MDN Off on Good Friday
MDN will take off Good Friday for the Easter holiday. We hope you enjoy this blessed time of year! We’ll be back on Monday to catch you up on any stories breaking on Friday.
– Jim Willis, Editor
-
-
Marcellus & Utica Shale Story Links: Thu, Mar 24, 2016
The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: OH college gets grant for oil & gas training; third cargo ship heading to Cheniere’s Sabine Pass LNG facility; Kentucky’s natgas electric plants; next election “significant” for o&g industry; Bill McKibben’s fracking whoppers; EPA chief fact-challenged; and more!
Read More “Marcellus & Utica Shale Story Links: Thu, Mar 24, 2016” -
Allegheny County | American Petroleum Partners | Belmont County | Brooke County | Greene County (PA) | Jefferson County (OH) | Marion County | Marshall County | Monongalia County | Monroe County | Ohio | Ohio County | Pennsylvania | Washington County | West Virginia | Wetzel County
New Marcellus/Utica Driller Quietly Launches w/$800M Investment
Details are just now coming to light of a new E&P (exploration and production, or drilling) company headquartered in Pittsburgh and focused totally on the Marcellus and Utica region. Until now the company has flown under our radar. The company is American Petroleum Partners (APP)–not to be confused with Aubrey McClendon’s American Energy Partners (AEP)–and is headed by Rice Energy alumnus Varun Mishra, who is the founder and CEO. The big news is that last September Mishra’s new company, founded in 2014, received a major injection of investment capital. Apollo Global Management invested $411 million in APP with the option to double it up to $800 million. MDN has it on very good authority that although APP quietly issued a press release about this last September (see it below), the company has intentionally kept the news quiet. Not any more! Big mouth MDN is blabbing it to the world. Below are the bits and pieces we’ve been able to put together about this newest Utica/Marcellus driller…
Read More “New Marcellus/Utica Driller Quietly Launches w/$800M Investment” -
Blue Ridge Mtn Res/Magnum Hunter | Energy Companies | Industrywide Issues | Litigation | Pipelines | Triad Hunter
MHR Wiggles Out of One Midstream Contract, Sues to End Another
Two weeks ago Magnum Hunter Resources (MHR), a driller focused almost exclusively on the Marcellus/Utica and going through bankruptcy protection proceedings, struck a deal with pipeline company Texas Gas Transmission Inc. to terminate four existing contracts with company to use its pipelines. MHR was pressuring Texas Gas to cancel the contracts it has with MHR subsidiary Triad Hunter, but Texas Gas was resisting. In the end Texas Gas agreed to cancel the contracts provided they get a $15 million “unsecured claim” which grants Texas Gas the right to be near the front of the line to get paid $15M when MHR is either sold or emerges from bankruptcy proceedings. MHR isn’t, however, having as much success with canceling signed contracts for another of its subsidiaries in the Bakken Shale region. Bakken Hunter has an existing, signed contract with Oklahoma midstream company Oneok. Citing the recent Sabine Oil & Gas ruling in which that company was allowed to cancel midstream contracts during bankruptcy (see Midstream Nightmare Comes True: Judge Lets Driller Cancel Contracts), MHR is asking a Delaware bankruptcy court to allow them to wiggle out of the Oneok deal. In addition to updates on these two situations, we also have news that the Securities and Exchange Commission is at least partially blaming two former Magnum Hunter employees–a chief financial officer and chief account officer–for the company’s financial predicament…
Read More “MHR Wiggles Out of One Midstream Contract, Sues to End Another” -
Accidents | Energy Services | Industrywide Issues | MarkWest Energy | NGLs | Processing Plants | West Virginia | Wetzel County
MarkWest Hazardous Spill at Mobley Plant Now Cleaned Up
One month ago there was an accidental release of a hazardous chemical at the MarkWest Energy cryogenic processing plant in Mobley (Wetzel County), WV (see MarkWest’s Mobley Processing Plant Spills Hazardous Oil into Creek). The fluid in question is DOWTHERM™ MX Heat Transfer Fluid, a chemical used as as a heat transfer fluid meant for closed-loop systems. An estimated 3,000 gallons of the fluid spilled, some of it reaching the North Fork of Fishing Creek and some of that entered the water intake for the community of Pine Grove, WV. However, the plant (Pine Grove Water Works) was closed before any of the water was used by local residents–so there was no harm done. MarkWest has reported they are done cleaning up the spill and the Pine Grove Water Works is back up and running…
Read More “MarkWest Hazardous Spill at Mobley Plant Now Cleaned Up” -
Dominion’s Atlantic Coast Pipeline Makes Major Strides
Some very good news for the $5 billion, 594-mile Atlantic Coast Pipeline–a natural gas pipeline that will stretch from West Virginia through Virginia and into North Carolina. Dominion, the main sponsor of the project, reports they have agreements for 96% of the capacity along the 1.5 billion cubic feet per day pipeline. Not only that, but 90% of the landowners along the pipeline’s proposed route have granted Dominion survey access, and some 500 landowners (representing 18% of all landowners) have already signed contracts to allow the pipeline. The antis are desperately trying to stop this project–and they’re failing…
Read More “Dominion’s Atlantic Coast Pipeline Makes Major Strides” -
