaning 28 miles of brand new “greenfield” pipeline needs to get built. The new news that we’ve learned is that two school districts in Ohio where the pipeline will traverse have agreed to reduce the amount of property tax the pipeline would need to make by 75% over a 15-year period. That’s a huge vote of confidence. We also learn that around 100 Erie and Ashtabula county property owners have already signed easements to allow the pipeline across their property. While no pipeline project anywhere in the northeast has a smooth ride, this one certainly seems to be sailing right along. Perhaps the first test of whether or not anti-fossil fuel nutters will begin to oppose it will come at a pair of public hearings for the project–one on Dec. 5 in Conneaut, OH, and the other Dec. 6 in Edinboro, PA…
    Read More “Update on Proposed 60-Mile Pipeline from NW Pa. to NE Ohio”

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    Et tu Brute? PA Rep. Garth Everett Falls for Severance Tax Trap

    We have long admired Pennsylvania State Rep. Garth Everett, Republican from Muncy (Lycoming County), PA. Everett has been in the forefront of trying to get “minimum royalty” legislation passed that would guarantee PA landowners would get minimum royalty payments of 12.5%–regardless of any kind of post-production expenses. He’s been introducing a bill to do just that for the past three sessions (six years), the most recent attempt this year in February (see PA Rep. Garth Everett Reintroduces Minimum Royalty Bill, 3rd Time). Although Everett’s stance on the minimum royalty bill has him at odds with the drilling industry, he has always struck us as pro-gas and a friend to the industry. So we were particularly saddened to read Everett is now voicing support for a Marcellus-killing severance tax. Perhaps Everett has been influenced by fellow Lycoming County politico State Sen. Gene Yaw, who sold out the industry by supporting a severance tax during the recent budget votes (see Traitorous PA Senate Republicans Pass Severance Tax Bill). MDN note: Sen. Yaw reached out to MDN several times with caustic comments, taking issue with our view of his betrayal of the industry. Or maybe Everett’s newfound love of taxation has happened in response to the industry vigorously opposing his minimum royalty bill for the past six years, i.e. revenge. Whatever the reason, Everett is now saying he supports a severance tax–as long as the tax can’t be deducted from landowner royalties…
    Read More “Et tu Brute? PA Rep. Garth Everett Falls for Severance Tax Trap”