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    Shell Cracker May Spur $2.3B Upgrade of Locks/Dams on Ohio River

    Ohio River Montgomery lock and dam
    Ohio River Montgomery lock and dam – click for larger version

    You may not think barging on the Ohio River has much to do with Shell’s plan to build an ethane cracker in Monaca (Beaver County), PA–but you would be wrong. The river has a great deal to do with that cracker plant, and Shell’s decision to build its plant in Monaca. For one thing, Shell plans to (already has) built two barge docks and has barged materials into the site for use in constructing the plant. For another, numerous manufacturing plants are expected to spring up around the cracker, like little satellites circling a planet, because they will use the ethylene and other materials produced by the cracker plant. Those manufacturers will also need cheap barge transportation for their products. The problem is, the locks and dams along the Ohio were built in the early Twentieth Century (between 1922-1936). They were updated in the 1980s and 1990s, but truth be told, the infrastructure is past its life expectancy already. If barge traffic picks up dramatically, that old infrastructure will show its age. Since 2003 the U.S. Army Corp of Engineers (USACE) has had a potential project on the books to study and upgrade the Ohio’s infrastructure. Shell’s announcement may be the impetus to get the USACE to launch its already pre-planned $2.3 billion lock and dam project for the Ohio River…
    Read More “Shell Cracker May Spur $2.3B Upgrade of Locks/Dams on Ohio River”

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    Eclipse Resources 2Q16: Drilling Resumes, 2 New Utica Wells

    Eclipse_logo_hiresIn what appears to be a new standard operating procedure, Eclipse Resources yesterday released their second quarter 2016 operating update, delaying the release of the “bad news” (i.e. financial update) until a later date. A few days Antero Resources and Gulfport both did the same thing. Drillers like to brag about increasing production, but hate to talk about how much money (at least on paper) they’re losing. We understand. Eclipse is a Marcellus/Utica pure play driller headquartered in State College, PA that drills mostly in Ohio. What do we learn? Eclipse’s production went up 19% in 2Q16 over 2Q15. Previously the company had stopped all drilling, but they resumed again in 2Q16 (a good sign) and ended up drilling and completing 2 Utica wells during the quarter. Here’s the operational (not financial) update from Eclipse for 2Q16…
    Read More “Eclipse Resources 2Q16: Drilling Resumes, 2 New Utica Wells”

  • Marcellus & Utica Shale Story Links: Tue, Jul 19, 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: Drilling on upswing nationwide, but OH permitting down; PA rig count up for first time in months; antis protest pipeline in Mass.; how a single natgas-fired electric plant in VA is saving consumers billions; ND sues EPA over new methane rule; Chesapeake & Tom Ward sued for alleged collusion; oil & gas deals coming back; and more!
    Read More “Marcellus & Utica Shale Story Links: Tue, Jul 19, 2016”

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    FERC Rejects NY AG’s Anti-Constitution Pipeline Petition

    Eric-Schneiderman.jpg
    NY AG Eric Schneiderman – petition rejected by FERC

    In May MDN told you about a sleazy political move by New York’s corrupt Attorney General, Eric Scheiderman, who petitioned the Federal Energy Regulatory Commission (FERC) to investigate Williams over the Constitution Pipeline, with a recommendation that FERC withdraw its approval of the project (see NY Attorney General Asks FERC to Investigate Constitution Pipe). Schneiderman claimed that Williams was cutting trees along the path of the pipeline before the state had issued stream crossing permits (which it decided not to do). We told you, in a follow-up story, that Schneiderman’s claims of premature tree cutting by Williams was a fraud (see NY AG’s Allegation of Tree Cutting by Constitution Pipe a Fraud). A Binghamton Press & Sun-Bulletin investigation found that some trees along the pipeline’s path in New York State had been cut–but not by Williams. The landowners themselves were cutting the trees in anticipation of the project–to profit from the sale of the timber. On Friday FERC officially responded to the corrupt Schneiderman’s petition by saying, in so many words, to stuff it…
    Read More “FERC Rejects NY AG’s Anti-Constitution Pipeline Petition”

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    Former NY AG Emasculates Current AG, ExxonMobil Not Like Tobacco

