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    Moody’s: Canadian Companies Still in Hunt for More US Pipelines

    Last year Canadian companies went on a midstream (pipeline) buying spree, snapping up major U.S. companies. In March 2016, MDN reported that Canadian midstream giant TransCanada, lusting for a bigger piece of the Marcellus/Utica pipeline pie, decided to buy Columbia Pipeline Group for $10 billion (see TransCanada Makes Play to Buy Columbia Pipeline for $10B). That deal closed in July (see TransCanada and Columbia Pipeline Tie the Knot Today). Then in September, MDN reported Canadian pipeline operator Enbridge Inc. announced an all-stock deal to buy out pipeline operator Spectra Energy, based in Houston, for $28 billion (see Canadian Enbridge Buying US Spectra Energy for $28B). Spectra has a number of critical pipeline infrastructure projects under way or planned in the Marcellus/Utica region, including the planned Access Northeast pipeline to New England, the mighty NEXUS pipeline planned to span Ohio, the currently under construction Algonquin Incremental Marketing (AIM) pipeline project, and three projects (Access South, Adair Southwest and Lebanon Express) under way to expand one of the largest natural gas pipelines in the U.S. (and in the northeast)–the Texas Eastern Transmission (Tetco) pipeline. The merger was completed in February (see Spectra Energy is No More – $28B Merger with Enbridge Complete). According to a new report by Moody’s Investors Service, last year Canadian companies spent $89 billion to snap up utility and pipeline companies across the U.S. The report’s authors say they “anticipate more” such purchases this year… Read More “Moody’s: Canadian Companies Still in Hunt for More US Pipelines”

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    Fracker Keane Group Continues Expansion, Buys RockPile Energy

    Keane Group is a Texas-based oilfield services company that provides fracking, wireline and top-hole air drilling services to oil and gas companies in the Marcellus/Utica as well as several other major basins. In January 2016, Keane announced they were buying out Canadian-based Trican Well Service for $247 million (see Oilfield Serv. Co. Keane Group Buys Trican Well Service for $247M). The expansion tripled Keane’s fracking capacity and gave it access to proprietary new technology. The buyout, and Keane’s hard work, bore fruit. Last December the privately-held company announced it will go public with an initial public offering (IPO) of stock, hoping to raise $287.5 million with the IPO (see Oilfield Services Co. Keane Group Floats $288M IPO). Keane is expanding again. Last week the company announced it’s buying out fracker RockPile Energy Services for $284.5 million. The newly expanded Keane will then take it’s place as one of the “top four or five” fracking companies in the United States… Read More “Fracker Keane Group Continues Expansion, Buys RockPile Energy”

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    ExxonMobil & Employees Contribute More than $50M to Higher Ed

    You know how money-grubbing, cheap, careless and in general no-good those Big Oil companies are, right? They only care about themselves. They seek to rape and pillage Mom Earth, keeping piles of gold in their coffers, killing humankind in the process. That’s the picture painted by anti-fossil fuel nuts. Here’s the real picture: In 2016, between employees and the corporation, Exxon Mobil donated more than $50 million to colleges and universities across the United States. That is a staggering number. Many of those colleges and universities were located in the Appalachian basin (Marcellus/Utica), including $2.7 million in PA, $800K in OH, $1.4 million in VA, $3.2 million in NY and $1.2 million in NJ. Just the opposite of the negative picture painted by the enemies of fossil fuels… Read More “ExxonMobil & Employees Contribute More than $50M to Higher Ed”

  • Marcellus & Utica Shale Story Links: Tue, May 23, 2017

    The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: States push for stronger oil train limits; o&g industry update coming for Jefferson County, OH; Utica Shale Academy talks about the future; PennEast Pipeline needed for Blue Mountain Resort; Consumers Energy spending $440M on natgas pipe upgrades in Michigan; tribes drop lawsuit against Dakota Access Pipeline; frac sand prices; petroleum demand keeps going up; Aramco signs $50 billion in deals with US companies; and more! Read More “Marcellus & Utica Shale Story Links: Tue, May 23, 2017”

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    OEPA & Rover at Odds Over Storm Water Runoff, “Fine” Now $714K

