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Marcellus Drilling News
  • Energy Services | Industrywide Issues | Pipelines | TC Energy/TransCanada

    TransCanada Plan to Lowball M-U Gas Using Canada Pipeline a Bust

    November 16, 2016November 16, 2016

    failedYou may recall that TransCanada, one of Canada’s leading midstream/pipeline companies, cooked up a deal to pipe natural gas from Canada’s West Coast to the East Coast in order to fend off cheap supplies of Marcellus/Utica gas that will flow into Canada when/if the NEXUS and Rover pipelines get built (see TransCanada Pipe Drops Price 42% to Compete with Marcellus/Utica). TransCanada dropped their pipeline price to lure drillers by (theoretically) making it less expensive to get gas from Western Canada, some 2,400 miles away, than from the Marcellus, just 400 miles away. In October TransCanada launched an open season to lock up customers for the new, lower-priced option (see TransCanada Launches Open Season to Lowball Marcellus/Utica Gas). Yesterday TransCanada announced the open season is over and it was a bust–not enough takers to move forward with the plan…
    Read More “TransCanada Plan to Lowball M-U Gas Using Canada Pipeline a Bust”

  • Butler County | Education | Industrywide Issues | Jobs | Pennsylvania

    PA Gives $5M to Union to Train More Welders for Cracker Plant

    November 16, 2016November 16, 2016

    5-millionOn Monday Pennsylvania Gov. Tom Wolf announced PA taxpayers are forking over $5 million to Steamfitters Local 449 union for use in their Butler Training Facility project. The union training facility trains welders. The Shell ethane cracker plant, when it gets built, will need a LOT of welders. Right now the facility graduates 170 new welders a year. With the grant money, they will expand it to train and graduate 270 welders a year…
    Read More “PA Gives $5M to Union to Train More Welders for Cracker Plant”

  • Energy Services | Industrywide Issues | PennEast Pipeline | Pipelines | Regulation

    Tit for Tat: NJDRC Responds to PennEast’s Devastating Refutation

    November 16, 2016November 16, 2016

    tit-for-tatThe New Jersey Division of the Rate Counsel (NJDRC) is a state government agency responsible for representing the interests of residents, businesses and other rate payers in dealing with regulated public utilities and insurance firms. In September the NJDRC filed a so-called analysis with the Federal Energy Regulatory Commission (FERC) slamming the need and cost recovery plan for the PennEast Pipeline–a $1 billion, 118-mile, primarily 36-inch pipeline that will get built from Dallas (Luzerne County), PA to Transco’s pipeline interconnection near Pennington (Mercer County), NJ. PennEast responded to the NJDRC’s analysis with an independent report written by Concentric Energy Advisors, rippping to shreds the arguments put forward by NJDRC (see PennEast Responds to NJDRC with Study Proving Pipeline is Needed). The humiliated NJDRC has responded, yet again, by filing a response to PennEast’s obliteration of their arguments with the Federal Energy Regulatory Commission…
    Read More “Tit for Tat: NJDRC Responds to PennEast’s Devastating Refutation”

  • Pennsylvania | Statewide PA

    88% of Gas Used by Philly Customers Comes from PA Marcellus

    November 16, 2016November 16, 2016

    pecoPECO, formerly known as the Philadelphia Electric Company, is the largest combined electric/natural gas utility company in Pennsylvania. PECO serves 1.6 million electric customers and about a half million natural gas customers. In October 2015 the state Public Utility Commission approved a PECO plan to grow their natgas customer base by approving a plan that allows new natgas customers to spread the cost of hooking up to the gas line over 20 years (see PA Utility’s Plan to Deliver Marcellus Gas Approved by PUC). The really cool thing about PECO is that the company continues to use homegrown, abundant, cheap and clean-burning Marcellus Shale gas to sell to their customers. In 2014, 75% of the gas PECO sold to its customers came from the Marcellus. Last year, in 2015, that number shot up to 88%. Who knows what it will be this year!…
    Read More “88% of Gas Used by Philly Customers Comes from PA Marcellus”

  • Air Quality | Allegheny County | Industrywide Issues | Pennsylvania | Pipelines

