CONSOL Energy CEO Bends the Ear of Trump Cabinet @ White House

Last week was “Energy Week” at the White House. At a big speech and confab on energy, held at the White House, President Trump delivered a speech highlighting six new initiatives that will help America become energy dominant (see President Trump Unveils 6 Energy Initiatives, Half Involve NatGas). One of the invited guests from industry at that speech/confab was CONSOL Energy CEO Nick Deluliis. CONSOL has transformed itself in a little over a decade from being a coal company to becoming a powerhouse Marcellus/Utica driller. Deluliis took advantage of the meeting to bend the ear, privately, of Energy Secretary Rick Perry and “other cabinet secretaries” to drive home the message “that the Pittsburgh region is at the center of the energy revolution the administration envisions.” Cool! Nick was the unofficial ambassador for the Marcellus/Utica at the meeting. Here’s what else transpired between Nick and Team Trump last Thursday…
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A liberal Democrat County from the Washtenaw County, Mich. Board of Commissioners, someone who obviously ignores the rule of law, has pledged to break the law in her misguided attempt to stop Energy Transfer’s Rover Pipeline project from coming through her county. Lib Dems often like to pick and choose which laws they will obey and which they’ll ignore, so we’re not surprised by the mouthy reaction from Commissioner Michelle Deatrick, D-Superior Township. She’s like many other radical anti-fossil fuelers. Michelle is an Al Gore fan and has apparently overdosed on trailers for Gore’s forthcoming Inconvenient Truth Part Deux fictional flick, called “Truth to Power,” because that’s the exact phase she used at a recent board meeting. Here’s what mouthy Michelle had to say…
We’ve written a fair bit about Velocys, a UK-based gas-to-liquids (GTL) company, over the past several years (
Although we understand self-interest and wanting to protect one’s profit margin, we continue to be distressed that some of the biggest chemical companies in the world (meaning in the U.S.) are still actively trying to block approvals for more LNG export facilities. Why? They want the natural gas they buy (in very large quantities) to be as cheap as possible. In April, Big Chemical–companies like Dow Corning, BASF, Eastman Chemical and others–via their trade association Industrial Energy Consumers of America (IECA) launched an effort to try and persuade Energy Secretary Rick Perry and the Trump Administration to create barriers to exports of natural gas, ’cause you know, it’s “America First” now baby, and we want that gas all to ourselves (see
Events related (or of interest) to the Marcellus and Utica Shale, primarily pro-drilling events.
The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Gas drilling inches in Tioga County, PA back as prices rise; national rig streak ends, down by 1 last week; natgas and electric grid reliability; so-called clean energy’s dirty little secret; Senators intro bipartisan energy bill; gas market glut far from over; US shale drillers are drilling themselves into a hole; EIA annual energy conference; Qatar blockade; and more!
Last December Spectra Energy pushed the pause button on their Access Northeast Pipeline project, a roughly $3 billion project in New England to connect four existing pipeline systems (with enhancements): Texas Eastern, Algonquin Gas Transmission, Iroquois and Maritimes & Northeast (see
Ohio is about to pass and adopt it’s latest biennial budget. Part of the budget bill includes language to exempt Ohio’s city and town parks from the state’s unitization (i.e. forced pooling) laws. In Ohio, if 65% of the landowners in a proposed unit have agreed to lease their land for oil or gas drilling, the other landowners in the unit can be forced to join the unit to allow drilling under (not on) their land. There are all sorts of requirements before forced pooling occurs, including a $10,000 fee paid by the driller, and a hearing to review efforts made to enroll said recalcitrant landowners. But in the end, it is possible to force landowners who don’t want drilling, to have it. The justification is that those who don’t want it are harming those who do want it by not agreeing to join the unit. Should the action of someone with a few acres deny benefits to all of his neighbors? We’re not saying we support the concept of forced pooling–just giving you our best interpretation of the arguments used to support it. We understand those arguments. We also understand the sanctity of private property. Until now, local towns and municipalities in Ohio were treated like any other landowner. But now, with the new budget, they will get a special exemption. Local municipalities cannot be forced to participate–unless they want to participate–in a drilling unit…
In May, Noble Energy dropped a bombshell that it is selling its 100% interest in 385,000 Marcellus/Utica acres and wells producing 415 million cubic feet equivalent of natural gas in West Virginia and Pennsylvania for $1.225 billion to “an undisclosed buyer” (see
In January, MDN reported on a well pad fire at Rice Energy’s Papa Bear well pad in Somerset Township (Washington County), PA (see
Atlas Energy, a once-major driller in the Marcellus Shale, sold much of their Marcellus operations to Chevron in 2011 (see
Earlier this month MDN reported that extreme partisan Sen. Chuck Schumer had recommended to the White House that Richard Glick, a current a Senate staffer (i.e. swamp dweller) and former lobbyist for the wind industry, should succeed Democrat Colette Honorable as the second Democrat commissioner on the Federal Energy Regulatory Commission (see
For years now, coal and natural gas have been uneasy allies (both being fossil fuels). As mainstream media has endlessly covered, natural gas increasingly displaces coal to generate electricity. That has led to some situations of open sniping between the two camps. Coal wants to protect what’s left of its shrinking market, natural gas pushes the fact that it’s far cleaner to burn than coal. Back and forth it goes. Both camps realize they are under assault by radical environmentalists who desire to end the use of all fossil fuels, no matter how “clean” they are. We spotted an article about a clash between coal and natural gas in Illinois. There are a lot of coal mines near Springfield, IL. EmberClear wants to build a $1 billion, 1,100 megawatt combined-cycle natural gas-fired plant about 15 miles from Springfield. Coal sees it as a direct assault and will lead to the closing of local mines and the loss of jobs. EmberClear isn’t backing down–they will build even without tax breaks. The whole matter appears to us to have progressed from impolite talk and sniping into a full-blown war…
Pennsylvania does not have a revenue problem–it has an overspending problem. Once again the Republican-majority legislature in PA is caving to the siren song/pressure of wild-spending, liberal Democrats and will pass a budget that is $2 billion over the revenue they can reasonably expect–sprinkled with giveaways like an extra $100 million for teachers unions–and beginning next week the Republicans will face a barrage of media stories and pressure to create a severance tax to help make up the difference. Already we’re seeing stories about the need for a “fair gas tax” and that a severance tax is “long overdue.” What about passing a “fair budget” that doesn’t overspend? What about “fiscal responsibility” that’s long overdue? Where are those stories? And, when will Republicans learn to quit playing the Dem’s game?…