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

    PA’s GOP Senate Unanimously Approves Wolf Appt to PUC

    June 21, 2016June 20, 2016
    David Sweet
    David Sweet

    Pennsylvania Gov. Tom Wolf has appointed yet another left-wing Democrat to the PA Public Utility Commission (PUC). The PUC “balances the needs of consumers and utilities; ensures safe and reliable utility service at reasonable rates; protects the public interest; educates consumers to make independent and informed utility choices; furthers economic development; and fosters new technologies and competitive markets in an environmentally sound manner.” The PUC also greatly affects the state’s shale drilling industry (see Major Milestone: PA PUC Rules Mariner East IS a Public Utility and PA PUC Says Impact Fee Payment Calculations Still “Off”). In May 2015 Wolf appointed a new head of the PUC, Gladys Brown, a true believer in man-made global warming and someone who advocates for so-called energy efficiency (i.e. lock down your thermostat) and reducing carbon emissions (i.e. tax industry into oblivion). Big Green groups were delighted with her appointment (see Anti-Drillers Cheer PA Gov Wolf’s New Appointment to Head PUC). Wolf has just appointed who was his energy advisor, David Sweet, to fill a vacancy on the PUC when the terrific Commissioner, Pam Witmer, left at the end of her term (see UGI Hires PA PUC Commissioner in Brilliant Move for PennEast Pipe). We wrote about Sweet last year (see Wolf Appoints Energy “Advisor”; Says Natgas Should Stay in PA). Sweet’s greatest claim to fame: He was the campaign manager for Ed “fast Eddie” Rendell from 2001-2003, helping fast Eddie win the PA governorship. That about says it all. The sometimes confoundingly docile Republican-controlled State Senate confirmed Sweet’s appointment 49-0…
    Read More “PA’s GOP Senate Unanimously Approves Wolf Appt to PUC”

  • Industrywide Issues | Research

    Report: Drillers Slashing $1 Trillion in Spending 2015-2020

    June 21, 2016June 20, 2016

    chart going downWe now know why the oil and gas industry has laid off some 200,000 people over the past few years–they’re not spending money. A new research report from powerhouse consulting firm Wood Mackenzie finds that global upstream development (i.e. drillers) have cut their spending from 2015-2020 by 22%. If you role in cuts to conventional drilling, the total amount cut from budgets (worldwide) from 2015-2020 is a staggering $1 trillion! One of the biggest expenses in a drilling operation is human resources–people. Unfortunately we don’t have a copy of the £1000 (~$1,500) report to share with you. But we do have a high level overview provided by Wood Mackenzie…
    Read More “Report: Drillers Slashing $1 Trillion in Spending 2015-2020”

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

    Is it Time to Prosecute Global Warming Alarmists?

    June 21, 2016July 14, 2016
    shoe on the other foot
    shoe on the other foot

    The Attorney General from Massachusetts, Maura Healey, the AG from New York, Eric Schneiderman and several other far-left radicals drunk on their own power are making fantastical claims that Exxon “knew” that burning their evil, filthy, nasty oil and natural gas is causing Mom Earth to warm up, so they’ve been serving subpoenas to Exxon to turn over every piece of communication the company has ever had, so they can build a case against Exxon’s free speech (see NY AG Targets/Accuses ExxonMobil of Lying about ‘Climate Change’). As we wrote, these far-out libs represent the rise of the new Enviro Nazis (see Rise of the New (Environmental) Nazis – Free Speech Under Attack). But what’s this? In a master stroke, another group of AGs have ridden in to town and are using the fossil fuel haters tactics against them. The argument being used by the haters is that knowingly covering up global warming from burning fossil fuels is tantamount to committing fraud–and they’re threatening lawsuits based on fraud. The new group of AGs is saying hold on there a minute. If it’s fraud to minimize the effects of global warming, why wouldn’t it also be fraud to overstate the case? The new group of AGs is dropping the not-so-subtle threat that they may go after “green” companies (and individuals) who intentionally overstate the effects of so-called global warming. Love it! Rub their green noses right in it! Below is a copy of the letter sent to the haters telling them to back off Exxon Mobil and other fossil fuel companies…
    Read More “Is it Time to Prosecute Global Warming Alarmists?”

  • Best of the Rest

    Marcellus & Utica Shale Story Links: Tue, Jun 21, 2016

    June 21, 2016June 20, 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: Millcraft building $20M hotel in Beaver County, near cracker plant site; can Shell ever overtake Exxon as world’s top major?; US leads all countries in lowering CO2 emissions; coal’s prospects bleak; Europe’s rise in natgas; the snake also rises; and more!
    Read More “Marcellus & Utica Shale Story Links: Tue, Jun 21, 2016”

  • Blue Racer Midstream | Energy Services | Industrywide Issues | Marshall County | NGLs | West Virginia

    Blue Racer Midstream to Begin Barging on Ohio River This Year!

