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Marcellus Drilling News
  • Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Research | Statewide PA

    Penn State Goes Methane Migration Hunting – Using Big Data

    December 8, 2016December 7, 2016

    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…
    Read More “Penn State Goes Methane Migration Hunting – Using Big Data”

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

    The (Un)Civil Disobedience of Anti-Fossil Fuel Extremists

    December 8, 2016December 7, 2016

    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…
    Read More “The (Un)Civil Disobedience of Anti-Fossil Fuel Extremists”

  • Best of the Rest

    Marcellus & Utica Shale Story Links: Thu, Dec 8, 2016

    December 8, 2016December 7, 2016

    The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Pipeline-killers hate people; rig count stays steady in Ohio Utica at 19; Energy Transfer asks court to rule on Dakota Access Pipeline; Democrat Senator admits “keep it in the ground” sunk Dems in election; Trump plan to privatize Indian lands; new market to trade natgas more like oil; and more!
    Read More “Marcellus & Utica Shale Story Links: Thu, Dec 8, 2016”

  • Industrywide Issues | Pennsylvania | Research | Statewide PA | Taxation

    PA Anti-Drilling Auditor General Bashes Impact Fee Spending

    December 7, 2016December 7, 2016

    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 Newly Elected PA Auditor General Targets DEP First Day on Job). He put together a sham report on the DEP, calling attention to “problems” fixed years earlier, before he assumed office (see DEP to DePasquale: Problems Fixed Years Ago, Where Have You Been?). He couldn’t discredit the Marcellus industry via the DEP, so he started on a new track–the millions of dollars raised in a severance tax-like fee called the impact fee (see PA Auditor General to Investigate “Lost” $30M Marcellus Impact Fee). In March 2016 DePasquale announced he will conduct a thorough anal exam, er, a, audit of all Act 13 impact fee money distributed to towns and municipalities (see PA Auditor General Commits to Half-an-Audit of Shale Impact Fee $). At the time we pointed out that 60% of the impact fee revenue raised goes to local towns and municipalities where drilling occurs, but the other 40% goes into the black hole of politicians’ sticky fingers in Harrisburg. If DePasquale doesn’t audit the other 40%, he’s only done half-an-audit. DePasquale has released his biased audit and yep, he didn’t bother to look at the 40% being spent by his cronies in Harrisburg–he only concentrated on the money going to local governments. And even then he didn’t find much, but he’s conflated it into a big press release and his sycophants in the media are regurgitating it with damning headlines…
    Read More “PA Anti-Drilling Auditor General Bashes Impact Fee Spending”

  • Industrywide Issues | Litigation | Pennsylvania | Regulation | Statewide PA

    PA DEP Asks Supreme Court to Overturn Stay on New Regs

    December 7, 2016December 7, 2016
    Justices of the PA Supreme Court – click for larger version

    On Oct. 8, after five years in the making, Pennsylvania adopted new shale drilling regulations (see PA’s New Chapter 78a Drilling Regs Go into Effect Oct 8). Although the regs were ready at the end of the Gov. Tom Corbett Administration, Corbett fumbled the ball and the regs didn’t get adopted, which left them vulnerable to the incoming left-leaning Tom Wolf. Wolf’s people mangled the regulations under the Dept. of Environmental Protection (DEP) Dictator/Secretary John Quigley, who got fired over unethical collusion with Big Green groups. Some of the good stuff remained, but onerous new elements were introduced. The Marcellus Shale Coalition (MSC), which represents PA’s biggest shale drillers, filed an appeal in Commonwealth Court to block the most onerous aspects of the new regulations (see Marc. Shale Coalition Files Lawsuit to Block PA Chapter 78a Regs). The judge agreed to temporarily block some of the items in the MSC list (see PA Judge Temporarily Blocks Some DEP Chapter 78a Drilling Regs). Yesterday the DEP escalated the case by asking the PA Supreme Court to undo the block on those regulations by the lower Commonwealth Court…
    Read More “PA DEP Asks Supreme Court to Overturn Stay on New Regs”

  • Allegheny County | Greene County (PA) | Pennsylvania | Washington County

    PA’s Allegheny, Washington, Greene Counties in “Core of the Core”

