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Marcellus Drilling News
  • 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 ā€œSeverance Taxā€ 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 ā€œEagerā€ 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 ā€œguessed wrongā€ 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, thanĀ 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”

  • Best of the Rest

    Marcellus & Utica Shale Story Links: Mon, Jul 25, 2016

    July 25, 2016July 25, 2016

    best of the restThe ā€œbest of the restā€ – stories that caught MDN’s eye that you may be interested in reading.Ā InĀ today’s lineup:Ā Shale gas food for thought for skeptics; NE PA E&P pain is powergen’s gain; EQT’s production levels; FirstEnergy closing coal plants in OH; Talen Energy laying off 131 nuke workers; 2 LNG export plants OK’d in Gulf Coast; wackos rally in Richmond over pipeline; Schlumberger cut 16K jobs in 1H16; ConocoPhillips laying off 1K more; and more!
    Read More “Marcellus & Utica Shale Story Links: Mon, Jul 25, 2016”

  • Ethane | Industrywide Issues | Kentucky | NGLs | Ohio | Pennsylvania | Statewide OH | Statewide PA | Statewide WV | West Virginia

    WV, OH, PA, KY Should Cooperate on $10B NGL Storage Hub

    July 22, 2016July 22, 2016

    cooperationIn May MDN brought you the news that a researcher at West Virginia University believes an natural gas liquids (NGL) storage hub is what the Marcellus/Utica region really needs (see WVU Researcher Says Marcellus/Utica Needs an Ethane Storage Hub). According to Brian Anderson, director of WVU’s Energy Institute, without ethane storage (and pipelines) the Marcellus/Utica region risks seeing its abundant ethane leave the area, mostly heading to the Gulf Coast. We need that ethane here, in our area. Kevin DiGregorio, executive director of the Chemical Alliance Zone, is also taking up the cause. Writing an opinion article in the Charleston Gazette-Mail, DiGregorio says West Virginia, Ohio, Pennsylvania and Kentucky need to band together to build such a project. Set aside their competitive natures and cooperate? Yes. Why? Such a project will cost an estimated $10 billion–far more than a single ethane cracker project. No one state can do it on its own. It will take all our states cooperating to pull it off. Below is DiGregorio’s op-ed along with more details about the proposed NGL storage hub…
    Read More “WV, OH, PA, KY Should Cooperate on $10B NGL Storage Hub”

  • Chesapeake Utilities | Energy Services | Industrywide Issues | Pipelines | Regulation

    600 Days & Counting to Build a 7-Mile NatGas Pipeline in PA-DE

    July 22, 2016July 22, 2016

    ESNGA Bloomberg article takes a look at the ongoing and unnecessary delays companies face in building new pipelines–particularly in the Marcellus/Utica region. The Eastern Shore Natural Gas (ESNG) company, serving the Delmarva Peninsula (includes most of Delaware and portions of Maryland and Virginia), filed an application to build a measly 7 miles on Nov. 21, 2014. The $29.8 million pipeline project, called the White Oak Mainline Expansion Project, will “ease bottlenecks in transporting gas from the Marcellus shale formation” from Pennsylvania into Delaware. Why the horrific delays? Mostly because of opposition from insane anti-fossil fuelers who flood the Federal Energy Regulatory Commission (FERC) with comments, protest meetings, launch lawsuits and in general attempt to slow or stop FERC authorizations. ESNG’s projects aren’t the only ones stretching out to years before authorization is granted…
    Read More “600 Days & Counting to Build a 7-Mile NatGas Pipeline in PA-DE”

  • Energy Companies | Southwestern Energy

    Southwestern Energy 2Q16: Bleeding Slows, 17 New Marc/Utica Wells

    July 22, 2016July 22, 2016

    southwestern energySouthwestern Energy, a major Marcellus and Utica Shale driller, filed its second quarter 2016 update yesterday. Bill Way, Southwestern CEO, called 2Q16 a “defining time” for the company. During 2Q the company has extended and delayed debt payments, and sold more stock. Financially the company is improving. In 2Q16 Southwestern lost $620 million, versus losing $815 million in 2Q15. The patient is still bleeding, but not as bad. The vast majority of their planned capital spending ($395M out of $750M) will get spent on Marcellus/Utica drilling. Speaking of which, the company placed 17 new Marcellus/Utica wells online in 2Q16, with plans to drill another 50 or so wells in the second half of this year. Here’s the extensive update from Southwestern…
    Read More “Southwestern Energy 2Q16: Bleeding Slows, 17 New Marc/Utica Wells”

