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Marcellus Drilling News
  • Anti-Drilling/Fossil Fuel | Energy Companies | Exxon Mobil | Industrywide Issues | Litigation

    Federal Judge Says MA AG Acted in “Bad Faith” re Exxon Witch Hunt

    October 17, 2016October 17, 2016

    bad-faithThe table has been turned on Massachusetts Attorney General Maura Healey and her corrupt co-conspirator, New York Attorney General Eric Schneiderman. A U.S. District Court Judge in Texas has granted Exxon the right to examine “internal phone records, other communications and depositions” related to Healey’s involvement in attempting to persecute Exxon Mobil for daring to say man-made global warming may not be all it’s cracked up to be. Perhaps the judge will also extend his order to NY AG Eric Schnedierman too? That would be terrific. At a minimum, when Exxon goes fishing, no doubt communications (i.e. corrupt collusion) between Healey and Schneiderman will be found and exposed to the light of day for all to see. In our wildest dreams both AGs will be forced to resign–an appropriate action considering their rabidly radical views against, and attempts to criminalize, fossil fuels. Here’s the low down on what the judge said and did…
    Read More “Federal Judge Says MA AG Acted in “Bad Faith” re Exxon Witch Hunt”

  • Columbiana County | Ohio

    Columbiana, OH School OK with Land Annex to Help a Fracker

    October 17, 2016October 17, 2016

    it-dont-matter-to-meIn May MDN brought you the story that Columbiana, OH was contemplating aiding and abetting a fracking company in its quest to expand (see Columbiana, OH Annexes Extra Land to Help a Fracker). Buckeye Transfer–a company that stores water, sand, chemicals and other materials used in (gasp) fracking of Utica Shale wells–would like to expand its operations on the outskirts of Columbiana. Buckeye has its own water and sewer but can’t expand them due to the age of the infrastructure–so they want to tie into municipal water and sewer. In order to do that, the ~94-acre site would need to be annexed and become part of the city. Columbiana said they were willing to do it. Now, the Columbiana City School District has signed on to the plan as well. Can you image that? With all of the bleating and blatting by radical parents in places like Mars, PA and Athens, OH, here’s a school district willing to help out a fracker?…
    Read More “Columbiana, OH School OK with Land Annex to Help a Fracker”

  • CNG/LNG | Exporting | Industrywide Issues

    Pieridae Energy Signs Labor Contract to Build Goldboro LNG

    October 17, 2016October 17, 2016

    youre-hiredAs we pointed out last week, the Canadian Goldboro LNG export plant continues to see activity, with an expected commitment coming in the next couple of months (see Pieridae Energy to Make FID on Goldboro LNG Project Next 2 Mos). We have yet another sign that the project is heading toward a final investment (FID) decision of “yes.” Our latest evidence? Pieridae Energy, the company building the project, has just signed a tentative labor agreement with unions in the region to provide the labor needed to build the plant…
    Read More “Pieridae Energy Signs Labor Contract to Build Goldboro LNG”

  • Pennsylvania | Statewide PA

    PA Senate Race – Proxy for Big Green vs Big Oil

    October 17, 2016October 17, 2016

    toomey-mcgintyWhen it comes to voting for a U.S. Senator in this year’s Pennsylvania race, there really is only one choice if you value the Marcellus industry: Hold your nose and vote for Pat Toomey. Toomey is a consummate Washington sleazebag insider. He represents everything we hate about Washington and the establishment politicians that infest it. However, his opponent, Katie McGinty, is a radical anti-drilling environmentalist. She is someone committed to eliminating the use of fossil fuels, and a disciple of blithering idiot Al Gore. Big Green groups have spent a collective $3.6 million, so far, to elect McGinty. That tells you everything you need to know. On the other hand, the Koch Brothers (i.e. “Big Oil”) have spent $7.2 million to re-elect Toomey. The Koch’s have earned their way onto our permanent feces list with their active opposition to The Donald. So we have no love for the Kochs, or for “bought” politicians like Toomey. However, these are the cards we’re dealt and the hand we must play. What is interesting to us is that the media is framing the race between McGinty and Toomey as Big Green vs Big Oil. Fine. We’ll bite. Here’s how the match shaping up…
    Read More “PA Senate Race – Proxy for Big Green vs Big Oil”

