Marcellus Drilling News

Energy Companies | Halcon Resources

Halcon Update on “Charting a New Course” – I Feel Good!
April 7, 2016April 7, 2016

In March MDN reported Halcon Resources had hired a prominent law firm with a specialty in bankruptcies to assist the company to “chart a course” through the current downturn in gas and oil prices (see Halcon Resources Hires Bankruptcy Law Firm to Help “Chart Course”). Yesterday Halcon issued an update on their progress. According to the update, the company is “in discussions” with “certain stakeholders” to negotiate terms of a “potential transaction” to “materially reduce the Company’s indebtedness.” What does all of that coded language mean? You would think the company whose CEO is famous for his blunt language would just spit it out (see Halcon CEO Says No More S***** Wells in Northern OH Utica). We’re left to wonder…
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Economic Impact | Industrywide Issues | Jobs | Research

U.S. Chemical Industry Investment Linked to Shale Gas Tops $164B!
April 7, 2016April 12, 2016

The American Chemistry Council (ACC) participated in a Hudson Institute event yesterday. During a presentation made by the ACC, they announced that U.S. chemical industry investment linked to plentiful and affordable natural gas and natural gas liquids (NGLs) from shale formations has reached an astonishing $164 billion. Some 40% of that investment is for the 264 projects – new facilities, expansions and factory re-starts – that is either completed or underway. Another 55% are for projects in the planning phase. This is a big deal folks. ACC’s research shows the investments tied to shale will lead to $105 billion per year in new chemical industry output and support 738,000 permanent new jobs across the U.S. economy by 2023–including 69,000 new chemical industry jobs, 357,000 jobs in supplier industries and 312,000 jobs in communities where workers spend their wages. Below we have a variety of resources for you. We have the ACC announcement with many interesting facts and figures. We also have a fact sheet summarizing their research, a copy of the slide deck used for the presentation (with really cool slides), and a copy of a study the ACC published in 2013 with a list of the companies who, at that time, had announced major downstream projects using shale-related natural gas and liquids…
Read More “U.S. Chemical Industry Investment Linked to Shale Gas Tops $164B!”
Anti-Drilling/Fossil Fuel | Industrywide Issues | New York | Pipelines | Regulation | Statewide NY

NY Antis Attempt to Stop Pilgrim Pipelines with Local Bans
April 7, 2016April 7, 2016

“Whoa, take ‘er easy there, Pilgrim.” – John Wayne in the movie “The Man Who Shot Liberty Valance” (1962) In November, MDN told you about Pilgrim Pipeline Holdings, developing an East Coast pipeline to carry refined petroleum products such as gasoline, diesel, heating oil, and jet and aviation fuel northbound from Linden, New Jersey to Albany, New York (178 miles). In addition, a second Pilgrim pipeline will carry crude oil from Albany south to NJ and other locations. Two pipelines, side by side, liquids flowing through them in different directions (see Will Pilgrim Pipeline be Allowed to Settle in the NY World?). Anti fossil fuel nutters who infest New York State are, however, attempting to block both pipelines by using a 107 year-old law and local bans. Will the antis succeed yet again?…
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Best of the Rest

Marcellus & Utica Shale Story Links: Thu, Apr 7, 2016
April 7, 2016April 7, 2016

The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Let’s get ready to RUMA; when the fracking boom goes bust; FL LNG plant delayed; steady flows going to Sabine Pass LNG; new well drilling down 70% in 1Q16; Chesapeake needs higher prices to hold on; EPA’s Gina McCarthy ramming through methane rules; and more!
Read More “Marcellus & Utica Shale Story Links: Thu, Apr 7, 2016”
eCORP Stimulation Technologies | Energy Services | Fayette County | Hydraulic Fracturing | Industrywide Issues | Pennsylvania

ecorpStim Successfully Fracks PA Marcellus Well Using Baby Oil
April 6, 2016January 18, 2018