    Dennis_C._Vacco
    Dennis Vacco – former NY AG

    Let’s add some insult to injury, because New York’s corrupt Attorney General, Eric Schneiderman, so richly deserves it. Today’s lead story on MDN is about the Federal Energy Regulatory Commission (FERC) rejecting a petition by AG Schneiderman–his request that FERC withdraw its approval of the Constitution Pipeline and investigate Williams over false allegations of premature tree clearing related to the project (see FERC Rejects NY AG’s Anti-Constitution Pipeline Petition). Schneiderman is a power-mad leftist, hellbent on shaking down so-called Big Oil companies like Exxon Mobil. Schneiderman himself has been caught in a collusion scandal with several other AGs and with Big Green groups to try and smear and extort Exxon (see NY AG, Others Served Congressional Subpoena re Exxon Witch Hunt). One of Schneiderman’s favorite (false) claims is that Exxon Mobil “knew” that mankind is causing mythical global warming by burning fossil fuels–and that they kept it secret–like Big Tobacco companies knew their product was causing cancer. Schneiderman hopes to sue Exxon and other Big Oil companies and extort gazillions of dollars from them. The Dems are rubbing their hands with glee at the prospect. Except…except none of their fairy tales are true and no one believes it. Into this mix, along has come a former New York Attorney General, Republican Dennis Vacco, who served as NY AG from 1995-1999. Vacco was part a group of AGs who successfully sued Big Tobacco, so he knows a thing or two about that case. Vacco says, writing in the Washington Post, that Schneiderman’s claims of a case against Exxon is NOTHING LIKE the case against Big Tobacco. Vacco emasculates Schneiderman and his claims of a case against Exxon…
    Read More “Former NY AG Emasculates Current AG, ExxonMobil Not Like Tobacco”

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    Radical Enviro Groups Suffer Big Court Defeat re Cove Point LNG

    Gavel-falling.jpgAnti-drilling zealots attempting to stop the Cove Point, Maryland LNG (liquefied natural gas) from going online have failed in court, again. And they failed big time. MDN reported in April that a group of Big Green groups, including the Sierra Club, the Chesapeake Climate Action Network, the Patuxent Riverkeeper, EarthReports Inc. and Earthjustice colluded together to sue in federal appeals court to try and stop the project (see Green Groups Ask DC Judge to Stop Construction at Cove Point LNG). On Friday the U.S. Court of Appeals for the District of Columbia ruled against the groups. The argument they raised (and keep raising) is that the Federal Energy Regulatory Commission (FERC) did not take into account so-called cumulative effects in permissioning such a facility. That is, because there is an export facility, that means there will be more drilling and fracking, and that means more air pollution, etc. The court rejected that claim and said in their decision (full copy below) that FERC is not required to consider such cumulative affects. Indeed, FERC’s charter prohibits them from considering such effects. This is a crushing defeat for Big Green–people and corporations who seek to profit from uneconomical solar and wind projects by unfairly crushing the competition (natgas)…
    Read More “Radical Enviro Groups Suffer Big Court Defeat re Cove Point LNG”

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    Crack of Light – OH Sand Producer Says Market Turning Around

    crack of lightFairmount Santrol, an Ohio-based sand producer that sells sand as a proppant for use in Utica and Marcellus Shale drilling, released their preliminary second quarter 2016 results last week. Although the company expects to lose between $91-$93 million for the quarter (compared to a profit of $14.1 million a year ago), things are not all bad. Yes, it’s been tough for Fairmount and other companies in the oil and gas industry. Really tough. But Fairmount’s CEO Jenniffer Deckard, said this: “…we are also encouraged by the early signs of improvement we are seeing in the proppant market.” In other words, a crack of light is peeking through the door and we’re beginning to see the great slowdown in drilling come to an end…
    Read More “Crack of Light – OH Sand Producer Says Market Turning Around”

