Marcellus Drilling News

Air Quality | Anti-Drilling/Fossil Fuel | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

Radicals Praise Wolf’s Plan to Kill PA Drilling via Methane Regs
January 21, 2016January 21, 2016

As we told you yesterday, Pennsylvania Gov. Tom Wolf has set his sites on reducing fugitive methane emissions from the oil and gas industry in the Keystone State, all in the name of mythical man-made global warming (see PA Gov. Wolf’s Plan to Kill Drilling via Methane Emissions Regs). We gave you a few early reactions from the far-left/radical contingent, including PennFuture, Clean Air Council, and the Sierra Clubbers–all of whom love his plan to screw the shale industry. We spotted a few more accolades for Wolf’s new plan to end drilling in the Keystone State, from Environment America (which has a “Stop Drilling Program”), and the radicals at Earthworks and the National Resources Defense Council. When this rogues gallery of antis loves something, you know it’s really bad…
Read More “Radicals Praise Wolf’s Plan to Kill PA Drilling via Methane Regs”
Industrywide Issues | Pennsylvania | Pipelines | Regulation | Statewide PA

PA Pipeline Task Force Wraps Up – Did We Worry for Nothing?
January 21, 2016January 21, 2016

Looks like we worried for nothing. Yesterday was the final meeting of the PA Pipeline Infrastructure Task Force. When it was first formed last May, we worried that local gathering pipelines would get wrapped around a regulatory axle (see Disaster on the Horizon: PA Gov Wolf Creates Pipeline Task Force). The situation seemed even grimmer when Wolf and Quigley packed the task force with government workers–half of the 48 members work for the government (see PA Gov Wolf Packs Pipeline Task Force with His Own Minions). After months of squabbling, Task Force members produced a 335-page document with 184 “recommendations” last November (see PA Gathering Pipeline Draft “Recommendations” from Wolf Task Force). As we noted at the time, “recommendations” have a way of becoming “regulations” in the hands of LibDems. But it appears the Task Force was a paper lion after all. At least one prominent member of the Task Force (Democrat Sen. Andy Dinniman) is moaning that he thinks nothing will come of the work from the Task Force…
Read More “PA Pipeline Task Force Wraps Up – Did We Worry for Nothing?”
Energy Services | Nuverra Environmental

Nuverra Environmental Delisted from NYSE, Now a Penny Stock
January 21, 2016January 21, 2016

Nuverra Environmental Solutions is one of the largest companies in the United States that handles transportation and disposal of shale drilling wastewater and leftover rock and dirt from drilling. The company has major operations in the Marcellus/Utica region. We’ve written about Nuverra a couple of times in the past, most recently in 2013 when we highlighted an investor lawsuit against the company (see Nuverra Environmental Sued Over Stock Price Tumble). Those investors have even more to make them angry. As of yesterday, Nuverra was delisted from the New York Stock Exchange and became a penny stock trading on the OTCQB Market…
Read More “Nuverra Environmental Delisted from NYSE, Now a Penny Stock”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Litigation

Climate Change Lawsuit by Radicalized Children Gets Interesting
January 21, 2016January 21, 2016

Last August MDN told you about a lawsuit brought by a group of left coast radicalized children who want to force the federal government to become communist and “force action” on mythical climate change (see Group of Kids Sues U.S. Govt to Force Action on “Climate Change”). We don’t really blame these kids for being stupid–it’s their schools, Saturday morning cartoons, and likely (because it’s Oregon) their parents who have driven them into climate change insanity. But nefarious adults with an agenda who are behind this effort, using the kids as props, are deadly serious and intent on ripping apart the fabric of capitalism in our country. The lawsuit sits in U.S. District Court in Eugene and, unfortunately, we must take it seriously. The judge in the case has just allowed three trade groups to join the lawsuit as defendants, along with the government: the National Association of Manufacturers, American Fuel & Petrochemical Manufacturers and the American Petroleum Institute…
Read More “Climate Change Lawsuit by Radicalized Children Gets Interesting”
CNG/LNG | Exporting | Industrywide Issues | Research

LNG May Not be a Panacea for Marcellus/Utica NatGas Producers
January 21, 2016January 21, 2016

Last November MDN editor Jim Willis attended a Genscape/Bloomberg joint event in New York City (at Bloomberg’s offices) called “Gas and Power Winter Outlook 2015.” It was part advertisement for the Bloomberg terminal and the many fantastic resources available on their terminal, part advertisement for Genscape and the truly unique and innovative services they provide, along with a healthy sprinkling of predictions about where the natural gas market will head over the winter months. Jim enjoyed it a great deal because it provided perspective on the larger worldwide market and how it drives our markets here at home. One very interesting thing Jim learned was this: Asian countries in general, and Japan in particular, are reducing their need for LNG (liquefied natural gas) because, in the case of Japan, the country is starting up its nuclear energy program again, and because solar energy is coming online and providing a greater share of the country’s electric needs. With more nuclear and solar, Japan needs less LNG. Here in the U.S., particularly in the Marcellus/Utica region, we have pegged a lot of our hopes on a robust export market for our natural gas. But what if that market is disappearing right before our eyes? That’s kind of the upshot of a new report just released by economists at global consulting firm The Brattle Group. The report, called “LNG and Renewable Power: Risk and Opportunity in a Changing World” (full copy below), takes a close look at the competition playing out between renewable energy like solar and wind and natural gas-fired electric from LNG…
Read More “LNG May Not be a Panacea for Marcellus/Utica NatGas Producers”
Chief Oil & Gas | Energy Companies

Chief O&G Founder “Licking His Chops” to Buy Distressed Assets
January 21, 2016January 21, 2016

Forbes magazine has a fascinating article on the founder and chairman of Chief Oil & Gas, Trevor Rees-Jones. Chief did have a fairly big presence in the Marcellus Shale, but last September they closed their Wexford (i.e. Pittsburgh) office, a story that MDN broke (see Chief O&G Confirms MDN Story re Closing of Pittsburgh Office). Chief still owns about 200,000 acres of leases in the Marcellus. Trevor Rees-Jones has the misfortune of sharing the same name with the body guard present when Diana, Princess of Wales, was killed in a car crash–so don’t be confused. The Forbes article focuses on Rees-Jones’ uncanny timing. He snapped up leases and drilled wells when the shale revolution was just getting under way, and he sold many of those assets just prior to the bottom dropping out of the price for oil and gas. His deft timing earned him on the order of $7 billion. Now, with the industry reeling and companies teetering on the edge of bankruptcy, Rees-Jones, a bankruptcy attorney by training, says “I’m licking my chops.” He can’t wait to be there to pick up the pieces by buying at the bottom to make his next fortune…
Read More “Chief O&G Founder “Licking His Chops” to Buy Distressed Assets”
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

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”