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Marcellus Drilling News
  • Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Pike County | Regulation | Statewide PA | Wayne County

    DRBC has No Power to Stop Shale Drilling in Delaware River Basin

    March 15, 2017March 15, 2017

    You’ve heard the phrase, “The Emperor has no clothes.” A lawsuit against the Delaware River Basin Commission (DRBC) by a Wayne County, PA landowner over the DRBC’s ongoing moratorium of shale gas drilling, is exposing the DRBC as having “no clothes” when it comes to their authority over shale drilling (see Wayne County, PA Landowner Sues DRBC Over Fracking Ban). In fact, the DRBC has no authority to stop shale drilling, as they are now being forced to admit in response to the lawsuit. That fact has the DRBC, and radical environmentalists like THE Delaware Riverkeeper, petrified. MDN friend Tom Shepstone, author of the always-excellent Natural Gas Now website, writes about the DRBC’s lack of authority and the need for Pennsylvania to immediately defund the DRBC–until the agency stops their sham pretense of blocking shale drilling…
    Read More “DRBC has No Power to Stop Shale Drilling in Delaware River Basin”

  • Industrywide Issues | Regulation | Statewide WV | West Virginia

    WV Bill to Exempt O&G from Storage Tank Law Gets Gutted

    March 15, 2017March 15, 2017

    On Monday, MDN wrote about a new bill introduced in the West Virginia legislature that would exempt storage tanks used by the oil and gas industry from a 2014 law passed following a coal industry storage tank failure that temporarily polluted the drinking water for 300,000 WV residents (see WV Bill Would Exempt O&G Industry from Storage Tank Law). House Bill (HB) 2811 would exempt ~27,000 tanks owned and operated by the oil and gas industry from West Virginia’s Aboveground Storage Tank Act. The bill didn’t get far. On Monday, the WV House Judiciary Committee gutted their version of the bill. The new/gutted version will exempt about ~2,300 oil and gas storage tanks–those very small and very far away from drinking water sources…
    Read More “WV Bill to Exempt O&G from Storage Tank Law Gets Gutted”

  • Forced Pooling | Industrywide Issues | Regulation | Statewide WV | West Virginia

    Analysis of New WV Bill SB 576 re Co-Tenancy & Joint Development

    March 15, 2017March 15, 2017

    Yesterday MDN reported on a new West Virginia bill (Senate Bill 576) that aims to bring both the drilling industry and rights owners together to support co-tenancy and joint development–which are stripped down pieces of previous forced pooling bills that failed in the past (see WV Sen. Charles Trump Introduces New Co-Tenancy, Joint Dev Bill). As we previously reported, Senate Bill 244 was introduced in February to address co-tenancy and joint development (see WV Senate Bill 244 Introduced for Co-Tenancy & Joint Development). That bill went nowhere due to strong opposition from rights owners, including the West Virginia Royalty Owner’s Association (WVROA). SB 576 was meant to meet rights owners in the middle, to address their concerns. But as we mentioned yesterday, WVROA is not supporting the new SB 576 either. Although we included a copy of the bill in yesterday’s post, we did not have a detailed analysis of SB 576 vs SB 244. We now have some expert analysis from the legal beagles at top energy law firm Babst Calland…
    Read More “Analysis of New WV Bill SB 576 re Co-Tenancy & Joint Development”

  • Industrywide Issues | Pennsylvania | Statewide PA | Taxation

    MSC Responds to Sec DCED’s Call for High Severance Tax

    March 15, 2017March 15, 2017

    Last week MDN published a letter to the editor (Philadelphia Inquirer) from Dennis Davin, Secretary of the Pennsylvania Department of Community and Economic Development (DCED), supporting his boss’ desire for a new, very high Marcellus Shale severance tax (see PA DCED Sec. Promotes Wolf’s Marcellus-Killing Severance Tax). As we said at the time, we prefer to think the letter was written by someone in the governor’s office and pushed in front of Davin for his signature. The column smacks of socialistic crap about how the severance tax is PA’s “fair share” of the Marcellus Shale boom. It’s nothing of the sort. The severance tax is a political payback to teachers’ unions for backing Wolf, which Davin surely knows. He and his excellent staff have been tireless promoters of the Shell ethane cracker–we have a favorable opinion of the DCED. MDN friend Dave Spigelmyer, president of the Marcellus Shale Coalition, noticed Davin’s letter too. So Dave wrote his own letter to the editor, to respond…
    Read More “MSC Responds to Sec DCED’s Call for High Severance Tax”