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    Hubris: PA Gov. Wolf Caves on Budget, then Claims He Won

    tom wolf
    PA Gov Wolf takes credit for budget he didn’t sign

    As MDN reported last week, the Pennsylvania Republican-controlled legislature passed a budget, and then passed $1.3 billion in new taxes to help pay for it. Not part of the package was a severance tax (see PA Legislature Passes $1.3B in Tax Hikes, No Severance Tax). Last year PA Gov. Wolf threw a temper tantrum and waited nine months before allowing a budget to pass, without his signature and with no severance tax (see PA Gov. Wolf Caves on Budget Deal After 9 Mo. of Temper Tantrums). This year it only took a few weeks for Wolf to cave. He got virtually nothing he wanted in the budget–education funding far below levels he wanted, etc. And yet, he’s claiming this year’s budget was a success–because of him. Talk about hubris…
    Read More “Hubris: PA Gov. Wolf Caves on Budget, then Claims He Won”

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    Media Downplays Sunoco’s Huge Court Victory re Mariner East 2

    Sunoco LogisticsLast Friday MDN brought you the really big news that Sunoco Logistics Partners had won a major appeals court case that recognizes them as a public utility in Pennsylvania with the right to use eminent domain to build the Mariner East 2 NGL pipeline (see Sunoco LP Wins Major Court Decision for Mariner East 2 Pipeline). Although Big Green groups like the Philadelphia-based Clean Air Council are attempting to spin the decision as no big deal–it is a big deal, and they know it. So how does the Associated Press, in bed with Big Green, report the decision? This is their headline: “Sunoco clears 1 legal hurdle after pipeline project ruling.” Laughable! It’s more than one hurdle. Sunoco essentially put another 7 points on the board with 5 seconds left to play…
    Read More “Media Downplays Sunoco’s Huge Court Victory re Mariner East 2”

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    Spectra Energy LNG Storage Project Proposed for Somerset, MA

    Somerset MAIt’s hard to believe something as simple and uncomplicated and safe has a storage tank for liquefied natural gas (LNG) could be controversial. But if you irrationally believe all fossil fuels are evil, you’re against such a storage tank. That’s the battle now shaping up in Somerset, Massachusetts. Spectra Energy is looking to build “two giant storage tanks full of liquefied natural gas” at a site in town , near Walker Street. The town administrator is in favor because Spectra will pay the town $10 million in lieu of taxes. But anti-fossil fuel nutters are rising up to oppose the project–even though they do so using the very fossil fuels the abhor every single day of their pathetic lives–being wholly dependent on fossil fuels for their very existence…
    Read More “Spectra Energy LNG Storage Project Proposed for Somerset, MA”

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    MSC Says Scranton Newspaper “Plays Fast and Loose” with Tax Truth

    David Spigelmyer
    David Spigelmyer

    A couple of weeks ago MDN noticed a typical anti-drilling “tax the $#@!” out of the Marcellus editorial in the Democrat-run Scranton Times-Tribune. We ignored it. They run such blather on a regular basis and it’s largely un-noteworthy–at least for MDN readers. Except the Times-Tribune continues to pollute the minds of its readers with half-truths and outright lies. Somebody noticed this particular whopper, that somehow the Marcellus industry isn’t paying its “fair share” of taxes. The somebody who noticed was Marcellus Shale Coalition president David Spigelmyer. He wrote a letter to the editor. His response scorches the Times-Tribune editorial and exposes the lies in it…
    Read More “MSC Says Scranton Newspaper “Plays Fast and Loose” with Tax Truth”

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    Marcellus Shale Gives Dominion Unstoppable Competitive Advantage

    wide moatEver hear of a “wide economic moat?” No, we hadn’t either. That is, until we read a Morningstar analyst writing about mighty utility and midstream giant Dominion. A “wide economic moat,” according to Investopedia, is “A type of sustainable competitive advantage that a business possesses that makes it difficult for rivals to wear down its market share and profit. The term is derived from the water filled moats that surrounded medieval castles.” Makes sense. We’d call it being so far ahead of the pack no one else can catch up. Whatever metaphor floats your boat. The interesting part (for MDN) in the Morningstar analysis of Dominion is *why* they are head and shoulders above their midstream and utility peers. Why? “[N]otably the Atlantic Coast Pipeline and Cove Point LNG facility.” That is, because of the Marcellus Shale. The analyst predicts Cove Point LNG will be the only LNG export facility on the East Coast. That would certainly qualify as a competitive advantage for Dominion…
    Read More “Marcellus Shale Gives Dominion Unstoppable Competitive Advantage”