  • Energy Services | Mammoth Energy Services

    Mammoth IPO Not So Mammoth After All – Priced at Low End

    October 17, 2016October 17, 2016

    mammothlogoTwo weeks ago MDN brought you news that oilfield services company Mammoth Energy Services, headquartered in Oklahoma City, OK, with operations in both the Utica Shale and Permian Basin, was floating a new initial public offering (see Utica Oilfield Services Co. Mammoth Energy Floats ~$150M IPO). The IPO, relatively small by most measures (hoping to raise ~$150 million) was closely watched because it’s one of the few new IPOs in the oil and gas sector this year. The IPO is done and the stock has begun to trade. How did they do? Mammoth targeted $15-$18 per share. They settled for the low-end $15/share. And after the trading began, the stock sank…
    Read More “Mammoth IPO Not So Mammoth After All – Priced at Low End”

  • Hydraulic Fracturing | Industrywide Issues | Research

    Bernstein Research Says Longer Laterals Not Necessarily Nirvana

    October 17, 2016October 19, 2016

    counterintuitiveOver the past six months or so MDN has repeatedly read about drillers in the Marcellus/Utica drilling longer laterals (the horizontal part of the well) and using way more sand to keep the cracks propped open longer. And between longer laterals and more sand, drillers in the northeast are getting higher output from their wells. So it was with some interest (and skepticism) that we read about new research that says longer laterals don’t lead to greater production totals. The research is from a respected source: Bernstein Research. However, the data used was only from the Barnett Shale–so it’s not clear to us how relevant the findings are for northeast drillers. Here’s what the research says…
    Read More “Bernstein Research Says Longer Laterals Not Necessarily Nirvana”

  • Calendar

    Calendar of Events for Oct 17 – Jan 16 (90 Days)

    October 17, 2016October 17, 2016

    calendar.jpgEvents related to drilling in the Marcellus and Utica Shale, primarily pro-drilling.

    To have your event included (or if you are aware of a worthy event you believe should be on this page), please send the details and/or a link to have it included to the calendar@marcellusdrilling.com email address. Thank you!
    Read More “Calendar of Events for Oct 17 – Jan 16 (90 Days)”

  • Best of the Rest

    Marcellus & Utica Shale Story Links: Mon, Oct 17, 2016

    October 17, 2016October 17, 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: Tokyo Gas buys stake in NY gas-fired electric plant; minor delay in Atlantic Sunrise pipeline; weekly natgas rig counts returns “with a vengeance”; global warming be damned; warming alarmists disappointed Hurrican Matthew didn’t do more damage; and more!
    Read More “Marcellus & Utica Shale Story Links: Mon, Oct 17, 2016”

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

    PIOGA Opposes Bill to Regulate Unregulated PA Gathering Pipelines

    October 14, 2016October 14, 2016

    PIOGAIn just about every state in the country, before you start digging a hole in the ground for some reason (water well, septic system, laying an underground electric line, etc.)–the first thing you do is call 811 or some similar phone number. The “one call” or “first call” reaches a state-authorized (not necessarily state-run) office where they have, on file, maps detailing any kind of underground cables, pipelines and other infrastructure. If such underground structures exist, a representative of the owner for the underground line will, if necessary, stop by and mark the areas so when you do begin digging, you don’t hit it. Makes sense. A bill under active consideration in the Pennsylvania legislature, Senate Bill (SB) 1235, “enhances” the existing 811 law in PA. One of the “enhancements” is that it removes an exclusion for low-pressure natural gas gathering pipelines from being required to be part of the 811 system. Many owners of excluded lines voluntarily participate in the programs. The bill also would transfer regulatory enforcement power over the lines from the Department of Labor to the Public Utility Commission. The Pennsylvania Independent Oil & Gas Association (PIOGA) is pushing back against the removal of the exclusion for conventional production lines and the most rural (“Class 1” under federal law) gathering lines…
    Read More “PIOGA Opposes Bill to Regulate Unregulated PA Gathering Pipelines”