    June 20, 2016June 20, 2016

    Ohio River bargeIt will be fun to watch how anti-fossil fuelers will take this news–and attempt to spin and demagogue it. Blue Racer Midstream, a joint venture between Caiman Energy II and Dominion, owns several natural gas processing and fractionation plants, 650 miles of natgas gathering pipelines, and 155 miles of NGL and condensate pipelines in OH and WV. Blue Racer is a privately-held company, so we don’t have SEC reports and public statements about the company. However, every now again Blue Racer’s upper management shows up at an industry conference, as they did a few weeks ago at the Utica Midstream Seminar in Canton, OH (see Updates on 3 Major OH Pipelines at Utica Midstream Seminar). At the event, Blue Racer CEO Stephen Arata confirmed that in the third quarter of this year the company will begin to use barges on the Ohio River to transport “products” from its Natrium, WV processing plant…
    Read More “Blue Racer Midstream to Begin Barging on Ohio River This Year!”

  • Industrywide Issues | Ohio | Research | Statewide OH

    MDN Exclusive: Analysis of Ohio’s 1Q16 Shale Production

    June 20, 2016September 2, 2016

    exclusiveThe Ohio Dept. of Natural Resources (ODNR) has just issued production numbers for the first quarter of 2016. Compared with first quarter 2015, production numbers in 1Q16 continue to impress. Natural gas production from shale is up 80% year over year, and oil production is up 24% y/y. Below we have the ODNR’s high level overview of the numbers, along with MDN’s own exclusive analysis showing: the top 25 producing gas wells, the top 25 producing oil wells, and then the top 25 gas and oil wells as ranked by average production per day. There is a difference! The longer an oil or gas well is online, the less it produces. Newer wells produce more. So we show you which wells are not just producing the most quantity overall, but which wells are producing at the fastest (most productive) rates–even if they haven’t yet been online a full three months. We also include a link to the complete list of 1,351 wells included in the 1Q16 ODNR report–in a more usable format than that provided by the ODNR…
    Read More “MDN Exclusive: Analysis of Ohio’s 1Q16 Shale Production”

  • Energy Services | Energy Transfer Partners | Industrywide Issues | M&A | Williams

    Williams “Incentivizes” Shareholders to Vote for Merger

    June 20, 2016June 20, 2016

    bribery.jpgOn Friday Williams issued a couple of interesting press releases related to what they hope is a vote to accept Energy Transfer Equity’s offer of a merger. The first press release says the Williams board will pay shareholders 10 cents per share as a bonus if they vote “for” the merger. A little incentive. What we would call a bribe–although there’s nothing illegal about it. It smacks of desperation in our book. But perhaps we know why they’re offering a little more honey to entice people to vote “yes” for the merger. That’s because of the second press release. When the merger was first announced, both ETE and Williams claimed there would be “$2 billion in annual synergies” between the two companies following a merger (see Williams Accepts ETE’s “Indecent Proposal” – Price Went Down $10B). Williams’ second press release on Friday revised that $2 billion “benefit” number down–to almost nothing. Now the claim is there will be $126 million in synergies–94% less than the original claim…
    Read More “Williams “Incentivizes” Shareholders to Vote for Merger”

  • Industrywide Issues | Regulation | Statewide WV | West Virginia

    West Virginia DEP New Rule Changes Affect Shale Industry

    June 20, 2016June 20, 2016

    WV DEPWest Virginia had a contentious budget battle this year. Why? Because severance tax revenue for coal and oil & gas was down–way down. With no hint of it improving any time soon. WV’s budget heavily depends on severance tax revenue for the state’s annual budget. Gov. Earl Ray Tomblin had to call a special session that last 17 days in order to get the budget passed. As part of that special session, new oil and gas rules from the WV Dept. of Environmental Protection were also passed. While the new rules don’t significantly alter existing regulations, the “subtle changes can lead to big headaches when enforced,” according to the legal beagles at Lewis Glasser Casey & Rollins. Here’s a quick overview of the changes, along with a copy of the full rule change document…
    Read More “West Virginia DEP New Rule Changes Affect Shale Industry”

  • Industrywide Issues | Lease & Royalty Payments | Pennsylvania | Regulation | Statewide PA

