Marcellus Drilling News

Dominion Energy | Energy Services | Industrywide Issues | Pipelines | Randolph County | Regulation | Statewide WV | West Virginia

Atlantic Coast Pipeline Proposes New Route to Save the Salamanders
February 16, 2016February 16, 2016

MDN told you last month that the US Forest Service, drunk on its own power, vetoed a path through a few miles of national forests for the $5 billion Atlantic Coast Pipeline (see US Forest Service Blocks Atlantic Coast Pipeline in National Forests). Using cow nob salamanders and red spruce as their excuse, USFS said “nyet comrade” to Dominion in their quest to build a natural gas pipeline from West Virginia to North Carolina. Dominion had requested a special permit to cross teeny tiny sections of the Monongahela and George Washington national forests in West Virginia and Virginia. So now what? Last week Dominion announced an alternate route for the pipeline (see map below) that avoids most of (not all of) the forests–adding another 30 miles to the 564-mile pipeline, and disrupting 249 landowners in Pocahontas and Randolph counties who will now need to sign easements to allow the pipeline across their land. All to avoid a few miles of forestland. Here’s the latest on the mighty Atlantic Coast Pipeline, re-routed because of a salamander…
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Industrywide Issues | Pennsylvania | Pipelines | Regulation | Statewide PA

PA Lawmaker Wants Turnpike to Allow Pipelines, Charge Ongoing Fee
February 16, 2016February 16, 2016

A RINO member of the Pennsylvania House (from the Philadelphia area) has introduced a new bill that he believes is totally brilliant. Rep. Scott Petri, R-Richboro, introduced a bill to give the PA turnpike commission authority to allow use of its right of way for natural gas pipelines–and charge a fee for it (of course). Rep. Petri, you may recall, LOVES severance taxes (see PA Republicans Commit Adultery with Severance Tax – Again). But a severance tax would generate small potatoes compared with a “fee” assessed on gas flowing through pipelines. Instead of calling his proposal to allow pipelines along turnpike corridors a tax, Petri calls it a fee. Same thing. He’s proposing that the turnpike commission (i.e. the State of Pennsylvania) should all natgas pipelines and receive an ongoing fee for the amount of gas flowing through the pipeline. When NOBODY rushes to sign up for such a plan (should it ever pass), the next step would be to force pipeline companies to use said corridors–banning pipelines from being built on private property. That’s our prediction…
Read More “PA Lawmaker Wants Turnpike to Allow Pipelines, Charge Ongoing Fee”
Energy Services | FTS International | Industrywide Issues | Jobs | Pennsylvania | Statewide PA

FTS International Lays off PA Workers – Won’t Say How Many
February 16, 2016February 16, 2016

More job causalities from the slowdown in Marcellus/Utica drilling to report. FTS International, the largest private well-completion company in North America with offices and employees in the Marcellus/Utica, has laid off workers. But they’re not saying how many. There were reports FTS had closed their offices in Eighty Four and Venetia–but FTS says that’s not true. Here’s what’s known (which isn’t much)…
Read More “FTS International Lays off PA Workers – Won’t Say How Many”
Best of the Rest

Marcellus & Utica Shale Story Links: Tue, Feb 16, 2016
February 16, 2016February 16, 2016

The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Why David Einhorn still loves CONSOL Energy; coldest place in NY keeps warm with natgas; CT’s last coal plant converting to natgas; rigs last year 350, this year 100, is it “just enough”?; ratings agencies downgrade oil companies; LNG imports up last year–in US!; would Chessy bankruptcy boost the price of natgas?; Zombie oil companies, again; why OPEC likely won’t cut production; and more!
Read More “Marcellus & Utica Shale Story Links: Tue, Feb 16, 2016”
Alpha Natural Resources | Energy Companies

Bankrupt Alpha Natural Resources Offered $500M for Assets
February 12, 2016February 12, 2016

Last August MDN told you that Alpha Natural Resources, one of the largest metallurgical coal producers in the world, had filed for bankruptcy. We also told you that Alpha is a driller in the Marcellus Shale–drilling on its own land and as part of a joint venture with Rice Energy (see Alpha Natural Resources in Bankruptcy – What about Marcellus?). Alpha owns 30 producing Marcellus Shale gas wells in PA. We mused at the time: What does the Alpha bankruptcy mean for its Marcellus drilling program? Bankruptcy proceedings have proceeded and it appears most of the company’s assets, including the shale wells, are on the auction block. A group of “unspecified lenders” have offered $500 million. Others can now make their bids by March 28…
Read More “Bankrupt Alpha Natural Resources Offered $500M for Assets”
CONSOL Energy | Energy Companies

