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Marcellus Drilling News
  • Bradford County | Energy Services | Industrywide Issues | Kinder Morgan | Lackawanna County | Pennsylvania | Pike County | Pipelines | Tioga County (PA)

    Kinder Morgan 4Q15: Cutting Dividend, PA Pipeline Progress

    January 21, 2016January 21, 2016

    Yesterday Kinder Morgan, the largest midstream company in the U.S., released their fourth quarter 2015 update. The update starts with the news that KM is lowering the cash dividend in order to avoid chasing new loans. KM says by cutting the dividend they will be able to self-fund new projects, which ultimately benefits everyone, including shareholders. The update also chronicles progress made on three Pennsylvania pipelines: the Susquehanna West Project (Tioga and Bradford counties, the Orion Project (Pike County), and the Triad Expansion Project (Lackawanna County). Below is the full update from KM…
    Read More “Kinder Morgan 4Q15: Cutting Dividend, PA Pipeline Progress”

  • Industrywide Issues | Research

    Fourth Quarter 2015 U.S. Well Completions Down 51%

    January 21, 2016January 21, 2016

    Just how bad is it in the oil and gas patch? One measure of activity is called well completions–how many new wells are fully drilled, fracked and ready to be brought online into production. According to the American Petroleum Institute’s “2015 Quarterly Well Completion Report, Fourth Quarter” report, well completions in the fourth quarter of 2015 were down 51% from the fourth quarter of 2014. Ouch. If you compare full year figures, 2015 well completions were down 35% over 2014 rates…
    Read More “Fourth Quarter 2015 U.S. Well Completions Down 51%”

  • Anti-Drilling/Fossil Fuel | Industrywide Issues

    Global Warming Insanity: Altering Mother Nature to Preserve It

    January 21, 2016January 21, 2016

    We harp plenty on the madness of believing in man-made global warming. Many (we’d say the vast majority) of those who oppose shale drilling and pipelines and anything to do with shale energy object because of their religious-like belief in global warming. They’re so animated by it, so zealous and angry when you say you don’t believe too–they want to throw you in jail (see RIT Professor Says Jail Those Who Don’t Believe in Global Warming). We also make the point that farm animals, and even termites, generate as much or more methane, a so-called greenhouse gas that’s “25% more potent than carbon dioxide” according to the warming faithful, as the fossil fuel industry. The real true believers take that to heart. A serious story appearing in The Economist details how researchers in New Zealand, all worked up about global warming, are injecting cows and sheep with a chemical that will cause them to burp less, thereby releasing less “fugitive” methane into the atmosphere. If it weren’t such a tragedy that grown adults are trying to tamper with Mother Nature in order to save Mother Nature, we’d fall down laughing our considerable rear-ends off. But it’s true! It’s not a joke! These people, who have apparently left their own senses, think they can alter the biochemistry of farm animals so they “emit” less methane. This is how belief in a false religion–the religion of global warming–drives people to do insane things…
    Read More “Global Warming Insanity: Altering Mother Nature to Preserve It”

  • Best of the Rest

    Marcellus & Utica Shale Story Links: Thu, Jan 21, 2016

    January 21, 2016January 21, 2016

    The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Ohio approves 1 new Utica permit; Hawaii wants LNG; Raymond James says E&P spending could plunge 70% this year; natgas likely #1 electric generating source now; crude concerns; don’t thank Obama for cheap gasoline; Quebec turns yogurt into natural gas; and more!
    Read More “Marcellus & Utica Shale Story Links: Thu, Jan 21, 2016”

