• Marcellus & Utica Shale Story Links: Thu, Mar 30, 2017

    The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Federal judge keeps AG Schneiderman and #ExxonKnew on defense; Rover Pipeline makes progress in Belmont County; Shale Crescent hosts forum in Marietta; Utica Shale Academy joins forces with trade school re welding; anti group wants Shell to “study” cracker’s “enviro footprint”; shale oil drillers face uncertain 2018 with hedges expiring; using DNA in oil drilling; years-old Chesapeake bond lawsuit grinds on; and more!
    Read More “Marcellus & Utica Shale Story Links: Thu, Mar 30, 2017”

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    PA DEP Issues 2 Wastewater Injection Well Permits, Sues 2 Towns

    Good news for Pennsylvania drillers: the PA Dept. of Environmental Protection (DEP) finally, after years of review, granted permission to two different companies to operate two new wastewater injection wells in the Keystone State. One well is located in Elk County, the other in Indiana County. With these two new injection wells coming online, the state will have a total of eight operating injection wells (vs. hundreds in Ohio). You may have seen news about the newly authorized injection wells from other news sources yesterday. But you read MDN for “the rest of the story.” And here it is, something you won’t find anywhere else (until other news sources read MDN): As soon as the DEP issued the permits for the injection wells, the DEP filed lawsuits against the two townships where the injection wells will be located, because both of those townships–Highland Township in Elk County, and Grant Township in Indiana County–had previously passed so-called Home Rule Charters in an attempt to prevent the injection wells from being located in their towns. The DEP has sued each of them (copy of the Highland lawsuit below) to correct laws that attempt to prevent the DEP from doing its job in authorizing the injection wells. We have the full news of the DEP’s decision to permit the injection wells, along with details about the lawsuits, below…
    Read More “PA DEP Issues 2 Wastewater Injection Well Permits, Sues 2 Towns”

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    Energy Sanity Day: Trump Exec Order Axes CPP, Methane Rule

    Yesterday President Trump made a trip to the Environmental Protection Agency to sign an executive order titled the “Energy Independence Executive Order” which takes aim at rolling back Obama’s disastrous Clean Power Plan. The new executive order also lifts a ban on leasing federal lands for coal mining, nixes new regulations aimed at trapping every last molecule of methane from oil and gas drilling & pipelines (unrealistic and very costly), and reduces, but does not eliminate, the role of so-called global warming when making decisions about authorizing new infrastructure projects. It was, by all accounts, a red letter day for responsible environmental policy–a day to correct some of the extreme overreach we’ve seen by the EPA over the past eight years under the Obama regime. Below we have a copy of the executive order and some of the reaction to it…
    Read More “Energy Sanity Day: Trump Exec Order Axes CPP, Methane Rule”

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    Did Pruitt Hold Trump Back from Going Further re Climate Order?

    Scott Pruitt – EPA Administrator

    Yesterday President Trump signed an executive order titled the “Energy Independence Executive Order” which takes aim at, among a number of things, rolling back Obama’s disastrous Clean Power Plan (see Energy Sanity Day: Trump Exec Order Axes CPP, Methane Rule). However, did Trump’s executive order yesterday go far enough? Some conservatives say, “NO!” And some conservatives are angry with EPA Administrator Scott Pruitt–fingering him as the reason why Trump’s executive order didn’t do enough. Specifically, the Paris climate deal is not mentioned. In December 2015 then-President Obama signed the Paris climate agreement/treaty that commits the nations of the world to lower carbon dioxide emissions (see Paris Climate Treaty Signed by Obama NOT Binding on U.S.). Carbon dioxide (CO2) is the stuff you exhale with every breath you take. An overabundance of it is supposedly warming up ole Mom Earth–catastrophically. Except it’s not. There is no empirical data that shows the earth is heating up–only doctored computer models. Satellite data shows the opposite, the average temp of Mom Earth is not heating up and hasn’t been for nearly 20 years. But facts aren’t what the Paris agreement was about. We can tell you what the agreement is about in two simple points: (1) transferring massive amounts of hard-earned wealth away from America to other countries, via a carbon tax; (2) banning the use of all fossil energy–asap. Critics of yesterday’s Trump executive order say it was a sterling opportunity to officially pull out of the Paris treaty, and Trump didn’t, because (they say) Scott Pruitt wants to run for governor of Oklahoma, or the Senate…
    Read More “Did Pruitt Hold Trump Back from Going Further re Climate Order?”