    December 7, 2016December 10, 2016

    We spotted an article on the topic of forced pooling in Pennsylvania. Forced pooling is always an interesting topic for MDN. However, it was not pooling, but the article’s details on three southwestern counties in PA that really caught our attention. According to the author (in quoting two geology experts), Allegheny County (i.e. Pittsburgh), along with nearby Washington and Greene counties are located in the “core of the core” or the very best of the very best parts of the Marcellus Shale play. The article also references research by Range Resources which says Allegheny and Washington counties have the “highest in-place gas reserves not only in the Appalachian Basin but ‘perhaps the world’.” Yikes! That’s pretty enthusiastic language about the gas supplies trapped under Pittsburgh and surrounding areas–and great news for landowners in those counties…
    Read More “PA’s Allegheny, Washington, Greene Counties in “Core of the Core””

  • Dominion Energy | Energy Services | Industrywide Issues | Jobs | Pipelines | Supply Chain

    Vendors & Workers: Sign Up to Help Build Atlantic Coast Pipeline

    December 7, 2016December 7, 2016

    Calling all vendors (i.e. supply chain companies) and workers who want a piece of the action in building the Dominion’s $5 billion, 594-mile Atlantic Coast Pipeline–a natural gas pipeline that will stretch from West Virginia through Virginia and into North Carolina. Dominion is currently holding in-person “construction expos,” as well as hosting an online form for those where those with an interest in selling to or working for the project can register that interest. Yesterday Dominion held a construction expo in Bridgeport, WV. Today they’re holding one in Elkins, WV. And over the next week or so they will hold more construction expos–across Virginia and even in North Carolina. Dominion is looking for suppliers for things like gravel and concrete, vehicles, construction supplies, welding and more. Here’s the low-down on how you can sign up to help build the Atlantic Coast Pipeline…
    Read More “Vendors & Workers: Sign Up to Help Build Atlantic Coast Pipeline”

  • Belmont County | Economic Impact | Energy Services | Ethane | FirstEnergy | Industrywide Issues | Ohio | Processing Plants | PTT Global

    JobsOhio Picks Up the $17M Cost for Prepping OH Cracker Site

    December 7, 2016December 7, 2016

    On Monday MDN reported that the future site for an ethane cracker in Belmont County, OH is now cleared and ready for construction to begin (see OH Cracker Final Decision Coming Soon, Site Now Cleared & Ready). Clearing the site, which once hosted the R.E. Burger coal-fired power plant, was no small task. The power plant site, owned and (until 2011) operated by FirstEnergy cost $14 million for demolition, remediation and general cleaning up. An adjacent site (not owned by FirstEnergy) cost another $3 million to tidy up. All told it took $17 million to clean up the site and get it ready to begin construction. FirstEnergy is reported to have said they were “excited” by the opportunity to spend $14 million to clean it up. Wait, what? They wanted to spend the money? Well actually, no, they didn’t. FirstEnergy spent the money to clean up the site because they have been/are being reimbursed for the cost by JobsOhio. So FirstEnergy (and PTT Global, the company that will build the cracker) doesn’t have to spend a dime to get the site ready to go. What is JobsOhio and where does it get all this money? Glad you asked! JobsOhio is a private, non-profit with a board appointed by Ohio Gov. John Kasich, which gets most of its operating revenue from taxes on liquor sales in Ohio. So raise a glass to the cracker, Ohioans. Your imbibing is helping to build it…
    Read More “JobsOhio Picks Up the $17M Cost for Prepping OH Cracker Site”

