Canadian Bear Head LNG’s Long-Shot Plan to Get Gas
For some time we’ve tracked the progress of an LNG export plant planned for the eastern shore of Nova Scotia, the Bear Head LNG project. Of all the Canadian LNG export projects, Bear Head seems to have the most momentum. The project has received most (if not all) of the necessary permits it needs to proceed. But it’s not been without its bumps along the way (see Bear Head LNG Export Plant: Bad News & Good News). It had appeared that Bear Head would export Marcellus Shale gas as LNG–using gas from Spectra Energy’s Access Northeast project that would expand and connect existing Spectra pipelines, connecting them to the Maritimes & Northeast pipeline all the way to Nova Scotia (see Spectra’s Access Northeast Pipe Wins Important Approval in Maine). However, Spectra has hit roadblocks with their project. So Bear Head is now proposing a new 1,000 mile pipeline to bring western Canadian natural gas to the East Coast…
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Antero Resources, one of the biggest drillers in the Marcellus, is going shopping for cash. In September Antero’s midstream (i.e. pipeline) subsidiary went shopping for cash and got $650 million (see 
Richard Zeits is an oil and gas, commodities, and long/short equity research analyst. He writes on the Seeking Alpha website and is, without a doubt, the best writer we read on o&g matters on the SA website. So when we spotted an article he’s written about Chesapeake Energy, that its “distress risk” (i.e. bankruptcy) is now “remote”–we took notice. It wasn’t long ago that many were betting the company would declare bankruptcy (see 
The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Rockefellers paid for #ExxonKnew AND pulled in NY AG Schneiderman; Chesapeake still #1 driller in the Ohio Utica; Duke study ignores improvements in Marcellus road report; US shale will kill oil price rally; majority of biz execs happier since Trump elected; Asian LNG price goes above $8/Mcf; and more!
Gulfport Energy reports they have just snagged another 12,600 net undeveloped Utica acres located dry gas window of northern Monroe County, Ohio for $87 million. When you run the math, that works out to be $6,905 per acre–far less than the recent $10,000/acre prices we’ve seen. Half of the acreage is “held by production,” meaning wells have either been drilled or are already producing. Analysts figure the land, which is located next to land already leased by Gulfport, will yield something like 105 new wells for the company. Gulfport is head over heels in love with the Utica and plans, as we noted in November, to run an average of six drilling rigs in the Utica in 2017 (see 
It’s certainly not THE highest, but it is certainly one of the highest fines we’ve seen assessed by the Pennsylvania Dept. of Environmental Protection (DEP). Yesterday the DEP fined Rice Energy $3.5 million “for multiple violations of environmental laws at 10 well sites and 6 pipeline locations.” The violations, spanning “several years,” occurred at sites in Washington and Greene counties. Here’s the details…
The worldwide Baker Hughes rig count was up by 5 in November, from 920 in October to 925 in November. That reverses a brief slide back in October when rigs worldwide slide back by 14. However, the rig count in the U.S. went up for the fifth month in a row. The average U.S. rig count for November was 580, up 36 from the 544 counted in October. That’s a two month increase of 71! The Marcellus/Utica rig count was up for the fourth month running. In November the M/U rig count went up by 4 (second month in a row it’s gone up 4) with 2 additions in PA (now 27 rigs) and 2 in OH (now 16 rigs). WV stayed even running with an average of 10 rigs…
The Northeast Gas Association (NGA) is a regional trade association that focuses on education and training, technology research and development, operations, planning, and increasing public awareness of natural gas in the Northeast U.S. NGA represents natural gas distribution companies, transmission companies, liquefied natural gas importers, and associate member companies. These companies provide natural gas to over 10 million customers in nine states. The NGA has just released a 96-page report called the 2016 Statistical Guide (full copy below)–a sort of “year in review” for the gas industry in the northeast. If you could boil it all down, the word that appears prominently throughout is “delay” with respect to important natgas pipeline projects. From the Constitution, which should have already been built by now, to smaller projects, delays were the prominent trend for 2016…
Once a month our favorite government agency, the U.S. Energy Information Administration (EIA), issues a Short-Term Energy Outlook (STEO). The EIA issued their latest edition on Tuesday. We have a full copy below. We’ve grabbed out the section on natural gas because it includes a couple of key points: (1) EIA predicts that natural gas production in the U.S. for 2016 will see a healthy decline over 2015 levels–1.3 billion cubic feet per day (Bcf/d) less in 2016. That’s the first annual production decline since 2005! (2) The EIA predicts the average price for natural gas at the benchmark Henry Hub will climb from $2.49/Mcf (thousand cubic feet) in 2016 to a whopping $3.27/Mcf in 2017. Why the jump? Growing domestic natural gas consumption, along with higher pipeline exports to Mexico and liquefied natural gas exports. Here’s the natgas section of the STEO, along with a copy of the full report…
Chesapeake Energy is leveraged up to its neck with elaborate loans up loans and notes (IOUs) upon notes. We don’t know how they keep it all straight. Must take an entire department full of CPAs to track it all. No doubt the CPAs escaped CEO Doug Lawler’s ax when he was chopping 1,500 jobs from the company (see 
We’re always leery when we read about scientists doing data mining instead of real in-the-field research. So our radar was on alert when we read about the latest data mining project now under way at Penn State. Using a $1 million grant from the National Science Foundation, a cross-disciplinary team of Penn State computer scientists and geoscientists will study methane concentrations in the Pennsylvania’s streams, rivers and private water wells. They will look to see if wells and streams and rivers close to fracked Marcellus Shale wells have higher concentrations of methane than those not close to shale wells. In other words, does fracking cause methane to migrate into nearby water sources? That’s what they’re trying to prove, or disprove. The problem, from our perspective, is whether or not the data being analyzed contains readings of methane levels present in those wells, streams and rivers BEFORE any kind of shale drilling happened. If you don’t have the before and after, the data is useless. Drillers have discovered where the best locations are to drill–so that’s where they drill. (Brilliant, we know.) So it stands to reason naturally occurring methane already exists in those locations. Just because a nearby well or stream has higher levels of methane does not prove a shale well caused it. The methane may have already existed in the same quantities long before any shale drilling. You see the problem? At any rate, here’s the lowdown on another million dollar research project to give the Marcellus yet another anal exam…
With the election of Donald Trump, climate change radicals became unhinged. They’ve always been liars–predicting the end of Mom earth “in the next 10-15 years” for the past 40 years or so. Their predictions never come true. First it was global cooling–we’re all going to freeze. Now it’s global warming–we’re all going to toast. And of course it’s always mankind’s fault. If you deign to disagree and ask them for objective, science-based (not theoretical model-based) evidence, they call you “climate denier” and run around to gather up kindling to burn you at the stake. Their rabid and irrational beliefs are now leading to violence–witness the “protests” in North Dakota over a simple pipeline. Enough is enough. Robert Bradley Jr., founder and CEO of the Institute for Energy Research, recently published a great column on the Forbes website in which he skewers climate change radicals, calling them out for their outrageous accusations and their (un)civil disobedience. Give it a read–we promise it’s worth the time…
Since he assumed office in 2013, Auditor General Eugene DePasquale has had a chip on his shoulder when it comes to the Marcellus Shale (see 