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    Siluria Gets Partner to Convert Methane Directly into Petrochems

    Siluria TechnologiesA company we’re keeping our eye on is Siluria Technologies. We wrote about them a few weeks back (see New Tech Converts NatGas into Ethylene, Bypassing Cracker Plants). In a nutshell, Siluria doesn’t need to use ethane to crack it into ethylene (the raw material used in plastics). Instead, Siluria has invented a process to go directly from methane to ethylene, bypassing the need for a cracker plant to crack ethane. How cool is that? Siluria is building on their early success by partnering with Italian company Maire Tecnimont to “combine their respective technologies and expertise to bring to the marketplace a unique process to convert natural gas directly into commodity chemicals and their derivative products.” What does it mean? Does it mean Siluria has gotten an Italian partner to sell its technology in Europe? Does it mean Siluria will be able to convert methane into petrochemicals other than ethylene? No idea! But we’ll keep a sharp eye out for more details when/if they become available. In the meantime, here’s the Maire Tecnimont announcement…
    Read More “Siluria Gets Partner to Convert Methane Directly into Petrochems”

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    KM’s Elba Island LNG Export Plant Approved by FERC

    Elba Express
    Elba Express Interconnects – click for larger version

    Great news! Kinder Morgan’s Elba Island, Georgia (near Savannah) proposed LNG export facility has gotten a green light from the Federal Energy Regulatory Commission (FERC). What does the Georgia Elba LNG plant have to do with Marcellus/Utica? Maybe nothing, but we suspect something. Kinder’s arch rival Williams owns the mighty Transco pipeline that connects, via the Elba Express pipeline, to the LNG facility. Currently Elba Island imports LNG. However, Williams has been on a mission to send Marcellus gas south–including to Georgia (see Marcellus Gas Heading to Georgia via Transco Pipeline). We don’t think it’s much of a stretch that Marcellus Shale gas, via the Transco, will be at least some of, if not the primary, source for gas exported from the Elba Island facility. FERC’s approval clears the way for construction to begin. The Savannah region will be the happy recipient of some $2 billion of investment to build the plant…
    Read More “KM’s Elba Island LNG Export Plant Approved by FERC”

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    Study: The High Cost of Capturing Every Last Molecule of Methane

    liar.jpgA few weeks ago MDN brought you the news that the federal Environmental Protection Agency (EPA) has issued onerous new regulations on capturing every last molecule of methane all along the route from wellhead to burner tip (see EPA Does it Again: Tries to Destroy O&G with New Methane Rule). The EPA issued 600 pages of new regulations that requires the industry to install expensive new equipment to locate so-called fugitive methane that may or may not be leaking from wells, pipelines, etc. And if they find such microscopic amounts of methane, they need to capture it. All in the name of preventing non-existent man-made global warming. The EPA reassures the oil and gas industry it’s no big deal. Just install some new equipment, jump through a bunch of hoops, and in no time ‘t all you’ll be making money instead of spending it to comply with the new regs. That is a flat, outright, BS (Barbara Streisand) lie. We have proof. A new study from ICF International has run the numbers from some actual operations and finds the cost to comply with these onerous new regs is 5 times more than what the EPA has estimated. Let’s put it in very understandable terms. The ICF study finds in order to comply with the regs, it will cost $3.35 per thousand cubic feet (Mcf) for the volume of gas it will save. Producers are only able to sell their gas at an average of $3/Mcf. In other words, the industry will lose money to comply with the regulation, contrary to the line of bull the EPA has tried to feed us…
    Read More “Study: The High Cost of Capturing Every Last Molecule of Methane”

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    S&P Global Platts Acquires RigData

    RigDataRigData is one of the oil and gas industry’s most trusted sources for information on drilling activity in the U.S. RigData provides details on drilling rigs–where they are, who’s operating them, what kind of well they’re drilling. RigData publishes reports daily, weekly and monthly. We’ve seen their web and mobile phone app–seriously cool stuff. The company has been around for 25 years. So it was like a fracking-induced earthquake to discover that RigData has been sold–to S&P Global Platts. Financial terms of the deal were not disclosed. Here’s the earth-shaking announcement…
    Read More “S&P Global Platts Acquires RigData”