  • Energy Services | Industrywide Issues | Pipelines | Spectra Energy

    New England Gets Small Increase in NatGas Pipeline Capacity

    December 7, 2016December 7, 2016
    Click for larger version

    For the first time in six years, New England’s natural gas supply coming from pipelines is increasing. Slightly. On November 1, Spectra Energy placed part of the Algonquin Incremental Market (AIM) project into service, following a late-October approval from the Federal Energy Regulatory Commission (FERC). The remainder of the project is expected to be completed in December. Spectra placed another pipeline project, the Salem Lateral, into service on November 1 as well, but it is not expected to be used until June 2017. The AIM project, when it is fully online later this month, will flow an extra 342 million cubic feet per day (MMcf/d) of Marcellus/Utica natural gas to New England. Cool! However, as we pointed out just yesterday, New England continues to balance on a razor’s edge. According to the regional electrical grid operator, ISO New England, given the supplies they now have (and expect to have via AIM), the region “should” (maybe, might, possibly, theoretically) have enough natgas to skate by this winter (see Lack of NatGas Pipelines Casts Doubt on NE Winter Electric Rates). But, if it turns really cold and snowy and stays cold and snowy in New England, all bets are off. Here’s the good news about the added capacity now (or soon will be) flowing to New England…
    Read More “New England Gets Small Increase in NatGas Pipeline Capacity”

  • Chesapeake Energy | Energy Companies

    Chesapeake Energy Gets New Logo – Dumps Blue NatGas Flame

    December 7, 2016December 7, 2016
    Chesapeake’s new logo

    In a symbolic move that speaks volumes about the once-great Chesapeake Energy, the company has a new butt-ugly logo that dumps the blue natural gas flame that has been an iconic part of the logo since its beginning. The logo change is symbolic in that Chesapeake seems to be moving away from its laser focus on natural gas and wandering into the “me too” territory of oil drilling. The thing that’s always made Chessy distinctive, and successful, has been its focus on natural gas. That uniqueness is disappearing under CEO Doug “the ax” Lawler–and now the logo reflects it…
    Read More “Chesapeake Energy Gets New Logo – Dumps Blue NatGas Flame”

  • CNG/LNG | Industrywide Issues

    Will Venezuelan NatGas End Up in New England?

    December 7, 2016December 7, 2016
    Click for larger version

    This is one of those purely speculative types of posts–based on nothing but our own curiosity and reaction of “Huh, that’s odd,” in learning that Venezuela has signed an agreement with the island nation of Trinidad and Tobago to supply the country with natural gas via a 400-mile pipeline (already in existence). The “that’s odd” reaction comes from knowledge that Trinidad and Tobago is, itself, a natural gas producer and exporter. Why would they need to import gas? One of Trinidad’s main customers is, yes, GDF Suez which imports LNG at a facility near Boston–for sale to New England. GDF Suez has been fighting against new pipelines from the Marcellus, based on their own selfish interests, arguing that it’s far better to import LNG than build new pipelines (see Guess Why GDF Suez Doesn’t Want Marcellus Pipeline to New England). But perhaps this development is not surprising. As we’ve pointed out before, Trinidad’s gas supplies are dwindling and export volumes dropping (see Is New England Heading for Huge NatGas Price Spike this Winter?). It appears Trinidad has a new supplier to keep the LNG exports going. Our question: Will Trinidad simply repackage and resell Venezuelan gas to New England? Our further question: Is it a good plan to depend on natural gas supplies from an antagonistic (i.e. enemy) country like Venezuela? Wouldn’t it make more sense to rely on domestically produced gas from a few hundred miles away?…
    Read More “Will Venezuelan NatGas End Up in New England?”

  • Energy Services | Patterson-UTI

    Patterson-UTI Nov Rig Count, Up 6th Mo in a Row

    December 6, 2016January 5, 2017

    6-in-a-rowAs 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). Month by month Paterson’s rig count has declined over the past year plus–until June (see Tide has Turned: Patterson-UTI June Rig Count Ticks Up by 2). June was the first time in over a year that Patterson’s rig count reversed and began to climb once again. Since June the count has steadily risen. The latest count, for November, once again shows an increase. It’s not much–Patterson added just two rigs over the October average. But hey, this is now the sixth month in a row the count has gone up, which is a good sign!…
    Read More “Patterson-UTI Nov Rig Count, Up 6th Mo in a Row”

  • Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Lease & Royalty Payments | NEXUS Pipeline | Ohio | Pipelines | Regulation | Wood County (OH)