Every now and again eCORP Stimulation Technologies, or “ecorpStim” as they are known, reappears with a press release to announce they’re still around. The last such time MDN covered the company was in July 2014 (see ecorpStim Says New Manufacturing Process Lowers Non-Water Frack Cost). ecorpStim’s technology uses non-flammable liquefied propane as the fluid for fracking. It has the benefit of turning back into a gas and coming back out of the hole–captured and sold at a profit (or captured and re-used). One issue is, of course, the cost–although ecorpStim says they have worked hard to lower the cost. Another issue is potential flammability. However, last year ecorpStim began experimenting with “light alkanes” as an alternative fluid for fracking. In everyday language, light alkanes are “baby oil.” A big plus with using baby oil is that it’s nonflammable. It’s also safe for human ingestion and totally safe for the environment. ecorpStim released an announcement yesterday to say they have successfully fracked a Marcellus Shale well in Fayette County, PA using their new baby oil process…
Read More “ecorpStim Successfully Fracks PA Marcellus Well Using Baby Oil”
Energy Companies | Greene County (PA) | Industrywide Issues | Pennsylvania | Regulation | Rice Energy | Statewide PA | Washington County

Rice Energy Fined ~$400K by PA DEP for Not Asking “Mother May I?”
April 6, 2016April 6, 2016

The Pennsylvania Dept. of Environmental Protection (DEP) has slapped Rice Energy and a couple of Rice’s subsidiary companies with a hefty fine of $393,500. Egads! Must be Rice did some very nasty things, right? Turns out most of the reason why the DEP fined Rice was for not playing “Mother May I?” with the DEP. In one case Rice installed a waterline between a well pad and an impoundment–without “Mother May I?” permission from the DEP. In another case Rice built a pipeline through a swamp (i.e. “wetland”) without getting DEP “Mother May I?” permission. And in yet another case Rice installed three waterlines under a creek instead of one. Rice’s midstream subsidiary was cited for “not using best management practices”–a severe no no for the DEP. Rice Midstream’s lack of management practice decorum led to a small incidence of erosion that briefly turned a creek brown. Call in the EPA! That’s your PA DEP hard at work for the people–always on the job ensuring those nasty drillers tow the line and pay big fines…
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Energy Services | Patterson-UTI

How Low Can it Go? Patterson-UTI Rig Count Plunges to 64 in March
April 6, 2016April 6, 2016

As we do every month, MDN tracks how many rigs oilfield services company Patterson-UTI Energy reports operating–as a proxy for when/if the drop in rig counts for the Marcellus/Utica will turn around. Patterson operates a number of rigs in the northeast, as well as other areas of the continental United States (and Canada). Month by month Paterson’s rig count has declined from 5-10% (see Patterson-UTI Average Rig Count Falls to 74 in February). The latest numbers are out and Patterson’s rig count has dropped another 10 rigs, to 64. That’s a massive 14% drop in a single month. We seriously ask ourselves, just how low can it go?…
Read More “How Low Can it Go? Patterson-UTI Rig Count Plunges to 64 in March”
Baker Hughes | Energy Services | Halliburton | Industrywide Issues | Litigation | M&A | Regulation

DOJ “Preparing Lawsuit” Against Halliburton/BH – Deal Looks Dead
April 6, 2016April 6, 2016

Yesterday MDN told you that the U.S. Dept. of Justice has sued investment firm ValueAct Capital with an accusation that ValueAct has inappropriately pulled strings with both Halliburton and Baker Hughes in their planned merger (see DOJ Sues ValueAct Capital for Meddling in Halliburton/BH Merger). It seems that’s not the only lawsuit the DOJ is going to lodge. According to the Wall Street Journal and other national media sources, the Obama DOJ has let leak they plan to sue Halliburton/Baker Hughes to stop the merger. It appears as if it’s all but dead. The Europeans are not fans of the plan (see Europe Puts Halliburton/BH Merger Under a Microscope). Brazil is also against the deal (see Is the Halliburton Buyout of Baker Hughes in Trouble?). If the DOJ turns against it–there’s no way the deal will happen, in our humble opinion. Here’s the latest in the shotgun wedding that may turn out to be a couple at the alter with no one willing to marry them…
Read More “DOJ “Preparing Lawsuit” Against Halliburton/BH – Deal Looks Dead”
Carroll County | Energy Services | Harrison County | Industrywide Issues | Marathon Petroleum | NGLs | Ohio | Pipelines