  • Industrywide Issues | Regulation

    Bumble Bee May Yet Sting O&G Industry with “Endangered” Listing

    March 15, 2017March 15, 2017
    Rusty patched bumble bee

    As MDN has previously chronicled, on September 22, 2016 the rogue U.S. Fish and Wildlife Service (USFWS) published a proposed rule to list the rusty patched bumble bee (Bombus affinis) as “endangered” under the Endangered Species Act (ESA). The rusty patched bumble bee is found in the Midwest and eastern parts of the U.S. If it gets listed, it will have SIGNIFICANT impacts on drillers and midstreamers (see “Endangered” Bumble Bee May Slow/Stop O&G Projects in Northeast). With just a few days left in Obama’s reign of terror, the Obama-influenced USFWS pulled the trigger and listed it (see USFWS Pulls the Trigger and Lists Bumble Bee as Endangered). But then a white knight rode in to town to (temporarily) save the day. The Trump Administration signed an order delaying the listing until March 21 (see Trump Administration Delays Listing Bumble Bee as Endangered). The clock is ticking and drillers/midstreamers are worried. The oil and gas industry, along with farmers and others negatively affected by the listing, have asked newly-minted Interior Secretary Ryan Zinke to delay the listing until next year, to give everyone time to figure how they’re going to comply with this newest inanity from USFWS…
    Read More “Bumble Bee May Yet Sting O&G Industry with “Endangered” Listing”

  • CNG/LNG | Industrywide Issues | Pipelines

    Trinidad LNG Exports Keep Falling – When Will it Affect New England?

    March 15, 2017March 15, 2017

    Last June, MDN quasi-predicted that natural gas prices may spike during the 2016-2017 winter season in New England, due to a coming shortage of LNG from Tinidad (see Is New England Heading for Huge NatGas Price Spike this Winter?). With a warmer than normal winter, and with newfound natural gas supplies making their way to New England, prices did not spike. However, New England continues to pay prices 3-4 times higher than the rest of the country for their natgas–due to lack of supply. That hasn’t (and won’t) change, until more supplies make it to New England–either by pipeline or ship. Opponents of new pipelines to New England have included LNG importers in the region. Specifically, GDF Suez imports Trinidad gas at the Everett, MA LNG import terminal, near Boston (see New England Importer Received 59% of All LNG Ship Imports 1H15). LNG imports are one of the primary sources of natgas for New England. Antis holler and scream, “Forget the pipelines. If you must use gas, use LNG. There’s more than enough LNG to supply New England.” In a macro sense that may be true–the world is awash in LNG. But arranging shipments and sources for it takes months, even years. Right now most of the LNG GDF Suez imports comes from Trinidad. As we pointed out in our article last year, Trinidad’s natural gas sources are drying up. The country is exporting less and less. We spotted yet another article about how Trinidad’s natural gas exports are rapidly declining. Sooner or later Trinidad’s falling exports will affect GDF Suez’s imports of LNG to New England. Once again, like that famous New Englander Paul Revere, we’re issuing a warning that New England needs new sources of natgas (via pipelines), and they need it sooner rather than later…
    Read More “Trinidad LNG Exports Keep Falling – When Will it Affect New England?”