US NatGas Production Hits Record High in February – 73.3 Bcf/d
Something historic has happened. Natural gas production in the lower 48 states hit the highest-ever production levels. Which may seem strange since the U.S. Energy Information Administration has been telling us month after month about decreases in natgas production in the seven major shale plays they track. Bentek Energy, the analytics reporting unit of Platts, closely tracks production and has been since 2005. When you include all sources of natgas production (offshore, conventional onshore, etc.), the U.S. hit a record high in February of 73.3 billion cubic feet per day of production. February usually sees a decrease in production–so why the increase this year? The Marcellus/Utica is the big reason. But the reason behind the reason is that because the winter months were warmer than usual, it led to less “freeze-offs” or wells freezing up and stopping production due to cold temps. With fewer freeze-offs, more gas flowed, and a new record was hit…
Read More “US NatGas Production Hits Record High in February – 73.3 Bcf/d” -
Rex Energy Extends & Sweetens Offer to Refi Outstanding IOUs
Earlier this month Rex Energy offered to refinance its notes (i.e. IOUs) so the notes expire later, meaning they don’t have to cough up cash sooner to pay off the debt (see Rex Energy Offers to Refinance Outstanding IOUs). It pushes repayment out further, after (presumably) the market has turned and Rex is once again making a profit. Apparently Rex isn’t having much luck convincing its note holders to go for the deal–so they’ve decided to extend the time and sweeten the deal…
Read More “Rex Energy Extends & Sweetens Offer to Refi Outstanding IOUs” -
Shale Companies Keep Giving to PA Charities, Even During Downturn
Shale companies in Pennsylvania have been hammered hard. The prices they get for natural gas in PA are already among the lowest in the country (in the world!); they’ve cut back their budgets by 50-80% on average; they’ve laid off thousands of employees. In fact, things right now are fairly bleak in Marcellus-land. And yet….and yet these same companies continue to fund charities and non-profits at the same level they previously funded them when times were good. Which amazes and disappoints anti-drillers, both at the same time…
Read More “Shale Companies Keep Giving to PA Charities, Even During Downturn” -
Who Pays for Abandoned O&G Wells in PA?
Pennsylvania state officials estimate there are as many as 200,000 abandoned oil and gas wells in the state–the vast majority of them conventional wells drilled over 50 years ago. Most of them are not mapped or known. Some of them are hazards for shale drillers who stumble across them when drilling new wells. If you drill horizontally and clip an old/abandoned well, it becomes like an elevator pumping fluids and gas to the surface. Not good. Everyone is committed to finding and marking and capping these old wells–the question is, how do you pay for it? The shale industry says it’s not fair to put the economic burden solely on the shoulders of the Marcellus industry. The PA Environment Protection Agency (DEP) Abandoned and Orphan Well program attempts to find an owner of the well first, before committing public money to plug it. However, there’s a second way to get public money to plug an old well…
Read More “Who Pays for Abandoned O&G Wells in PA?” -
Oil Company Uses IBM’s Watson to Beat Anti-Frackers on Twitter
We found this story fascinating. A “big oil company” was tired of being trashed by anti fossil fuelers–especially in social media circles. So they’re fighting back by using insights gleaned from IBM’s Watson super computer. Watson is able to analyze millions of tweets (messages on the Twitter social media platform) to determine which messages are likely to be popular, or “go viral” in the parlance of social media. And that foreknowledge lets the oil company respond to, and in some cases preempt it, with its own messaging on Twitter…
Read More “Oil Company Uses IBM’s Watson to Beat Anti-Frackers on Twitter” -
U of California Carbon Crazies Fret over Burning NatGas
The carbon nutjobs at the University of California are on the horns of a dilemma. They want to be “carbon neutral” by 2025. They can get plenty of high cost electricity from solar and wind producers–no problem. But four of its 10 campuses and one of its five medical centers run on big cogeneration plants, which produce electricity and use the excess heat to supply campus heating and cooling. And the plants are powered by (gasp) natural gas. What is a carbon-allergic nutter to do? They can’t just shut down those facilities! Or can they? We don’t put it beyond these idiots to consider such a scenario–so deluded are they with global warming flummery. Of course they overlook an even bigger source of carbon production on their campuses–all of those vile, nasty humans running around exhaling carbon dioxide with every breath. If they eliminate the humans, they can then eliminate the power plants. Problem solved!…
Read More “U of California Carbon Crazies Fret over Burning NatGas” -
Marcellus & Utica Shale Story Links: Wed, Mar 23, 2016
The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Appalachia pumps up the volume; natgas price differentials in the Marcellus; Belmont County Ohio’s #1 drilling hot spot; OH unitization bill stuck in the Senate; OH court decision affects drillers, landowners; Peoples Natural Gas pulling construction in-house; natgas change in WV speeds coal’s demise; Stone Energy heading for default in 2016?; Trump energy adviser promotes natgas; and more!