Mirror Mirror on the Wall, Who’s the Best Driller of Them All?
February 12, 2016February 12, 2016

Determining who the best driller is depends on what criteria you use. Biggest driller? Most profitable driller? Driller with the most production? There are a lot of different criteria for ranking the “best driller” in the Marcellus. An accounting professor from Susquehanna University has created a formula to rank PA Marcellus oil and gas companies based on their environmental impact. He uses an interesting formula: Divide the amount of hydrocarbons produced (total fuel output) by the number of violations assessed against the company. Envelope please. The winner of the Best “Environmentally Friendly” Driller award in the Marcellus goes to…
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Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Litigation | Pennsylvania | Pipelines | Statewide PA | Sunoco Logistics

Philly Judge Says Case Against Mariner East 2 Can Proceed
February 12, 2016February 12, 2016

A Philadelphia judge for the Court of Common Pleas (low-level court in PA) has ruled in favor of the anti-drilling Clean Air Council against Sunoco Logistics Partners and their Mariner East 2 pipeline. The ruling is nothing more than “this case has merits” (in the eyes of the judge) and can proceed. The case itself is challenging the right of Mariner East 2 to use eminent domain against landowners in building the new pipeline. The Clean Air Council’s argument is that since most of the natural gas liquids that will flow through the pipeline will get exported or otherwise not used in PA itself, that moves Mariner East from being a public utility with eminent domain power to an interstate pipeline more properly reviewed and permitted by federal authorities. It’s a delay tactic, because if Mariner East 2 were to come under the aegis of the Federal Energy Regulatory Commission and eventually permitted, they would also be entitled to use eminent domain. But a FERC review would take years. Which is what the Clean Air Council wants. Here’s the latest minor setback for Sunoco, whose eminent domain has been upheld in other PA courts and who is beginning to clear trees for the Mariner East 2 pipeline right now…
Read More “Philly Judge Says Case Against Mariner East 2 Can Proceed”
Economic Impact | Hydraulic Fracturing | Industrywide Issues | Research

Report: Benefits of a Second American Shale Boom
February 12, 2016February 12, 2016

A fascinating new research paper just published by conservative think tank Manhattan Institute says there IS an antidote to being manipulated by America’s enemies, many of them members of OPEC. There IS an antidote to wild price swings in oil and gas prices. There IS an antidote to the poor economic conditions we experience here in the U.S. under Barack Obama. Know what it is? A second shale boom. IF the U.S. were to become the dominant exporter of energy around the world, we reap economic and geopolitical benefits like you can’t believe. In “Expanding America’s Petroleum Power: Geopolitics in the Third Oil Era” (full copy below), the author notes that the number of cars in use worldwide has risen threefold, aviation miles have gone up sevenfold, and maritime shipments increased threefold in the last 40 years. What powers 95% of that transportation? Oil and its derivatives. We need a second American shale boom and we need it soon. Read about it below…
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Industrywide Issues | Wastewater

The One Part of the Marcellus/Utica Industry Still Booming
February 12, 2016February 12, 2016

There’s one part of the Marcellus/Utica shale industry that is still booming–and will continue to boom as long as the wells drilled flow oil and gas. What it is? Wastewater injection wells. Sometimes called SWDs, or salt water disposal wells. How can that be? If rigs are being laid down and fracking is vastly reduced–even ceased–how is there any wastewater to dispose of? Good question young padawan. Flowback is the water coming out of the hole right after fracking. But long after flowback is done, a well will still bring up what is called produced water–water from the depths that is very salty with minerals. Hence, salt water disposal wells. As long as wells are producing and not shut in, they produce varying amounts of produced water. Until now, drillers in the Marcellus would typically recycle the produced water and use it for fracking the next well. If they aren’t fracking, what do they do with all of that produced water? It must go to an SWD well. A company called Sourcewater has cooked up a clever service, an online exchange where SWD operators can list their wells and drillers who need to find new places to dispose of their produced water can find someone to take it…
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BP | Energy Companies | Industrywide Issues | Research

BP Energy Outlook 2016: NatGas Surpasses Coal by 2035
February 12, 2016February 12, 2016

UK oil and gas giant BP released the 2016 edition of their BP Energy Outlook on Wednesday. BP, being a European company, lards the Outlook up with flowery talk of renewable this and sustainable that. But there are a few facts from the Outlook that slap you in the face: (1) By 2035, across the entire world, 80% of all energy will come from fossil fuels. So much for renewables riding in to the save us all “any day now.” (2) Natural gas is the largest-growing fossil fuel and by 2035 it will have replaced coal as the #2 source of energy in the world. (3) The U.S. will achieve overall energy self-sufficiency by 2021, and oil self-sufficiency by 2030. Another fun fact from the BP Energy Outlook: shale gas will account for 20% of total global gas output by 2035. Read the full report below…
Read More “BP Energy Outlook 2016: NatGas Surpasses Coal by 2035”
BG Group | CNG/LNG | Energy Companies | Industrywide Issues | M&A | Shell