  • Baker Hughes | Energy Services

    Baker Hughes Introduces New “Adaptive” Drill Bit

    March 15, 2017March 15, 2017
    TerrAdapt™ adaptive drill bit

    Baker Hughes has just officially released a new drill bit that they hope will become the new standard in drill bits–the TerrAdapt “adaptive” drill bit. Baker Hughes says they’ve made “dumb” drill bits “smart” by packing intelligence into them. This drill bit can respond to conditions in real time, automatically, to prevent “stick-slip” issues which cause bits to rapidly speed up or slow down. The bit self-adjusts its depth-of-cut (DOC) control elements to automatically adapt its aggressiveness to changing rock types. Pretty cool stuff. The long and the short of it is that this bit means less problems and more uptime spent drilling/chewing away, meaning it will take less time to get the hole drilled…
    Read More “Baker Hughes Introduces New “Adaptive” Drill Bit”

  • Best of the Rest

    Marcellus & Utica Shale Story Links: Wed, Mar 15, 2017

    March 15, 2017March 15, 2017

    The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: NY AG colluded with Big Green, tries to deflect with fake news about Exxon; ODRN issues 13 permits in OH Utica; anti-pipeliners recruit spies; Michigan’s future depends on pipelines; natgas prices could plunge below $2; top natgas stocks to buy in 2017 (all related to the Marcellus/Utica); Food & Water Watch caught on tape admitting goal to ban fracking “everywhere”; OPEC and US shale at the brink of war; and more!
    Read More “Marcellus & Utica Shale Story Links: Wed, Mar 15, 2017”

  • Industrywide Issues | Research

    EIA Drilling Report: Gas Prod to Hit Another Record High in April

    March 14, 2017March 14, 2017

    Yesterday MDN’s favorite government agency, the U.S. Energy Information Administration (EIA), issued our favorite monthly report–the Drilling Productivity Report (DPR). The DPR is the EIA’s best guess, based on expert data crunchers, as to how much each of the U.S.’s seven major shale plays will produce for both oil and natural gas in the coming month. For the past five reports, estimating production for November, December, January, February, and March, Marcellus natgas has increased. The trend continues in this latest report, which forecasts production for the coming month of April. In fact, EIA says natgas production for all seven major shale plays will go up–the first time we can remember that happening in more than a year. Last month EIA predicted the combined output of the seven major shale plays would hit 49.1 billion cubic feet per day (Bcf/d), a new record (see EIA Feb Drilling Rpt: Gas Prod. to Hit New Record High in March). The trend continues. If the numbers hold, EIA predicts the combined natural gas production across all seven major plays will hit 49.6 Bcf/d in April–up 562 million cubic feet per day. The Marcellus (and Utica) will both hit record-breaking highs in April for natgas production as well…
    Read More “EIA Drilling Report: Gas Prod to Hit Another Record High in April”

  • Forced Pooling | Industrywide Issues | Regulation | Statewide WV | West Virginia

    WV Sen. Charles Trump Introduces New Co-Tenancy, Joint Dev Bill

    March 14, 2017March 14, 2017

    As MDN previously reported, perhaps the biggest energy-related issue for this year’s session of the West Virginia 60-day legislative session will not be a bill on forced pooling. Instead, the West Virginia Oil and Natural Gas Association (WVONGA) is pushing a legislation on co-tenancy and joint development (see WV Won’t Push Forced Pooling, Will Push Joint Dev. & Co-Tenancy). Senate Bill (SB) 244 was introduced in February to cover both co-tenancy and joint development (see WV Senate Bill 244 Introduced for Co-Tenancy & Joint Development). For an explanation of what co-tenancy and joint development means, read this post. WVONGA is supporting SB 244, but rights owners, including the West Virginia Royalty Owner’s Association (WVROA) is not. In an effort to get the two sides together and hammer out something that both could support, WV State Senator Charles Trump convened a meeting with both sides. He then drafted up new legislation to replace SB 244 (which was going nowhere fast). Last Friday, Trump introduced SB 576 (full copy below). Did Trump succeed in crafting something both sides can support?…
    Read More “WV Sen. Charles Trump Introduces New Co-Tenancy, Joint Dev Bill”

