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Marcellus Drilling News
  • Industrywide Issues | Pipelines | Regulation

    Pipelines – The Safest Form of Transportation in Existence

    January 12, 2016January 12, 2016

    Lately we’ve repeatedly seen references in articles about pipelines, especially those planned for New England, that make an implied threat that a pipeline located near a home or business is a threat. In some cases antis throw around reckless language like pipelines are the equivalent of unexploded bombs–just waiting to explode. It is one of the scare tactics used to smear what is, hands down, the safest form of transportation in existence. In fact, a recent announcement from the American Petroleum Institute, in commenting on proposed new rules and regulations for pipelines coming from the Pipeline and Hazardous Materials Safety Administration’s (PHMSA), points out that, “more than 199,000 miles of liquid pipelines [in the U.S.] transport about 16 billion barrels of crude oil and petroleum products per year at a safety rate of 99.999 percent.” That’s for liquids in pipelines. For gas pipelines it’s the same. Can you imagine any form of transportation with a safety rate of 99.999%? That’s like one or two accidents per year–statistically zero. And yet antis continue to create a bogyman of pipeline problems where none exist…
    Read More “Pipelines – The Safest Form of Transportation in Existence”

  • Commodity Price | Industrywide Issues | Ohio | Pipelines | Processing Plants | Statewide OH

    Brutal Honesty from OOGA: ‘No Way to Sugar Coat’ the Bad News

    January 12, 2016January 12, 2016

    In December we highlighted comments by Shawn Bennett, executive vice president of the Ohio Oil and Gas Association (OOGA), in which he predicts 2016 for Ohio’s oil and gas drillers won’t be pretty (see OOGA Tells Ohio to “Sit Tight” – 2016 Won’t be Pretty). Must be Bennett is on a truth-telling tour. Last week he addressed the first Guernsey Energy Coalition meeting of the year last week in Cambridge, OH. He told the audience he wasn’t going to sugar coat the bad news, and he didn’t…
    Read More “Brutal Honesty from OOGA: ‘No Way to Sugar Coat’ the Bad News”

  • Eclipse Resources | Energy Companies

    Is Eclipse’s Move to Curtail Prod. a Preview of Things to Come?

    January 12, 2016January 12, 2016

    Last week Eclipse Resources, a smaller but important Marcellus/Utica driller with its headquarters in State College, PA, announced it would drill a single well in 2016 and was embarking on a program of choking back production–until prices go back up (see Eclipse Resources Drilling 1 Well in 2016, Restricting Production). That move caught the attention of analysts at investment firm Tudor Pickering Holt & Co. They issued a note saying Eclipse’s move may well be a preview of things to come in the Marcellus/Utica…
    Read More “Is Eclipse’s Move to Curtail Prod. a Preview of Things to Come?”

  • Accidents | Anti-Drilling/Fossil Fuel | Industrywide Issues

    Cali Crisis Being Used to Promote Ban on NatGas Storage

    January 12, 2016January 12, 2016

    MDN hasn’t, until now, covered the ongoing disaster near Los Angeles where a well used to store natural gas is leaking and out of control. The well is one of 115 such wells in the Santa Susana Mountains where Southern California Gas Co. (SoCalGas), a division of Sempra Energy, stores natural gas in a vacant oil field about a mile and a half underground. It is the largest such underground gas storage field in the Western U.S. One of the wells began to leak back in October, and SoCalGas says it may take them until March to fix the leak. A University of California at Davis researcher claims his calculations, taken from a specially fitted airplane, show the well is leaking around 1,000 tons of methane per day–or 80,000 tons so far. Some 4,500 residents in the nearby community of Porter Ranch have temporarily moved. Two local schools have moved their combined 1,900 students to different locations. It is a disaster by anyone’s definition. What’s newsworthy and interesting to MDN about this disaster–and how it may affect us in the Marcellus/Utica region–is how the disaster is being used/manipulated/abused in an attempt by anti-drillers to try and ban underground storage of natural gas…everywhere. Let’s keep this in perspective. There are hundreds (thousands?) of such underground storage facilities. A problem at one facility is being used as an argument that every other such facility across the country should be banned. It’s more than silly–it’s insane…
    Read More “Cali Crisis Being Used to Promote Ban on NatGas Storage”

  • Beaver County | Industrywide Issues | Pennsylvania | Supply Chain

    Full Speed Ahead for PA O&G Construction Company McCarl’s

    January 12, 2016January 12, 2016

    McCarl’s Inc. is ranked among the top fifty industrial contractors in the country. The company specializes in construction for companies in petroleum, chemical, power, steel, water treatment, cryogenic processing and the oil and gas industries. McCarl’s is also a “home grown” business–with its headquarters in Beaver Falls, PA. We love a good story about a local business. Last week McCarl’s announced they’ve hired Jeffrey Hines as executive vice president charged with leading a new phase of growth for the $150 million company. McCarl’s isn’t letting the price collapse of oil and gas hold them back. It’s full speed ahead…
    Read More “Full Speed Ahead for PA O&G Construction Company McCarl’s”

