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    Are Lower Costs to Produce Shale Oil Only a Mirage?

    Every now and again it’s fun to read Peak Oil people and their wild theories that oil will run out any year now. Such theories have been exposed as complete bunkum, mainly because those crusty old guys (and gals) in the U.S. oil patch keep figuring out how to do new things to extract oil, at cheaper prices. Technology gets better, procedures get better, we do more with less. And we produce more oil, year after year. But it’s still good to read those with a different viewpoint from time to time, just to keep us on our toes. Sometimes they even make some good points. That’s what we found in an article that posits the theory that shale oil really isn’t as good as it may appear. Why? According to this peak oil author, better technology now being used is not nearly as important as the technique currently employed called “high grading”–or targeting the sweetest of the sweet spots, which are far more productive than the run-of-the-mill drilling locations. The author maintains we’ll run out the best areas to drill soon, leaving us with less-than-optimal areas and therefore much higher costs. And then shale is toast. That’s the theory anyway…
    Read More “Are Lower Costs to Produce Shale Oil Only a Mirage?”

  • Marcellus & Utica Shale Story Links: Tue, Dec 13, 2016

    The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: OPEC’s production cut won’t boost Marcellus shale output; SWPA Enviro Health Project exploits children to support fractivist cause; FERC denies Elba Island LNG re-hearing request from Sierra Clubbers; proppant demand on the rise; oil rig count spikes way up; Trump will resolve Dakota Access, Keystone XL pipeline delays in January; and more!
    Read More “Marcellus & Utica Shale Story Links: Tue, Dec 13, 2016”

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    Rocket Ride Continues for OH Utica NatGas Production in 3Q16

    The Ohio Dept. of Natural Resources (ODNR) has just issued production numbers for the third quarter of 2016. Compared with third quarter 2015, production numbers in 3Q16 continued to be a mixed bag, as was the case in 2Q16 (see Ohio 2Q16 Utica Production – Who Produced O&G Where & How Much). Oil production in 3Q16 dropped by 34% over a year earlier and down 18% from 2Q16–that’s the bad news. But natural gas production from shale continues to be a rocket ship. Natgas production is up 45% year over year. In 2Q16 natgas production was up 51% y/y–so the trend continues. Ascent Resources (formerly Aubrey McClendon’s American Energy) dethroned last quarter’s CNX Gas as 3Q16’s top producing gas well, yielding nearly 1.6 billion cubic feet for the quarter. Also interesting to note, last quarter’s CNX well is located in Monroe County–this quarter’s Ascent winning well is located in Belmont County. Eclipse Resources once again had the #1 producing oil well in Guernsey County, the monster Purple Hayes, which produced an astonishing 74,954 barrels of oil in 3Q16, after producing 71,072 barrels of oil in 2Q16 (#1 well in 2Q16). What a great well! Below we have the ODNR’s high level overview of the numbers, along with MDN’s own exclusive analysis showing: the top 25 producing gas wells, the top 25 producing oil wells, and then the top 25 gas and oil wells as ranked by average production per day. There is a difference!…
    Read More “Rocket Ride Continues for OH Utica NatGas Production in 3Q16”

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    Paid Dakota Protesters Begin Siege of Ohio’s Wayne National Forest

    It’s happened, just as we predicted. Paid, out-of-state protesters have arrived in Ohio, as they did in North Dakota, with the intent to block plans to begin fracking on land in Wayne National Forest. The Bureau of Land Management will conduct an auction tomorrow for 1,600 acres of land in WNF (see BLM Launches Auction to Lease Wayne National Forest for Fracking). The protesters in Ohio come from the same source that backed the criminals who have invaded North Dakota (see Police Remove Pipeline Protesting THUGS from Private Land in ND). They pretend to fly under the banner of Native Americans–but it’s nothing of the sort. These are paid protesters, backed with money from Big Green organizations, attempting to gin up support to block all fossil fuel development across the country. Right now there’s only a handful, according to their own press release. It’s important to stop this cancer now, before it grows in Ohio has it has in North Dakota…
    Read More “Paid Dakota Protesters Begin Siege of Ohio’s Wayne National Forest”

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    Fracking in Canadian Utica Shale Takes Big Step Closer to Reality

    Little known fact: There is a Utica Shale layer in Canada–along the St. Lawrence River Valley–in the Province of Quebec. On and off over the years we’ve mentioned it, largely in connection with an ongoing moratorium on shale drilling in Quebec (see our stories here). Quebec’s moratorium is similar to the mortorium on shale drilling in New York State–that is, a total block, but not a permanent block. Here’s some really good news: the Quebec moratorium on shale drilling is about to come to an end! After debating an environmental bill all night Friday into Saturday, the Quebec National Assembly voted to pass Bill 106, ostensibly to support Quebec’s “clean power plan.” The bill includes a section that “lays out a framework for oil and gas development” in Quebec. Fracking will not begin immediately. The bill does, however, mean that new regulations will come along in early 2017 and after that, it’s an almost certainty that fracking will begin, in 2017, in the Canadian Utica. Cool! Here’s the news…
    Read More “Fracking in Canadian Utica Shale Takes Big Step Closer to Reality”

