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Marcellus Drilling News
  • Electrical Generation | Industrywide Issues

    S&P Overview of Northeast Power Market – NatGas & Electric Gen

    July 26, 2016July 26, 2016

    KC_PGAT_250x125_2016Two weeks ago MDN invited you to join us for the upcoming Analyst Training in the Power and Gas Sectors, on August 8-9 in New York City (see Join MDN in NYC for SNL’s Analyst Training in the Power and Gas Sectors). Editor Jim Willis will attend the training. There are a number of MDN subscribers based in New York, Chicago, Pittsburgh and Washington who should attend this event. Today we have a small preview to share. German banking giant Deutsche Bank recently hosted a conference call with Steve Piper, Director of Energy Research at S&P Global. Steve is one of the seminar leaders/speakers for the upcoming Analyst Training in NYC. He had some great insights and this general overview of the Northeast power market…
    Read More “S&P Overview of Northeast Power Market – NatGas & Electric Gen”

  • Energy Services | Industrywide Issues | New York | Pipelines | Regulation | Statewide NY | Williams

    Constitution Pipeline Requests 2-Year Extension from FERC

    July 26, 2016July 26, 2016
    Constitution Pipeline map
    Constitution Pipeline map – click for larger version

    For years now, MDN has tracked the ongoing sad, maddening, tragic saga of the Constitution Pipeline–a $683 million, 124-mile pipeline due to run from Susquehanna County, PA to Schoharie County, NY carrying Marcellus gas (see our stories here). The pipeline is full reviewed and authorized by the Federal Energy Regulatory Commission–it has been since 2014. The only thing left is a permit from the New York State Dept. of Environmental Conservation (DEC) to issue stream crossing permits. The DEC has, however, been corrupted by our corrupt governor, Andrew Cuomo. The Constitution worked with the DEC to meet ALL of their requirements, and in fact did meet all of their requirements, and in the end Cuomo said “nyet” and the servile “leaders” at the DEC did their master’s bidding and turned down the Constitution (see NY Gov. Cuomo Refuses to Grant Permits for Constitution Pipeline). So the Constitution sued (see Williams Sues NY Over Constitution Pipe – DEC May Lose Authority). However, the FERC clock is ticking. The Constitution has until the end of this year to get the pipeline built. With the glacial pace of the courts, that ain’t gonna happen. So the Constitution (i.e. Williams), last Friday, filed a request with FERC to extend the certificate to build by an additional two years…
    Read More “Constitution Pipeline Requests 2-Year Extension from FERC”

  • Energy Companies | Ethane | Exxon Mobil | Industrywide Issues | Processing Plants

    ExxonMobil, Saudis Plan to Build New Ethane Cracker on Gulf Coast

    July 26, 2016July 26, 2016

    joint ventureYesterday ExxonMobil and Saudi Arabian petrochemical giant SABIC announced they have formed a joint venture partnership and are evaluating (and plan) to build yet another ethane cracker plant complex along the Gulf Coast–in either Texas or Louisiana. The Gulf Coast has numerous such plants already in operation. The northeast has (so far) none. Why the two companies are not looking to the northeast is beyond us. In their announcement the companies said they want to locate along the Gulf Coast “near natural gas feedstock.” Why is this an MDN story? Because (a) pipelines are planned from the Marcellus/Utica region to the Gulf Coast, and this cracker, if built, will be yet another new market for our gas, and (b) because it will likely compete with the crackers that do get built in the northeast. Shell has committed to building one in Pennsylvania, and PTT Global Chemical will make a final investment decision in 2017 on a planned cracker in Ohio. A new Exxon/SABIC cracker will compete for our gas supplies, we have no doubt. Here’s yesterday’s joint announcement…
    Read More “ExxonMobil, Saudis Plan to Build New Ethane Cracker on Gulf Coast”

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

    Former EPA Asst Admin Calls Frack Ban Supporters “Irrational”

    July 26, 2016July 26, 2016
    J Winston Porter
    J Winston Porter

    J. Winston Porter is a former assistant administrator of the federal Environmental Protection Agency (EPA), appointed by and serving the great Ronald Reagan. Years ago Porter was a vice president at Bechtel, the world’s largest construction and civil engineering company. He also, at one time, owned his own engineering firm. But Porter has also served in the government and academe over the years. In addition to the EPA, Porter was manager of the environmental services department in San Francisco. He began his career as a professor in the chemistry department of the University of Petroleum and Minerals in Dhahran, Saudi Arabia in the mid-1960s. Porter is someone who’s been around and seen it all–from academe to government service to private industry. He has perspective. He has experience. He has wisdom. We spotted an editorial appearing in the Allentown (PA) Morning Call newspaper by Porter, an editorial in which he says a ban on fossil fuels, as is being called for by more extreme Democrats, would be a tragedy for Pennsylvania (and the rest of the country). He said that to “pretend that we could make a rapid transition away from fossil fuels is irrational.” Sound familiar? How many times have we stood on our soapbox to proclaim hatred of fossil fuels is irrational? Dozens, if not hundreds of times! Give Porter’s editorial a read, and learn something from someone who knows a thing or two about energy…
    Read More “Former EPA Asst Admin Calls Frack Ban Supporters “Irrational””