  • Best of the Rest

    Marcellus & Utica Shale Story Links: Tue, Jan 12, 2016

    January 12, 2016January 12, 2016

    The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Purple squirrel syndrome; PA PUC exploring different rate structures; UGI wins court case in Lycoming County; IHS buys OPIS; Hawaii’s $300M LNG project; stay away from Chessy; oil and gas prices worsen; is natgas killing coal mining?; world’s largest oil company may go public; and more!
    Read More “Marcellus & Utica Shale Story Links: Tue, Jan 12, 2016”

  • Cunningham Energy | Energy Companies | Kanawha County | West Virginia

    Cunningham Using Horizontal Drilling to Target Weir Sand in WV

    January 11, 2016October 23, 2017

    cunningham logoThis story is, for us, fascinating. A small driller based in West Virginia, Cunningham Energy, is zagging while everyone else is zigging. We told you in 2013 that Cunningham planned to drill three “shallow” horizontal wells in Clay County, WV (see The Injuns are Coming! Injun Formation Drilling, that is). Cunningham targeted the Big Injun sandstone formation, looking for oil. They struck oil this past year (see Cunningham Strikes Oil in West Virginia’s Big Injun Territory). Once again Cunningham is targeting a shallow formation, this time the Weir Sand formation, a few layers below the Big Injun (same group of rocks called the Mississippian system), once again looking for oil. Cunningham announced last week they are drilling two new horizontal wells, this time in Kanawha County, WV…
    Read More “Cunningham Using Horizontal Drilling to Target Weir Sand in WV”

  • Forced Pooling | Industrywide Issues | Statewide WV | West Virginia

    Bill Sponsor Says It’s Now or Never for WV Forced Pooling Law

    January 11, 2016January 11, 2016

    At 11 pm on the last day of the 2015 legislative session in West Virginia, a session that lasts only 60 days at the beginning of each year, the WV legislature voted down what everyone thought was a sure thing to pass–House Bill (HB) 2688, otherwise known as the forced pooling bill (see The Real Story of Why Forced Pooling Bill Failed in WV). As we reported at the time, it was defeated by Democrats who had their knickers in a twist over another bill they wanted passed that Republicans defeated. So the Dems decided to give as good as they got and voted down HB2688 in retribution. Last March, following the negative vote, we said this: “Forced pooling is a dead issue in WV this year. Will it be back next year? You can bank on it.” And back it is. The Republican chairman of the House Energy Committee, Lynwood “Woody” Ireland believes a new version of the forced pooling bill is as fair as it gets for both landowners and drillers. Ireland also believes if the bill doesn’t pass this year, it is likely a dead issue–period. It’s “now or never” for a forced pooling bill in WV…
    Read More “Bill Sponsor Says It’s Now or Never for WV Forced Pooling Law”

  • Baker Hughes | Energy Services

    Baker Hughes Dec Rig Counts Down Everywhere – Global, US, NE

    January 11, 2016January 11, 2016

    The number of active drilling rigs worldwide was down by 14 rigs according to the December Baker Hughes rig count report. The worldwide rig count in November was down just 2 from October, which shows the trend of idling rigs is once again picking up steam. Bummer. Active rigs in the U.S. fell by a whopping 46 month over month. There were 760 active drilling rigs operating in the U.S. in November, and 714 rigs operating during the month of December. Ouch. What about active rigs in the Marcellus/Utica? Once again MDN brings you the exclusive chart for Marcellus/Utica rig counts over the past 12 months. This month’s chart is disheartening. The region lost another 5 active rigs in December over those operating in November. Which states lost rigs?…
    Read More “Baker Hughes Dec Rig Counts Down Everywhere – Global, US, NE”

  • Ethane | Exporting | Industrywide Issues | Pennsylvania | Pipelines | Statewide PA | Sunoco Logistics

    Marcellus Ethane Sets Sail for Europe Next Month

    January 11, 2016January 11, 2016

    We’re almost there! As MDN told you last June, INEOS, one of Europe’s largest petrochemical companies, had commissioned and purchased two tankers to ferry Marcellus/Utica ethane from the Marcus Hook refinery near Philadelphia to Norway and Scotland (see Ineos Gets Ready to Begin Ethane Exports from Marcus Hook, PA). The final leg of the Mariner East Pipeline is ready to go online, and the twin tankers are ready to be loaded. In February, the first shipment of Marcellus ethane will set sail from Philadelphia bound for Norway…
    Read More “Marcellus Ethane Sets Sail for Europe Next Month”

  • Columbia Pipeline Group | Energy Services | Industrywide Issues | Kanawha County | Pipelines | West Virginia

    Columbia Pipeline Gets FERC Approval for WV Utica Access Project

    January 11, 2016January 11, 2016

    Columbia Pipeline Group has just received a green light from the Federal Energy Regulatory Commission (FERC) to proceed with their Utica Access Project. The project will cost Columbia $45 million and involves building five miles of new pipeline and upgrading compressor stations in Kanawha County, WV. When complete, the project, begun under NiSource (before Columbia separated into its own company), will transport 200 million cubic feet per day of Utica Shale gas for Eclipse Resources Corporation to liquid trading points on the Columbia Gas Transmission interstate pipeline system…
    Read More “Columbia Pipeline Gets FERC Approval for WV Utica Access Project”

