• Marcellus & Utica Shale Story Links: Thu, Mar 9, 2017

    The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: 4 permits issued in Ohio Utica last week; Wolf loses all credibility on severance tax; Carroll Twp residents raise concerns about nearby drilling; SC anti group appeals FERC approval of pipeline; Indians lose final court case to stop Dakota Access Pipeline; oil & natgas production fell in 2016, higher levels expected in 2017/2018; Souki says LNG “extremely volatile”; Trump fuels petchem boom; and more!
    Read More “Marcellus & Utica Shale Story Links: Thu, Mar 9, 2017”

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    Baker Hughes Feb Rig Counts Rockets Skyward, Recovery Continues

    The Baker Hughes rig count in the U.S. continued to be on fire in February. Whoops! Poor choice of words. The rig count continued its rocket ride. In January the average number of U.S. rigs was 683. In February, the count zoomed to 744, up 61 rigs in just a month. Each active rig translates into hundreds of jobs, both directly working at the rig and indirectly in services delivered to the rig and its workers. It also means more landowners will soon have royalty payments heading in their direction. When rigs are active, life is good. What about rig counts in the Marcellus/Utica? Total rig count went up another 3 rigs. Two of the rigs were added in WV (now 10), and one in PA (now 34). OH’s rig count remained the same (20 rigs) in February as January. Just 3 added rigs out of 61 means other shale plays (primarily the Permian and other oil plays) are where most of the rig action is happening. Here’s the full set of numbers, along with a pretty MDN chart showing the last 12 months of rig counts in the Marcellus/Utica…
    Read More “Baker Hughes Feb Rig Counts Rockets Skyward, Recovery Continues”

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    Shell Cracker Construction Starting Soon; Concrete Plants Ramp-up

    One of our fun pastimes is speculating about when, exactly, the mighty Shell ethane cracker in Beaver County, PA will actually go online. In February, Shell CEO Ben van Beurden said this: “We haven’t announced exactly when it will start up, but expect that to be not anymore this decade” (see Shell CEO Says PA Cracker Up & Running “Not Anymore This Decade”). What did the non-native English-speaking van Beurden mean? Your guess is as good as ours. Did he mean “by the end of this decade,” or “not by the end of this decade”? Our best guess is that the cracker won’t be operating until 2020 or 2021–that is, the latter meaning. We have some evidence to support that theory. Two concrete plants are due to begin construction any day now, being built by Champion Concrete. The two plants, which will manufacture all of the concrete used in the cracker, are scheduled to be completed and in operation by July. So concrete for the project begins to flow in July. The useful life of the two plants (for manufacturing concrete for the cracker) is three years. Three years from this summer will be the summer of 2020. Important note to supply chain businesses: as the concrete plants and construction activity ramps up, there’s opportunity to sell more of your goods and services to this enormous project. The number of workers at the site will steadily increase this year and next…
    Read More “Shell Cracker Construction Starting Soon; Concrete Plants Ramp-up”

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    Standing Rock Wannabes in Lancaster Threatened with $1K/Day Fines

    Barn illegally hosting encampment

    Two days ago MDN brought you the news that anti-fossil fuelers opposed to the Williams Atlantic Sunrise Pipeline project are using the same (losing) playbook to oppose Atlantic Sunrise as they used to oppose the Dakota Access Pipeline (see Protesters Try to Resurrect Failed ND Pipeline Fight in Lancaster). What is that playbook? Establish a protest “camp” where hundreds or thousands of “protesters” (i.e. paid activists) can assemble to “fight” the pipeline. When you get a bunch of lazy hippies together, you need some logistics–a place to stash food, water, toilet paper, condoms (whoops, did we say that out loud?). You also need a meeting hall. The antis in Lancaster found a sympathetic local landowner who is loaning them his barn–as a place to store things and for meetings. The problem is, the barn isn’t zoned as an “encampment” and meeting hall, and the local municipality is threatening to slap the property owner with a $1,000 per day fine if the illegal protest meetings being held in the barn aren’t stopped. Now. The antis, who see evil methane monsters behind every tree, claim “Somebody’s out to get us, we don’t know who”…
    Read More “Standing Rock Wannabes in Lancaster Threatened with $1K/Day Fines”