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

    Marc. Shale Coalition Files Lawsuit to Block PA Chapter 78a Regs

    October 14, 2016October 17, 2016

    lawsuitOn 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 Dictator/Secretary John Quigley, who got fired over unethical collusion with Big Green groups (see Smoking Gun: Copy of the Email that Got John Quigley Fired). Some of the good stuff remained, but onerous new elements were introduced. Although the Pennsylvania Independent Oil & Gas Association (PIOGA) represents PA’s conventional (non-shale) drillers, [Correction: PIOGA represents BOTH conventional AND unconventional (shale) drillers] they immediately filed an appeal of the new regs with the PA Supreme Court (see PIOGA Makes Legal Play to Stop Chapter 78a Regs from Taking Effect). The Marcellus Shale Coalition (MSC), which represents shale drillers–the group affected by Chapter 78a–has made noise about the new regs, but hasn’t done anything to stop the regs–until now. Yesterday the MSC filed its own lawsuit to block the new regs [Note: we now have a copy of the lawsuit, see it below]. The MSC’s lawsuit was filed in PA Commonwealth Court…
    Read More “Marc. Shale Coalition Files Lawsuit to Block PA Chapter 78a Regs”

  • Coterra Energy (Cabot O&G) | Energy Companies | Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Regulation | Statewide PA | Williams

    Cabot Issues Update on Atlantic Sunrise – Possible Route Change

    October 14, 2016October 14, 2016

    route-changeWe spotted a press release issued yesterday by Cabot Oil & Gas, providing an update for the Williams Atlantic Sunrise Pipeline project. Which kind of surprised us. Why would Cabot issue an update on someone else’s pipeline? Is Cabot an investor in the project? We asked–the answer is “no.” However, Cabot is the major shipper that will use the Central Penn Line portion of the Atlantic Sunrise project. And that’s what the announcement was about. Cabot said the Federal Energy Regulatory Commission (FERC) has announced it is actively reviewing two alternative routes for the Central Penn Line, accepting public comment until Nov. 14. OK, so that sometimes happens. Is it worth a press release? Then we read that this development means yet another delay for the Atlantic Sunrise project–and investors immediately punished the stock for both Williams and Cabot. Ah, now we understand! The press release is to reassure investors that Cabot believes FERC, while slowing things down a little, won’t delay things too long. THAT’S what the press release is really all about…
    Read More “Cabot Issues Update on Atlantic Sunrise – Possible Route Change”

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

    Dominion Announces $145M Project to Expand Gas Supply to DC & MD

    October 14, 2016October 17, 2016

    ema-map-298wDominion recently announced a new pipeline project called Eastern Market Access Project. The project will beef up two compressor stations in Virginia, build a new compressor station in Maryland, and add a couple of pipeline taps near Washington, D.C. The purpose of the $145 million project is to deliver more gas to Washington Gas, and to deliver gas to a new gas-fired electric power plant being built in Maryland. We suspect Marcellus/Utica gas will be the added gas flowing to both Washington Gas and the new electric plant in Maryland. [Note: A Dominion spokesman later confirmed to us that the gas will come from either the Marcellus or Utica plays.] You may recall that in May 2015 Washington Gas announced a plan to invest in Marcellus wells in Greene and Clearfield counties in PA (see Washington Gas $126M Deal to Bring Marcellus Gas to DC Suburbs). That plan was later nixed by Virginia regulators (see Virginia Rejects Deal for DC-based Utility to Buy Marcellus Wells). Perhaps Washington Gas will get the last laugh after all with new quantities of Marcellus gas flowing through the Dominion Eastern Market Access project…
    Read More “Dominion Announces $145M Project to Expand Gas Supply to DC & MD”