  • Air Quality | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

    PA Gov. Wolf’s Plan to Kill Drilling via Methane Emissions Regs

    January 20, 2016January 20, 2016
    tom wolf
    Tom Wolf

    As we predicted yesterday, Pennsylvania Gov. Tom Wolf released a new plan that purportedly targets methane emissions from oil and gas operations in a vain attempt to help ole Mom Earth with her global warming problem (see PA Gov Wolf Targets O&G Industry (Again), Via Methane Emissions). What we didn’t know is just how onerous and ludicrous his plan would be. Yesterday Wolf and his sidekick the PennFuture Secretary of the Dept. of Environmental Protection (DEP), John Quigley, released a four-point plan (full copy below) to supposedly reduce methane emissions by 40% over the next five years. Essentially it’s a plan to kill off what remains of the Marcellus industry. Looks like the millions of dollars California radical environmentalist billionaire Tom Steyer gave Wolf for his campaign went to good use–Steyer is now getting his payback…
    Read More “PA Gov. Wolf’s Plan to Kill Drilling via Methane Emissions Regs”

  • Energy Companies | Energy Services | Ethane | Industrywide Issues | Pennsylvania | Pipelines | Range Resources Corp | Statewide PA | Sunoco Logistics

    Range Resources Ethane Heading to Marcus Hook Beginning February

    January 20, 2016January 20, 2016

    Range Resources’ ethane will start to flow through a “fully operational” Mariner East 1 pipeline to the Marcus Hook refinery in February, according to an announcement by Range. Mariner East 1 has been up and running for some time, but has not, until now, flowed ethane. Yesterday’s announcement states the ethane will be loaded onto ships. Range doesn’t say where the ethane on those ships will go, but we already know that part of the story. The ethane (at least some of it) is headed for Norway, Scotland and possibly Panama (see Ineos Gets Ready to Begin Ethane Exports from Marcus Hook, PA). Here is the fantastic news that the Mariner East 1 pipeline is about to be fully, 100% ethane operational, after a very long battle to complete it…
    Read More “Range Resources Ethane Heading to Marcus Hook Beginning February”

  • Energy Companies | EQT Corp | Fayette County | Industrywide Issues | Litigation | Regulation | Wastewater | West Virginia

    EQT Sues WV County that Banned Injection Wells, Seeks Injunction

    January 20, 2016January 20, 2016

    That was fast. A week ago three Democrat county commissioners in Fayette County, West Virginia voted to ban injection wells in the county (see WV County Officially Bans Injection Wells; Children Brainwashed). Immediately after that vote was taken (last Tuesday), on Wednesday EQT filed a lawsuit against the county. EQT not only operates an injection well in the county, they also operate 200 conventional oil and gas wells in the county, providing the county with $100,000 per year in tax revenue, and “tens of thousands of dollars in royalty payments” to private landowners. According to EQT’s lawsuit, the ban in Fayette is so broad, it would prohibit not only injection wells, but all oil and gas production in the county. EQT is seeking an injunction to stop enforcement of the new ban while the court case plays out. The county will now spend big bucks to defend their farcical ban that will no doubt end up being overturned. Perhaps taxpayers want to rethink whom they elect as county commissioners?…
    Read More “EQT Sues WV County that Banned Injection Wells, Seeks Injunction”

  • Electrical Generation | Industrywide Issues

    5th Marcellus Gas-Powered Electric Plant Coming to New Jersey

    January 20, 2016January 20, 2016

    A fifth new natural gas-fired electric plant is planned for New Jersey. Genesis Power LLC plans to build what they call the Amwell Energy Center in Hillsborough Township (Somerset County), NJ. The 640 megawatts facility will cost $1 billion to build, provide enough electricity to power 700,000 homes during peak summer months, and use lots of yummy clean-burning Marcellus Shale gas from Pennsylvania to power it. The new plant is due to go online in 2018. Although New Jerseyans seem to hate natural gas pipelines, they sure love what flows through those pipelines. Well, most New Jerseyans anyway. There’s always a few nutcases who object, like the Sierra Clubbers…
    Read More “5th Marcellus Gas-Powered Electric Plant Coming to New Jersey”