    Google’s Privacy-Invading Cars Map “Methane Leaks” in Pittsburgh

    November 16, 2016November 16, 2016

    googleWe have to state up front that we are fans of Google’s services. We love the Chrome browser and Chrome OS, Android (for phones), Gmail for email, Google Drive…the list goes on and on. But at the same time, we detest the far-left, in-bed-with-Big-Green-groups leadership of Google. And we don’t like some of their initiatives–including their creepy snooping into every aspect of our lives. We spotted a story about Google’s roaming Street View cars that ride along our roads snapping pictures. Snapping pics isn’t enough for Googlers. In Pittsburgh they’ve added methane sniffers to help detect elevated levels of (they say) global warming causing methane escaping into the atmosphere, like a fugitive. Supposedly the methane sniffers will help People’s Natural Gas (which we suspect was bullied by Google) to identify where People’s 50 year-old natgas pipeline network is experiencing leaks. Look, we’re all for finding and fixing gas leaks–don’t get us wrong. But the motivation here is not the safety of the residents of Pittsburgh. It’s to bow down and worship at the altar of the Global Warming gods. Quick! There goes the Google car–turn off the gas grill…it might mistake your backyard barbecue for a gas leak! All joking aside, what will Google strap onto those cars next? Maybe they’ll snap a pic of a fat customer walking into McDonalds and send it to his friends to shame him. Or maybe they’ll snap a pic of (gasp) someone walking into a Donald Trump campaign office–sending it to that person’s boss. Yeah, that’ll fix ’em. It was no surprise to learn that PA Gov. Wolf also butted in on the Google methane sniffing action, along with the radical anti-drilling Environmental Defense Fund and PA Dept. of Environmental Protection…
    Read More “Google’s Privacy-Invading Cars Map “Methane Leaks” in Pittsburgh”

  • Air Quality | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

    PA Acting DEP Sec. McDonnell Reaffirms Plan to Reduce Methane Leaks

    November 16, 2016November 16, 2016
    Patrick McDonnell Acting Secretary, DEP
    Patrick McDonnell Acting Secretary, DEP

    MDN noticed something of interest from the Pennsylvania Dept. of Environmental Protection (DEP), tucked at the bottom of a press release from the governor’s office about Google’s methane sniffing cars (see today’s companion story)–news that means shale drilling and pipeline infrastructure is about to get more expensive in the Keystone State. The press release was mostly about Google cars kitted out with special equipment that can help identify where methane is leaking from old pipes in cities like Pittsburgh. However, tucked in at the end of that press release was a repeat of an earlier press release announcing Wolf’s 4-point plan to reduce methane emissions. We first reported that plan back in February 2016, revealed by the former (now fired) DEP Secretary John Quigley (see More on Wolf/Quigley 4-Point Plan to Reduce Methane Emissions). Acting DEP Secretary Pat McDonnell reaffirmed the DEP’s 4-point plan as part of the Pittsburgh Google methane sniffing episode…
    Read More “PA Acting DEP Sec. McDonnell Reaffirms Plan to Reduce Methane Leaks”

  • Statewide WV | West Virginia

    WVONGA Hires Babst Calland Attorney as Executive Director

    November 16, 2016November 16, 2016

    annecThe West Virginia Oil & Natural Gas Association (WVONGA) has hired Anne C. Blankenship, an attorney with Babst Calland, to serve as executive director. 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. We welcome her and wish her well!…
    Read More “WVONGA Hires Babst Calland Attorney as Executive Director”

  • Industrywide Issues | Jobs

    Time to Ramp Up Fracking and Put Americans Back to Work

    November 16, 2016November 16, 2016

    drilling-equals-jobs.jpgUndoing the damage caused by the Obama Administration over the past eight years is going to take time. When President Trump assumes office on January 20, 2017 (can’t come soon enough!), he will put in motion regulatory relief and tax policies that will create new jobs for the 94 million Americans now out of work (a staggering number that doesn’t get reported by biased mainstream media). However, those policies will take time to implement. If jobs are the #1 priority for Donald Trump, how can he deliver relief in the short term, starting on Day One? According to the retired president of the Association of Washington (State) Business, Don Brunell, Trump should turn to fossil fuels. Brunell suggests a quick solution to more jobs: more fracking…
    Read More “Time to Ramp Up Fracking and Put Americans Back to Work”

  • Best of the Rest

    Marcellus & Utica Shale Story Links: Wed, Nov 16, 2016

    November 16, 2016November 16, 2016

    best of the restThe “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Utica Shale rigs up to 19; US now net exporter of natgas; o&g job cuts continue to climb in 2016; will Harold Hamm take Sec DOE? Maybe not; Trump and science; and more!
    Read More “Marcellus & Utica Shale Story Links: Wed, Nov 16, 2016”

  • Energy Services | Energy Transfer Partners | Industrywide Issues | Pipelines | Regulation | Sunoco Logistics

