Utopia has Arrived! Construction in OH Begins on Ethane Pipeline
Kinder Morgan has proposed the UTOPIA (Utica To Ontario Pipeline Access) pipeline, a 12-inch ethane pipeline that will run ~240 miles across the state of Ohio where it will connect with another pipeline and (eventually) flow ethane all the way to a cracker plant in Canada. That is, if they can get some holdout landowners to allow them onto their land (see UTOPIA Pipeline Sues Holdout OH Landowners Using Eminent Domain; UTOPIA Pipeline Still Battling OH Landowners with Eminent Domain; and Wood County, OH Judge Blocks Eminent Domain for UTOPIA Pipeline). Apparently enough land has now been secured that Kinder Morgan is moving forward. Yesterday crews started their chainsaws and began to clear trees to make way for the bulldozers that will show up this summer…
Read More “Utopia has Arrived! Construction in OH Begins on Ethane Pipeline”
Quick. Who has the largest core acreage position in the Marcellus/Utica? And which company runs more than one-third of all the rigs operating in the Marcellus/Utica? The answer to both those questions would be Antero Resources. They also have some of the lowest drilling (i.e. breakeven) costs in the industry–and some of the highest hedges (prices they get for the gas). Put it altogether and Antero is one of the most important drillers in our beloved shale plays. Antero won’t release full year 2016 numbers until later this month, but ahead of that, they’ve just released two helpful documents. The first is a press release announcing proved reserves and drilling/development costs. The second is the latest series of PowerPoint slides, the February 2017 company presentation (a preview of the 2016 update). We have both items for you below…
Midstream and utility giant Dominion issued their fourth quarter and full year 2016 update yesterday. Just to give you an idea of the depth and breadth of the company, Dominion has ~26,000 megawatts of power generation, 14,400 miles of natural gas transmission, gathering and storage pipeline, and some 6,500 miles of electric-transmission lines. They are “a producer and transporter of energy.” Among the key projects we keep an eye one: the Cove Point, Maryland LNG export facility (under construction), the Greensville Power Station (under construction), and the Atlantic Coast Pipeline (soon to be under construction). The numbers are looking good. Revenue for Dominion in 4Q16 was $457 million, up $100 from 4Q15. Full year revenues were $2.1 billion, up from $1.9 billion in 2015. Below we have yesterday’s update, along with select portions of a conference call by Dominion’s muckety mucks and their comments about projects like Cove Point and Atlantic Coast Pipeline…
Marathon Petroleum, the refiner and midstream company based in Ohio (owner of what used to be MarkWest Energy) reported their fourth quarter and full year 2016 numbers yesterday. Overall revenue was down a bit, from $2.85 billion in 2015 to $2.21 billion in 2016 due to “a challenging commodity price and margin environment.” However, Speedway gas station/convenience stores (many of which used to be Hess gas stations) had “exceptional performance” and “set multiple records for the full-year 2016.” Of particular note for MDN, Marathon plans to spend $1-$1.3 billion in 2017 on new infrastructure projects in the Marcellus region. Good news indeed! Below we have yesterday’s update, along with a PowerPoint presentation Marathon used at the recent Marcellus-Utica Midstream event in Pittsburgh. We love the slides in that presentation, full of useful information…
We’ve always thought the federal Environmental Protection Agency (EPA) was populated with environmental leftist with an agenda–a mission. And that support for the agency by groups, and even by businesses who come under their regulation, was driven by a warped philosophy. However, two recent bits of information now snap the picture into full focus. The reason the EPA is so zealously defended and promoted by those inside and outside the agency isn’t really about protecting humans and protecting the planet. Oh, that has something to do with it. But the primary motivator is (you guessed it), money. Greed. Graft. Payola. This began to come into focus for us when we ran a post yesterday that stated President Trump will “seek significant budget and staff cuts” and when an aide to Trump on the transition team “suggested it was reasonable to expect the president to seek a cut of about $1 billion from the EPA’s roughly $8 billion annual budget.” What does EPA do with all that money? “About half the EPA’s budget passes through to state and local governments for infrastructure projects and environmental cleanup efforts.” But that’s not all. The EPA also funnels money to researchers and even to private businesses in the form of grants. In other words, the EPA has been a gravy train for a good many people, and the train is about to come to a screeching halt…
Last year MDN told you about researchers in Argentina strapping methane backpacks on cows and hooking up hoses to their digestive tracts (reminding us of the Borg in Star Trek) in order to capture global warming methane emissions from bovines (see 
The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Managing fluids in the Marcellus/Utica; NY DEC gives $50K grants to enviro troublemakers; antis still not happy NY nuke shutting; training the next generation for o&g jobs in the Utica; how Trump’s Supreme Court pick could impact the Marcellus/Utica; Rex Tillerson confirmed as Sec State; Dems boycott Pruitt vote, stomp feet like babies; White House tries to ‘ease’ rattled EPA; NY Times says its readers are too dumb to understand global warming numbers; Japan may buy more U.S. energy; pipelines may face climate test in Europe; and more!
In December MDN reported on the huge West Virginia Supreme Court decision against driller EQT that disallows EQT from deducting post-production expenses from royalty checks, even with signed contracts in place (see 
Yesterday CONSOL Energy released their fourth quarter 2016 results, along with a conference call to discuss those results. A few important items come out of yesterday’s activity. (1) The company lost $321 million in 4Q16. (2) CONSOL, originally a coal-only company, plans to either spin-off or sell the remaining coal assets it owns–this year–completing the process of transforming the company from coal to natural gas extraction. (3) CONSOL produced an average of 101.3 billion cubic feet equivalent of natural gas per day in 4Q16, up 6% from 4Q15. (4) The company shaved a dime off the costs to produce each thousand cubic feet (Mcf) of natgas–from $2.37/Mcf in 2015 to $2.27/Mcf in 2016. (5) Although the company lost money, the shale drilling business saw an increase in revenue in 4Q16 to $280.1 million (a 5.6% increase over 4Q15). (6) Although CONSOL has and continues to drill and complete wells in the Marcellus, their focus for new drilling is the Utica. Here’s the update…
MDN reported in September that American Electric Power is selling four electric generating plants to a newly formed joint venture of Blackstone and ArcLight Capital Partners (see 
Finally, something is being done about draining the swamp that has been (until now) a rogue, out-of-control federal Environmental Protection Agency. As we previously reported, Trump could not have picked a better person to head the agency than Oklahoma Attorney General Scott Pruitt (see 
The PBS “reporters” at the taxpayer-funded StateImpact Pennsylvania, like Marie Cusack, are as biased as bias gets. The frustrating thing is that they pretend to be journalists–pretend to be unbiased. They are, instead, radical leftists with an agenda, and it leaks through with every article. Some articles more than others. Take, for example, Cusack’s recent article railing against Donald Trump and his first days in office–and how poor enviro wackos have a fight on their hands. We thought it would be fun to append Cusack’s article with some truth, so you have the full context–to see what she leaves out. Enjoy!…
Recently a biased editorial ran in the biased Pittsburgh Post-Gazette, taking aim at methane. The editorial, penned by Brian O’Neill, misrepresented the facts about methane in PA, in an attempt to garner support for onerous new regulations put forward by Gov. Wolf’s Dept. of Environmental Protection. State Sen. Guy Reschenthaler, R-Jefferson Hills (representing parts of Allegheny County and Washington County), responded with his own editorial. To their credit, the Post-Gazette published it. Reschenthaler said the air is actually getting cleaner in PA, not dirtier, thanks to Marcellus Shale gas. And the new regulations being pedaled by Wolf will not make things better environmentally. The only thing the new regs will do is kill jobs…