  • Energy Companies | Gastar Exploration

    Gastar Spooked by Takeover Threat Adopts Shareholder Rights Plan

    January 20, 2016January 20, 2016

    According to a press release from Gastar Exploration, a driller with operations in both the Marcellus and Utica Shale plays (among others), the company is adopting a “tax benefit preservation plan to preserve valuable net operating losses.” What, exactly, does that mumbo jumbo mean? It appears to us that Gastar is very concerned that they either are, or will become, a takeover target. The company holds certain paper assets, including an accounting line called a “cumulative net operating loss carryforward” that can be used to reduce Gastar’s income tax bill (i.e. boost per-share value). Apparently a new “Shareholder Rights Plan” just adopted by Gastar will ensure that if the company is taken over, they can use the carryforward to benefit existing shareholders. Yes, it’s complicated and we don’t pretend to understand it all. Our takeaway is that Gastar is spooked that they are being targeted for a takeover, and the current board and management is acting to either prevent it, make it more distasteful (“poison pill”), or perhaps just acting to be sure they don’t lose their own shirts in a takeover or sale…
    Read More “Gastar Spooked by Takeover Threat Adopts Shareholder Rights Plan”

  • Energy Companies | Industrywide Issues | Jobs | M&A | Shell

    Shell to Cut 10,000 Jobs After Buying BG; Exiting Shale Drilling

    January 20, 2016January 20, 2016

    In April 2015 MDN brought you the announcement that Shell was buying BG Group (the former British Gas) in a megamerger worth $69.7 billion (see LNG Love Story: Shell Makes Play to Buy BG in $69.7B Megamerger). As we alluded in the title of that post, the deal is all about LNG–liquefied natural gas. The merger will make Shell THE dominant player in LNG worldwide. The process to obtain regulatory approval in multiple countries has been long and arduous. Later this month, on Jan. 28, BG shareholders will cast a final vote on the plan. In an update issued this morning by Shell, the company says they expect to complete the BG transaction in the next few weeks, and after they do, there will be a total of 10,000 layoffs between the two companies. Don’t you just love mergers? Ax and hack away. Toss a few thousand jobs here and a few thousand jobs there. We know, times a tough. Companies must cut in order to stay in business. We just want to remind you that behind these abstract numbers are 10,000 real people with real families that depend on them. Shell also said they’re hightailing it out of shale…
    Read More “Shell to Cut 10,000 Jobs After Buying BG; Exiting Shale Drilling”

  • Energy Services | Industrywide Issues | Pipelines | Transco | Williams

    Williams’ Transco Pipeline Floats New IOUs to Raise $1 Billion

    January 20, 2016January 20, 2016

    Transcontinental Gas Pipe Line Company (Transco), is a pipeline that runs from Pennsylvania to the Texas Gulf Coast. Transco is a wholly owned subsidiary of Williams Partners L.P., and Williams Partners is part of Williams. Williams, including Transco, is about to become part of Energy Transfer Equity (see Williams Board “Unanimously” Committed to Selling to ETE). In a pair of announcements yesterday, Williams revealed that Transco will float new notes (also known as private debt, what we call IOUs). Transco will use the money they raise from these new IOUs to pay off $200 million of existing IOUs coming due in 2016. New debt to replace old debt. That’s what the first announcement revealed. The second announcement said not only do they want to pay off that $200 million coming due this year, they actually want to raise $1 billion (!) and the new IOUs will be due and payable in 2026–ten years from now. So what do they plan to do with the other $800 million not used to pay off old debt?…
    Read More “Williams’ Transco Pipeline Floats New IOUs to Raise $1 Billion”

  • CNG/LNG | Economic Impact | Industrywide Issues

    CLNG Merges with NGSA, Gets New Director from Former ANGA

    January 20, 2016January 20, 2016

    The downturn in oil and gas prices doesn’t only affect drillers, and midstreamers, and landowners, and supply chain companies. It also affects trade associations. Last November we told you that America’s Natural Gas Alliance (ANGA) merged with/became part of the American Petroleum Institute (see Two Top O&G Trade Groups to Merge: ANGA & API). Another two trade groups announced a merger yesterday. The Center for LNG (CLNG) announced it is merging with the Natural Gas Supply Association (NGSA). CLNG will retain its identity and become a division of NGSA. In addition, CLNG has a new executive director–Charlie Riedl. Charlie joins CLNG from ANGA. Here’s the low down on two more trade groups combining…
    Read More “CLNG Merges with NGSA, Gets New Director from Former ANGA”