Read More “Marcellus & Utica Shale Story Links: Wed, Mar 23, 2016” -
EnerVest Likes Clinton Sandstone “Utica-lite” Oil Wells in OH
Once upon a time the Clinton Sandstone layer was the most drilled rock layer in Ohio. Then the Utica/Point Pleasant came along and it seemed as if everybody forgot about the Clinton. Previously the Clinton was drilled vertically, or conventional-only. But what if you drilled the Clinton horizontally, like you do in the Utica? You might get a “Utica-lite” well, as we commented a year ago (see Ohio Clinton Sandstone Horiz Wells on the Increase – Utica-Lite?). Last year MDN told you that EnverVest, among others, was experimenting with horizontal drilling in the Clinton Sandstone. According to drillers who are experimenting in the Clinton, drilling a horizontal Clinton well is anywhere from 3-10 times more expensive than a conventional well, but it produces anywhere from 7 to 20 times more oil, which is typically what they’re drilling for in the Clinton. EnerVest has drilled seven horizontal Clinton wells and is extracting 1,100 barrels of oil per day from those seven wells. Here’s more details shared by EnevVest at a recent OOGA meeting about their Clinton Sandstone efforts…
Read More “EnerVest Likes Clinton Sandstone “Utica-lite” Oil Wells in OH” -
Radical Democrats Invoke God + Sham Science to Bash PA NatGas
Just about nothing makes us more angry than when self-righteous “religious” leaders prance in front of cameras to denounce extracting and burning fossil fuels, like natural gas, as immoral or unethical. They are the height of hypocrisy–because they left them homes and churches heated with natural gas, wearing clothes made from fibers that come from petrochemicals (oil and natural gas), driving vehicles powered by fossil fuels, speaking into microphones with plastics in them and standing at a podium made from a material derived from petrochemicals–to denounce it all. Yet they use it every single day themselves. They claim to have God on their side. Repugnant. The Rev. Dr. Leah Schade (United in Christ Lutheran Church in Lewisburg, PA) and a group of 50 or so other hypocrites recently held an interfaith rally in Harrisburg to call on Gov. Tom Wolf to stop all drilling for gas and oil in the state–because it’s “immoral.” Too bad Rev. Shade lost her way and quit worshiping God and instead now worships nature. Her twisted philosophy is what happens when you quit worshiping the Creator and instead worship the creation…
Read More “Radical Democrats Invoke God + Sham Science to Bash PA NatGas” -
Anti-Drilling/Fossil Fuel | Industrywide Issues | Litigation | Medina County | Ohio | Portage County | Regulation | Statewide OH
OH Antis Circulate Petitions for Bans Already Tossed by Courts
The Pennsylvania-based Community Environmental Legal Defense Fund (CELDF) is a radical environmental group backed with Big Green money that exists to fleece local towns into adopting bans on fracking and pipelines. Last year we carried an expose of the group (see PA’s CELDF Unmasked as Troublemakers in Ohio Utica Shale). Much of their community agitating work is done in Ohio. Time after time their so-called “community bill of rights” initiatives are shot down by Ohio courts. The latest instance (and there have been many) was earlier this month when the U.S. 8th District Court of Appeals overturned the CELDF-created bill of rights law passed in the Cleveland suburb of Broadview Heights (see Mad Moms Hopping Mad Over Court Decision re Broadview Heights, OH). You would think towns would learn that a) these initiatives invariably are challenged and thrown out by the courts, and b) if the initiatives interfere with a local business that sues the town, the CELDF is nowhere to be found (see Anti Group CELDF Won’t Help Grant Twp Pay $1M Judgement). But there’s plenty of insane people–like those circulating petitions in Medina and Portage counties to get a CELDF-backed bill of rights initiative on the local ballot. The very same initiative already shot down by Ohio courts in other locations…
Read More “OH Antis Circulate Petitions for Bans Already Tossed by Courts”
Details are just now coming to light of a new E&P (exploration and production, or drilling) company headquartered in Pittsburgh and focused totally on the Marcellus and Utica region. Until now the company has flown under our radar. The company is American Petroleum Partners (APP)–not to be confused with Aubrey McClendon’s American Energy Partners (AEP)–and is headed by Rice Energy alumnus Varun Mishra, who is the founder and CEO. The big news is that last September Mishra’s new company, founded in 2014, received a major injection of investment capital. Apollo Global Management invested $411 million in APP with the option to double it up to $800 million. MDN has it on very good authority that although APP quietly issued a press release about this last September (see it below), the company has intentionally kept the news quiet. Not any more! Big mouth MDN is blabbing it to the world. Below are the bits and pieces we’ve been able to put together about this newest Utica/Marcellus driller…
Once upon a time the Clinton Sandstone layer was the most drilled rock layer in Ohio. Then the Utica/Point Pleasant came along and it seemed as if everybody forgot about the Clinton. Previously the Clinton was drilled vertically, or conventional-only. But what if you drilled the Clinton horizontally, like you do in the Utica? You might get a “Utica-lite” well, as we commented a year ago (see