    Bowling Green, OH Votes to Deny NEXUS Pipe Easement for City Land

    December 6, 2016December 6, 2016

    unwiseAll seven members of the Bowling Green City Council (Wood County) unwisely voted to reject an offer from Spectra Energy’s NEXUS Pipeline to lease 4 acres of city-owned land for the pipeline. Why unwise? Because the project is close to receiving its final federal approval, which will give it the right to use eminent domain to use the land anyway (see FERC Approves NEXUS Pipeline, Project on Track for 2017). Spectra offered $151,000 for the easement and was willing to follow an existing easement already in place for power lines. When (not if) NEXUS gets built, Bowling Green can expect to receive far less in the way of a lease payment. Even though the fix was in before the vote was taken, one lawless resident–Joe DeMare, a Green Party candidate for U.S. Senate in the most recent election (loser)–wouldn’t shut his yap and had to be escorted out by security. Apparently he thought there should be more public comment (i.e. camera and microphone time for himself) before the vote was taken. Whatever. Big Green antis celebrated the vote. We predict it will be a short-lived celebration…
    Read More “Bowling Green, OH Votes to Deny NEXUS Pipe Easement for City Land”

  • Electrical Generation | Energy Services | Industrywide Issues | Montour County | Pennsylvania | Talen Energy

    Talen Puts Coal-to-Gas Powergen Conversion on Hold in Mountour, PA

    December 6, 2016December 6, 2016

    on holdIn June Talen Energy announced that one of its coal-burning electric generating plants, located in Montour County, PA, will get an upgrade to burn natural gas in addition to burning coal (see Talen Energy Converting Moutour, PA Plant to Burn Coal AND NatGas). The Montour Power Plant went online in 1972/73 and generates 1,504 megawatts of electricity. The $70 million upgrade planned by Talen (requiring a 15-mile pipeline) will continue to produce the same amount of electricity, but will give the plant the option to power it with either natgas or coal, depending on which is cheaper. However, those plans are now on hold. Talen has just announced it will not, for now, move forward with the upgrade. Why? Talen says it wants to evaluate the results of a similar project already completed in York County, PA before moving forward with the project in Montour County…
    Read More “Talen Puts Coal-to-Gas Powergen Conversion on Hold in Mountour, PA”

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

    New Head of WVONGA Pushes for Forced Pooling Law

    December 6, 2016December 6, 2016
    annec
    Anne Blankenship

    In November the West Virginia Oil & Natural Gas Association (WVONGA) hired Anne C. Blankenship, an attorney with Babst Calland, to serve as executive director (see WVONGA Hires Babst Calland Attorney as Executive Director). As we noted at the time, she has some big shoes to fill following the sudden death of WVONGA’s former director Corky DeMarco (see WVONGA Executive Director Corky DeMarco Dead at 68). Anne becomes the standard-bearer for shale drilling in the Mountain State. She’s not wasting any time. The Charleston Gazette-Mail published an editorial by Anne today, a column in which she introduces herself and lays out her priorities for the coming year. One of those priorities is to push for a forced pooling law. She’s also pushing hard for new pipelines to get built…
    Read More “New Head of WVONGA Pushes for Forced Pooling Law”

  • Energy Companies | Guernsey County | Ohio | PDC Energy

    PDC Releases 2017 Plans – Drilling Just 2 Utica Wells in 2H17

    December 6, 2016December 6, 2016

    PDC Energy logoPDC Energy, a driller in the Wattenberg Field in Colorado and the Utica in Ohio, paused their Utica drilling program in 2015 (see PDC Energy Pushes Pause Button on OH Utica Drilling for 2015). Last December the company announced they would restart Utica drilling in 2016 with plans to drill five wells (see PDC Energy to Restart OH Drilling in 2016, Drilling 5 Utica Wells). Indeed they did reactivate their program, in a much-scaled-back fashion, this past year. One of the Utica wells PDC drilled, the “Neff” well, came online earlier than expected and began producing in 2Q16 (see PDC Energy 2Q16: Utica Program Active Again, Neff Well Online). However, another shale play has turned the head of PDC–the Delaware Basin in Texas. PDC released their plans for 2017 yesterday. There is a brief mention about the Utica–they plan to drill two more wells in the second half of 2017 and spend just $18 million to do it. Both wells will be drilled in Guernsey County, OH. Here’s a preview of what’s ahead for PDC in 2017…
    Read More “PDC Releases 2017 Plans – Drilling Just 2 Utica Wells in 2H17”

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