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    Landowners in Ohio Vow to Continue Fight Against NEXUS Pipeline

    Some holdout landowners in Medina County, OH continue to oppose the coming NEXUS Pipeline, even after their suggested alternative routes (around their county) have been rejected by the Federal Energy Regulatory Commission (FERC). A few holdouts are vowing to continue the fight “until all of our resources and options are exhausted,” which may be very soon. Earlier this month FERC issued a positive Final Environmental Impact Statement (see FERC Approves NEXUS Pipeline, Project on Track for 2017). A positive FEIS almost always means it’s over–the project will get approved. Spectra Energy, the builder of NEXUS, expects a final certificate allowing the backhoes and bulldozers to begin sometime in the first quarter of 2017. Until that happens, there are some who will continue to fight…
    Read More “Landowners in Ohio Vow to Continue Fight Against NEXUS Pipeline”

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    Marcellus Drillers Pay $134+ Million in WV Property Tax in 2016

    Although shale drilling slowed over the past 18 months or so, you wouldn’t know it by the amount of tax revenue the industry contributes in West Virginia counties located in the northern area of the state. Wetzel County will collect an estimated $24 million in tax revenue from shale drillers in 2016. Marshall County will take in $14.9 million. Ohio County will get $9 million and Doddridge County around $8.1 million. Tally it all up across the entire state, and the Marcellus industry will pay more than $134 million in property taxes for 2016…
    Read More “Marcellus Drillers Pay $134+ Million in WV Property Tax in 2016”

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    Somerset KY Attempting to Land $70M Gas-to-Liquids Plant

    Gas-to-Liquids (GTL) plants convert natural gas, a hydrocarbon, into other hydrocarbons, like diesel fuel, gasoline, solvents and waxes. An abundance of cheap natural gas in the Marcellus/Utica is one of the prime motivators for establishing GTL plants in the region. Although we’ve heard plenty of talk about such plants, we’ve only seen a few prototypes get built. There’s lots of talk, lots of smoke–but so far, no fire. Will that soon change? We spotted a story about a GTL plant that may locate in Somerset (Pulaski County), Kentucky. Which we find interesting since Kentucky hates new gas pipelines, yet wants to build a plant that will use gas coming from pipelines (see KY Court Decision Goes Against Pipelines re Eminent Domain). But hey, maybe attitudes will change when they see the economic and environmental benefits from more natural gas, right? The mayor of Somerset is excited and perhaps prematurely announcing his town may (underscore may) get a new $70 million GTL plant. Thing is, the unnamed builder of the plant is also considering a location in Ohio, where there’s plenty of local natgas and pipelines already built. The good mayor may want not want to count his chickens before they hatch…
    Read More “Somerset KY Attempting to Land $70M Gas-to-Liquids Plant”

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    New New Hampshire Gov Willing to Fight for NatGas Pipelines

    NH Gov.-Elect Chris Sununu

    Whoa, what’s this: Is New England Turning from Blue to Red, politically? Perhaps! Prior to November’s election in which Democrats continued their historic losing streak, the governors of the six New England states were pretty much in favor of more natural gas, including pipelines, for their region (see Blue State Blues: 6 New England States Want New Natgas Pipeline). However, there was only one true believer and supporter who didn’t wilt at the first sign of pipeline opposition: Gov. Paul LePage from Maine, a Republican (and businessman), who has been a steadfast supporter of natural gas and the pipelines required to get it to his state. The other five governors, all Democrats, are scattered along a continuum of anti-gas to lukewarm in favor. In January LePage will be joined by a second natgas supporter and Republican, Chris Sununu, who will become the new governor of New Hampshire. The Sununu family is legendary in NH. Chris’ dad John H. Sununu is a past governor of NH and was Chief of Staff in the George H.W. Bush (George Sr) White House. Chris’ brother John E. Sununu is a former U.S. Senator from NH. The encouraging part? Chris Sununu said last week he wants more natgas pipelines in NH–and he’s willing to fight for them…
    Read More “New New Hampshire Gov Willing to Fight for NatGas Pipelines”

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    SGICC Launches 6th Shale Gas Innovation Contest, $60K in Prizes

    As we do each year, we take great pleasure and pride to let you know that Ben Franklin Shale Gas Innovation and Commercialization Center (SGICC) has launched yet another Shale Gas Innovation Contest. In fact, this is the 6th annual such contest. The Shale Gas Innovation Contest awards a $20,000 prize to three companies ($60,000 purse) for the “best shale energy-oriented innovations, new product ideas, or service concepts that are either in the development stage or recently launched.” Here’s the details on who your company can participate…
    Read More “SGICC Launches 6th Shale Gas Innovation Contest, $60K in Prizes”

  • Marcellus & Utica Shale Story Links: Mon, Dec 12, 2016

    The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Rice Energy files to get into home gas delivery game; OH legislature wants to keep freeze on so-called clean energy mandates; FirstEnergy contemplates filing for bankruptcy; PA court re-issues block on some shale drilling regs; mall near Shell cracker gets sold; ND the biggest loser in Obama ruling against pipeline; shale is back, part ii; Trump EPA pick good “at breaking down worthless organizations”; and more!
    Read More “Marcellus & Utica Shale Story Links: Mon, Dec 12, 2016”