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    WV DEP Grants Mountain Valley Pipeline Water Crossing Permit

    The Mountain Valley Pipeline (MVP) is a $3.5 billion, 301-mile pipeline that will run from Wetzel County, WV to the Transco Pipeline in Pittsylvania County, VA. The project, which filed an official application with the Federal Energy Regulatory Commission in October 2015, is being built by EQT, NextEra Energy and several other partners. The project has faced stiff opposition from landowners in both West Virginia and Virginia. Although the project is not yet fully approved by the Federal Energy Regulatory Commission (FERC), the project did get a favorable Draft Environmental Impact Statement from FERC last September (see FERC Gives WV to VA Mountain Valley Pipeline Provisional Thumbs Up). MVP had wanted a final Environmental Impact Statement by March 10th, but that didn’t happen. They’re still waiting. But there is a bit of good news for MVP: the WV Dept. of Environmental Protection yesterday issued a State 401 Water Quality Certification for the MVP project. However, there are still a couple of other WV permits under review, so MVP has not yet gotten the all clear signal in the Mountain State just yet…
    Read More “WV DEP Grants Mountain Valley Pipeline Water Crossing Permit”

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    Rover Pipe Uses Local Sheriff’s Deputies for Security in Mich.

    Sadly, it’s come down to this. Even when entering a property to cut a few trees, pipeline companies like Energy Transfer’s Rover Pipeline must now have a police escort. Rover is paying $60/hour to have Sheriff’s deputies escort tree trimming crews in Livingston County, MI, following an incident where one landowner told tree clearing workers working near (not on) his property that he was going to kill them–according to court records. Seems like a sensible precaution to have the cops handy, to keep the peace and to keep the nutters in check…
    Read More “Rover Pipe Uses Local Sheriff’s Deputies for Security in Mich.”

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    PA DEP Conducting “Listening Tour” for “Environmental Justice”

    Last December the Pennsylvania Dept. of Environmental Protection (DEP) said it would go on a “listening tour” in early 2017, to focus on so-called environmental justice–whatever that is (see PA DEP to Conduct ‘Listening Tour’ for ‘Environmental Justice’). It’s no longer early 2017, but the DEP has finally set up a schedule for its listening tour. Our take: “environmental justice” means asking poor people if they’ve been abused by the oil and gas industry in any way–and if they have a beef, the DEP will “do” something about it. This isn’t the first “listening tour” conducted by the DEP. You may recall in 2013 the agency conducted a listening tour for new drilling regulations (see PA DEP Launches Public Comments on New Drilling Rules, Roadshow). It went so well, they extended it into 2014 (see PA DEP Extends Roadshow for Public Comment on New Drilling Rules). In 2015, the now-fired DEP Sec. John Quigley went on a 14-stop listening tour to elicit input on PA’s version of Obama’s disastrous Clean Power Plan (see DEP launches public talks on Clean Power Plan). Yesterday President Trump essentially dumped the CPP (dreams DO come true!). The DEP’s newest listening tour will hit nine whistle stops beginning in April and ending in May…
    Read More “PA DEP Conducting “Listening Tour” for “Environmental Justice””

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    New Report Shares Key Insights from 100+ Qtly Earnings Reports

    Quarterly earnings calls are a great source of industry information, particularly during the question & answer sessions, when analysts help breathe life into stale earnings press releases by asking questions that many times force managers to go off-script. They are also excellent ways to check on the competition, and to “channel check” by seeing how different parts of the value chain are performing, such as oilfield service, E&P, and midstream companies. MDN highlights these calls from time to time, extracting salient comments. A typical earnings call lasts an hour. Unless it’s your business to listen to these calls, who has the time to review them all? We’ll tell you who: NGI (Natural Gas Intelligence). NGI’s research department is top notch, lead by former Wall St. analyst (and MDN friend) Patrick Rau. As he does each month, Pat (and other NGI analysts) have just sat through 100 earnings calls (over 200 hours!). Each quarter, going back years, Pat and NGI’s analysts have created a concise report that summarizes the main/big/wickedly interesting points to come from these calls. Normally that quarterly report is for internal purposes only–for NGI’s sales and journalistic arms. This time, however, NGI has decided to publish it. Among the companies analyzed in the “4Q16 U.S. Oil & Gas Earnings Report: Research & Analysis” report are some of the biggest and best in the Marcellus/Utica, including Chesapeake Energy, EQT, Halliburton, Marathon, Range Resources, Rice Energy and Williams. This is an important report that will help you make sense of the oil and gas sector–where it’s at right now, and where it’s most likely heading in the coming year…
    Read More “New Report Shares Key Insights from 100+ Qtly Earnings Reports”