    More trouble for Energy Transfer and the Rover Pipeline project as the company is working against a tight deadline to get the $3.7 billion, 711-mile Marcellus/Utica natural gas pipeline that traverses Ohio up and running this year. It appears as if the Ohio Environmental Protection Agency (OEPA) is hellbent on picking a fight with the project. Perhaps some of OEPA’s criticisms are justified–perhaps some are not. We’ll give you the “lay of the land” (pun intended) as we see it. Early on Rover appeared to rush too much, resulting in numerous drilling mud spills in locations where Rover was drilling underground to avoid creeks and rivers and other structures. One of those spills dumped 2 million gallons of drilling mud (i.e. bentonite) in a wetland next to the Tuscarawas River (see Rover Pipeline Accident Spills ~2M Gal. Drilling Mud in OH Swamp). Following that accident and other accidents where mud was spilled, the OEPA announced it had fined Rover $431,000. As it turns out, that OEPA claim, made by OEPA spokesman James Lee, was a little white lie (see Turns Out OEPA & Columbus Dispatch Were Lying – Rover NOT Fined). Apparently the OEPA has “suggested” such a fine, but a long process now ensues where such a fine (and the alleged infraction) are negotiated. So no, no fine has actually been assessed, yet. The James Lee from the OEPA is back, partnering up his favorite mainstream mouthpiece–the Columbus Dispatch–to claim that Rover did not plan storm water management properly and that Rover’s poor planning has resulted in heavy storm water runoff into farmers’ fields where Rover is digging trenches. So OEPA is upping their $431,000 “fine” (that’s not actually a fine, yet) to $714,000! Here we go again… Read More “OEPA & Rover at Odds Over Storm Water Runoff, “Fine” Now $714K”

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    WV EDA Approves $10M Loan for Methanol Plant in Institute

    Last year MDN was the first to share the news that the California-based US Methanol is building at least two, rumored up to five, methanol plants in the Mountain State (see Rumor: US Methanol Building 5 Methanol Plants in WV). MDN shared a rumor (based on a source) that until we disclosed it, was not public knowledge: The first methanol plant they will build will be in Institute, WV, and the second in Belle, WV–both in the Charleston region. We also told MDN readers that both plants were being disassembled in other countries and brought here. Our rumor/news was later verified by several other news sources, including new details that both Brazil and Slovenia were the countries losing plants. The plant in Brazil was/is being disassembled and moved to Institute (see US Methanol Confirms MDN Rumor – 2 (or More) Plants Coming to WV). We have an update. The West Virginia Economic Development Authority has approved a $10 million loan to US Methanol to purchase machinery and equipment for the Institute plant. US Methanol says progress is being made on moving the plant from Brazil to WV, and that the plant should be up and running by late this year/early next year… Read More “WV EDA Approves $10M Loan for Methanol Plant in Institute”

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    PA Appeals Court Clears Way for EQT to Drill Jefferson Hills Well

    In December 2015 MDN told you about EQT’s application to drill a single shale well in Jefferson Hills (Allegheny County), PA (see Jefferson Hills, PA Antis Oppose EQT Well Near Future School Site). The well would be drilled “near” where a new school is due to be built, which provided anti-fossil fuelers with an excuse to oppose the project. As part of the a conditional use permit, EQT agreed to (a) not use Borough roads during construction, (b) use a pipeline from a local water company instead of trucks for the water needed to drill and frack, greatly reducing the amount of truck traffic, (c) pledged the project would not impact local streams and wetlands, (d) comply with local lighting regulations, and (e) install sound walls if needed. In other words, EQT bent backwards, forwards, sideways, jump through numerous hoops and turned itself inside out to comply with requests from the town. The Borough Planning Commission unanimously approved the conditional use permit request. But then the town, bowing to pressure from local antis, rejected the request in December 2015, saying the proposed project would endanger local health and the environment. In other words, they had no basis for rejecting the permit. EQT sued and won in the Court of Common Pleas of Allegheny County in June 2016. Jefferson Hills appealed and last week, the Commonwealth Court of Pennsylvania upheld the EQT verdict saying the town arbitrarily rejected the permit and EQT should be allowed to drill…
    Read More “PA Appeals Court Clears Way for EQT to Drill Jefferson Hills Well”

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    Energy Cos. Hedge Bets in WV Senate Race, Donate to Both Sides

