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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”

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    Coal King Robert Murray Still Spoiling for a Fight with NatGas

    Robert Murray

    Murray Energy CEO Robert Murray is an interesting character. We’ve reported on him a number of times over the years. Murray went after Aubrey McClendon when Aubrey named is new company American Energy Partners. Murray claimed a subsidiary company he owns already had that name. Eventually a court told Aubrey he could keep the name (see Federal Court Decides McClendon Can Keep ‘American Energy’ Name). In early 2016 Murray went after the shale gas industry in West Virginia. He said WV should lower the coal severance tax from 5% to 2%, and raise the natgas severance tax from 5% to whatever, in order to give coal a break in the Mountain State (see Why Can’t We be Friends: Can Coal & NatGas Get Along in WV?). Even though he rails against natural gas, Murray found it in his heart to lease some of his coal mining property for natgas drilling, twice (see Coal Company Leases 6K Acres for Natgas Drilling in Belmont, OH and Coal Co. Murray Energy Sells 5,900 OH Utica Acres – Who Bought?). The second lease was for $10,800/acre. Seems Murray says one thing but does another when it comes to natgas. Today President Trump delivers on yet another campaign promise by rolling back some of Obama’s draconian environmental regulations–specifically the Clean Power Plan–which will benefit Robert Murray and the coal industry. At least, theoretically. The jury is still out on whether coal will ever come back. Recently the Columbus Dispatch interviewed Murray. He maintains that coal can compete with natural gas “all day long” if only coal had a “level playing field.” Here’s what he said…
    Read More “Coal King Robert Murray Still Spoiling for a Fight with NatGas”

  • Marcellus & Utica Shale Story Links: Tue, Mar 28, 2017

    The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: LNG storage tanks arrive in Jacksonville Port; oil now flowing under Missouri River via Dakota Access Pipeline; vapid actress Shailene Woodley pleads guilty to disorderly conduct charge related to Dakota Access “protest”; tech still the key in shale plays; nuke plants closing hit small towns hard; green groups promise violence to stop Keystone XL pipeline; US natgas exports to Mexico skyrocket, Mexicans worried about depending on gringos; LNG hub in Asia; and more!
    Read More “Marcellus & Utica Shale Story Links: Tue, Mar 28, 2017”

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    Judge Tosses Wayne County, PA Landowner Lawsuit Against DRBC

    In May 2016 a landowner in Wayne County, PA–in the Delaware River Basin–filed a lawsuit against the Delaware River Basin Commission (DRBC) asking a judge to declare the DRBC does not have jurisdiction to prevent construction of a natural gas well (see Wayne County, PA Landowner Sues DRBC Over Fracking Ban). MDN has chronicled, for years, the lawless actions of the DRBC in seizing power it does not have to block shale drilling in essentially two PA counties where measurable quantities of shale gas could be extracted: Wayne County and Pike County. DRBC’s former director, Carol Collier, is a hardened anti-driller who colluded with Josh Fox in making his infamous propaganda film Gasland. Collier is gone and it was thought her replacement, Steve Tambini would bring some order and sense to the organization (see DRBC Selects Steve Tambini as New Leader, Enviro Groups Unsure). Unfortunately that hasn’t happened–so far. The DRBC has blocked drilling since it considered rules for drilling in 2010, when it put a “temporary” ban in place. A Wayne County landowner argued in the lawsuit that oil and gas wells, under the DRBC’s charter, do not constitute a “project” that is regulated by the DRBC and therefore are exempt from oversight from the DRBC. Last week U.S. District Judge Robert Mariani disagreed and ruled against the landowner (copy of his ruling below). However, this may not be “bad news” for landowners and “good news” for the DRBC, as it may first appear, on the surface…
    Read More “Judge Tosses Wayne County, PA Landowner Lawsuit Against DRBC”