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    Williams Keeps Pressure on PA DEP to Issue Atlantic Sunrise Permits

    The Federal Energy Regulatory Commission (FERC) approved Atlantic Sunrise in early February (see Atlantic Sunrise Pipeline Gets Final Approval by FERC). Even though the project is approved, that’s not the end of the story. Regulatory work still remains, including approvals from the Pennsylvania Department of Environmental Protection (DEP) and the U.S. Army Corps of Engineers. Construction of Atlantic Sunrise is scheduled to begin later this year, pending the receipt of these regulatory approvals. Williams is gently pressuring the DEP to hurry it up. Fortunately for Williams, the PA DEP is not like the corrupt New York Dept. of Environmental Conservation (DEC). In NY, the DEC caved to political pressure from Gov. Cuomo and denied Williams stream-crossing permits (a matter now in court, see Constitution Pipeline Case Goes to Court in 2 Weeks, Briefs Filed). In PA, the DEP will no doubt do its job and grant the permits. The problem is, they’re taking waaaaaaay too long to do it…
    Read More “Williams Keeps Pressure on PA DEP to Issue Atlantic Sunrise Permits”

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    Rover Pipeline Challenges FERC re Demolishing “Historic” House

    On Feb. 3, the Federal Energy Regulatory Commission (FERC) gave its final approval to Energy Transfer’s Rover Pipeline project–a $3.7 billion, 711-mile Marcellus/Utica natural gas pipeline that will run from PA, WV and eastern OH through OH into Michigan and eventually into Canada (see ET Rover Pipeline Gets Final Approval by FERC). Normally when FERC approves such a project, they issue a “blanket certificate” that allows the pipeline company to move forward with construction without getting “Mother May I?” permission for every step along the way. But FERC denied ET a blanket certificate for Rover. Why? Because Rover demolished a house that was under consideration for a national registry of historic homes, without first telling FERC (see Rover Pipeline in Hot Water Over Demolishing Historic House in OH). In May 2015, Rover purchased a house in Carroll County, OH, located near where the pipeline, and a compressor station for that pipeline, is due to run. Rover bought the house to use for offices for several Rover affiliate companies. After buying it, Rover determined the house was “ill-suited for its intended purpose” and decided to demolish it. Problem was/is, that house was under consideration to be added to the National Register of Historic Places. The house was not yet on the list of Historic Places, but was on a list of properties under consideration. FERC says Rover should have reported their decision to demolish the house, which has Rover in hot water with FERC and the Advisory Council on Historic Preservation. That’s why FERC didn’t issue a blanket certificate for construction of Rover. So ET and Rover have now filed for a rehearing, claiming FERC erred in not granting the blanket certificate…
    Read More “Rover Pipeline Challenges FERC re Demolishing “Historic” House”

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    Proposed 13-Mile Pipeline in SW OH Under Review, DOPEs Oppose

    Duke Energy Ohio, an LDC or “local distribution company” serves some half a million customers with natural gas in Ohio. The company has a ~12 mile pipeline to flow gas it needs to move from one point to another in Hamilton County (Cincinnati), the southwest corner of the state. The Duke pipeline has been around and in service since the 1950s. Duke needs to replace that pipe or some of the half million Duke customers won’t get natural gas any more. Because anything to do with “fracking” or “pipelines” has been so thoroughly bastardized by the media and anti-fossil fuel protesters, there was, of course, opposition to Duke’s plan. So Duke “listened” and has scaled back their plans. Instead of building a 30-inch gas pipeline running at 600 psi (pounds per square inch), the revised plan calls for a 20-inch pipeline running at 400 psi (see Duke Energy Modifies/Scales Back Plan for SW OH Pipeline). Duke proposed two potential routes, both of which are opposed by antis, including a group calling themselves NOPE–Neighbors Opposing Pipeline Extension. We’d call them DOPEs–Dummies Opposing Pipeline Extensions. Will these people volunteer to shut off the natural gas to their homes and businesses if the pipeline doesn’t get built?…
    Read More “Proposed 13-Mile Pipeline in SW OH Under Review, DOPEs Oppose”

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    PA DCED Sec. Promotes Wolf’s Marcellus-Killing Severance Tax