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    PA DEP Releases New Regs re Methane & Air Pollution at Drill Sites

    Yesterday the Pennsylvania Dept. of Environmental Protection (DEP) unveiled new regulations to clamp down on methane emissions and other other air pollution that allegedly comes from shale drilling sites. The onerous new regulations, not in effect yet (to be published “soon”) are prompted by bullying from the federal Environmental Protection Agency, an agency which is about to get gutted (see Master Stroke: Trump Selects OK AG Pruitt to Lead EPA). That doesn’t stop the Gov. Wolf’s DEP from plowing forward with new rules (copies below). As an interesting aside, MDN editor Jim Willis attended a conference yesterday in New York City where Harold Hamm, CEO of Continental Resources, said more methane leaks from the gas lines under New York City each day than from ALL oil and gas drilling activity across the country! Yet the Wolf DEP, with a plank sticking out of its eye (methane leaking like a sieve from major cities), is going after the sawdust in o&g’s eye (tiny bit of methane escapting at well sites). Go figure. To be fair, DEP’s new regs do more than just try to force every last molecule of methane to be “captured” (nasty fugitive molecules causing Mom Earth to toast)–DEP will also go after a reduction in some other types of air pollution, including VOCs (volatile organic compounds). But capturing fugitive methane in a vain attempt to combat mythical man-made global warming is the main thrust of the effort. Once the DEP publishes the new rules in the Pennsylvania Register, the industry (and radical environmentalists) will have 45 days to comment before the new rules magically become unlegislated laws…
    Read More “PA DEP Releases New Regs re Methane & Air Pollution at Drill Sites”

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    FERC Allows KM to Begin Broad Run Expansion Project in KY

    Last week MDN brought you news about Kinder Morgan’s Broad Run Expansion Project will expand transportation capacity of natural gas on the existing Tennessee Gas Pipeline system. Antis tried to stop the project, but FERC rejected their pleas (see FERC Denies Anti Request to Stop KM’s Broad Run Expansion Project). The Broad Run Expansion includes the construction of two new compressor stations in Kanawha County, WV, one new compressor station in Davidson County, TN, and one new compressor station in Madison County, KY. Tennessee Gas also expects to increase compression capacity by modifying two of its existing compressor stations in Powell and Boyd counties in KY by replacing existing capacity with new, higher-rated horsepower compression units. The project will provide an extra 200,000 dekatherms per day (Dth/d) of transportation capacity along the same capacity path as the Broad Run Flexibility project, which was placed in service on Nov. 1, 2015. All of the additional gas will come from Antero Resources and their Marcellus/Utica program. On Wednesday FERC gave Kinder Morgan permission to upgrade the two existing compressor stations in KY, but (for now) that’s all–something called a “partial notice to proceed”…
    Read More “FERC Allows KM to Begin Broad Run Expansion Project in KY”

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    PES’ Phil Rinaldi Stepping Down; Will Philly Energy Hub Die?

    Phil Rinaldi

    “Fossil Phil,” Philip L. Rinaldi, is stepping down as CEO of Philadelphia Energy Solutions. In 2012 Sunoco and the Carlyle Group formed a joint venture to operate the troubled Sunoco refinery in South Philadelphia (see Sunoco & Carlyle Group Ink Joint Venture for Philly Refinery). They put Phil Rinaldi in charge. The deal saved 850 jobs from disappearing and led to adding even more jobs as the refinery, under the leadership of Rinaldi, began processing shale oil. Since then the price of oil has dropped, a lot. But the facility still chugs along. Phil is turning 71 and didn’t offer a reason for why he’s leaving the post (although retirement is the apparent reason). Phil does intend to continue on as Chairman of the Greater Philadelphia Chamber of Commerce’s Energy Action Team–a group dedicated to turning Philadelphia into an “energy hub” by building more pipelines to the city from the Marcellus. Some antis have intimated that Phil leaving his post spells the end of the dream to turn Philly into an energy hub, which is, of course, nonsense…
    Read More “PES’ Phil Rinaldi Stepping Down; Will Philly Energy Hub Die?”

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    80% of PA, OH, VA Voters Support More Pipelines & Power Lines

    The National Association of Manufacturers (NAM) recently commissioned a survey of residents in Pennsylvania, Ohio and Virginia–so-called “battleground” states that can swing either Democrat or Republican come election-time. The survey found that an average of 80% of the respondents support energy infrastructure spending, by both government and private companies. Which is remarkable. When was the last time you heard of 80% of the American electorate agreeing on anything? This survey takes the wind out of the sails of the “keep it in the ground” movement of fossil fuel haters, like those opposing pipeline projects like NEXUS, Rover, PennEast, Atlantic Coast, Atlantic Sunrise, Mountain Valley, et cetera et cetera. Here’s the results of the NAM survey…
    Read More “80% of PA, OH, VA Voters Support More Pipelines & Power Lines”