    Rift Continues Between Drillers & Landowners re Royalty Bill

    June 20, 2016June 20, 2016
    Garth Everett
    Rep. Garth Everett

    Last year yet another new bill was introduced by State Rep. Garth Everett to guarantee landowners get a minimum of 12.5% royalties–regardless of post-production deductions (see New Bill HB 1391 Will Guarantee PA Landowners 12.5% Royalties). Organizations like the PA chapter of the National Association of Royalty Owners (NARO) fully support the bill. However, drillers make the counterargument that duly signed contracts which allow for certain deductions should not be swept away with the stroke of a pen. The industry is steadfast against this and other bills like it. This spring HB 1391 got a brief hearing in the House (see Landowners vs Drillers: PA Minimum Royalty Bill Gets a Hearing). But since then–nothing. That is, until Rep. Everett attached HB 1391 as an amendment to another bill. Everett quickly withdrew his amendment–the purpose was to “call attention” to it and reignite the discussion. Everett was quickly smacked on the knuckles by the drilling industry who is not happy with him for his action…
    Read More “Rift Continues Between Drillers & Landowners re Royalty Bill”

  • Industrywide Issues | Pennsylvania | Research | Westmoreland County

    Beaver Run Reservoir Tests Since 2011 Show No Harm from Drilling

    June 20, 2016June 20, 2016

    test tubeIn 2011, the Municipal Authority of Westmoreland County, PA began a new water testing and monitoring program for the Beaver Run Reservoir which supplies water to about 150,000 residents (see Westmoreland County, PA Municipal Authority Initiates New Water Testing for Reservoir Located Near Marcellus Drilling). CONSOL Energy has 100 shallow gas wells on municipal property near the Reservoir, and at the time had started to drill Marcellus Shale wells. The Authority also leased land near the reservoir to Dominion Resources, which ended up drilling more than a dozen shale wells on the property. The water testing program was precautionary, to ensure water is not being affected by nearby drilling activity. The Municipal Authority contracted with Indiana University of Pennsylvania (IUP) to do the monitoring and testing. The early results showed no impact from testing (see Water Tests at PA Reservoir Show No Affects from Gas Drilling). The Authority continued to award contracts year after year to IUP–starting at $55,000 and going as high as $100,000 (see Pricetag to Test Water at Reservoir Near CONSOL Drilling Goes Up). The Authority is back, ready to pay again. IUP has just won another contract, this time for $85,000, to monitor and test Beaver Run Reservoir. The amazing point is this: Since the first tests began more than five years ago, there have been a number of shale wells drilled on the property next to the reservoir–and there has been no negative impacts from shale drilling in all that time. Hey anti-fossil fuel radicals: Tell us again how shale drilling “contaminates” water…
    Read More “Beaver Run Reservoir Tests Since 2011 Show No Harm from Drilling”

  • Economic Impact | Energy Companies | Ethane | Industrywide Issues | Jobs | Processing Plants | Shell | Statewide WV | West Virginia

    WV is “Major Winner” from Shell PA Cracker Plant

    June 20, 2016June 20, 2016

    winnerThe good vibes are still reverberating following Shell’s announcement that they will move forward with building a $3+ billion ethane cracker in Monaca, PA (see Breaking: Shell Pulls the Trigger, PA Ethane Cracker is a Go!). It’s fantastic news for Beaver County, PA, and in fact all of PA. We’ve seen immediate positive effects, particularly in the local real estate market with announcement after announcement of new deals being done. However, the location of the cracker will be near both the borders of Ohio and West Virginia. Former state senator and current West Virginia Public Service Commissioner Brooks McCabe says the PA cracker is as good news for WV as it is for PA. He says WV is “a major winner” with the Shell PA cracker announcement. Here’s why…
    Read More “WV is “Major Winner” from Shell PA Cracker Plant”

  • Energy Services | Industrywide Issues | Pipelines | Transco | Williams

    Atlantic Sunrise Pipeline Like Interstate Highways of Yesteryear

    June 20, 2016June 20, 2016

    Eisenhower Interstate SystemThere are many reasons why the Williams Atlantic Sunrise Pipeline project should and will get built. As we’ve covered over the past week or so, anti-fossil fuelers object because, well, because they irrationally hate fossil fuels. But this is not a new phenomenon. Back in the 50s and 60s when our nation built the Interstate highway system, we heard the very same arguments antis make today: the land will get carved up; our way of life will end; our peaceful existence is threatened; etc. We spotted an excellent “letter to the editor” that lays out the similarities of antis now and then…
    Read More “Atlantic Sunrise Pipeline Like Interstate Highways of Yesteryear”

