Reversed REX Pipeline Goes from 1.8 Bcf to 2.0 Bcf
The Rockies Express Pipeline (REX), originally built from Colorado and Wyoming to Monroe County, OH to bring natural gas from west to east, last year reversed the flow for a large and important section of the pipeline. On August 1, 2015 the section of REX from Monroe County, OH to Mexico, MO reversed the flow and began to carry 1.8 billion cubic feet per day (Bcf/d) of Utica and Marcellus Shale gas to the Midwest, including to the greater Chicago area. REX has been hard at work on plans to expand capacity even more by beefing up compressor stations along portions of the pipeline. REX filed a plan with FERC to add another 800 million cubic feet per day (MMcf/d) of capacity along the same portion of the reversed pipeline. In late November, the Federal Energy Regulatory Commission (FERC) gave REX the go-ahead to start additional compressors added at three locations along the route (see REX Pipe Begins Flowing Extra 800 MMcf/d Marcellus/Utica Gas West). NGI is reporting that the first 200 MMcf of the additional 800 MMcf is now flowing along the pipeline…
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Headquartered in Houston, Texas, Exterran Corporation (with 5,400 employees) specializes in natural gas compression production equipment and processing facilities. They design, build and operate compressor stations and natural gas processing plants. In 2012 MDN reported on a contract Exterran won to build three natural gas processing plants in West Virginia (see 
Rex Energy, a driller focused mainly on the Marcellus/Utica (headquartered in State College, PA), has had its share of financial challenges. It has swapped out IOUs for new IOUs, converted debt into equity (shares of stock), sold off assets in other basins–a whole lotta stuff to keep on drilling (
It’s been a while since the last episode of As the (Midstream) World Turns. In our last episode, we left beleagured Williams conducting a board of directors “refreshment” program (i.e. purge)–to clean out the old and bring in some new blood. A brief history to catch you up in case you missed our previous episodes: Following an aborted merger with Energy Transfer Equity, six of Williams’ board members tried to engineer a palace coup to depose current CEO Alan Armstrong. The coup failed and the board members quit in July (see 
We’re sure you haven’t missed the news that President-Elect Donald Trump (we love saying those words!) has nominated current Exxon Mobil CEO Rex Tillerson (T-Rex for short) to become the next Secretary of State–and fourth in line to the presidency. Tillerson is a great pick, for many reasons. He’s been doing deals in some 50 countries across the planet, dealing with some nasty customers during that time. T-Rex knows how to get things done–and he knows how to be a diplomat. He deals from a position of strength, not of weakness as our current SecState (John Kerry) and previous SecState (Hillary Clinton) have done. T-Rex will command attention and respect across the planet. And he’s a oil guy to boot–how great is that! Equally great news is Trump’s pick to run the Dept. of Energy–former Texas Gov. Rick Perry. We’ve always liked Rick (we supported him over Romney in 2012). Perry was the longest-serving governor of Texas, the biggest oil producing state in the country. He knows oil and gas, and he knows how to lead. What a breath of fresh air! Here’s some background on Trumps two key picks who have deep o&g experience…
It’s really kind of sad. Two washed-up, thoroughly discredited (indeed humiliated) Cornell professors who are on the payroll of Big Green organizations like the Park Foundation, Robert Howarth and Anthony Ingraffea, are still appearing in public to proclaim their junk science “study” from 2011 that says natural gas is worse for Mom Earth than burning coal (see 
Seventy Seven Energy (SSE) is the former Chesapeake Oilfield Operating company, the oilfield services subsidiary of Chesapeake Energy that Chessy spun out into its own company in July 2014 after it couldn’t find anyone to buy it (see 
EQT is feeling bullish about natural gas drilling in the northeast for 2017. The company has just released its 2017 operational forecast. What do we notice? First off, they plan to spend $1.5 billion next year, most of which ($1.3 billion) will be used to drill and complete new wells. That’s a whopping 50% increase from spending $1 billion this year. The next thing we notice is what type of wells they intend to drill: 119 Marcellus wells (76 in PA and 43 in WV); 81 Upper Devonian wells, which will be drilled on the same pads as deeper Marcellus wells, but only in PA; and 7 “deep Utica” exploratory wells. EQT also reworked a midstream deal with Williams in the Ohio Valley. Below are the exciting details of what’s ahead for EQT in 2017, including a second announcement from EQT Midstream about what’s ahead for the pipeline subsidiary, including details on how much they plan to spend on the Mountain Valley pipeline project in the coming year…
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 two reports, estimating production for November and December, Marcellus natgas has increased. The trend continues in this latest report, which forecasts production for the coming month of January. The October report predicted Marcellus production would increase in November by 73 million cubic feet per day (MMcf/d). The November report predicted Marcellus production would increase in December by 130 MMcf/d. The current December report predicts Marcellus production will go up by another 160 MMcf/d in January. Yikes! Another trend observed: four of the seven shale plays will increase production in January, one (the Utica) will produce about the same in January, and only two will produce less gas in January than they did in December. Translation: shale gas production is once again on the rise–which breaks a five month record of month over month declines across all seven plays. It seems we’ve turned a corner…
As MDN alerted you in October, the Bureau of Land Management (BLM) announced they would auction 33 parcels in Ohio’s Wayne National Forest (WNF) to allow shale fracking (see 
One of the many companies in the Marcellus industry targeted by Pennsylvania’s former Attorney General, Kathleen Kane, for extinction was Minuteman Environmental Services, a PA company that served the shale industry with several different businesses (see 
Extreme Plastics Plus (EPP) has been manufacturing and installing well pad liners since 2007. Pad liners protect the ground from accidental spills of frack wastewater and chemicals used during the drilling process. Located in Fairmont, WV, EPP’s customers are in the Marcellus and Utica Shale region. In order to expand, EPP raised an undisclosed amount of investment money from Hastings Equity Partners in 2013 (see 
When it comes to gas-to-liquids (GTL), MDN has observed (as we stated in a story yesterday, see 
Global research firm Wood Mackenzie, a trusted source of commercial intelligence for the world’s natural resources sector, recently published a new study that predicts global oil and gas exploration and production (i.e. drilling) in 2017 is going to bounce back–in a pretty big way. E&P companies in North America are forecast to boost their capital expenditures in 2017 by 24.5%–the first increase since 2014. Perhaps some independent verification of that prediction has just been provided by EQT. As we note in a related story today, EQT is boosting their capex next year to $1.5 billion–a 50% increase (see EQT 2017 Forecast: Drilling 119 Marcellus, 81 UD, 7 Utica Wells). However, the trend in recent months will continue toward “a smaller, more efficient industry.” In other words, we won’t see the roaring days of a few years ago, but at least we’ll see an uptick in new drilling in the coming year. Here’s what the brains at Wood Mackenzie predict will happen in the next 12 months…