    Dennis Davin, Secretary of the Pennsylvania Department of Community and Economic Development (DCED), has been one of the loudest and most credible voices in the disastrous PA Gov. Tom Wolf Administration. Davin has done great work in promoting the Shell ethane cracker and the jobs/economic development it will bring to the state (see PA Econ Dev Secretary Hits Road to Promote Shell Cracker). Last year Davin let leak he’s hearing rumors of a possible second ethane cracker–for PA (see A SECOND Ethane Cracker Coming to Pennsylvania? Maybe!). Davin is a good guy with smart people around him. So it distressed us to read a column written by Davin in yesterday’s Philadelphia Inquirer attempting to make the case for his boss’ disastrous severance tax–a tax that will literally kill all new Marcellus drilling in the state. We hope it was someone else that wrote the article and pushed it in front of Davin for his signature, because 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…
    Read More “PA DCED Sec. Promotes Wolf’s Marcellus-Killing Severance Tax”

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    OH Anti Jailed, Pleads Guilty to 13 Felony Counts of Voter Fraud

    One of the people behind the Big Green effort to pass a frack ban in Youngstown, OH (a measure that has now failed six times) has herself been arrested and has plead guilty to 13 felony charges of committing voter fraud. Rebecca Hammonds, a local organizer and employee of the Ohio Organizing Collaborative, was sentenced to 180 days in jail this week after pleading guilty to 13 felony counts for false voter registration and election fraud in January. One of the charges had to do with her signing up dead people to vote. Do we need to say anything more about the dishonesty of the anti-drilling movement?…
    Read More “OH Anti Jailed, Pleads Guilty to 13 Felony Counts of Voter Fraud”

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    FirstEnergy Upgrading W PA Electric Grid, Some Benefit for Shale

    FirstEnergy is one of the nation’s largest investor-owned electric systems, serving customers in Ohio, Pennsylvania, New Jersey, West Virginia, Maryland and New York. We’ve reported on a number of projects launched by FirstEnergy to assist the shale industry–running power lines to natural gas processing plants, etc. (see FirstEnergy Investing $100M in Electric Projects for WV Marcellus). FirstEnergy has just announced another $235 million of upgrades/investments in its West Penn service area. Some of those upgrades are targeted at serving the shale industry. But FirstEnergy is conflicted. Although it loves to help midstream companies and drillers by selling them electricity, it doesn’t like it when private, independent (and competitive) companies actually produce the electricity, from shale gas, that competes with FirstEnergy’s own electric supplies. In Ohio, FirstEnergy is attempting to get the state to re-regulate the electric industry to freeze out new natgas-fired electric plants (see OH Fight to Re-Regulate Electric Industry – Impacts on Shale). So although FirstEnergy professes its love of the shale industry, it’s a conditional love…
    Read More “FirstEnergy Upgrading W PA Electric Grid, Some Benefit for Shale”

  • Marcellus & Utica Shale Story Links: Wed, Mar 8, 2017

    The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: FERC certificates several new natural gas pipelines; Trump game changer that could turbocharge the shale gas industry; circumstances “just right” in today’s “Goldilocks” o&g market; shale industry scrambling to catch up to boom; will US lead the LNG pack; frack sand getting more expensive, and scarce; corporate raider takes over at CNX “oil train”; BP’s largest expansion year ever in 2017; and more!
    Read More “Marcellus & Utica Shale Story Links: Wed, Mar 8, 2017”

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    Patterson-UTI Feb Rig Count Up 9th Month in a Row

    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). Patterson was our “canary down the mine shaft” for discerning when the deep, dark recession in drilling would turn around. It happened in June 2016–and every single month since that time, including the month of February, Patterson’s active rig count has increased. In February, Patterson’s rig count hit 78, up 2 from 76 in January…
    Read More “Patterson-UTI Feb Rig Count Up 9th Month in a Row”

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    OH Court Rules Landmen Need to be Licensed Real Estate Brokers

