FERC Approves SC Pipeline to Flow Marcellus Gas to Charleston
In March 2016, Dominion filed an official application with the Federal Energy Regulatory Commission (FERC) for a 55-mile pipeline project called the Transco to Charleston Project (see Dominion Files Application to Move Marcellus Gas to Charleston, SC). As the name implies, it will be a short pipeline to connect the Transco pipeline, which is in the process of reversing flows to bring Marcellus and Utica Shale gas south. This new pipeline will grab Transco’s Marcellus/Utica gas and send it to the Charleston, SC area. The projected in-service date is November of this year. However, this project, like every square inch of every pipeline project in the Eastern U.S., faces opposition from nutty anti-drilling radicals who vow to try and stop it even if it gets FERC approval (see SC Antis Fuss Over Pipeline to Carry Marcellus Gas to Charleston). The antis will now get their chance to deliver on their big boasts. In what is turning out to be a busy week at FERC, the three remaining Commissioners granted Dominion the certificate to build the Transco to Charleston pipeline. Great news indeed!…
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EQT, one of the biggest and best drillers in the Marcellus/Utica, issued their fourth quarter and full year 2016 update yesterday. As is typical when issuing the updates, EQT’s top brass held a conference call with analysts to discuss results and take questions. In reading through a transcript of the call, one of the most interesting passages (for us) was in the prepared comments by incoming EQT CEO (currently president) Steve Schlotterbeck. In a brief passage excerpted below, Steve provides a quick update on several items: the Mountain Valley Pipeline project, EQT’s Utica drilling program, and the fact that “this week” EQT has purchased an additional 14,000 “core” West Virginia acres in Marion and Monongalia counties for $130 million, which works out to be $9,286 per acre…
EQT, one of the biggest and best drillers in the Marcellus/Utica, issued their fourth quarter and full year 2016 update yesterday. The bad news is that EQT lost $453 million last year ($192 loss in 4Q16). But the bad financial news was offset by a lot of good news. EQT’s full-year production volumes hit a new high of 759 billion cubic feet equivalent (Bcfe), up 26% from 2015. The company drilled 135 gross wells, including 117 Marcellus wells, with an average length of 7,300 feet. EQT predicts production of 190-195 Bcfe in 1Q17. In 2017, EQT plans to use 6-8 rigs to drill a total of 119 wells in the Marcellus, 81 wells in the Upper Devonian, and 7 wells in the Utica. In a separate announcement also issued yesterday, EQT reports year-end 2016 proved reserves of 13.5 trillion cubic feet equivalent (Tcfe), up 35% from 2015. Below are the two updates from yesterday, along with the latest company PowerPoint presentation, loaded with great slides…
As we do every month, MDN tracks how many rigs oilfield services company Patterson-UTI Energy reports operating–as a proxy for when/if the drop in rig counts for the Marcellus/Utica will turn around. Patterson operates a number of rigs in the northeast, as well as other areas of the continental United States (and Canada). Month by month Paterson’s rig count has declined over the past year plus–until June (see 
Weatherford International is the fourth largest oilfield services company in the world, employing some 44,000 people. They have a branch office in Canonsburg, PA (Pittsburgh area) with major operations in the Marcellus/Utica. Since November we’ve highlighted the financial problems at the company (see 
National Fuel Gas Company (NFG) covers the full span of the oil and gas business–from upstream (with its wholly-owned drilling subsidiary Seneca Resources), to the midstream (with wholly-owned subsidiary Empire Pipeline) to downstream (NFG’s natural gas utility service to 740,000 customers in NY and PA). Big company. Diverse operations. Yesterday NFG issued what they call their first quarter update (everyone else’s fourth quarter update), covering October through December. The good news is that NGF swung from losing $189 million in the same period last year, to making an $89 million profit this year. Commenting on what matters most to MDN (the Marcellus/Utica), Ronald Tanski, NFG’s CEO, said this: “We expect to keep moving forward with our plans to build our Northern Access pipeline by the middle of next fiscal year. In the meantime, our efforts will remain focused on the efficient development of our Marcellus acreage to prepare for the Northern Access capacity while continuing to evaluate our opportunities in the Utica Shale on the very same acreage. Together, these stacked formations provide plenty of running room on our acreage and will fuel our growth for an extended period.” Plenty of running room. Sounds good to us! Here’s the update from yesterday…
A few weeks ago MDN highlighted a developing issue in Ohio that potentially impacts Utica/Marcellus shale in the region (see 
Two of the most unfit Senators in the U.S. Senate are Ed Markey and the faux American Indian, Elizabeth Warren. Both radical extremists–both kind of loopy. So it is no surprise that they are calling on the Federal Energy Regulatory Commission (FERC) to reverse the decision FERC made just last week to authorize Spectra Energy’s Atlantic Bridge project (see 
For whatever insane reason, some in New England, including the two U.S. Senators from Massachusetts (see today’s companion story) irrationally hate natural gas because it is a “fossil fuel.” These demented folks believe that by burning natural gas, more carbon dioxide (CO2) is pumped into the atmosphere and that increasing amounts of CO2 are causing the earth to warm up, catastrophically. At least that’s what they say they believe. The problem with their theory (libs always have problems because their theories never work out in reality), is that CO2 levels have decreased across the U.S.–because of the increased use of natural gas. Except for New England. Because New England is not using as much natural gas as other regions, making them rely on oil-fired electric plants, New England’s CO2 levels went UP in 2015! They not only pay more for electricity and energy than any other region of the United States, they’re using dirtier energy–all while claiming they love the environment and don’t want “dirty” natural gas. What idiots…
The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Activist ire rises as Dakota Pipeline review begins; Xcel wants to replace coal plant with natgas plant; US LNG exports hit record high in January; new oil tech means more oil coming; Cheniere’s Arctic freeze; nuclear gas; US exports more oil in 2017 than four OPEC countries; Chesapeake Energy’s huge victory; South Korea generates electricity using US shale gas; and more!
An accident related to shale drilling is responsible for dumping some (not sure how much) acid mine drainage (AMD) from an abandoned coal mine into the Monongahela River last weekend. Which sounds worse than it actually is. Water that seeps into old coal mines mixes with pyrite (iron-sulfide) and oxidizes, turning the water an orange/brown color. The water becomes somewhat acidic. We previously talked at length about acid mine drainage coming from the Old Forge bore hole near Scranton, and about Marcellus money being used to help clean it up (see 
It’s not often these days we get to witness the birth of a new driller in the Marcellus/Utica, so it’s with great pleasure we announce the birth of S.T.L. Resources. According to an announcement, S.T.L. recently closed on the acquisition of 8,000 acres in the “core of the Marcellus Fairway” in north central PA. Along with the acreage comes “significant in-place infrastructure, current Marcellus production and is prospective for the Marcellus and Utica Shale as well as the Upper Devonian.” The privately-held S.T.L. declined to say exactly where the acreage is located, who they purchased it from and for how much. Why? They continue to try and lease more acreage in the same area and would rather keep competitive information close to the vest. S.T.L. was founded and is run by three veterans in the O&G industry with deep experience in the Marcellus/Utica: William Dressel, Founder and Managing Partner; William Hayward, Chairman & Senior Geological Advisor; and Clinton Coldren, CEO. When you look at a map you find that north central PA includes counties like Potter, Tioga and Lycoming. Which got us to thinking–who might have sold some acreage there? We have a guess…
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 
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…