Lack of NatGas in New England Pushed CO2 Emissions UP in 2015
For whatever insane reason, some in New England, including the two U.S. Senators from Massachusetts (see today’s companion story) irrationally hate natural gas because it is a “fossil fuel.” These demented folks believe that by burning natural gas, more carbon dioxide (CO2) is pumped into the atmosphere and that increasing amounts of CO2 are causing the earth to warm up, catastrophically. At least that’s what they say they believe. The problem with their theory (libs always have problems because their theories never work out in reality), is that CO2 levels have decreased across the U.S.–because of the increased use of natural gas. Except for New England. Because New England is not using as much natural gas as other regions, making them rely on oil-fired electric plants, New England’s CO2 levels went UP in 2015! They not only pay more for electricity and energy than any other region of the United States, they’re using dirtier energy–all while claiming they love the environment and don’t want “dirty” natural gas. What idiots…
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The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Activist ire rises as Dakota Pipeline review begins; Xcel wants to replace coal plant with natgas plant; US LNG exports hit record high in January; new oil tech means more oil coming; Cheniere’s Arctic freeze; nuclear gas; US exports more oil in 2017 than four OPEC countries; Chesapeake Energy’s huge victory; South Korea generates electricity using US shale gas; and more!
An accident related to shale drilling is responsible for dumping some (not sure how much) acid mine drainage (AMD) from an abandoned coal mine into the Monongahela River last weekend. Which sounds worse than it actually is. Water that seeps into old coal mines mixes with pyrite (iron-sulfide) and oxidizes, turning the water an orange/brown color. The water becomes somewhat acidic. We previously talked at length about acid mine drainage coming from the Old Forge bore hole near Scranton, and about Marcellus money being used to help clean it up (see 
It’s not often these days we get to witness the birth of a new driller in the Marcellus/Utica, so it’s with great pleasure we announce the birth of S.T.L. Resources. According to an announcement, S.T.L. recently closed on the acquisition of 8,000 acres in the “core of the Marcellus Fairway” in north central PA. Along with the acreage comes “significant in-place infrastructure, current Marcellus production and is prospective for the Marcellus and Utica Shale as well as the Upper Devonian.” The privately-held S.T.L. declined to say exactly where the acreage is located, who they purchased it from and for how much. Why? They continue to try and lease more acreage in the same area and would rather keep competitive information close to the vest. S.T.L. was founded and is run by three veterans in the O&G industry with deep experience in the Marcellus/Utica: William Dressel, Founder and Managing Partner; William Hayward, Chairman & Senior Geological Advisor; and Clinton Coldren, CEO. When you look at a map you find that north central PA includes counties like Potter, Tioga and Lycoming. Which got us to thinking–who might have sold some acreage there? We have a guess…
Kinder Morgan has proposed the UTOPIA (Utica To Ontario Pipeline Access) pipeline, a 12-inch ethane pipeline that will run ~240 miles across the state of Ohio where it will connect with another pipeline and (eventually) flow ethane all the way to a cracker plant in Canada. That is, if they can get some holdout landowners to allow them onto their land (see 
Quick. Who has the largest core acreage position in the Marcellus/Utica? And which company runs more than one-third of all the rigs operating in the Marcellus/Utica? The answer to both those questions would be Antero Resources. They also have some of the lowest drilling (i.e. breakeven) costs in the industry–and some of the highest hedges (prices they get for the gas). Put it altogether and Antero is one of the most important drillers in our beloved shale plays. Antero won’t release full year 2016 numbers until later this month, but ahead of that, they’ve just released two helpful documents. The first is a press release announcing proved reserves and drilling/development costs. The second is the latest series of PowerPoint slides, the February 2017 company presentation (a preview of the 2016 update). We have both items for you below…