    Something we find distasteful, but a fact of political life, is that the energy industry is playing both sides of the isle when it comes to making campaign contributions in West Virginia’s U.S. Senate race. Up for reelection next year (2018) is Sen. Joe Manchin, a former WV governor. Manchin, a so-called moderate Democrat, ran to fill the seat of Robert Byrd when he passed away while in office, in 2010. Manchin ran again two years later for a full term, in 2012. When it came down to voting based on principle or party regarding the issue of overturning a midnight-before-he-left-office-Obama-onerous-methane-regulation, Manchin chose party (see Methane Repeal Fails in Senate as McConnell Falls a Vote Shy). To be fair, three traitorous Republicans abandoned us too–John “crazy” McCain, Lindsey “Grahamnesty” Graham (disgusting man), and Susan “spineless” Collins. However, Manchin could have changed the vote–and he chose to sell out. He’s not on our favorite list. But, the oil and gas industry can’t seem to give him money fast enough in his reelection bid. On the other hand, some in the industry are also giving money to his main Republican rival (Evan Jenkins) in what will be a hotly contested seat. Some are giving money to both candidates, presumably to curry favor with the winner. We find the practice revolting. Choose a candidate and back him (or her). Let the chips fall where they may… Read More “Energy Cos. Hedge Bets in WV Senate Race, Donate to Both Sides”

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    NY’s Grotesque Energy Double Standard re “Home Rule”

    Here’s one that really gets us hot and bothered. MDN is written from Upstate New York (near Binghamton). We covered, extensively, the battle to allow fracking (and now, natural gas pipelines) in our beloved home state. We won’t plow up old ground again except to say that one of the battles fought, and lost, was over whether or not local municipalities can ban fracking for everyone. Two backwater towns in New York–Dryden (Tompkins County) and Middlefield (Otsego County) passed town bans that were challenged in court. The case eventually went to NY’s highest court, the Court of Appeals. We (pro-drillers) lost. Local towns now have the right to outright ban fracking–if and when it ever becomes legal to frack in New York. Some call it the “home rule” law. This was all done at the prompting and urging of a very corrupt governor–Andrew Cuomo. The judges on NY’s high court are appointed by the governor. It’s the worst kind of incest and miscarriage of justice. So along comes a wind power project that a corporation wants to build in Western NY. Some of the locals don’t want it. If they convince their towns to pass a ban on wind projects for the town, guess what? In that case NY state law will overrule the town and allow the wind project to get built anyway. How, on God’s green earth, is that in any sense fair? Here’s what we hope: We hope at least one of the towns involved passes a ban and it goes to court and they throw the high court’s decision on frack bans right back in their face. It’s time to expose the energy double standard in NY…
    Read More “NY’s Grotesque Energy Double Standard re “Home Rule””

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    Williams Gets a New Chairman of the Board

    Stephen W. Bergstrom

    Midstream giant Williams has just appointed a new chairman of the board, Stephen W. Bergstrom, to replace current chairwoman, Dr. Kathleen B. Cooper. Cooper will remain on the board. Williams is the premier midstream (i.e. pipeline) operator in the Marcellus/Utica. The company’s assets are broad and deep, across the entire country. As we pointed out earlier this month, Williams has had quite a ride over the past five years (see Williams is Done Buying & Selling Assets – For Now). The company, according to CEO Alan Armstrong, has retooled itself to focus on natural gas. And perhaps that’s why there has been a change on board. By all accounts Dr. Cooper has done a great job. But she’s an economist, working at various energy companies and for the government. Bergstrom, on the other hand, is former CEO of American Midstream and Dynegy. He’s been in the trenches (pun intended) at other pipeline companies. At least, that’s our observation. The happy thing is that the change does not appear to be from undue influence by corporate raiders, like Keith “Mini-Me” Meister (protege of Carl Ichan)… Read More “Williams Gets a New Chairman of the Board”

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    Time to Boycott US Bancorp for Anti-Pipeline Discrimination

    U.S. Bancorp (aka U.S. Bank) is the fifth largest bank in the United States. Headquartered in Minneapolis, Minnesota, U.S. Bancorp has over 3,000 branches, mostly in the Midwest. The bank recently released an “Environmental Responsibility Policy” (full copy below). In it, the bank says this with respect to financing pipeline projects: “The company does not provide project financing for the construction of oil or natural gas pipelines. Relationships with clients in the oil and gas pipeline industries are subject to the Bank’s enhanced due diligence processes that are outlined further below.” This is TOTALLY unacceptable. The Energy Equipment & Infrastructure Alliance (EEIA) sent an open letter (copy below) to all officers, directors and shareholders calling on the institution to reverse its discriminatory anti-pipeline policy. MDN is a little more impolitic. We’re calling for anyone with a U.S. Bancorp checking, savings, commercial, or any kind of account, to close it. It’s time businesses like U.S. Bancorp are made to pay for this kind of wrongheaded activism…
    Read More “Time to Boycott US Bancorp for Anti-Pipeline Discrimination”