  • Best of the Rest

    Marcellus & Utica Shale Story Links: Mon, Jun 20, 2016

    June 20, 2016June 20, 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: Final PA budget home stretch begins–major issues (like severance tax) unresolved; Atlantic Sunrise FERC hearings, first person account; Virginia Tech changing to natgas; low natgas prices “upend” the utility sector; it’s all about that basin, ’bout that basin; banks have a low oil price hangover; Japan’s May LNG imports down; and more!
    Read More “Marcellus & Utica Shale Story Links: Mon, Jun 20, 2016”

  • Hydraulic Fracturing | Industrywide Issues | Regulation | Research

    EPA’s SAB Says Draft Fracking Report OK with Some ‘Splainin

    June 17, 2016June 17, 2016

    Lucy-you-have-some-splainin-to-doLast December we asked the question: Will EPA Whore Itself to Antis and Change Fracking Water Study?. The answer at the time appeared to be “yes.” As we stated in December, the one great, huge, towering problem that anti-drillers have is that there is no scientific evidence that supports their wild claims that fracking contaminates water–which is their favorite lie to spread. When the Environmental Protection Agency (EPA) arrived at the same conclusion–that fracking doesn’t pollute water–after four years of studying it, that really took the wind out of the sails of rabid fossil fuel haters (see EPA Draft Report Says Fracking Doesn’t Pollute Groundwater Supplies). So the EPA set about to “fix” the “problem” by using a small committee of people, called the Science Advisory Board (SAB), to change the results of their original findings (see EPA Science Advisory Board Engaging in Fraud re Fracking Study). In a small ray of light, 5 of the 31 people on SAB don’t want to engage in fraud by changing the language of EPA’s original study (see 5 Members of Internal EPA Committee Think Fracking Study Correct). Perhaps the ray of light is growing brighter. The SAB met earlier this week to kick around proposed language and changes to the original EPA draft study. Surprisingly, the SAB agreed that “no significant changes were needed” in the original report. They do, however, want to add some “explanatory quantification” to justify the statement in the original report that there is no “widespread, systemic impacts” on drinking water from fracking (the original report’s conclusion that still drives the antis bonkers). So the question becomes, what extra explanatory language will the SAB add to ‘splain what is meant?…
    Read More “EPA’s SAB Says Draft Fracking Report OK with Some ‘Splainin”

  • Hydraulic Fracturing | Industrywide Issues | Litigation | Pennsylvania | Regulation | Washington County

    South Fayette, PA Pushing Defacto Frack Ban, Again

    June 17, 2016June 17, 2016

    Comin Around Again - EditedLast month MDN brought you some news that mainstream media in Pittsburgh intentionally ignored: a judge ruled that a new hyper-restrictive (defacto ban) ordinance passed by South Fayette Township, in Allegheny County, was “invalid, null and void” (see South Fayette, PA Restrictive Drilling Ordinance Tossed by Judge). South Fayette is one of seven selfish PA towns that sued the state after the Act 13 law was enacted in 2012 (see Lawsuit Filed: PA Towns Sue State over Marcellus Act 13 Law). Ultimately the towns won their case at the PA Supreme Court level, winning the right to enact their own ordinances with respect to oil and gas drilling. Last year South Fayette enacted a new defacto ban, calling it a zoning ordinance. The judge, as we mentioned, tossed it out last month–but he tossed it because South Fayette didn’t follow proper protocol and procedure. So South Fayette is back–re-advertising the new zoning rule and in July, they intend to adopt it…
    Read More “South Fayette, PA Pushing Defacto Frack Ban, Again”

  • Electrical Generation | Energy Services | Industrywide Issues | Kinder Morgan | Lackawanna County | Pennsylvania | Pipelines | Regulation | Susquehanna County | Tennessee Gas Pipeline

    NEPA Pipeline for Power Plant Gets Positive FERC Assessment

    June 17, 2016June 17, 2016

    TGP logoKinder Morgan’s Tennessee Gas Pipeline Company (TGP) is proposing to build a small pipeline near Scranton, PA to service what will be the state’s largest natural gas-fired electric generating plant, in Jessup (see Kinder Morgan 4Q15: Cutting Dividend, PA Pipeline Progress). The pipeline project is called the Triad Expansion Project and involves building seven miles of new 36-inch pipeline alongside an existing pipeline in Lenox and Clifford Townships, Susquehanna County, PA. When complete, Triad will deliver 180,000 dekatherms (180 million cubic feet) of natural gas per day to the new Invenergy plant in Jessup, called the Lackawanna Energy Center. Good news for the Triad project and the Invenergy plant: the Federal Energy Regulatory Commission (FERC) has just granted a favorable Environmental Assessment for the pipeline–all but guaranteeing its approval…
    Read More “NEPA Pipeline for Power Plant Gets Positive FERC Assessment”

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