Midstream and utility giant Dominion issued their fourth quarter and full year 2016 update yesterday. Just to give you an idea of the depth and breadth of the company, Dominion has ~26,000 megawatts of power generation, 14,400 miles of natural gas transmission, gathering and storage pipeline, and some 6,500 miles of electric-transmission lines. They are “a producer and transporter of energy.” Among the key projects we keep an eye one: the Cove Point, Maryland LNG export facility (under construction), the Greensville Power Station (under construction), and the Atlantic Coast Pipeline (soon to be under construction). The numbers are looking good. Revenue for Dominion in 4Q16 was $457 million, up $100 from 4Q15. Full year revenues were $2.1 billion, up from $1.9 billion in 2015. Below we have yesterday’s update, along with select portions of a conference call by Dominion’s muckety mucks and their comments about projects like Cove Point and Atlantic Coast Pipeline…
Marathon Petroleum, the refiner and midstream company based in Ohio (owner of what used to be MarkWest Energy) reported their fourth quarter and full year 2016 numbers yesterday. Overall revenue was down a bit, from $2.85 billion in 2015 to $2.21 billion in 2016 due to “a challenging commodity price and margin environment.” However, Speedway gas station/convenience stores (many of which used to be Hess gas stations) had “exceptional performance” and “set multiple records for the full-year 2016.” Of particular note for MDN, Marathon plans to spend $1-$1.3 billion in 2017 on new infrastructure projects in the Marcellus region. Good news indeed! Below we have yesterday’s update, along with a PowerPoint presentation Marathon used at the recent Marcellus-Utica Midstream event in Pittsburgh. We love the slides in that presentation, full of useful information…
We’ve always thought the federal Environmental Protection Agency (EPA) was populated with environmental leftist with an agenda–a mission. And that support for the agency by groups, and even by businesses who come under their regulation, was driven by a warped philosophy. However, two recent bits of information now snap the picture into full focus. The reason the EPA is so zealously defended and promoted by those inside and outside the agency isn’t really about protecting humans and protecting the planet. Oh, that has something to do with it. But the primary motivator is (you guessed it), money. Greed. Graft. Payola. This began to come into focus for us when we ran a post yesterday that stated President Trump will “seek significant budget and staff cuts” and when an aide to Trump on the transition team “suggested it was reasonable to expect the president to seek a cut of about $1 billion from the EPA’s roughly $8 billion annual budget.” What does EPA do with all that money? “About half the EPA’s budget passes through to state and local governments for infrastructure projects and environmental cleanup efforts.” But that’s not all. The EPA also funnels money to researchers and even to private businesses in the form of grants. In other words, the EPA has been a gravy train for a good many people, and the train is about to come to a screeching halt…
Last year MDN told you about researchers in Argentina strapping methane backpacks on cows and hooking up hoses to their digestive tracts (reminding us of the Borg in Star Trek) in order to capture global warming methane emissions from bovines (see 
In December MDN reported on the huge West Virginia Supreme Court decision against driller EQT that disallows EQT from deducting post-production expenses from royalty checks, even with signed contracts in place (see 
Yesterday CONSOL Energy released their fourth quarter 2016 results, along with a conference call to discuss those results. A few important items come out of yesterday’s activity. (1) The company lost $321 million in 4Q16. (2) CONSOL, originally a coal-only company, plans to either spin-off or sell the remaining coal assets it owns–this year–completing the process of transforming the company from coal to natural gas extraction. (3) CONSOL produced an average of 101.3 billion cubic feet equivalent of natural gas per day in 4Q16, up 6% from 4Q15. (4) The company shaved a dime off the costs to produce each thousand cubic feet (Mcf) of natgas–from $2.37/Mcf in 2015 to $2.27/Mcf in 2016. (5) Although the company lost money, the shale drilling business saw an increase in revenue in 4Q16 to $280.1 million (a 5.6% increase over 4Q15). (6) Although CONSOL has and continues to drill and complete wells in the Marcellus, their focus for new drilling is the Utica. Here’s the update…