    It’s War: ETE vs. Obama’s Army Corps of (Politicized) Engineers

    November 15, 2016November 15, 2016

    its-warAs we pointed out last week, the U.S. Army Corps of Engineers (USACE)–which is supposed to be an organization of, well, engineers–has gone hard-left political, no doubt under the direction of Lord Obama (see Army Corps of Engineers Turns Political in Dakota Access Fight). The USACE has taken to leveraging a sycophantic media to boost its message that Energy Transfer Equity, the company building the Dakota Access Pipeline, should stop building the pipeline (which is already 90% built) because it might hurt the feelings of paid mobsters who are protesting it. Our concern with the project is that the same mobsters protesting the Dakota Access Pipeline have promised to come to the Marcellus/Utica next (see Dakota Access Pipeline Protesters Turn Violent; Coming Here Next?). In addition to using the media to rally its cause, the USACE has just announced it will not, for now, grant a permit to cross under Lake Oahe in North Dakota. ETE is firing back with a caustic press release calling out the USACE as unjust lawbreakers. Yeah, it’s open war now–and Trump can’t assume office fast enough to put an end to the horse manure being pedaled by the Army Corps of Politicized Engineers…
    Read More “It’s War: ETE vs. Obama’s Army Corps of (Politicized) Engineers”

  • Industrywide Issues | Research

    EIA Nov Drilling Report: Marcellus Production Up for 2nd Month

    November 15, 2016November 15, 2016

    EIAYesterday 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. Last month was a bit of a surprise, with the Marcellus reversing the trend and producing more gas than it did the month before (see EIA October Drilling Report: Marcellus Reverses, Increases Production). This month that trend continues. Marcellus production is predicted to go up an average of 130 million cubic feet per day (MMcf/d)! Utica production continues to decline, predicted to drop another 12 MMcf/d from the previous month’s estimate. Even with a big bump up in production in the Marcellus (and an increase month over month in the Permian), it’s still not enough to reverse the trend that overall, production from all of the shale plays cumulatively will go down in the coming month–a drop of 94 MMcf/d. Drilled but uncompleted wells (DUCs) went down for the Marcellus by 7, meaning there are 7 fewer wells to complete (inventory dwindling). The Utica added 1 DUC well to its inventory…
    Read More “EIA Nov Drilling Report: Marcellus Production Up for 2nd Month”

  • Anti-Drilling/Fossil Fuel | Butler County | Energy Companies | Industrywide Issues | Litigation | Pennsylvania | Rex Energy

    Martians Use Riverkeeper to Continue Court Battle Against Rex

    November 15, 2016November 15, 2016
    Maya van Rossum - THE Delaware Riverkeeper
    Maya van Rossum – THE Delaware Riverkeeper

    MDN previously reported on the injustice happening in Bulter County, PA where a handful of anti-drilling parents from the Mars School District (“Martians”), backed by money and legal help from Philadelphia Big Green groups Delaware Riverkeeper and Clean Air Council, have filed frivolous lawsuit after frivolous lawsuit. The effort is aimed at denying landowners in Middlesex Township revenue from legally permitted drilling. The actions by these radicalized parents have cost the taxpayers of Middlesex Township over $80,000 in legal fees. Landowners with leases got together and sued the radicals to stop this miscarriage of justice (see Shoe Now on Other Foot: Landowners Sue Martian Anti-Drillers). The lawsuit proceeded with the radicals claiming they should be able to sue, but not be sued (see Litigious Martians Cry Like Babies Over $500K Lawsuit Against Them). Unfortunately a county judge has agreed with the Big Money groups from Philly and has tossed the lawsuit against them (see $500K Lawsuit Against Litigious Martians Tossed by County Judge). Meanwhile, at least two of the wells were permitted and drilled by Rex Energy, despite the bleatings of the Martians (see Martian Victory! 2 Wells Near Mars School Nearly Done Drilling). But that hasn’t stopped the Martians, using legal assistance from THE Delaware Riverkeeper, from continuing to sue. The Martians have appealed a town ordinance that allows the wells to be drilled about 3/4 of a mile from the local Mars School. A panel of three western PA judges heard arguments in the case Monday afternoon…
    Read More “Martians Use Riverkeeper to Continue Court Battle Against Rex”

  • Industrywide Issues | Pennsylvania | Research | Statewide PA

    New Research Helps Locate Abandoned O&G Wells in PA

    November 15, 2016November 15, 2016

    pnasIn March we highlighted the issue of abandoned oil and natural gas wells in Pennsylvania (see Who Pays for Abandoned O&G Wells in PA?). PA state officials estimate there are as many as 200,000 abandoned oil and gas wells in the state–the vast majority of them conventional wells drilled over 50 years ago. Most of them are not mapped or known. Some of them are hazards for shale drillers who stumble across them when drilling new wells. If you drill horizontally and clip an old/abandoned well, it becomes like an elevator pumping fluids and gas to the surface. Not good. Everyone is committed to finding and marking and capping these old wells–the question is, how do you pay for it? The shale industry says it’s not fair to put the economic burden solely on the shoulders of the Marcellus industry. A new study just published in the Proceedings of the National Academy of Sciences (PNAS) by researchers at Stanford and Princeton says the number of abandoned PA wells is actually much higher–as many as 700,000! The paper is titled “Identification and characterization of high methane-emitting abandoned oil and gas wells” (full copy below). The researchers are motivated by global warming flummery–desiring to locate abandoned wells which emit varying amounts of methane into the atmosphere. Whatever. The useful thing about this research is that they have discovered a way of sniffing out abandoned wells and determining which ones are emitting the highest levels of methane. Our interest is in the ability to locate, map and avoid drilling through old wells–we welcome this research…
    Read More “New Research Helps Locate Abandoned O&G Wells in PA”