Shell & BG One Company After Today, Shell Ponies Up $14.4B Cash
February 12, 2016February 12, 2016

The last major hurdle has been scaled in the Shell buyout of BG–the largest such oil and gas deal since Exxon bought Mobil in 1999. Yesterday the High Court of Justice in England and Wales approved the merger. Previously Shell stockholders approved the $69.7 billion deal (see Shell Shareholders Vote in Favor of BG Buyout/Merger). Not long after BG stockholders approved it too (see It’s a Deal – BG Shareholders Approve Shell Buyout). Shell canceled a loan it previously arranged, for $14.4 billion to help with the purchase. Instead, the company will use its own hefty piles of cash for the buyout. The unfortunate news is that Shell intends to layoff 10,000 people after the merger is complete–to save money…
Read More “Shell & BG One Company After Today, Shell Ponies Up $14.4B Cash”
Industrywide Issues | Wastewater

Water Recycler with NE Operations Expanding with $40M Investment
February 12, 2016February 12, 2016

Fountain Quail Water Management, a Texas-based wastewater recycler with operations in the Marcellus/Utica, announced earlier this week that the company has a new investor who has ponied up $40 million so they can further expand in North America. As MDN pointed out in a companion story today (see The One Part of the Marcellus/Utica Industry Still Booming), treatment of produced water is booming in all shale plays and likely to continue, even though drilling and fracking has tapered off. Why? Because long after a hole is drilled, water from the depths (water a mile or more below the surface) continues to come out of the hole. Water with a high concentrate of minerals (i.e. “salty”, hence salt water injection wells). You can dispose of such water via injection wells, or you can use a technology like Fountain Quail’s to recycle it…
Read More “Water Recycler with NE Operations Expanding with $40M Investment”
Energy Services | Industrywide Issues | Sand/Proppant | U.S. Silica

U.S. Silica Introduces New Resin-Covered Sand for Fracking
February 12, 2016February 12, 2016

A key ingredient in fracking is a “proppant” like sand. But not just any old sand. The sand used in fracking typically used in fracking is silica and comes from the Midwest–Wisconsin and other states. U.S. Silica is one of the largest sand companies in the world. Strangely enough, it’s headquartered in Maryland. Proppants are so-named because after being washed into fractures the sand stays behind to “prop open” the cracks, allowing oil and gas to escape from shale. Always looking for an edge, particularly against competitors that manufacture ceramic proppants, U.S. Silica recently announced a new resin-covered sand product line…
Read More “U.S. Silica Introduces New Resin-Covered Sand for Fracking”
About MDN

MDN Off Monday for President’s Day
February 12, 2016February 16, 2016

MDN will take a day off on Monday, the President’s Day Holiday. It’s a stock exchange and bank holiday, and we figured quite a few will not be in, so we figured what the heck. We hope you enjoy the day!

Jim Willis, Editor
Best of the Rest

Marcellus & Utica Shale Story Links: Fri, Feb 12, 2016
February 12, 2016February 12, 2016

The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Why Marcellus production fell for 4th month in a row; tax revenues in Monroe County, OH up 340% thx to Utica Shale; UPS & Clean Energy expand deal; rigs would roaring back with $60 oil; utilities abandoning coal for natgas; Fed chief Yellen says oil bust good for U.S. economy; what does Aubrey McClendon see in Argentina?; and more!
Read More “Marcellus & Utica Shale Story Links: Fri, Feb 12, 2016”
Belmont County | Energy Companies | Gulfport Energy | Industrywide Issues | Monroe County | Ohio | Pipelines | Rice Energy

Rice Energy, Gulfport Midstream Form Midstream JV in Eastern OH
February 11, 2016February 11, 2016

Rice Energy, a pure play driller in the Marcellus/Utica, and Gulfport Midstream, a subsidiary of Gulfport Energy (big driller in the Utica) have entered into a joint venture. The new jv is called Strike Force and the purpose is to connect to and gather natural gas from wells drilled in Belmont and Monroe counties in Ohio. That is, this is a new midstream business. Rice contributed $41 million, certain pipelines, facilities and rights of way in return for a 75% ownership of the jv. Gulfport contributed an existing gathering system in return for their 25%. Neither Rice nor Gulfport have made a public announcement about the new venture. We know of it via a Securities and Exchange Commission 8-K filing…
Read More “Rice Energy, Gulfport Midstream Form Midstream JV in Eastern OH”