  • Anti-Drilling/Fossil Fuel | Industrywide Issues

    Bloomberg News Compromised: Sponsors Dem Meeting on Global Warming

    July 26, 2016July 26, 2016

    Bloomberg NewsIt’s not the place of a news organization, the “fourth estate” and watchdog of the government, to whore itself to a major political party. But that’s exactly what Bloomberg News has done. Shame on them. Yesterday in Philadelphia, at the Democrat National Convention, Bloomberg News sponsored a meeting of radicals in the Dem party to discuss the myth of man-made global warming–and how the Dems can force autocratic action down the throats of all Americans in the name of so-called climate change (the euphemism for global warming, something that hasn’t happened now for 20 years). Does anyone care anymore that our mainstream news services have sold their souls to the Democrat Party? Apparently not…
    Read More “Bloomberg News Compromised: Sponsors Dem Meeting on Global Warming”

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

    Enviro-Nazis Say Marcellus Pipelines Equal Global Warming

    July 26, 2016July 26, 2016

    enviro naziA group of rabidly left “environmental” groups–including Oil Change International, Appalachian Voices, Bold Alliance, Chesapeake Climate Action Network, Earthworks, Environmental Action, Sierra Club (national), 350.org, Blue Ridge Environmental Defense League, Protect Our Water/Heritage/Rights (Virginia & West Virginia), Sierra Club West Virginia Chapter, and Friends of Water (West Virginia)–recently published a piece of fiction titled, “A Bridge Too Far: How Appalachian Basin Gas Pipeline Expansion Will Undermine U.S. Climate Goals” (full copy below). As indicated by the title, these Nazi-like groups want to stop all new pipeline construction, repairs to existing pipelines, ANYTHING to do with a pipeline that flows natural gas or other fossil fuels. Why? They’re true believers that the earth is catastrophically heating up (it isn’t), and that mankind is causing it by burning fossil fuels (we aren’t). Their answer is to take the human race back to the Stone Ages when we burned cow dung and wood, apparently. One thing is for certain–you can’t even build windmills and solar panels without fossil fuels–so their so-called precious renewables aren’t an option. We wonder if they ever listen to themselves actually talk…
    Read More “Enviro-Nazis Say Marcellus Pipelines Equal Global Warming”

  • Best of the Rest

    Marcellus & Utica Shale Story Links: Tue, Jul 26, 2016

    July 26, 2016July 26, 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: Bullish on Antero Resources; Southwestern loses $1.8B, but still committed to WV; Cheniere’s 2nd LNG export plant progressing; fracklogging has stopped; US rig count jumps again; half of America’s LNG exports heading to Asia; and more!
    Read More “Marcellus & Utica Shale Story Links: Tue, Jul 26, 2016”

  • Energy Services | Industrywide Issues | PennEast Pipeline | Pennsylvania | Pipelines | Regulation | Statewide PA

    Major Step Forward – FERC Issues Favorable DEIS for PennEast Pipe

    July 25, 2016July 25, 2016
    PennEast Pipeline Route Map
    PennEast Pipeline Route Map – click for larger version

    THE Delaware Riverkeeper, Maya van Rossum, is “spitting” mad. Why? Because the Federal Energy Regulatory Commission (FERC) has signaled it will approve the PennEast Pipeline, a $1.2 billion, 119-mile desperately-needed natural gas pipeline from Luzerne County, PA to Mercer County, NJ that will haul Marcellus Shale gas from northern PA to markets in southeastern PA and NJ. On Friday FERC issued a Draft Environmental Impact Statement (DEIS) that finds while there are a few things to fix in the PennEast plan before the pipeline gets built, they are fixable and the pipeline won’t have significant environmental impacts. van Rossum, upon learning of the favorable DEIS, said “The deadline for comments is an offensive abuse of power and spit in the face of all the communities that will be so deeply harmed by this project.” Needless to say, FERC’s decision put a smile on our face. PennEast calls it a “major step forward.” Indeed. It all but assures that this project will get approved and built…
    Read More “Major Step Forward – FERC Issues Favorable DEIS for PennEast Pipe”