  • Marcellus & Utica Shale Story Links: Wed, Mar 29, 2017

    The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Disturbing video shows OH antis out on the fringe; natgas will still beat coal in OH, even with Trump order; OH issues 9 permits for Utica last week; why is PA DEP shooting at gas pipes; o&g upswing energizing SW PA; Michigan Senate OKs higher weight limit for natgas trucks; the wealthiest oil & gas billionaires in the US; Dear Sierra Clubbers; and more!
    Read More “Marcellus & Utica Shale Story Links: Wed, Mar 29, 2017”

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    Williams Files with FERC to Expand Transco Pipeline to NYC, NE

    In May 2016, Williams’ Transcontinental Gas Pipe Line Company (Transco) pre-filed with the Federal Energy Regulatory Commission (FERC) for a project called the Northeast Supply Enhancement project (see Williams Pre-Files with FERC to Expand Transco Pipeline in PA, NY). The new project is meant to increase pipeline capacity and flows heading into northeastern markets. In particular, Transco wants to provide more natural gas to utility giant National Grid beginning with the 2019-2020 heating season. National Grid operates in New York City, Rhode Island and Massachusetts. Also in May, Williams ran an open season to lock up commitments for the Northeast Supply Enhancement project (see Williams Announces Open Season for Northeast Supply Enhancement). The open season worked. National Grid committed to all 400,000 dekatherms (400 million cubic feet per day) of extra gas the project will provide. Last September Transco held four public hearings about the proposed project. The time for hearings and comments and pre-filings is over. Yesterday Williams announced they have made an official, full application for the Northeast Supply Enhancement project…
    Read More “Williams Files with FERC to Expand Transco Pipeline to NYC, NE”

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    FERC Gives Columbia WB XPress Enviro Thumbs Up

    Click image for larger version

    In Jan. 2016, Columbia Pipeline Group (now owned by TransCanada) filed their full, official application with the Federal Energy Regulatory Commission (FERC) for approval of the $850 million WB XPress Project (see Columbia Pipeline Files to Build $850M WB XPress Project in WV/VA). WB XPress consists of two new compressor stations, 26 miles of pipeline replacement located along existing corridors, and 2.9 miles of new pipeline in Virginia and West Virginia. The WB XPress Project will expand capacity of the Columbia Gas Transmission pipeline system in the region by 1.3 billion cubic feet per day (Bcf/d), linking Marcellus gas supplies to new markets. The first and most important step in an approval process is an environmental review conducted by FERC. If the environmental assessment (EA) comes back positive, the project is virtually assured of approval. Good news: FERC just delivered a favorable EA for WB XPress…
    Read More “FERC Gives Columbia WB XPress Enviro Thumbs Up”

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    Constitution Pipeline Still Waiting on “Biggie” Court Decision

    Last week MDN brought you the news that a federal judge had dismissed a case brought by the Constitution Pipeline against the New York Dept. of Environmental Conservation (DEC) over the issue of denying water crossing permits for the project (see Federal Judge Rejects Constitution Pipe Request to Bypass NY DEC). What we have since come to understand is that this was one of two lawsuits filed by the Constitution against the NY DEC. In fact, it was the lesser of the two lawsuits. The “biggie” lawsuit is still not yet decided. That decision will come from the U.S. Court of Appeals for the Second Circuit–and is due to arrive within the next two months. The fate of the project hangs in the balance. Lawyers for the Constitution are confident that the court will find the DEC’s denial of permits is capricious and politically motivated, and will strip the DEC of its role in the project. If that happens, it is the equivalent of a 10.0 earthquake. The DEC will no longer play a role in federally regulated pipeline projects. Perhaps if the DEC wants to maintain a role in such projects, they ought to move forward and issue those permits now (i.e. “settle out of court”), before the ruling comes down…
    Read More “Constitution Pipeline Still Waiting on “Biggie” Court Decision”

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    Gun Loaded & Cocked, Maryland About to Commit Fracking Suicide

    Several weeks ago the Maryland House of Delegates put the bullet in the chamber of gun when they voted to ban fracking (see Maryland House overwhelmingly approves fracking ban). Yesterday the Maryland Senate cocked the hammer of the gun by voting 35-10 in favor of a frack ban. Now the legislation goes to Republican Gov. Larry Hogan (traitor, ran on a platform supporting fracking) who has pledged to pull the trigger and shoot the state in the head, committing fracking suicide (see Maryland’s Traitorous “Republican” Gov Caves, Supports Frack Ban). What a shame. Democracy and freedom never die from invading countries–it’s always internal, from within, from the people themselves who willingly give up the freedoms won with the blood and sacrifice of their ancestors. RIP Maryland–a once-great state. We recommend a total boycott of Maryland from now on. If you can avoid it, don’t shop there, don’t stop there, don’t stay there, quit buying anything made in Maryland–just avoid it whenever and wherever possible…
    Read More “Gun Loaded & Cocked, Maryland About to Commit Fracking Suicide”

