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Marcellus Drilling News
  • Industrywide Issues | Pennsylvania | Regulation | Statewide PA

    PA Gov Wolf Searching for New DEP Sec 3 Mo After Firing Quigley

    September 1, 2016September 1, 2016
    Patrick McDonnell Acting Secretary, DEP
    Patrick McDonnell Acting Secretary, DEP

    In May (three months ago), Pennsylvania Dept. of Environmental Protection (DEP) Secretary John Quigley was fired for using a PRIVATE email account to collude with his Big Green friends to try and bully PA’s legislators into supporting his onerous proposed regulations (see Smoking Gun: Copy of the Email that Got John Quigley Fired). Richly deserved. The man who took his place as Acting Secretary is Patrick McDonnell, a 19-year veteran of the DEP. We haven’t seen or heard much of McDonnell, but what we have seen and heard (via media reports) seems to be that McDonnell is a “get it done without generating controversy” kind of guy. Radical environmental groups don’t seem overly thrilled with McDonnell as Secretary (see PA’s New Acting Sec DEP: What Do We Know? Will He Be Permanent?). He is a man-made global warming flummery believer, so that’s a strike against him. But a lot of otherwise rational adults believe in such fairy tales, so we won’t hold it against him (too much). One thing is for sure: McDonnell wants to move from “Acting” to permanent Secretary of the DEP. However, it’s not looking promising that Gov. Tom Wolf will make his appointment permanent. It’s now been 90 days since Quigley was given the boot. Wolf has only 90 days to nominate someone. A common practice, when you’re not ready to nominate, is to use a placeholder name. Wolf has done so, and the placeholder name is not McDonnell’s…
    Read More “PA Gov Wolf Searching for New DEP Sec 3 Mo After Firing Quigley”

  • Energy Services | Industrywide Issues | Pipelines | Regulation | Spectra Energy

    Spectra Energy Pushes Back Against New England Pipeline Naysayers

    September 1, 2016September 1, 2016

    terminatorTwo weeks ago the Massachusetts Supreme Judicial Court (MA’s highest court) ruled that utility companies, which are heavily regulated and the prices they can charge controlled, cannot pass along the cost of a pipeline to electric ratepayers (see MA Supreme Court Ruling Endangers New England Gas Pipelines). The ruling had the effect of ending contracts from several utility companies with Spectra Energy for their Access Northeast pipeline–to bring Marcellus/Utica natural gas to critically starved-for-gas New England. We speculated at the time that this action may end the Access Northeast project. But a week later, Spectra Energy committed to continuing the project (see Spectra Spits in MA High Court’s Eye – We’ll Still Build Pipeline). However, regional natgas distribution companies, along with LNG importer GDF Suez, continues to try and sink the Access Northeast project for selfish reasons–to suppress competition that would come from the pipeline. It’s all wrapped up in a “tariff” case now before the Federal Energy Regulatory Commission (FERC). It’s complicated, but we’ll try and explain it in lay terms. At the root of the issue is that some existing natgas suppliers in New England benefit from lack of supply in the region (including Engie Gas & LNG, NextEra Energy Resources and PSEG). They benefit from “congestion” and lack of supply in New England–therefore Spectra has taken to calling them “Congestionaters” in their filings with FERC. We call them the Terminators…
    Read More “Spectra Energy Pushes Back Against New England Pipeline Naysayers”

  • Air Quality | Anti-Drilling/Fossil Fuel | Industrywide Issues | Ohio | Research | Statewide OH

    Radical OH Groups Lie About Fracking & Asthma in Kids

    September 1, 2016September 1, 2016

    junk-science.jpgTwo radical environmental groups in Ohio–Ohio Environmental Council and the Clean Air Task Force–have just released a 100% bogus “report” that attempts to tie asthma in children to fracking. If lying to the public were a crime, they’d be in jail right now. Here’s how these sleazy groups make such a claim: They claim, from looking at medical records, that there are 7,129 childhood asthma attacks in the Columbus metro area, and 7,558 in the Cleveland metro area each year. Absolutely no context as to whether those numbers are higher or lower than elsewhere in the country, or whether or not the numbers are increasing year over year. These groups just toss out numbers. They claim the asthma attacks are because of smog in those cities. They further claim smog comes from burning oil and gas and ergo, childhood asthma attacks are the result of fracking, because fracking extracts more oil and gas which is burned and causes smog which causes asthma. It is a heaping mound of cow manure. The problem is that otherwise good news sources, like the Akron Beacon Journal, push this manure out as news…
    Read More “Radical OH Groups Lie About Fracking & Asthma in Kids”

  • Buckeye Partners | Energy Services | Industrywide Issues | Michigan | Ohio | Pennsylvania | Pipelines | Statewide MI | Statewide OH | Statewide PA