  • Energy Services | Industrywide Issues | Pipelines | TC Energy/TransCanada

    TransCanada Launches Open Season to Lowball Marcellus/Utica Gas

    October 14, 2016October 14, 2016

    open seasonYou 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 by 42% 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. But all is not butterflies and unicorns with the TransCanada plan. Drillers are balking at having to sign a 10-year agreement in order to get the favorable pricing (see TransCanada’s Plan to Lowball Marcellus/Utica Gas Delayed). The delay is no more. TransCanada has launched a binding (sign on the dotted line) open season for potential customers to sign up for the lowball plan. They have until Nov. 10th. Will it work? We notice that TransCanada has relaxed the 10-year commitment a little bit. Shippers can cancel their contracts after five years, IF they pay higher shipping fees for a final two years. So TransCanada went from 10 years to 7 years, with really low prices for the first five years. Is it enough?…
    Read More “TransCanada Launches Open Season to Lowball Marcellus/Utica Gas”

  • Industrywide Issues | New York | Pennsylvania | Pipelines | Regulation | Statewide NY | Statewide PA

    PA State Senator Says Let’s Stop Fracked PA Gas Going to NY!

    October 14, 2016October 14, 2016
    gene-yaw.jpg
    PA Sen. Gene Yaw

    New York Gov. Andrew Cuomo may have started a peeing match he’ll end up losing, by denying permission to build the Constitution Pipeline (see NY Gov. Cuomo Refuses to Grant Permits for Constitution Pipeline). At a midstream (i.e. pipeline) conference held yesterday in Pennsylvania, one of the speakers–PA Sen. Gene Yaw from northeastern PA–said half jokingly (and half seriously) that he’s contemplating introducing a bill that would prohibit PA’s fracked gas from flowing through pipelines into New York State. Such a thing, if it ever happened, would CRUSH New York economically. It would (deservedly) bring the Empire State to its collective knees. Of course such a thing isn’t going to happen–but still, just joking about it sends a very loud message to the man-child running the Empire State: You’re on notice buddy, if you don’t allow pipelines to get built, there WILL be consequences…
    Read More “PA State Senator Says Let’s Stop Fracked PA Gas Going to NY!”

  • Energy Companies | Energy Services | EQT Corp | Equitrans/EQT Midstream

    EQT Sells AVC Pipeline System to Itself for $275M

    October 14, 2016October 14, 2016

    EQT logoEQT, one of the largest Marcellus/Utica drillers, also owns a sizable pipeline subsidiary, EQT Midstream. EQT announced yesterday it is transferring ownership of its Allegheny Valley Connector pipeline system, which includes several Marcellus Shale gathering pipeline systems, from the Mothership to the child company. They will take $275 million out of one pocket and put it in a different pocket–on the same pair of pants. Such is how things are done in high finance. EQT picked up Allegheny Valley Connector in a $720 million deal with Peoples Natural Gas in 2013 (see Pittsburgh Driller & Gas Utility Co Want to Swap Assets). Allegheny Valley Connector is located in the Marcellus Shale region and its primary function is to store and transport natural gas to numerous Peoples’ interconnects, including use by Peoples and other gas suppliers to provide local distribution service to Peoples’ customers. Here’s the announcement that EQT is transferring ownership on paper…
    Read More “EQT Sells AVC Pipeline System to Itself for $275M”

  • Allegheny County | Ohio | Pennsylvania | Statewide OH | Statewide PA | Statewide WV | West Virginia

    List of Companies Nominated for 2017 Northeast Oil & Gas Awards

    October 14, 2016October 14, 2016

    Oil & Gas AwardsThe 2017 Northeast Oil & Gas Awards has received a boatload of nominations for the upcoming awards ceremony in Pittsburgh next March. LOTS of nominations. The folks at the Oil & Gas Awards will be contacting each nominee to see if they want to participate this year. Below is the entire list of nominees. Note: there is still time to nominate your company! The deadline is Dec. 14th. Below we have a list of everyone nominated so far, and the list of categories for which your company can be nominated…
    Read More “List of Companies Nominated for 2017 Northeast Oil & Gas Awards”

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