  • Industrywide Issues | M&A | Research

    Energy M&A Deals Hardest Hit in 2015, 6.8% Fewer Deals than 2014

    January 20, 2016January 20, 2016

    Mergermarket, a company that provides intelligence and news to people involved in big mergers and acquisitions (M&A) deals recently released its Energy, Mining & Utilities (EMU) Trend Report for 2015. It is a recap of M&A deals in the energy sector for last year. Among the findings: the energy sector was the hardest hit sector for M&A deals. There were 957 deals worth $547.7 billion last year, a 6.8% decrease from 2014. The report (full copy below) contains a lot of interesting information about the biggest M&A deals from last year, along with identifying the companies that worked on putting those deals together…
    Read More “Energy M&A Deals Hardest Hit in 2015, 6.8% Fewer Deals than 2014”

  • Crude Oil | Industrywide Issues

    Drill Our Way to Lower Gas Prices? Yes We Can!

    January 20, 2016January 20, 2016

    You remember when then-candidate Barack H. Obama kept saying “We can’t drill our way to lower gas prices”? He was wrong, as he so often is. The United States did exactly that–we drilled our way to low gasoline prices. Shale drilling (for oil) led to a world oil glut and the lowest prices not only for oil, but for its refined product gasoline, in years. Our friends at Energy in Depth pulled out clip after clip of the arrogant Obama categorically stating we can’t drill our way to low gas prices, added some funny music, and borrowed Obama’s own hackneyed “yes we can” language to make the point very loud and clear that Obama got it wrong. Take time to watch this short and hilarious video…
    Read More “Drill Our Way to Lower Gas Prices? Yes We Can!”

  • Best of the Rest

    Marcellus & Utica Shale Story Links: Wed, Jan 20, 2016

    January 20, 2016January 20, 2016

    The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Tompkins County, NY fights fossil fuels; Akron Bar attracts new o&g members; MDN quoted in Pittsburgh Business Times as breaking Chevron story; Marcellus gets 1 extra rig last week; after the carnage, shale will rise again; investors take second look at drillers; crude oil pressure cooker; Chesapeake stock falls to 15-year low; oil stays low even with Mideast squabble between Saudis and Iran; and more!
    Read More “Marcellus & Utica Shale Story Links: Wed, Jan 20, 2016”

  • Allegheny County | Chevron | Energy Companies | Pennsylvania

    Exclusive: Chevron Appalachia Head Nigel Hearne Going to Australia

    January 19, 2016January 19, 2016

    exclusiveIn 2013 MDN highlighted the news that a Brit, Nigel Hearne, had been appointed vice president (the guy in charge) of Chevron’s Appalachian-Michigan business unit (see Chevron’s Marcellus/Utica Unit Gets New President). Prior to arriving in Pittsburgh to run Chevron’s Marcellus and Utica division, Hearne worked in Chevron’s “downstream” or refinery business. Hearne is a young (under 50), rising star at Chevron. The big news is that Hearne is leaving his post at Chevron Appalachia to become deputy managing director of Chevron Australia–essentially a huge LNG (liquefied natural gas) operation. Hearne will become deputy to Roy Krzywosinski, but everyone knows/says that Hearne will replace Krzywosinski once the first of three trains goes online at the $54 billion Gorgon LNG project, which is Krzywosinski’s baby. Hearne is Krzywosinski’s protege in line to run the entire Australian operation. The question is, who will replace Hearne in Pittsburgh?…
    Read More “Exclusive: Chevron Appalachia Head Nigel Hearne Going to Australia”

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