    Buckeye Partners Expanding MI/OH Refined Products Pipeline, Again

    September 1, 2016September 1, 2016
    West to East Project Map
    West to East Project Map – click for larger version

    Buckeye Partners is a publicly traded master limited partnership (MLP) that owns and operates 6,000 miles of pipeline. One of those pipelines is the Michigan/Ohio refined products pipeline, which we reported on in April 2015 (see Buckeye Partners Expanding MI/OH Refined Products Pipeline East). At that time Buckeye was pushing its Michigan/Ohio Pipeline Expansion Project to expand the pipeline for “refined petroleum products” (things like gasoline, kerosene and heating oil) to run it from Woodhaven and Detroit, Michigan, and from Toledo and Lima, Ohio, to destination points in both Ohio and Western Pennsylvania. By all accounts the initial expansion was a success, because Buckeye is now conducting an open season for the second phase of the expansion project. Why talk about a gasoline/heating oil pipeline? Because it’s possible that some of the oil that gets refined into gas and heating fuel flowing through this pipeline comes from the Marcellus/Utica…
    Read More “Buckeye Partners Expanding MI/OH Refined Products Pipeline, Again”

  • Industrywide Issues | Research

    Univ of Texas to Study Marcellus, Other Shales w/$350K DOE Grant

    September 1, 2016September 1, 2016

    education grantsThe University of Texas at Austin has just been awarded a $350,000 grant from the U.S. Department of Energy to conduct an 18-month review of a study they previously did of major American shale gas plays. Hey, getting paid to look at what you previously wrote is good work if you can get it! The previous study, called the “Shale Production and Reserve Study” looked at data from the Barnett, Fayetteville, Haynesville, and Marcellus natural gas plays. However, the data reviewed in the original study was only 4-6 years’ worth of data, depending on the play. Since the original study was completed, UTA-Austin now has access to an additional 2-4 years’ worth of data. In other words, the new data will help confirm, or not, the original conclusions. More data, better results and better conclusions. Here’s what UTA-Austin had to say about the new grant…
    Read More “Univ of Texas to Study Marcellus, Other Shales w/$350K DOE Grant”

  • Pennsylvania | Statewide PA

    Lou D’Amico Retires, PIOGA Appoints Dan Weaver Executive Director

    September 1, 2016September 1, 2016
    dan-weaver_lou-damico
    Dan Weaver & Lou D’Amico

    One of the heroes of the Pennsylvania oil and gas drilling industry (and a hero to MDN editor Jim Willis) has been Lou D’Amico, president and executive director of the Pennsylvania Independent Oil & Gas Association (PIOGA). Lou is fearless, willing to speak truth to power when it comes to protecting PA’s fossil fuel industry (see PIOGA Sets Record Straight on Latest Wolf Attack re Severance Tax; PIOGA Leads the Charge to Defeat Wolf’s Severance Tax; and PA Board Adopts New Drilling Regs, PIOGA Blasts DEP “Deceptive”). In some happy/sad news, Lou is retiring from his post in running PIOGA–after 22 years. That’s the sad news. The happy news is that the very capable Dan Weaver, currently PIOGA’s public outreach director, will take Lou’s place. Welcome Dan!…
    Read More “Lou D’Amico Retires, PIOGA Appoints Dan Weaver Executive Director”

  • CNG/LNG | Exporting | Industrywide Issues | Processing Plants

    Souki’s Revenge Continues – Tellurian Lures Cheniere Exec as CEO

    September 1, 2016September 1, 2016
    Martin-Houston_Meg-Gentle_Charif-Souki-2016-768x511
    Martin Houston, Meg Gentle, Chaif Souki

    You may recall that evil corporate raider Carl Ichan fired the CEO of Cheniere Energy, Charif Souki, in December 2015 (see Evil Corporate Raider Carl Icahn Claims Another CEO Scalp). Souki is the founder and was the CEO of a company that opened the first LNG (liquefied natural gas) export facility in the U.S.–on the coast of Louisiana. Like Aubrey McClendon before him, who was also fired by Icahn, Souki decided to start up a new company to compete with his old company (see Revenge: Fired Cheniere CEO Starts Competing LNG Company). That new company, Tellurian Investments, established a subsidiary called Driftwood LNG. Driftwood has begun the pre-filing process with the Federal Energy Regulatory Commission (FERC) to build an LNG export facility in Louisiana to compete with Cheniere (see Fired Cheniere Energy CEO Charif Souki’s Revenge: Driftwood LNG). More revenge: Souki has just hired away one of Cheniere’s top executives, Meg Gentle, to become president and CEO of Tellurian. What does this have to do with the Marcellus/Utica?…
    Read More “Souki’s Revenge Continues – Tellurian Lures Cheniere Exec as CEO”