  • Marcellus & Utica Shale Story Links: Fri, Jun 3, 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: Insider’s guide to Range Resources; risks and opportunities with northeast pipelines; NY oil company shuns shale; Utica rig count shrinks to 9; Shell has already spent $500 million on PA cracker plant; another dullard town in CT bans frack waste; Mark Ruffalo’s phony water scams; oil stays above $50; and more!
    Read More “Marcellus & Utica Shale Story Links: Fri, Jun 3, 2016”

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    Munroe Falls Won’t Let it Go: Files New Lawsuit Against Beck Energy

    Frozen - Let it Go“Unbelievably dense” is how we would describe the “leaders” of Munroe Falls, Ohio. Going back to 2012, Monroe Falls–a “city” with a population of 5,000–has been attempting to stop legally permitted wells from being drilled on private property within city limits. Munroe Falls ordered Beck Energy to cease and desist drilling activity claiming the driller had not secured permits from the city first (Mother May I?). The object was to never let Beck drill, to deny them the permits they would need to seek, so Beck took them to court and an Ohio appeals court struck down Munroe Falls’ “home rule” zoning ordinances as illegal (see OH Appeals Court Strikes Down Home Rule for Drilling). The case was appealed to the OH Supreme Court and the supremes ruled in favor of Beck Energy (see OH Supreme Court Strikes Down Home Rule in Gas Drilling Case). For normal people that would be the end of it. However, it was a close decision (4-3) and the supremes left lots of wiggle room from municipalities to continue making life miserable for drillers (see Some Options Still Available After OH Court Strikes Down Home Rule). So even though Munroe Falls went all the way to the top and lost–once again they’ve just filed another zoning lawsuit against Beck Energy. Do they never learn?…
    Read More “Munroe Falls Won’t Let it Go: Files New Lawsuit Against Beck Energy”

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    It’s Time to Voice Your Support for the Atlantic Sunrise Pipeline

    Atlantic-Sunrise map
    Atlantic Sunrise Pipeline map – click for larger version

    Now is the time to roar and let the Federal Energy Regulatory Commission (FERC) know that you support the Williams Atlantic Sunrise pipeline project. Atlantic Sunrise is part of the Transco (Transcontinental Gas Pipe Line Corporation) system. It is a $2.1 billion project consisting of compression and looping of the Transco Leidy Line in Pennsylvania, along with a greenfield (brand new) pipeline segment of 178 miles, called the Central Penn Line, connecting the northeastern Marcellus producing region to the Transco mainline near Station 195 in southeastern Pennsylvania (see Atlantic Sunrise Will Pump $1.6B into Economy, Create 8K Jobs). We’ve written numerous stories about Atlantic Sunrise, and irrational opposition to it from places like Lebanon County, PA. Earlier this month FERC issued the Atlantic Sunrise project a positive Environmental Impact Statement (see Williams’ Atlantic Sunrise Pipeline Gets Positive EIS from FERC). That’s a very good sign that the project is about to be approved and for construction to begin. But there’s one more hurdle. FERC will conduct a series of public hearings (that we refer to as freak shows for anti-fossil fuelers), along with receiving written public comment. The irrational antis have cranked up their (very few) supporters to flood FERC with negative comments. Atlantic Sunrise will create $1.6 BILLION in investments to build it–jobs, materials, local companies–everyone benefits! When complete, the pipeline will provide enough natural gas to heat and power 7 million homes. WE NEED THIS PIPELINE. It’s now time for those of us who support safe pipelines like Atlantic Sunrise to make our voices heard. Here’s three things you can do to show your support…
    Read More “It’s Time to Voice Your Support for the Atlantic Sunrise Pipeline”

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    Radical Enviro Groups Demand BLM Stop Leasing in OH Wayne NF

    Wayne National Forest
    Wayne National Forest – click for larger version

    Yet another mindless, useless and scientifically wrong letter has been sent to the Bureau of Land Management (BLM) by a group of radical environmental organizations to ask (demand, really) that the BLM halt its plans to allow fracking to take place in the Wayne National Forest (WNF). Nowhere in the letter sent by the Sierra Clubbers, the Center for Biological Diversity, the Ohio Environmental Council and Friends of the Earth does it mention that 60% of the land in WNF is PRIVATELY OWNED. And that the BLM has, for nearly 10 years now, blocked those private rights owners from profiting from their land. Recently the BLM took another baby step on the way to allowing fracking in WNF, which is what has set off the crazies and precipitated this latest factually incorrect letter…
    Read More “Radical Enviro Groups Demand BLM Stop Leasing in OH Wayne NF”