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

    PA Gov Wolf: PAers Will Build the Cracker, Unless They’re Stoned

    July 25, 2016July 25, 2016

    are you on drugsAlthough he still wants to tax the Marcellus Shale industry out of his state, Pennsylvania Gov. Tom Wolf (with the dubious title of “most liberal governor in the U.S.,” see PA Gov Tom “Severance Tax” Wolf: America’s Most Liberal Governor) couldn’t resist jumping on the bandwagon to take some credit for what his predecessor, Gov. Tom Corbett, actually accomplished: luring Shell to build a multi-billion dollar ethane cracker facility in the state (see PA Gov Wolf Attempts to Take Credit for Shell Cracker Decision). Since the Shell cracker is already a done deal and will create oodles of jobs, Wolf is now conveniently “for” the project. He made a visit to Beaver County, PA last week, where the cracker plant will get built, for a roundtable discussion with local leaders. Wolf told them local leaders he wants to ensure it’s Pennsylvanians who fill the ~6,000 construction jobs required to build the plant. His only concern? PA residents may be too stoned to pass a drug test…
    Read More “PA Gov Wolf: PAers Will Build the Cracker, Unless They’re Stoned”

  • Industrywide Issues | Pennsylvania | Regulation | Statewide PA

    Bill Tweaking Article 78a Shale Drilling Regs Dies in PA House

    July 25, 2016July 25, 2016

    It's Dead JimIn June Pennsylvania Gov. Tom Wolf was forced to accept half a loaf–he agreed to reject new drilling regulations for the conventional drilling industry in the state, if lawmakers would allow his administration’s rework of shale drilling regulations to take effect (see PA Gov Wolf “Eager” to Sign Drilling Law Forced Down His Throat). So we got a new set of drilling rules for shale, referred to as Article 78a, while the rules for conventional (Article 78) will get yet another revision. The Marcellus industry didn’t oppose the reworked rules in part because they thought they could tweak some of the more onerous aspects of them. Two weeks ago the PA Senate passed Senate Bill (SB) 1229, making modifications to three aspects of Article 78a creating the most fuss with shale drillers (see PA Senate Approves Bill Tweaking DEP Chapter 78a Shale Regs). As we noted at the time, Gov. Wolf threatened to veto the legislation. Whether Wolf’s toothless threat mattered or not we don’t know, but we do know that late last week the House failed to pass the bill and left town for summer vacation. That is, SB 1229 is dead…
    Read More “Bill Tweaking Article 78a Shale Drilling Regs Dies in PA House”

  • Energy Companies | Pennsylvania | Southwestern Energy | Susquehanna County

    Southwestern Puts 2 Rigs Back Online in Susquehanna County, PA

    July 25, 2016July 25, 2016

    southwestern energyOn Friday MDN reported Southwestern Energy’s second quarter 2016 update, with indications that things are turning around for the company and that they intend to re-start their drilling program in the Marcellus (see Southwestern Energy 2Q16: Bleeding Slows, 17 New Marc/Utica Wells). On Friday, Southwestern’s top brass held their analyst conference call to discuss the update and add more color commentary. And what color it was! Southwestern CEO Bill Way said they’ve already reactivated some rigs and plan to continue that pattern. Coincidentally, we received confirmation of Southwestern’s statements from an MDN subscriber who sent us proof that Southwestern re-started two rigs just last week in Susquehanna County, PA…
    Read More “Southwestern Puts 2 Rigs Back Online in Susquehanna County, PA”

  • Energy Companies | Halcon Resources

    Halcon Gets Majority Buy-in for “Pre-Packaged” Bankruptcy

    July 25, 2016July 25, 2016

    Halcon ResourcesMDN told you in May that Halcon Resources, a Utica Shale driller that “guessed wrong” by leasing 140,000 Utica Shale acres in the northern part of the play (in Ohio) and currently doesn’t drill on any of that acreage, was preparing to file for bankruptcy (see Another One Bites the Dust: Halcon Resources Filing for Bankruptcy). In June Halcon outlined how they will go about filing–converting some $1.8 billion of debt into shares of stock/ownership in the company (see Halcon Resources Strikes Deal to File Chapter 11 Bankruptcy). It’s called a “pre-packaged bankruptcy” because the company gets all of the debtholders to agree before the plan is filed. Stockholders (i.e. owners) on the other hand, get screwed. Their stocks become worthless at the end of the process. On Friday Halcon issued a statement outlining their progress. They now have enough debtholders signed up to move forward with filing the pre-packaged bankruptcy…
    Read More “Halcon Gets Majority Buy-in for “Pre-Packaged” Bankruptcy”