  • Electrical Generation | Hydraulic Fracturing | Industrywide Issues

    The Golden Age of Fracked Natural Gas has Arrived

    September 1, 2016September 1, 2016

    one reasonThere is precisely one main reason why the United States produces 40% less carbon dioxide now than it did five years ago. Must be the onslaught of solar, right? Nope. How about wind. Yeah, wind power is coming on strong–I see those ugly windmills all over the place now. Must be wind power, right? Nope. Hydro? Nope. Biomass? Nope. There is only one main reason why we pump less CO2 into the atmosphere (if you care about that sort of thing), and it’s this: because fracked shale gas has replaced coal in electric generating plants. You would think environmentalists would celebrate. They don’t and they won’t, pointing out their uber-hypocrisy…
    Read More “The Golden Age of Fracked Natural Gas has Arrived”

  • Best of the Rest

    Marcellus & Utica Shale Story Links: Thu, Sep 1, 2016

    September 1, 2016September 1, 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: Farm Bureau organizes NEXUS pipeline meetings in OH; why oil production didn’t tank when oil prices did; North American oil prices still “unsustainable” according to Schlumberger; misleading reports on o&g come in many forms; Shell says gas is the future, it WON’T be traded like oil; and more!
    Read More “Marcellus & Utica Shale Story Links: Thu, Sep 1, 2016”

  • Anti-Drilling/Fossil Fuel | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

    PA RINO Wants to Slow Marcellus Drilling with $2M Bond per Well

    August 31, 2016August 31, 2016
    Tom Murt - RINO
    Tom Murt – RINO

    Pennsylvania State Rep. Thomas Murt, a RINO (Republican In Name Only) from the Philadelphia area, has introduced House Bill (HB) 2277 that would require drillers in the state to post a $2 million bond for each shale well they drill. The current bond is between $4,000-$10,000. This is yet another attempt by the same cast of anti-drilling characters to slow down or stop Marcellus drilling altogether in the Keystone State, by erecting regulatory hurdles to hassle drillers under the pretense of protecting PA’s environment. Adopting such a law would actually indicate that PA has turned aggressively against the drilling industry–sending the clear signal the Keystone State prefers drillers to operate elsewhere, in other states. Fortunately, with Republicans in control of both the House and Senate, this “misguided proposal,” as the Marcellus Shale Coalition calls it, is DOA…
    Read More “PA RINO Wants to Slow Marcellus Drilling with $2M Bond per Well”

  • Accidents | Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Spectra Energy | Statewide PA | Westmoreland County

    Repair Work on Exploded Texas Eastern Pipeline in PA 25% Done

    August 31, 2016September 1, 2016

    Spectra blaze9/1/16 UPDATE: Spectra Energy contacted MDN and sent us a copy of their progress report on repairs to the section of the TETCO pipeline known as the Penn-Jersey System. Thank you! We have included a copy of their progress report below.

    An update on Spectra Energy’s Texas Eastern Transmission’s (TETCO) “Delmont Line 27” which exploded in Westmoreland County, PA on April 29 (see Texas Eastern Pipeline Explodes near Pittsburgh, Antis Celebrate). We previously told you that not only was Line 27 out of commission, so too were three other pipelines running through the same corridor, meaning 1 billion cubic feet of natural gas per day is not reaching certain mid-Atlantic markets (see Update on Spectra Pipeline Explosion Near Pittsburgh). The early evidence points to corrosion along welded seams, although the jury is still out and the exact cause may not be known for months (see Preliminary Guess on TETCO Pipeline Explosion Cause: Corrosion). One of the four lines that was offline (Line 19) was examined and certified by the Pipeline and Hazardous Materials Safety Administration (PHMSA) in early May to go back online (see TETCO Pipeline Up & Running Post-Explosion; Antis Exploit Accident). However, the other three lines have remained idle pending further investigation (see TETCO PA Pipeline Explosion Still Limiting NatGas Flow Month Later). In June Spectra said they expect to have the full system operating again by November 1st (see Ruptured TETCO Pipeline in PA Offline Until November). How is the effort going? Spectra has completed the initial analysis and is now digging up pipelines in various locations…
    Read More “Repair Work on Exploded Texas Eastern Pipeline in PA 25% Done”

  • Dominion Energy | Energy Services | Industrywide Issues | Maryland | Pennsylvania | Pipelines | Regulation | Statewide MD | Statewide PA | Statewide VA | Virginia

    FERC OKs 6 Dominion Compressor Station Upgrades in PA, MD, VA

    August 31, 2016August 31, 2016
    Dominion Leidy South
    Dominion Leidy South – click for larger version