  • Marcellus & Utica Shale Story Links: Mon, May 22, 2017

    The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Enormous economic potential with Appalachian storage hub; Marcellus/Utica pipelines to the Southeast; energy strategy demands tri-state accord; drilling boost property taxes in Columbiana County; PA GOP gov candidate pledges no severance tax; CNG poisted to become more readily available; NGL ‘inflection point’ in WV; Senate hearing for FERC nominees this week; BH rig count climbs for 18th straight week; the great US oil export boom; EPA sets aside $12M for employee buyout scheme; Netherlands gets first US LNG cargo; OPEC net oil revenues lowest since 2004. Read More “Marcellus & Utica Shale Story Links: Mon, May 22, 2017”

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    Noble/CONSOL Breakup Continues: Noble Sells 50% of CONE Midstream

    Noble Energy dropped a bombshell that it has sold 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 Noble Energy Sells Remaining M-U Assets for $1.2B – Who Bought?). MDN exclusively shared the news of exactly the who the “undisclosed buyer” is: HG Energy (headquartered in Parkersburg, WV), backed with money from investment firm Quantum Energy Partners. HG is a “portfolio company” of Quantum. The press release announcing the acreage/asset sale went to great lengths to stress that Noble’s half operating interest in the CONE Midstream pipeline gathering system was not part of the deal. CONE is a 50/50 joint venture between CONSOL Energy (the “CO” part of the name), and Nobel Energy (the “NE” part of the name). CONE was Noble’s final connection to our region. No more. Yesterday, Noble Energy announced they’ve sold their 50% stake in CONE to Quantum Energy Partners for $765 million. This time Noble went ahead and announced the buyer, perhaps figuring MDN would find out and blab it any ;-). Here’s the announcement that Noble Energy has left the Marcellus/Utica building…
    Read More “Noble/CONSOL Breakup Continues: Noble Sells 50% of CONE Midstream”

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    Another 7 Easements Signed for Shell’s Falcon Ethane Pipeline

    Click for larger version

    Last year MDN shared details about Shell’s Falcon Ethane Pipeline system–a pipeline with two “legs” that will feed Shell’s mighty ethane cracker plant in Beaver County, PA (see Shell Working on 94-Mile Ethane Pipeline to Feed PA Cracker). Before the pipeline system had a name (Falcon), Shell had begun the process of signing up landowners to allow the pipeline to cross their property–as far back as February 2016 (see Exclusive: Shell Leasing Land for 2 Pipelines to PA Cracker Plant). In January 2017, we reported on Shell’s progress in leasing land for the pipeline (see Shell Leases More PA Properties to Build Ethane Pipeline). This is a further update. Shell has signed an additional seven parcels of property–in Beaver County–bringing the total to 32 easements now secured for the project in Beaver County… Read More “Another 7 Easements Signed for Shell’s Falcon Ethane Pipeline”

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    Platts: M-U Drillers Need to Double Rigs to Fill Pipelines in ’17

    Platts senior energy analyst Luke Jackson yesterday posted a Platts Snapshot titled, “New Northeast US Gas Pipelines Will be Hard to Fill.” Provocative title. It’s a video. Below is a transcript of the video. In it, Jackson says according to their analysis that drillers in southwestern PA and eastern OH and the northern panhandle of WV will struggle, but eventually succeed, in producing enough natural gas to fill new pipelines coming online this year. But they won’t be able to fulfill their obligations until perhaps December 2017. That is, Antero, Range Resources and Ascent Resources will need to rapidly ramp up drilling–or risk paying for pipeline capacity they’re not using. However, it was Jackson’s comment about pipelines coming online in 2018 and 2019 that really caught our attention. He says in the video: “This new capacity will be nearly impossible to fill, barring a massive ramp in drilling activity, which, per our forecast, is not expected to occur.” So Platts says Marcellus/Utica drillers will not be able to produce enough natural gas to fill all of the new pipelines that will be online by 2019. If we assume the price of natgas goes higher over the next few years (not an unreasonable assumption), what this means is that new drilling is going to ramp up like crazy in the next few years. Buckle up! Here’s the transcript…
    Read More “Platts: M-U Drillers Need to Double Rigs to Fill Pipelines in ’17”