  • Butler County | Economic Impact | Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Processing Plants | Shell | Statewide PA

    PA Gov Wolf Basks in Predecessor’s Accomplishment at Cracker Site

    November 15, 2016November 15, 2016
    basking-in-the-glow
    Click for a larger version – credit: captainscratchy.com

    For a guy who wants to tax the Marcellus industry out of existence, PA Gov. Tom Wolf sure likes to bask in the glow of the industry’s success. Perhaps the crowning achievement of former PA Gov. Tom Corbett was the wooing and winning of Shell to build a multi-billion dollar ethane cracker near Pittsburgh. It’s hard to overstate just how big a deal the cracker plant is for the state–not only for PA, but also for nearby OH and WV. Shell’s ethane cracker will attract manufacturers to relocate nearby to take advantage of the cheap plastics that will come from the plant. While Shell will invest somewhere on the order of $6-$8 billion, with the coming build-out of manufacturing facilities in the region, it promises to turn into a $20 billion economic boost for the entire northeast. An amazing story! Right now Shell is busy at work clearing the site, which used to be a Horsehead zinc smelting operation. Gov. Wolf toured the site on Monday and was impressed, basking in the glow of what’s happening. Thing is, Wolf didn’t have a single thing to do with the plant coming to PA–other than not screwing up the deal before it was formally announced…
    Read More “PA Gov Wolf Basks in Predecessor’s Accomplishment at Cracker Site”

  • Earthquakes | Energy Services | Fairmont Brine Processing | Industrywide Issues | Wastewater

    WV Wastewater Co Grabs Nat’l Headlines re OK Earthquakes

    November 15, 2016November 15, 2016

    earthquake.jpgFor a number of years we’ve had our eye on Fairmont Brine Processing, headquartered in Fairmont, WV. We originally started writing about the company in 2010 when it was AOP Clearwater (see AOP Clearwater Plant in WV a Big Success in Treating Marcellus Shale Wastewater). New owners expanded the operation in 2014 (see New Brine Processing Plant Coming to Panhandle of WV). Earlier this year Fairmont secured a $90 million line of credit to build a new wastewater processing plant in southwest PA (see Fairmont Brine Gets $90M to Build New Wastewater Recycling Plant). Imagine our surprise at seeing the company’s name in a major Bloomberg article about Oklahoma earthquakes! Brian Kalt, CEO of Fairmont Brine, is floating an idea that will settle the man-induced earthquakes in Oklahoma, which come from injecting shale wastewater deep underground: Don’t inject it anymore. Instead, using Fairmont’s recycling technology to separate out the salty minerals and then release purified water into streams and rivers. That Bloomberg article actually made the Drudge Report for a while yesterday! Kudos to Fairmont and Brian Kalt…
    Read More “WV Wastewater Co Grabs Nat’l Headlines re OK Earthquakes”

  • Pennsylvania | Statewide PA

    Without PA’s Energy Voters, It Would have been President Hillary

    November 15, 2016November 15, 2016

    what-could-have-been-photoWe shudder to think what would have been, if just a few more votes had gone the other way last Tuesday. Last week we authored an article in which we stated, “We don’t think it’s a stretch to say that energy voters in PA handed Trump the White House” (see Who Won in Tuesday’s Election in PA, OH, WV? Shale Energy Won!). Trump’s key campaign person in Pennsylvania, David Urban, said essentially the same thing in an interview with the Pittsburgh Business Times. Urban said that early on, the campaign ceded Philadelphia proper to Hillary, and instead concentrated on other areas of the state where they could amass enough voters to counter the Democrat stronghold in the City of Brotherly Love. The Trump PA strategy in a nutshell, according to Urban: “Make stops early and often. Focus on energy voters. Target areas outside of Philadelphia.” Without PA, Trump would not have won–at least we don’t think so (there are still votes being counted even today). So we say, yet again, THANK YOU to the pro-energy voters in PA who made a Trump victory possible. Here’s portions of the enlightening Urban interview…
    Read More “Without PA’s Energy Voters, It Would have been President Hillary”

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