  • Energy Services | Industrywide Issues | Pipelines | TC Energy/TransCanada

    TransCanada Says Plan to Lowball M-U Gas Worked, Shippers Sign Up

    March 14, 2017March 14, 2017

    TransCanada, one of Canada’s leading midstream/pipeline companies, cooked up a deal last year to pipe natural gas from Canada’s West Coast to the East Coast in order to fend off cheap supplies of Marcellus/Utica gas that will flow into Canada when/if the NEXUS and Rover pipelines get built (see TransCanada Pipe Drops Price 42% to Compete with Marcellus/Utica). TransCanada dropped their pipeline price to lure drillers by (theoretically) making it less expensive to get gas from Western Canada, some 2,400 miles away, than from the Marcellus, just 400 miles away. In October, TransCanada launched an open season to lock up customers for the new, lower-priced option. The open season was a bust because TransCanada insists on a 10-year commitment (see TransCanada Plan to Lowball M-U Gas Using Canada Pipeline a Bust). TransCanada revived their plan in February. The original deal required a 10-year term with a long-term tolling rate between C$0.75/GJ to C$0.82/GJ. In February, the advertised deal was for a 10-year term and a simplified single rate of C$0.77/GJ (see TransCanada Revives Plan to Lowball M-U Gas Using Canada Pipeline). Although it looked almost like the same deal all over again with the same 10-year term and about the same price, TransCanada dropped a minimum amount to be shipped and is letting shippers opt out after five years under certain conditions. The changes worked…
    Read More “TransCanada Says Plan to Lowball M-U Gas Worked, Shippers Sign Up”

  • Energy Services | Industrywide Issues | PennEast Pipeline | Pipelines | Spectra Energy

    Spectra Energy Buys PSE&G’s Stake in PennEast Pipeline

    March 14, 2017March 14, 2017

    That was fast. Last Friday MDN reported that New Jersey’s largest utility, Public Service Enterprise Group (PSE&G), is shopping its ownership stake in the $1 billion PennEast Pipeline project (see PennEast Pipeline Investor Looks to Sell its 10% Ownership Share). PSE&G owns a 10% stake in the project primarily because it will be one of the biggest customers for the pipeline when (not if) it gets built. PSE&G wants to sell its share not because it has lost confidence in the project, but because of a change in corporate strategy. The bigwigs running PSE&G want to put their money into more power generating plants, rather than the pipelines that feed those plants. Fair enough. Yesterday Spectra Energy (now a part of Enbridge), another investor/partner in PennEast, said it will buy out PSE&G’s share. Spectra currently owns a 10% stake in the project, as does PSE&G, so it will double its ownership share…
    Read More “Spectra Energy Buys PSE&G’s Stake in PennEast Pipeline”

  • Anti-Drilling/Fossil Fuel | Delaware County (PA) | Energy Services | Industrywide Issues | NGLs | Pennsylvania | Pipelines | Research | Sunoco Logistics

    Report by Philly Antis Proves Mariner East 2 Pipeline is Safe

    March 14, 2017March 14, 2017

    A group of anti-fossil fuel nutters from the Philadelphia suburb of Middletown, PA (Delaware County) spent good money to buy themselves a report from an “independent” consultant that they say proves the Mariner East 2 Pipeline is too dangerous to build through their township. We don’t know how much the Middletown Coalition for Community Safety blew on the study, but we do know that Middletown Township is blowing $45,000 of taxpayer’s hard-earned money for a similar study (see Middletown PA Decides to Blow $45K (not $100K) on Mariner 2 Study). The Middletown Coalition was antsy, they didn’t want to wait for the town study to be completed, and they couldn’t risk a truly independent study finding the pipeline will be safe. So the Coalition moved ahead, no doubt using money from Big Green organizations to produce a report titled “Hazard Calculations for the Mariner East II Pipeline” (full copy below). The Coalition asked Quest Consultants, an Oklahoma-based firm, to evaluate what would happen IF a bunch of unlikely events were to happen. The report concludes: “IF the pipe were to rupture in Middletown Township, and IF the pipeline were operating at 1,500 psi while transporting ethane, and IF the release were oriented near to horizontal in the direction of the wind, and IF there are few obstructions to vapor cloud dispersion, and IF the weather conditions were 5 mph winds and stable atmosphere, the flammable vapor cloud could extend up to 1,800 feet from the pipeline.” The huge, gaping omission, the question the report does not address, is this: How likely is it that any or all of those things would actually happen? Our answer: near zero percent. In other words, the report just released by the Middletown Coalition proves that ME2 is safe!…
    Read More “Report by Philly Antis Proves Mariner East 2 Pipeline is Safe”