    It’s not often we miss reporting on a pipeline upgrade project in the Marcellus/Utica. This is one of those rare cases. Over a year ago Dominion Transmission, Inc. (DTI) filed an application with the Federal Energy Regulatory Commission (FERC) to upgrade six compressor stations along the DTI pipeline system in Pennsylvania, Maryland and Virginia. The upgraded compressors would allow DTI to pump an additional 155,000 dekatherms per day of natural gas, providing that gas to new and expanding natgas-fired electric generating plants. The project will cost $210 million. The new news for the project is that FERC approved it this week, granting DTI a certificate to move forward with the upgrades. Below is information about the project, and about FERC’s approval…
    Read More “FERC OKs 6 Dominion Compressor Station Upgrades in PA, MD, VA”

  • Energy Companies | EXCO Resources

    EXCO Resources Turnaround is Working, but Comes at a High Cost

    August 31, 2016August 31, 2016

    EXCO.jpgEXCO Resources was once a sizable player in the Marcellus. They still have 145,000 net acres in the Marcellus, with 124 horizontal Marcellus wells drilled and in production. However, EXCO, as we pointed out in March, has pretty much abandoned the Marcellus at this point (see EXCO: No Marcellus Drilling in 2015/2016, NYSE Threatens Delisting). In May the company announced it was looking at “restructuring,” which is typically a code word for bankruptcy, and the company’s stock took a nosedive (see EXCO Resources Board Looks at “Restructuring” – Stock Nosedives). Not long after, EXCO announced it was firing some board members, hiring new ones, and aggressively hammering midstream companies to lower pipeline costs (see EXCO Restructuring Plan: New Board Members, Hammer Midstreamers). It looks like the plan is working. The bleeding slowed in 2Q16 (see EXCO Still Hammering Midstreamers re Contracts, Bleeding Slowed). So far the company has stayed out of bankruptcy. How did they do it, where some others in similar circumstances have failed? According to EXCO’s chairman (and major investor) Wilbur Ross, Jr., the turnaround is due to turnaround expert C. John Wilder that the company hired last year…
    Read More “EXCO Resources Turnaround is Working, but Comes at a High Cost”

  • Energy Services | Marathon Petroleum | MarkWest Energy

    Senior Management Change at Marathon’s MarkWest Subsidiary

    August 31, 2016August 31, 2016

    riding into sunsetIn December of last year, one of the biggest and brightest stars in the midstream firmament for the Marcellus/Utica, MarkWest Energy, sold itself to Marathon Petroleum (see MarkWest Energy Investors/Unitholders Approve Merger with Marathon). As we pointed out at the time, the sale lined the pockets of investors and MarkWest’s top management (see Golden Parachutes Pop Open for MarkWest Top Management/Board). Two of the people in top management who benefited were John Mollenkopf, who was named executive vice president and chief operating officer for the new MarkWest unit (essentially taking over running MarkWest) and Gregory Floerke, who was named executive vice president and chief commercial officer of the new MarkWest unit. Last week Marathon announced that Mollenkopf is now riding off into the sunset (a very rich man), and Floerke will take has place running the MarkWest unit…
    Read More “Senior Management Change at Marathon’s MarkWest Subsidiary”

  • Industrywide Issues | Jobs

    What Happens to Landmen During a Severe Downturn?

    August 31, 2016August 31, 2016

    landmanLandmen, the people on the front lines interfacing between drillers and landowners, are facing tough times. With the slowdown in drilling has come a slowdown in leasing, or re-leasing. Landmen are the guys and gals who perform that duty–and many of them are now doing other jobs, waiting and hoping for the next upturn in the industry. Here’s the story and perspective of one landman who has been in the business for the last 37 years, through five different up and down cycles. Most recently he worked as a landman for Noble Energy–until he was laid off 1.5 years ago…
    Read More “What Happens to Landmen During a Severe Downturn?”

  • Commodity Price | Industrywide Issues | Research

    Research Paper: Shale Wells Lead to Long-Term Low Prices

    August 31, 2016August 31, 2016

    RFF-DP-16-32-coverIs unconventional (i.e. shale) natural gas supply more responsive to price changes than conventional gas? A new research paper suggests that the answer is yes–specifically, almost three times as responsive, because shale gas wells are far more productive (2.7x more) than conventional gas wells. In “Trophy Hunting vs. Manufacturing Energy: The Price-Responsiveness of Shale Gas” (full copy below), researchers from Resources for the Future (RFF), a nonpartisan think tank devoted exclusively to natural resource and environmental issues, takes a look at how the “new way” of drilling multiple wells from a single pad, which is akin to a manufacturing process, is flattening out the supply curve. A flattened supply curve reduces price volatility–the wild up and down swings in the commodity price of natgas. While the focus of the paper is on how shale wells are leading to lower and more stable prices over the long term and does a deep dive into economic models, the paper also contains a good, basic primer on drilling a shale well. We found it a good read and wanted to share it with you…
    Read More “Research Paper: Shale Wells Lead to Long-Term Low Prices”

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