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Marcellus Drilling News
  • Industrywide Issues | Pennsylvania | Research | Statewide PA

    Marcellus King in PA – Which Other Layers are Actively Drilled?

    March 30, 2016March 30, 2016

    Over the past few years MDN has highlighted and brought to your attention an excellent data service called MarcellusGas.org. The service contains data on every Marcellus (and other layer) wells drilled in Pennsylvania. It also covers waste disposal and injection wells. And it posts detailed statistics–down to the individual well level–including production numbers. It’s a really great service that only charges $20 per year for a membership. We highly recommend a membership if you’re into data and numbers. Note: We have no vested interest in the service. We’ve never even received a simple “thank you” for mentioning it and no doubt driving a number of subscriptions their way. No matter. We promote it because it’s a great service. Recently MarcellusGas sent an email to members (yes, we pay our $20/year like everyone else) to highlight how many wells have been permitted, and actually drilled–by rock layer. As you can imagine the Marcellus is king, head and shoulders above all the rest, with 9,359 actively producing wells and another 7,125 wells permitted (for a total of 16,484 Marcellus wells). What caught our eye is the numbers for the other layers. You might guess the second highest number of producing wells would be from the Utica Shale layer–but you would be wrong…
    Read More “Marcellus King in PA – Which Other Layers are Actively Drilled?”

  • Anti-Drilling/Fossil Fuel | Industrywide Issues | New York | Pipelines | Regulation | Statewide NY

    NY Comptroller Attacks Natural Gas Pipelines with Safety “Audit”

    March 30, 2016March 30, 2016

    New York State’s Comptroller, Thomas DiNapoli, is a hard-left Democrat who has repeatedly targeted the fossil fuel industry in the Empire State–and beyond. As we’ve previously observed, DiNapoli is an anti-drilling bully (see our extensive list of MDN articles on DiNapoli’s attacks here). His latest attempt to smear the fossil fuel industry is to attack pipeline infrastructure. His office conducted an “audit” of pipeline safety from 1995 through 2014 (full copy below) and has supposedly found 194 pipeline “incidents” resulting in 23 fatalities, 123 injuries and $77 million in property damage. The aim, of course, is to imply pipelines are unsafe. There is no context in DiNapoli’s report. For example, during the same period, how many bridges have had “incidents” and how many deaths have there been from bridge accidents? During the same period how many railroad “incidents” have there been and how many deaths? When you stack up pipelines against any other form of transportation, pipelines are the safest mode of transport by far–it’s not even close. But you wouldn’t know that from DiNapoli’s slanted report…
    Read More “NY Comptroller Attacks Natural Gas Pipelines with Safety “Audit””

  • Anti-Drilling/Fossil Fuel | Industrywide Issues | Litigation | New York | Regulation | Statewide NY

    Climate Change Hucksters, Incl. NY AG & Al Gore, Threaten O&G

    March 30, 2016March 31, 2016

    A small group of rabidly partisan Democrats who have drunk deeply from global warming Kool Aid–including New York’s corrupt Attorney General Eric Schniederman and global warming huckster Al Gore–gathered yesterday in New York to declare they are ready to litigate from sunup to sundown to ensure Dictator in Chief Obama’s Clean Power Plan (currently being challenged in court) is implemented–both now and by the next El Presidente. It is, of course, a sham. They don’t really believe in global warming–most of them anyway. They’re not that stupid (although Al Gore may be). They want total control over the source of energy you use–because it personally empowers them (in the case of New York Attorney General Schneiderman) and enriches them (in the case of Al Gore who buys and sells energy credits). It’s corruption at the highest levels…
    Read More “Climate Change Hucksters, Incl. NY AG & Al Gore, Threaten O&G”

  • Pennsylvania | Sponsored Posts | Tioga County (PA)

    Prime PA Recreational Land w/Marcellus Rights Up for Auction

    March 30, 2016March 30, 2016

    Sponsored Post: For the past few years MDN has enjoyed bringing you advertising from United Country Real Estate. They have auctioned various properties for sale located in the Marcellus region–typically in Pennsylvania. We’re happy to bring you another such announcement. You may have noticed an advertisement running along the right side of each page on MDN, and a blurb at the bottom of your daily email alerts, for United’s next auction on April 15 (tax day!). The property up for auction this time is 250 acres of recreational land with a hunting camp, in prime Marcellus territory–Tioga County, PA. The land includes all mineral rights. See the description below for details…
    Read More “Prime PA Recreational Land w/Marcellus Rights Up for Auction”