    We know this is an important story, and we know that some (many?) MDN readers will be interested. But this is one of those rare cases where we just can’t get our heads around the scope and importance of the story–and who it really affects. We had thought that landmen in Ohio (agents who deal with landowners and mineral rights owners, getting them to sign leases or easements) did not have to be licensed real estate agents in order to do their job. However, a court case just decided in Ohio’s Seventh District Court of Appeals seems to say that at least some landmen DO need to be licensed real estate agents, in order to get paid a commission on deals they’ve brokered. We don’t think the decision requiring a real estate license applies to all landmen in Ohio (although we’re open to correction on that point). Below we have information about the Dundics v. Eric Petroleum Corp. case, along with previous info from 2014 that indicates the reverse–that Ohio landmen DO NOT need to be licensed real estate brokers. Does the Dundics case supersede previous rulings? Is the Dundics case dealing with an obscure situation that doesn’t apply to all landmen? We simply don’t know…
    Read More “OH Court Rules Landmen Need to be Licensed Real Estate Brokers”

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    PA DEP Sec McDonnell Defends Overreach of GP-5/5A

    At last week’s Oil & Gas Awards’ 2017 Northeast Industry Summit, MDN editor Jim Willis heard former Pennsylvania Dept. of Environmental Protection (DEP) Secretary, Michael Krancer, say that the DEP’s proposed changes to General Permit (GP) 5 and 5A are “a big deal” and that the permits, as drafted, have the potential to stop PA natural gas production for 12-18 months while new regulations get sorted out (see Big News from the O&G Awards Northeast Industry Summit). We’ve written a fair bit about GP-5/5A, most recently in December (see PA DEP Extends Public Comment Period for Methane Regs). Our take on GP-5/5A is that it will target a reduction in fugitive methane. However, Krancer said the new rule would also stop any new pipeline construction through wetlands (virtually any and all new pipelines) until new permitting procedures are hashed out–hence his startling statement about production stopping for more than a year. Krancer also said GP-5/5A will regulate small gathering lines. PA’s legislators are very concerned about GP-5/5A and submitted a letter to DEP Acting Secretary Pat McDonnell in February with 21 questions about the new rule change. McDonnell met with several Senators and subsequently responded, in writing, by addressing each of the 21 questions. We have McDonnell’s letter and responses below…
    Read More “PA DEP Sec McDonnell Defends Overreach of GP-5/5A”

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    NETL Research Discovers Microbes May Make Marcellus Gas Renewable

    NETL researcher Yael Tucker uses a special bio-reactor to study microbes from shale samples – click for larger version

    Dr. Yael Tucker, a research scientist working for the National Energy Technology Laboratory (NETL) at West Virginia University (Morgantown, WV), continues to make important discoveries that have the potential to increase Marcellus Shale production. Her work involves tiny microbes. Dr. Tucker’s work “shakes the general assumption” that methane gas from the Marcellus is all thermogenic–or the result of decomposing dinosaurs put under extreme heat and pressure over long periods. At least some methane in the Marcellus, according to Tucker, is biogenic–the result of tiny LIVING microbes doing their thing. In other words, natural gas may be renewable! Who knew?! Tucker’s research has huge implications: “…there may be a faster recovery time than expected for the renewal of gas reserves” in Marcellus reservoirs. Contrary to the “leave it in the ground” dunces who say once the gas is gone it’s gone, now we know we can take it out and at least some of it will magically reappear again. Renewable. Sustainable. Shale gas…
    Read More “NETL Research Discovers Microbes May Make Marcellus Gas Renewable”

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    7 Major Marcellus/Utica Pipelines Coming This Year & Next

    Yesterday MDN brought you a story about the difference, in the price drillers get for their gas, that a single pipeline can make (see The Difference One Utica Pipeline Can Make on Gas Prices). That story was about how the Rockies Express Pipeline (REX) reversed its flow from Ohio to Missouri adding 800 million cubic feet per day (MMcf/d) of extra capacity for a total of 2.6 billion cubic feet per day (Bcf/d) of gas now flowing from the Utica/Marcellus to the Midwest. REX is an existing pipeline. Just think about all of the pipeline projects in the queue for the Marcellus/Utica. In fact, there are seven major projects that are either already-approved by the Federal Energy Regulatory Commission (FERC) or under review now. If you add them all together, it represents almost 12 Bcf/d of additional natural gas flowing out of our region to other regions, where it will fetch higher prices. What are the seven projects? How much gas will each flow? When will they go online? We need a scorecard! We now have one…
    Read More “7 Major Marcellus/Utica Pipelines Coming This Year & Next”