Cornerstone Pipeline Slightly Delayed, Construction Begins in May
April 6, 2016April 6, 2016

In the middle of March MDN brought you the news that Marathon Petroleum was saying they would begin construction on the Cornerstone Pipeline “in the next several weeks”–meaning by the beginning of April (see Cornerstone Liquids Pipeline Set to Begin Construction in E Ohio). The timeline has been moved back a month. Marathon officials are now saying construction won’t begin until May. Cornerstone is a $250 million, 50-mile liquids pipeline being built by Marathon from the MarkWest cryogenic processing plant in Cadiz (Harrison County, now owned by Marathon), northwest connecting to M3’s fractionator plant in Scio (also in Harrison County) and M3’s cryogenic processing plant in Leesville (Carroll County) before terminating and connecting to Marathon’s refinery in Canton, OH (see Marathon Petroleum’s Newly Announced “Cornerstone” Utica Pipeline). The pipeline will carry, at various times, crude oil, condensate and natural gasoline. No reason was given for the delay…
Read More “Cornerstone Pipeline Slightly Delayed, Construction Begins in May”
Commodity Price | Industrywide Issues | Research

Moody’s Oil & Gas Liquidity Stress Index Hits New Worst Level
April 6, 2016April 6, 2016

In March Moody’s Oil & Gas Liquidity Stress Index, a measure of the liquidity health of oil and gas companies, hit a worst-ever high of 27.2% (see Moody’s Oil & Gas Liquidity Stress Index Hits Worst-ever Level). A month later and the same index has topped the previous bad record–now at 31.6%. Translation: there are a record number of energy companies stretched to the limit, ready to run dry in the cash department. If prices don’t turn around soon, some (many?) of these companies will go under…
Read More “Moody’s Oil & Gas Liquidity Stress Index Hits New Worst Level”
Albany County | Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | New York | Pipelines | Statewide NY | Williams

RFK Jr Invokes Religion at Anti-Pipeline Rally in Albany, NY
April 6, 2016April 6, 2016

A group of around 200 anti-fracking activists–or fractivists–protested at the steps of the New York State Capitol Building in Albany, NY yesterday. They were there nominally to protest Gov. Cuomo’s inevitable cave to allow the Constitution Pipeline to be built across the eastern portion of the state. However, the language from the speakers–in particular from the rather nutty Robert F. Kennedy, Jr. (i.e. “Junior”)–was instructive. These people are fossil fuel haters–and their speeches dripped with their irrational hatred for all fossil fuels. Junior called fossil fuels “the dirtiest fuels from hell,” and then he called so-called renewable energy “patriotic fuels from heaven.” Some of you have laughed and poked fun at MDN, some of you have written us in anger, some have even unsubscribed when we have commented in the past on the hysterical and irrational antics of anti-fossil fuelers, pointing out that their belief in man-made global warming is religious and faith-based and NOT rooted in science. Junior’s own words yesterday are 100% vindication of our position. He couches the debate over fossil fuels in religious language. We were, and always have been, right about anti-drillers. The vast majority of antis don’t oppose drilling because of “water contamination” or “air pollution” or “methane migration” or any of a hundred other red herring excuses. They object because they fervently choose to believe in global warming, with no scientific evidence whatsoever, making all fossil fuels “evil” in their twisted worldview…
Read More “RFK Jr Invokes Religion at Anti-Pipeline Rally in Albany, NY”
CNG/LNG | Energy Services | Exporting | Industrywide Issues | Kinder Morgan

Kinder Morgan’s Elba Island, Georgia LNG Export Plant Progresses
April 6, 2016April 6, 2016

Last July Kinder Morgan bought out joint venture partner Shell’s portion of a proposed LNG (liquefied natural gas) project on the coast of Georgia (see KM Buys Shell’s Share in Elba LNG Export Plant, Marcellus Exports?). 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 facility. The Elba facility is progressing. Yesterday Kinder announced “a contract for the engineering, procurement, construction, commissioning and startup of Kinder Morgan’s natural gas liquefaction project at Elba Island, near Savannah, Georgia.” The contract was awarded to IHI E&C…
Read More “Kinder Morgan’s Elba Island, Georgia LNG Export Plant Progresses”
Commodity Price | Industrywide Issues