  • CNG/LNG | Exporting | Industrywide Issues | Pipelines | Regulation

    LNGL Applies to Build Pipeline to Bear Head LNG Export Facility

    March 30, 2016June 16, 2016

    Yesterday MDN told you that Bear Head LNG in Nova Scotia, Canada continues to make progress toward opening an LNG export facility that will export U.S. Marcellus and Utica Shale gas (see Bear Head LNG Facility Buys More Land, Opens Halifax Office). The very next day (today!) the parent company of Bear Head, LNG Limited (from Australia) issued another announcement to say they’ve registered for an environmental assessment for a pipeline they want to build–the Bear Paw Pipeline. It is the first (and perhaps most important) step in getting a new 39-mile pipeline built that will run from the Maritimes & Northeast Pipeline to the new Bear Head LNG facility. Yes it’s a story about Canada, but it’s mostly a story about the Marcellus and Utica…
    Read More “LNGL Applies to Build Pipeline to Bear Head LNG Export Facility”

  • Dominion Energy | Electrical Generation | Energy Services | Industrywide Issues | Statewide VA | Virginia

    Virginia Approves State’s Largest NatGas-Powered Electric Plant

    March 30, 2016March 30, 2016

    Last July Dominion filed a request with the Virginia State Corporate Commission (SCC) to build a $1.3 billion state-of-the-art natural gas-fired electric generating station in Greensville County, VA (see Dominion to Build Electric Plant in S VA Powered by Marcellus Gas). The new power station will generate 1,600 megawatts–enough electricity to power 400,000 homes. It will be the biggest electric plant in Virginia. The plant would be powered by–you guessed it–Marcellus Shale gas (see Virginia’s Largest Electric Plant to be Powered by Marcellus Gas). We have some great news to report. The SCC has approved the project. Construction, according to Dominion, will begin “later this year”…
    Read More “Virginia Approves State’s Largest NatGas-Powered Electric Plant”

  • Energy Services | Industrywide Issues | Pipelines | Rockies Express Pipeline | Tallgrass Energy

    Tallgrass Buys Out Sempra’s Portion of REX Pipeline for $440M

    March 30, 2016March 30, 2016

    Just a few years ago that Tallgrass Energy, majority owner of the Rockies East Express (REX) pipeline–a 1,712-mile pipeline which runs from Colorado and Wyoming to Ohio–had an “Oh crap!” moment. The pipeline was built to bring then-abundant natural gas from the West to markets in the Midwest (like Chicago) and the East–via connections with other pipelines. Then the Marcellus and Utica happened, forever changing the natural gas dynamic in the United States. Nobody in the Midwest and East wanted western gas anymore. What to do?! Tallgrass knows how to pivot, and pivot they did–deciding to reverse the flow for a portion of the REX pipeline (see REX Reverses Pipeline Flow from OH for Mystery Utica Customer). Their bright idea worked, and beginning last August, the REX pipeline from Monroe County, OH to Mexico, MO reversed its flow (see 1.8 Bcf/d of Marcellus/Utica Gas Heads West on REX Starting Aug 1). What was a huge negative turned into a big positive for Tallgrass. Now Marcellus/Utica rides the pipeline west every single day–and there’s no sign of it letting up. If anything, REX will reverse more of the line at some point. That got Tallgrass to thinking, maybe REX had become the crown jewel of the company. So Tallgrass has decided to buy out one of partners in REX, Sempra Energy, to the tune of $440 million…
    Read More “Tallgrass Buys Out Sempra’s Portion of REX Pipeline for $440M”

  • Commodity Price | Economic Impact | Industrywide Issues

    Harvard Says Shale Spells the End of Boom & Bust Cycle in Oil/Gas

    March 30, 2016March 30, 2016

    Thanks to our right hand, Chris Acker, MDN was alerted to a fascinating article in the Harvard Business Review. The very first time MDN heard Cornell professor and climate change huckster Tong Ingraffea (see Cornell Hydraulic Fracturing Expert Headlines First Meeting of New York Residents Against Drilling (NYRAD) in Vestal, NY), was the first time we’d heard of “boom and bust” cycles in relation to natural resources. During that meeting Ingraffea discussed “Gilmore’s 4 Stages of Boomtown Attitudes” and described how extracting coal, or cutting timber, etc. leads to cycles where communities are rapidly built up, only to later be devastated when that industry runs it course and leaves town–after exhausting the natural resource it sprang up to tap. Ingraffea described nightmare scenarios that awaited communities “foolish” enough to buy into shale gas development. Our response was and always has been–we’ll take that development, and any “bust” that comes with it–over never having had any investment at all! No industry stays in a particular geography forever. Back to the HBR article. The authors theorize that boom and bust–at least for oil and gas–may now be over. Why? Because with shale drillers can literally overnight begin producing more oil and gas when prices reach an attractive level. Meaning the price of oil will eventually hit and likely stay at around $50 barrel–like, forever…
    Read More “Harvard Says Shale Spells the End of Boom & Bust Cycle in Oil/Gas”