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    UGI Hires PA PUC Commissioner in Brilliant Move for PennEast Pipe

    Pamela Witmer
    Pamela Witmer

    Pamela Witmer, formerly a Pennsylvania Public Utility Commissioner for five years, has left the PA PUC and has joined UGI Energy Services as vice president of government affairs. We previously wrote that Pam was one of the stars at the PUC (see PA PUC Commissioner’s Full-Throated Support of Marcellus Shale). Normally we don’t run announcements of personnel changes–unless its important and somehow affects the Marcellus/Utica. Pam’s new job certainly qualifies. Why? As vice president of government affairs for UGI, Pam will “represent the company’s interests before public officials and regulatory agencies, educate stakeholders on a variety of energy issues, and provide strategic counsel to new and existing customer projects.” In other words, Pam will talk to regulators that she already knows, and be a strong voice throughout the region for projects UGI undertakes. UGI happens to be the main sponsor of the PennEast Pipeline project–a project being vigorously opposed by anti-fossil fuel nutters like THE Delaware Riverkeeper. Now you can see why Pam’s appointment is a brilliant move by UGI…
    Read More “UGI Hires PA PUC Commissioner in Brilliant Move for PennEast Pipe”

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    Stone Energy’s Play to Stay on NYSE: 1-for-10 Reverse Stock Split

    Stone EnergyStone Energy, an independent oil and natural gas exploration and production company (E&P) headquartered in Lafayette, Louisiana drills mainly in the Gulf of Mexico but also has a presence in the Marcellus/Utica Shale with 75,000 acres of leases. Last year Stone quit drilling in the northeast and actually shut-in part of their production due to low prices (see Stone Energy 3Q15: Shut Down 110 Mmcfe/d of Marcellus Production). As we pointed out in April, the company is in financial trouble and inching toward bankruptcy (see Stone Energy Appoints Special Liaison, Inches Toward Bankruptcy?). Earlier this month the New York Stock Exchange threatened the company with de-listing its stock, which would not bode well for a company trying to attract and hold on to investors (see Stone Energy Threatened with De-listing by NYSE). One of the strategies companies use to remain listed on an exchange is to combine together shares of stock, called a reverse stock split. Stone has just announced they will do a 1-for-10 reverse split–meaning an investor who owns 10 shares will see those 10 shares magically combined into a single share…
    Read More “Stone Energy’s Play to Stay on NYSE: 1-for-10 Reverse Stock Split”

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    Rex Energy Swapping $631M in Private IOUs for Public IOUs

    Rex EnergyRex Energy, a small Marcellus/Utica driller headquartered in State College, PA, is trying to keep its head above the financial waterline. It’s struggling, but making progress. In April Rex became the latest driller to convert outstanding debt in the form of notes (what we call IOUs) into equity, or stock ownership (see Rex Energy Converts IOUs into Common Stock, Avoids Bankruptcy?). But not all outstanding notes/IOUs got converted. Rex still has $631 million worth of IOUs hanging out there. Rex announced yesterday they are swapping out their $631 million worth of “private notes” for “exchange notes.” What does that mean?…
    Read More “Rex Energy Swapping $631M in Private IOUs for Public IOUs”

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    NatGas for PowerGen Record High This Summer; Price to Remain Low

    supply demandStrong demand from electric power generators will push natural gas demand this summer up by an estimated 4 billion cubic feet per day (Bcf/d), according to a new report from the Natural Gas Supply Association (NGSA). However, even though there’s more demand, because supplies are so bountiful, the price of natural gas over the summer is actually expected to go down, not up. Using published data and independent analyses, NGSA evaluated the combined impact of weather, economic growth, customer demand, storage inventories and production activity on the direction of natural gas prices for the summer of 2016 compared to last summer. The NGSA says summer 2016 will see a “remarkable growth in demand.” Even so, NGSA expects “downward pressure on prices compared to last summer.” Bummer. It’s great news for consumers and power generating plants. But not so good news for drillers. Below we have a full copy of the NGSA report…
    Read More “NatGas for PowerGen Record High This Summer; Price to Remain Low”

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    CNBC Survey: How Much Will Oil Cost by the End of 2016?