  • CONE Midstream | Energy Services

    CONE Midstream 2016 – Profits Up, Volumes Up, Looking Good

    March 14, 2017March 14, 2017

    CONE Midstream, a joint venture between CONSOL Energy and Noble Energy (CO from CONSOL and NE from Noble Energy) was formed in summer 2014 (see CONSOL & Noble Energy Form New Marcellus Midstream Company). CONE Midstream has been a small but stellar performer in the midstream (pipeline) sector. Although it’s been almost a month since they released their fourth quarter and full year 2016 update, we thought it important to highlight the latest from CONE. Once again, as with previous quarterly (and annual) updates, CONE continues to impress. For all of 2016, CONE made a $96 million profit, up from making $71 million in 2015. They report flowing an average of 933 million cubic feet per day (MMcf/d) of gas through the system in 4Q16, up from an average of 760 MMcf/d in 4Q15. Below is the February update, along with the latest PowerPoint slide deck, the company’s 10-K filing with the SEC, and excerpts from their 2016 earnings call…
    Read More “CONE Midstream 2016 – Profits Up, Volumes Up, Looking Good”

  • Anti-Drilling/Fossil Fuel | Industrywide Issues | Regulation

    Trump Spanks Radicalized Kids re “Climate Change” Lawsuit

    March 14, 2017March 14, 2017

    In August 2015, MDN told you about a lawsuit brought by a group of left coast radicalized children who want to force the federal government to become communist and “force action” on mythical climate change (see Group of Kids Sues U.S. Govt to Force Action on “Climate Change”). In January 2016 we brought you an update, telling you that radicalized, fringe Catholic groups had joined the cause with the ignorant children (see Climate Change Lawsuit by Radicalized Children Gets Interesting). In November 2016, a lefty judge cleared the lawsuit to move to trial. And in January 2017, the radicalized kiddies (actually, the laywers abusing them) got to depose the incoming Secretary of State and former ExxonMobil CEO, Rex Tillerson (see Radicalized Kids Suing Over Global Warming to Depose Tillerson). The Trump Administration is not amused by the antics of these children and the adults manipulating them. Last week the Trump Administration filed a motion to overturn the November ruling that allows the lawsuit to go to trial. It’s time these children got a good (legal) spanking…
    Read More “Trump Spanks Radicalized Kids re “Climate Change” Lawsuit”

  • Industrywide Issues | Litigation | Regulation

    4 Things to Know re Trump’s Energy Orders/Repeals

    March 14, 2017March 14, 2017

    President Trump has issued a number of Executive Orders to overturn some of the egregious over-regulation that popped up during the reign of terror known as the Obama Administration. Some of the orders encourage new pipeline development (Keystone XL and Dakota Access). Some “require” American-made pipelines to be used when building new pipeline projects. Some roll back truly onerous regulations like Waters of the United States (WOTUS)–which puts all bodies of water down to the size of mud puddles under EPA authority. Trump has been going great guns. But, those orders may not be a slam dunk, given our court system populated with Obamadroids. Here’s four things to consider, to be aware of, when it comes to Trump’s Executive Orders and directives aimed at the energy industry…
    Read More “4 Things to Know re Trump’s Energy Orders/Repeals”

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