  • Energy Services | Schlumberger

    Schlumberger 2Q16: The Worst is Over, Drilling on the Upswing

    July 22, 2016July 22, 2016

    SchlumbergerEarlier this week MDN brought you the second quarter update from Halliburton, the world’s second largest oilfield services company (see Halliburton 2Q16: $3.2B Loss, Lays Off Another 5K, Thx to Obama DOJ). One of the (many) things said by Halliburton in their update is that it appears to them that the worst is now over–that drillers are beginning to drill again. Yesterday the worlds largest oilfield services company, Schlumberger, agreed. Sclumberger issued their 2Q16 update. The big news is that both Schlumberger and Halliburton have “called the bottom” of the oil and gas market. When they both agree, it’s a sure thing. Like Halliburton, Schlumberger also lost big money in 2Q16–$2.16 billion (vs. a $3.2 billion loss for Halliburton). In 2Q15 Schlumberger made $1.12 billion in profit. What a difference a year makes! At least we’re now turning it around. Here’s the Schlumberger 2Q16 update…
    Read More “Schlumberger 2Q16: The Worst is Over, Drilling on the Upswing”

  • Industrywide Issues | Pipelines | Regulation

    Guidelines for Using Drones in the O&G Industry

    July 22, 2016July 22, 2016

    drone pipelineOn July 13, 2016, Congress passed legislation to allow limited drone use by the energy industry as part of the reauthorization bill for the Federal Aviation Administration (see Congress Approves Unmanned Drone Use in O&G Industry). The legislation defines drones as “small unmanned aircraft” weighing less than 55 pounds. Pipeline companies, in particular, can make use of drones with cameras to fly along pipeline routes to spot hazards or potential problems. And they can do it much more quickly and efficiently than having boots on the ground. The legal beagles at top energy law firm Babst Calland have written a “Pipeline Safety Alert” briefing paper that tackles the updates to the FAA regs allowing drones in the oil and gas industry–what’s allowed, and what isn’t. If you’re a midstreamer or even a driller, it’s worth your time to read this short paper…
    Read More “Guidelines for Using Drones in the O&G Industry”

  • CNG/LNG | Energy Companies | Exxon Mobil | Industrywide Issues | M&A

    ExxonMobil Buying InterOil for $2.5B – Another LNG Love Story

    July 22, 2016July 22, 2016

    Love StoryIn early 2015, MDN brought you the news that Shell was making a play to buy BG Group for $69.7 billion (see LNG Love Story: Shell Makes Play to Buy BG in $69.7B Megamerger). As we pointed out, the purchase was all about LNG, or liquefied natural gas. Shell consummated the deal in February of this year (see Shell & BG One Company After Today, Shell Ponies Up $14.4B Cash). The “man on the street” may not realize it, but the Shell/BG merger was the biggest such merger in the oil and gas industry since Exxon purchased and merged with Mobil in an $89 billion deal, back in 1999. ExxonMobil is now making its own LNG play. Yesterday the company announced a deal to purchase InterOil, an LNG company based in Papua New Guinea, for $2.5 billion. Yes, a MUCH smaller deal than the Shell/BG merger–but it points out the direction things are heading. Big Oil is making tracksĀ to become Big Gas. The writing is on the wall. Eventually oil and petroleum-based products will recede. The obvious alternative is clean-burning natural gas. When the world’s largest oil companies say (and prove with their actions) that the future is in natural gas, well, that’s a tectonic shift in the oil and gas industry…
    Read More “ExxonMobil Buying InterOil for $2.5B – Another LNG Love Story”

  • Industrywide Issues | Research

    EIA: NatGas the Biggest Gainer as an Energy Source in 2015

    July 22, 2016July 22, 2016

    EIAYet another report from our favorite government agency, the U.S. Energy Information Administration, points out the overwhelming use of fossil fuels as the primary energy source in the U.S. This most recent report highlights the changing mix used in our country to power our homes, vehicles and everything else that uses energy. The EIA reports that energy coming from nuclear plants stayed even in 2015. So-called renewable energy sources–which include solar, wind and hydro–increased by 1% in 2015. Coal took a nose dive and decreased 12% in 2015, thanks for Obama’s war on coal. Petroleum and its derivatives (oil, gasoline, etc.) increased by 2% in 2015. Natural gas? Consumption of natural gas increased 3% in 2015–the top mover among all energy sources…
    Read More “EIA: NatGas the Biggest Gainer as an Energy Source in 2015”

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