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    Antero Ramps Up Growth, Owns 40% of Undeveloped M-U NGL Acreage

    We have commented and observed a number of times that Antero Resources, one of the biggest drillers in the Marcellus/Utica, is perhaps the best company in our region at hedging. As we wrote in January 2016: “What’s Antero’s secret to making money in arguably the worst time for our industry in a generation? In a word, it’s hedging. Somehow Antero crafts financial deals a year or more in advance to sell whatever gas they produce for prices much higher than others–at prices that mean the company continues to make a profit. Most energy companies these days are keeping the people who run those companies, AND their investors, up at night. A company like Antero comes as close to any as a SWAN–a ‘Sleep Well At Night’ energy company” (see How Antero Resources Converted an Ugly Duckling into a SWAN). Antero consistently gets more money for the gas it sells than other large drillers in the M-U. So we like to keep an eye on the company. An analyst at Morningstar, an investment research and investment management firm headquartered in Chicago, published an article yesterday closely looking at Antero. He finds that Antero is gearing up to grow NGLs (natural gas liquids) in 2017. Little-known factoid: Antero owns 40% of the undeveloped liquids-rich acreage in the Marcellus/Utica region. Can the company repeat its top hedging performance with NGLs, as they have with methane?…
    Read More “Antero Ramps Up Growth, Owns 40% of Undeveloped M-U NGL Acreage”

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    EQT Raises Estimates of Methane, NGL Production for 2017

    In December 2016 EQT, one of the largest Marcellus/Utica drillers with its headquarters in the Pittsburgh area, released a forecast for 2017 (see EQT 2017 Forecast: Drilling 119 Marcellus, 81 UD, 7 Utica Wells). At that time, EQT said they would spend $1.5 billion to drill a total of 200 Marcellus and Upper Devonian wells, and 7 exploratory Utica wells. Yesterday EQT released an update to/revision of their 2017 plans. The new plan still shows a budget of $1.5B to drill a total of 207 wells. So what changed? EQT is drilling longer laterals–from 7,000 feet on average to 8,000 feet on average, for their Marcellus wells. EQT finds by doing so their decline curves (how much a well will ultimately produce) has increased by 14% to 2.4 billion cubic feet equivalent per 1,000 feet drilled. Originally EQT forecasted they would produce 810-830 billion cubic feet equivalent (Bcfe) of natural gas. That has gone up. They now plan to produce 835-855 Bcfe of natural gas in 2017. NGLs are going up too. The original forecast was for 13,100-13,700 barrels of liquids, now raised to 17,975-18,575 barrels. The one “negative” in this updated forecast is that EQT has factored in a 15% rise in the cost of oilfield services…
    Read More “EQT Raises Estimates of Methane, NGL Production for 2017”

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    Schlumberger Throws Weatherford a Lifeline, Challenges Halliburton

    Schlumberger is the world’s largest oilfield services (OFS) company. Weatherford International is the world’s fourth largest OFS company. They both have operations in the Marcellus/Utica region. We’ve posted a number of stories about Weatherford’s financial troubles–and seemingly inevitable march toward bankruptcy (see our stories here). However, Weatherford may have just gotten a reprieve from its much larger competitor. On Friday, Schlumberger and Weatherford announced they have formed a joint venture called OneStim, “to deliver completions products and services for the development of unconventional resource plays in the United States and Canada land markets. The joint venture will offer one of the broadest multistage completions portfolios in the market combined with one of the largest hydraulic fracturing fleets in the industry.” Hmmm. Interesting. Here’s why. The world’s second largest OFS company is Halliburton. However, Halliburton is the world’s largest fracking company. The media is universally claiming the Schlumberg/Weatherford jv is squarely aimed at overtaking Halliburton to become the world’s largest fracking service. Can they do it? Another interesting observation: Earlier this month Mark McCollum, who had been Chief Financial Officer (CFO) of Halliburton left to become the CEO of Weatherford (see Halliburton CFO Leaves to Become Weatherford CEO). We don’t think it’s a coincidence that Weatherford is now making a play to best its larger rival Halliburton, leveraging McCollum’s knowledge of how Halliburton became king of fracking. Two thoughts on the Sclumberger/Weatherford hook-up: (1) it keeps Weatherford out of bankruptcy by infusing $535 million of cash, (2) We think it may be the prelude to a full-out sale of Weatherford to Schlumberger down the road…
    Read More “Schlumberger Throws Weatherford a Lifeline, Challenges Halliburton”