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    Goldman Sachs Says Jobs Will Soon Return to Shale O&G Fields

    new-jobs.jpgAlthough we’ve begun to hear rumblings about jobs coming back to shale fields, like the Marcellus/Utica, this is the first time we’ve read about a massive comeback on the way. According to a news report, big investment bank Goldman Sachs is saying upward of 100,000 jobs are on the way back to oil and gas fields–after the industry lost 170,000 jobs since 2014. That’s still a 70,000-job deficit, but hey, we’ll take it. Here’s the good news that the job picture is about to turn around in our beloved industry…
    Read More “Goldman Sachs Says Jobs Will Soon Return to Shale O&G Fields”

  • Marcellus & Utica Shale Story Links: Mon, Jul 18, 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: Does pipeline age matter?; industry getting its DUCs in a row; Chart Industries names new president; UC launching yet another sham research study of fracking; why Dimock really really loves fracking; Chesapeake royalties settlement in TX; the biggest shale fracking companies; and more!
    Read More “Marcellus & Utica Shale Story Links: Mon, Jul 18, 2016”

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    Sunoco LP Wins Major Court Decision for Mariner East 2 Pipeline

    Gavel-falling.jpgSeems like Sunoco Logistics Partners has been fighting in court for years to get the right to use eminent domain for it’s Mariner East 2 pipeline project. ME2 is a $2.5 billion, 350-mile natural gas liquids (NGL) pipeline that will run from eastern Ohio through the state of Pennsylvania to the Marcus Hook refinery near Philadelphia–carting ethane, butane and propane to the facility from both the Utica and Marcellus region, where it will be separated and sent on its way to destinations both domestic and international. Because the project technically crosses a state line, opponents have tried to state PA is not the proper government body to oversee it–it should come under the exclusive oversight of the federal government. However, Sunoco LP has maintained from the beginning that it is a public utility, properly regulated by the PA Public Utility Commission (PUC) and not the Federal Energy Regulatory Commission (FERC). The PUC has recognized Sunoco LP and its Mariner pipeline projects as public utilities, with the right to use eminent domain to condemn properties of holdout landowners in PA (see Major Milestone: PA PUC Rules Mariner East IS a Public Utility). However, the PUC’s authority and ME2’s right to use eminent domain was challenged in state Common Pleas Court in Cumberland County, which ruled in favor of Sunoco (see PA Judge Rejects Landowners’ Challenge to Mariner East 2 Pipeline). The judge’s ruling was appealed and now PA’s Commonwealth Court has also ruled in favor of Sunoco LP, saying that Mariner East 2 is regulated by both the PUC and FERC, and it has the right to use eminent domain…
    Read More “Sunoco LP Wins Major Court Decision for Mariner East 2 Pipeline”

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    Antero Resources Picks Up Another 13K Marcellus Acres for $108M

    antero resourcesYesterday Antero Resources, one of the largest Marcellus/Utica drillers, issued an operations (not financial) update for second quarter 2016. The big news in the update is that they’ve picked up another 13,000 net Marcellus acres, and with it 3 million cubic feet per day of production, for $108 million. This is related to Antero’s purchase of 55,000 acres from Southwestern that we reported in June (see Antero Takes Southwestern to Cleaners in Deal for 55K Marc. Acres). As we reported at the time, Southwestern had previously paid Chesapeake Energy $12,000 per acre for that same land (see Southwestern Paid Chesapeake $12K/Acre for Land Signed @ $5/Acre). Antero picked up the acreage for $8181 per acre–about $4K/acre (one-third) less than what Southwestern paid for it. Apparently there was an option in the deal Antero signed with Southwestern that Southwestern has the right to sell an additional 13,000 acres, which they’ve now done. If you do the math, Antero paid $8,307 for the new acreage–still a steal compared to what Southwestern originally paid for it. You’ll notice in the announcement below that Antero calls Southwestern “a third party.” Not sure why they don’t name them, but we love naming names on MDN…
    Read More “Antero Resources Picks Up Another 13K Marcellus Acres for $108M”