EIA: Warm Winter Leads to Low NatGas & Electricity Prices in NE
April 6, 2016April 6, 2016

MDN’s favorite government agency, the U.S. Energy Information Administration, is out with another helpful article–this one on the relationship of a warm winter in the northeast with low natural gas and electricity prices in the northeast. Here’s an EIA deep dive into the issue, complete with charts and graphs…
Read More “EIA: Warm Winter Leads to Low NatGas & Electricity Prices in NE”
Best of the Rest

Marcellus & Utica Shale Story Links: Wed, Apr 6, 2016
April 6, 2016April 6, 2016

The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Pipeline timelines slip in northeast; Hillary’s fracking flip-flops; Marathon sticks with Ohio Utica despite downturn; PA service companies hurting in downturn; WV AG calls NY AG a bully; Mass. high court to decide fate of pipelines; shaleconomics; natgas rally this summer; and more!
Read More “Marcellus & Utica Shale Story Links: Wed, Apr 6, 2016”
Berkeley County | Industrywide Issues | Jefferson County (WV) | Morgan County (WV) | Pipelines | Regulation | West Virginia

Mountaineer Gas Files App to Build $45M Pipeline Expansion in WV
April 5, 2016April 5, 2016

West Virginia’s largest natural gas LDC (local distribution company) is Mountaineer Gas–with 220,000 customers, 450 employees and servicing 49 of WV’s 55 counties. Mountaineer Gas maintains close to 6,000 miles of pipeline. They’d like to add another 56 miles of pipelines to that number. Mountaineer has filed an application with the WV Public Service Commission to build a $45 million expansion of their distribution network in Berkeley, Jefferson and Morgan counties (the eastern panhandle of WV). Why? To deliver more Marcellus Shale gas to industrial customers who want to build manufacturing plants in the region. There is some natural gas in the area now–but not nearly enough. The new lines, which are not high pressure transmission lines but low pressure distribution lines, would bump up the volume of gas and deliver it to locations where new plants want to build. Local economic development people are excited as this provides a foundation for long-term growth in the region. Below are the details of Mountaineer’s application, along with a copy of the official paperwork they’ve filed with the WV PSC…
Read More “Mountaineer Gas Files App to Build $45M Pipeline Expansion in WV”
Energy Services | Industrywide Issues | PennEast Pipeline | Pennsylvania | Pipelines | Regulation | Statewide PA

PennEast Spins FERC Delay as a Good Thing – Optimism or Denial?
April 5, 2016April 5, 2016

We understand the value of a healthy, optimistic attitude. We consider ourselves to be a “glass half full” rather than “glass half empty” type of people. But we’re also realists. Last week the builders of the proposed PennEast Pipeline–a $1.2 billion, 114-mile, 36-inch diameter pipeline that will deliver approximately 1 billion cubic feet of natural gas per day from the Marcellus gas fields of northeastern PA to locations in southeastern PA and across the border to Trenton, NJ–received what we considered bad news. The Federal Energy Regulatory Commission (FERC) told PennEast they would extend the amount of time they are taking until December of this year, rather than August, to complete their Environmental Review. And FERC won’t issue their final decision on authorizing the project until March 2017–at the earliest. PennEast had requested FERC wrap it all up by this August–an 8-month delay. In our book, that’s mildly bad news. But yesterday PennEast issued a press release saying the FERC announcement is an “important milestone,” almost lauding FERC for moving so quickly given a plateful of pipeline applications–even though it means the PennEast project now won’t be completed until 2018 instead of 2017. Is this a “glass half full” optimistic attitude? Or self-deluding denial? We can think of many reasons why it’s a manifestly bad thing that FERC has delayed–not the least of which is are multiple lawsuits sure to be launched by the radicals at THE Delaware Riverkeeper…
Read More “PennEast Spins FERC Delay as a Good Thing – Optimism or Denial?”