  • Industrywide Issues | Litigation | Pennsylvania | Statewide PA

    PA Supreme Court Decides “Title Washing” OK in Mineral Rights Case

    July 25, 2016July 25, 2016

    Gavel-falling.jpgYou’ve heard of “whitewashing” before. How about “title washing?” No, we hadn’t either. But this funny sounding practice has a great deal to do with mineral rights in Pennsylvania, with possible implications for landowners and drillers. The Pennsylvania Supreme Court issued a 5-0 ruling last week that upholds the practice of title washing in the Keystone State. What in the world is it, and how does it affect landowners and drillers? In the case of Herder Spring Hunting Club v. Keller there had been a tax sale in 1935 for a property in Centre County, PA where the mineral rights had previously been separated. Prior to 1948 if mineral rights that had been separated were not properly recorded (it was incumbent on the owner of the subsurface rights to ensure the sale was recorded at the assessor’s office), and the surface land was later sold, both the mineral rights (subsurface) and the surface land became part of the sale. That, in essence, was title washing. After 1948 a law prevented this from happening, so such cases only apply to land sold before 1948. The legal beagles at Babst Calland have a good overview of what the practice of title washing is, and how the Court’s decision affects Pennsylvanians. We also have a copy of the decision embedded below…
    Read More “PA Supreme Court Decides “Title Washing” OK in Mineral Rights Case”

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

    TransCanada’s Plan to Undercut/Displace Gas from the Marcellus

    July 25, 2016July 25, 2016

    TransCanadaOne of the important new markets that Marcellus and Utica Shale drillers have been salivating over is Canada. Indeed, flows of natural gas, via pipelines, have increased to Canada over the past several years (see Marcellus/Utica Gas Increasingly Heads to Canada via Pipeline). One of the promising new markets for Marcellus gas is Canadian LNG exports (see List of LNG Export Projects for Marcellus/Utica Shale Gas). However, Canada is feeling a bit PO’d (personally offended) with the U.S., especially since Lord Obama rejected the Keystone XL oil pipeline from Canada. Along has come a bold new proposal from TransCanada, which recently bought the U.S.-based Columbia Pipeline Group, to use existing pipelines from Western Canada to Eastern Canada–from Alberta to Toronto–to ship more natgas. The aim is to make is less expensive to get gas from Western Canada, some 2,400 miles away, than from the Marcellus, just 400 miles away. Should Marcellus drillers be concerned? Maybe. TransCanada is about to launch an open season for their bold, new plan to undercut the Marcellus…
    Read More “TransCanada’s Plan to Undercut/Displace Gas from the Marcellus”

  • Anti-Drilling/Fossil Fuel | Industrywide Issues

    5-10K Fractured Anti-Frackers March on Dem Convention in Philly

    July 25, 2016July 25, 2016
    Bernie protesters
    Bernie anti-frack protesters – credit: CNBC

    Depending on the source you read, somewhere between 5,000 and 10,000 rabid Bernie Sanders pinko commie fans marched in Philadelphia last night, on the eve of the Democrat National Convention. Their raison d’etre? To “DEMAND” a national ban on fracking. If true (one never knows with habitual liars), an anti-fracking crowd of that size is the biggest we’ve heard of. Congrats! Apparently there were two different groups marching–they couldn’t even coordinate a unified march. Typical. Below is some of the coverage of these wackos marching in the sweltering heat last night…
    Read More “5-10K Fractured Anti-Frackers March on Dem Convention in Philly”

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

    The (Rotten) Apple Doesn’t Fall Far from the Al Gore Green Tree

    July 25, 2016July 25, 2016

    look at meOn June 29 a group of 26 “religious” (we use that term very loosely) radicals were arrested for stopping work on a 5-mile pipeline near Boston. We reported on one of the organizers of the crime, Tim DeChristopher (see Religious Radicals Arrested for Stopping Work on Boston Pipeline). Another person arrested that we didn’t mention was the daughter of Al Gore, Karenna Gore. Like most spoiled rotten children of privilege, Karenna isn’t happy that nobody noticed she got arrested. So, because of her star-power name, she was granted the opportunity to write an op-ed for the Boston Globe so she could tell the world, “Look at me! Look at me! ME ME ME ME”…
    Read More “The (Rotten) Apple Doesn’t Fall Far from the Al Gore Green Tree”

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