  • Best of the Rest

    Marcellus & Utica Shale Story Links: Wed, Mar 30, 2016

    March 30, 2016March 30, 2016

    The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Opportunity abounds for Marcellus/Utica; Philly energy hub supporters keep up the push; Michigan court says OK to drill in town; ExxonMobil retreats from shale oil in the West; Rockefellers admit paying for anti-drilling campaign; gas war between U.S. and Canada; and more!
    Read More “Marcellus & Utica Shale Story Links: Wed, Mar 30, 2016”

  • Coterra Energy (Cabot O&G) | Energy Companies | Energy Services | Industrywide Issues | New York | Pipelines | Regulation | Statewide NY | Williams

    Constitution Pipeline Reps Met with Cuomo Aide – April Deadline

    March 29, 2016March 29, 2016

    Constitution PipelineThe Constitution Pipeline is a badly needed natural gas pipeline that would run ~125 miles from the gas fields of Susquehanna County, PA up into New York–all the way to Schoharie County, NY–where it would intersect with the Iroquois Pipeline and the Tennessee Gas Pipeline. The $683 million project would pump 650 million cubic feet per day (MMcf/d) of PA shale gas to markets throughout the northeast and potentially into New England. The Federal Energy Regulatory Commission (FERC) approved the project in 2014. Pennsylvania cleared the way for the pipeline in 2015. New York is holding it up–the tail wagging the dog–by not issuing stream and swamp crossing permits. We have repeatedly called on Williams, the main sponsor of the project, to take New York to court to strip them of their right to have any say in the matter since Cuomo is intentionally stopping the project for political reasons (see Time to Force NY DEC to Issue Permit for Constitution Pipeline). We’re just now hearing that representatives from the Constitution met with a top Cuomo aide in February to answer questions. The clock is ticking and Cuomo is almost out of time. New York has until April 29 to issue the permits or the application made to the state one year ago will expire. Perhaps that will be the triggering event for a massive lawsuit against the state…
    Read More “Constitution Pipeline Reps Met with Cuomo Aide – April Deadline”

  • Coterra Energy (Cabot O&G) | Energy Companies | Pennsylvania | Susquehanna County

    Go Big or Go Home: Cabot O&G Wells Average EUR of 27 Bcf

    March 29, 2016March 29, 2016

    The indefatigable Cabot Oil & Gas continues to improve efficiency, increase production and lower costs–all at the same time. Last week Cabot presented at the Soctia Howard Weil Energy Conference in New Orleans. We have a full copy of the PowerPoint slides used during the presentation (below). What did Cabot have to say? They plan to complete 40 wells in the Marcellus this year and grow production slightly–up to 7% in 2016 over 2015. We also learn that the length of Cabot’s horizontal wells–their “laterals”–are getting longer, an average 7,000 feet long in 2016 vs. 5,900 feet in 2015. Perhaps most astonishing is that the average Cabot well is expected to see an average EUR (estimated ultimate recovery) of 27 billion cubic feet. How much is that? That’s enough natural gas that, if used to generate electricity, would power 656,000 homes for a whole year. From one well! Think about 40 new such wells going online this year. Collectively those 40 wells will end up providing enough energy for 26 million homes. Coming from one small county in northeastern PA. That is the awesome miracle of fracking for Marcellus Shale gas…
    Read More “Go Big or Go Home: Cabot O&G Wells Average EUR of 27 Bcf”

  • Belmont County | Energy Services | Ethane | Industrywide Issues | Ohio | Processing Plants | PTT Global

    Ongoing Demolition Work at Future Belmont OH Ethane Cracker Site

    March 29, 2016March 29, 2016

    Bulldozers and heavy equipment continue to demolish an old coal-fired electric plant in Belmont County–at the site where PTT Global Chemical says they want to build a $5.7 billion ethane cracker plant. It’s a good sign that PTT continues to spend big money on the project. PTT is in the midst of spending $100 million on engineering plans for the plant (see PTT Announces 2 Contractors Working on Belmont Cracker Plant). The project is the first of all the announced cracker projects in the northeast to get its own website (see Getting Serious: Ohio Ethane Cracker Gets its Own Website). And now, demolition at the FirstEnergy R.E. Burger power plant site…
    Read More “Ongoing Demolition Work at Future Belmont OH Ethane Cracker Site”