    Survey saysCNBC, not known for being an objective news source (witness the Republican debate debacle earlier this year), conducted a survey among 22 strategists, traders and analysts on the topic of the price of oil. MDN sometimes covers oil stories because natural gas oil are joined at the hip. Often the same E&Ps that drill for oil also drill for gas. And when you drill a hole in the ground, you get what you get–not only oil, but “associated gas” and gas liquids. Hydrocarbons of all kinds come out of the holes drilled. So it pays to pay attention to the oil market and what’s happening with the price of oil. According to the CNBC survey, those responding said overall they expect drilling to pick back up with the price hitting $50 per barrel. But they also said it won’t really pick up in earnest until the price hits $60 per barrel. Roughly half expect the price of oil to remain in the $40-$50 range until the end of 2016, with the other half thinking it will go higher. Only 9% believe come Dec. 31 the price will be at or above $60/barrel…
    Read More “CNBC Survey: How Much Will Oil Cost by the End of 2016?”

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    New Study: Fossil Fuel Divestment Leads to Financial Fiasco

    IPAAWe’ve previously written about the so-called fossil fuel divestment movement–a push to get investors to dump stocks in oil and gas companies in a bid to bankrupt those companies (and send us all back to the energy Stone Age). Major universities hold huge investments of all kinds, including in fossil fuel companies. The crazies are pressuring them to dump those stocks. To their credit, the leaders of Cornell University said they will keep their fossil fuel investments (see Cornell University Rejects Fossil Fuel Divestment Scam). It’s a good thing they did. A new study by the Independent Petroleum Association of America (IPAA) says even if you overlook how an investment portfolio’s value drops after dumping fossil fuels, just the transaction expense of trading away all of those investments can cost billions. In other words, if misguided organizations and investors dump fossil fuels, they’ll lose big money–in brokerage fees. Last time we checked investors invest to make money, not lose it. Here’s the low down from the IPAA…
    Read More “New Study: Fossil Fuel Divestment Leads to Financial Fiasco”

  • Marcellus & Utica Shale Story Links: Thu, Jun 2, 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: FERC hears from both sides on Access Northeast pipeline reversal; Marcellus “State of the Union” update; will ethane storage help the Marcellus/Utica?; OH Utica rig count drops; new Dimock study doesn’t link water issues to fracking; NJ heating costs will go down again; Virginia Tech changing from coal to natgas for power; why Williams is still pushing a deal with ETE; and more!
    Read More “Marcellus & Utica Shale Story Links: Thu, Jun 2, 2016”

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    626 Mmcf/d of Northeast Shale Gas Begins Flowing to Gulf Today

    Ohio-Louisiana Access Project map
    Ohio-Louisiana Access Project map – click for larger version

    Fantastic news! More Marcellus and Utica Shale gas will begin flowing to the Gulf Coast, beginning today. Some of that gas will go to the Sabine Pass LNG (liquefied natural gas) export facility owned by Cheniere Energy–the first such facility to (recently) begin exporting natural gas to other countries. In October 2014 Boardwalk Pipeline Partners filed a request with the Federal Energy Regulatory Commission (FERC) to reverse the flow on a 690-mile segment of their Texas Gas Transmission pipeline to begin carrying Marcellus and Utica Shale gas from the northeast to the south (see Texas Gas Seeks to Reverse Flow of Pipeline from OH to LA). In September 2015 FERC approved the project, called the Ohio-Louisiana Access Project (see FERC Approves Important Utica-to-Gulf Coast Pipeline Reversal). Today the pipeline reverses and Sabine Pass is the foundation shipper–beginning to accept 300 million cubic feet per day (Mmcf/d) of yummy and wholesome Marcellus and Utica Shale gas…
    Read More “626 Mmcf/d of Northeast Shale Gas Begins Flowing to Gulf Today”