  • Energy Services | Huntingdon County (PA) | Industrywide Issues | Litigation | Pennsylvania | Pipelines | Sunoco Logistics

    Court Grants Mariner East 2 Right to Clear Trees in Huntingdon, PA

    March 29, 2016March 29, 2016

    chainsawIt’s always sad when a pipeline company has to resort to eminent domain in order to install a pipeline through/under a property. Once the pipeline is there, you don’t even know it. Our observation is that pipeline companies bend over backwards to avoid sensitive areas and to reroute away from properties that don’t want it. Sometimes that’s not possible. It seems to us like reasonable people should be able to come to terms when it’s not possible to avoid having a pipeline installed. However, some people are not reasonable (able to be reasoned with)–that’s life. And that’s why eminent domain exists. A sad necessity. Such is the case with the Mariner East 2 pipeline being built by Sunoco Logistics Partners. Many landowners have signed agreements with Sunoco LP for Mariner East 2–but some have not. Those not granting permission have been sued using eminent domain, to allow Sunoco to clear trees and begin building. In almost every case Sunoco has won the eminent domain argument in court. The latest instance of victory for Sunoco comes in Huntingdon County, PA. Start the chainsaws! Today more trees are coming down in Huntingdon to make way for Mariner East 2…
    Read More “Court Grants Mariner East 2 Right to Clear Trees in Huntingdon, PA”

  • Bradford County | Energy Companies | Pennsylvania | Range Resources Corp

    Range Resources Gets $110 Million for Bradford County, PA Assets

    March 29, 2016March 29, 2016

    In February MDN told you that Range Resources had inked a deal to sell non-operated assets–some 11,000 acres of leases along with shale wells located in Bradford County, PA–for $112 million (see Range Resources 2015: $714M Loss, Sells Non-Operated Marcellus). Range is famously tight-lipped about these kinds of deals and didn’t identify who the buyer is. Yesterday Range issued another press release to say that the deal is now done and dusted–the money received and already spent. In the end, Range got $110 million (not $112 million). They still don’t say who the buyer is…
    Read More “Range Resources Gets $110 Million for Bradford County, PA Assets”

  • CNG/LNG | Exporting | Industrywide Issues

    Bear Head LNG Facility Buys More Land, Opens Halifax Office

    March 29, 2016March 29, 2016

    A Canadian liquefied natural gas (LNG) export facility planned for Nova Scotia received final authorization from the U.S. Dept. of Energy (DOE) to export LNG to countries that do not have free trade agreements with the United States (see Bear Head LNG Exports Get Final DOE Approval – Good for Marcellus. Bear Head LNG, a $2.2 billion project proposed by Australian company Liquefied Natural Gas Limited (LNGL) received Canadian approval a year ago (see Canada’s 1st LNG Export Facility Gets Green Light; Marcellus Gas?). The project then received DOE approval to export to free trade agreement countries in July of 2015 (see 2nd Canadian LNG Plant Gets U.S. Approval to Export Marcellus Gas). This project is keeping its foot on the pedal. LNGL announced today they’ve purchased more land surrounding the site where they plan to build. Companies don’t sink this kind of money into projects they are not serious about. Here’s the latest on Bear Head LNG…
    Read More “Bear Head LNG Facility Buys More Land, Opens Halifax Office”

  • Anti-Drilling/Fossil Fuel | Industrywide Issues | Lancaster County | Pennsylvania | Pipelines

    Antis Stitch Together Pipeline Quilt in Lancaster County, PA

    March 29, 2016March 29, 2016

    Last Thursday MDN editor Jim Willis and his wife made a day trip to Amish country–Lancaster County, PA. Jim loves the region. Jim’s wife loves to shop in the region! The flowers were already blooming, the grass green and being mowed, and the crops planted. Nothing like a good whiff of manure from a nearby farm! Wouldn’t you know that a small group of anti-fossil fuelers opposing pipelines in the region would wait until Monday to stage a media event? Why couldn’t they have done it while Jim was there?! The protesters got the bright idea of creating a quilt 50 feet wide–the distance of a pipeline right-of-way–and getting sympathetic media types to come take pictures…
    Read More “Antis Stitch Together Pipeline Quilt in Lancaster County, PA”

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