  • Columbia Pipeline Group | Energy Services | Industrywide Issues | Pipelines | Regulation | Statewide VA | Statewide WV | Virginia | West Virginia

    Columbia Pipeline Files to Build $850M WB XPress Project in WV/VA

    January 11, 2016January 11, 2016

    In addition to receiving Federal Energy Regulatory Commission (FERC) approval for the Utica Access Project, Columbia Pipeline Group has just filed their full, official application with FERC for approval of the $850 million WB XPress Project, consisting of two new compressor stations, 26 miles of pipeline replacement located along existing corridors, and 2.9 miles of new pipeline in Virginia and West Virginia. The WB XPress Project will expand capacity of the Columbia Gas Transmission pipeline in the region by 1.3 billion cubic feet per day, linking Marcellus gas supplies to new markets…
    Read More “Columbia Pipeline Files to Build $850M WB XPress Project in WV/VA”

  • Commodity Price | Industrywide Issues | Pipelines

    New Pipelines in the Marcellus Dramatically Improved Prices in 2H15

    January 11, 2016January 11, 2016

    What a difference a few pipelines can make. Last week the U.S. Energy Information Administration (EIA) issued their Natural Gas Weekly report (excellent report, great overview of the industry at large). One of the brief articles included in last week’s EIA update was story about the “basis differentials” for the Marcellus, and how they’ve narrowed. Basis differential means “how much does the gas trading at a given location trade above or below the standard Henry Hub price.” For example, last summer gas trading at Transco’s Leidy Hub in the Marcellus was trading for $1.65 million British Thermal Units (MMBtus) BELOW the Henry Hub price. In December, the gap had narrowed and Transco Leidy Hub prices were, on average, trading around 89 cents/MMBtu below the Henry Hub price. That’s a vast improvement in just six months. Why the narrowing in trade price? New pipelines came online in the latter half of last year, carting Marcellus Shale gas to new markets. More demand (i.e. new markets) equals a bump up in price…
    Read More “New Pipelines in the Marcellus Dramatically Improved Prices in 2H15”

  • American Water Management | Energy Services | Industrywide Issues | Litigation | Ohio | Trumbull County | Wastewater

    AWMS Appeals Decision Upholding Trumbull Injection Well Closure

    January 11, 2016January 11, 2016

    American Water Management Services (AWMS) owns a wastewater injection well in Trumbull County that supposedly caused a low-level earthquake (that nobody could feel) in 2014. Two wells located at the site, both operated by AWMS, were “temporarily” shut down by the Ohio Dept. of Natural Resources following the quake (see ODNR Temporarily Shuts Down Injection Wells After Low-Level Quake). One of the two injection wells was allowed to re-open, but not the other (see ODNR Clears Trumbull Co. Injection Well in August Quake). However, AWMS can’t open just the one well. They need to open both and operate both. The ODNR is supposedly crafting new regulations that will govern the offending well that may or may not have caused the low-level quake and a year-and-a-half later the ODNR has not released those new regs. Meanwhile, everyone at that operation is out of a job. AWMS appealed the closure and last month a county judge threw out the appeal (see Judge Tosses Appeal to Re-Open Trumbull, OH Injection Well). So AWMS has appealed it to the next level up–the 10th District Court of Appeals…
    Read More “AWMS Appeals Decision Upholding Trumbull Injection Well Closure”

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

    Pittsburgh Plans to Divest from Mutual Funds that Own Fossil Fuels

    January 11, 2016January 11, 2016

    Can this POSSIBLY be true? The City of Pittsburgh, which has fashioned itself as “the new Houston” and center of the energy universe, is beginning a program to divest from any investments it has in fossil fuel companies?! It appears it is true. Ever hear the phrase, “Don’t bite the hand that feeds you”? Of course the drive to divest is coming from Democrats–they’re the ones who run city government. If they actually go forward with it, we predict they will rue the day they decided to do it. The plan, as it’s been outlined, would be to divest “gradually,” over a period of years. The real kicker is that Pittsburgh doesn’t invest directly in stocks like CONSOL Energy or EQT or many of the other big independents who call the Pittsburgh region home. But they do invest in mutual funds that own those stocks. It is the mutual funds they plan to shed, over time. Talk about blithering idiots…
    Read More “Pittsburgh Plans to Divest from Mutual Funds that Own Fossil Fuels”

  • Industrywide Issues | Pennsylvania | Statewide PA | Taxation

    Dem Media Spins New PA Severance Tax Proposal as “Conservative”

    January 11, 2016January 11, 2016

    At least one Republican, Pennsylvania State Rep. Jim Christiana (from Beaver County, PA), is pushing a new severance tax plan he considers kinder and gentler than that proposed by PA Gov. Tom Wolf. Christiana has proposed a tax with a rate of “just” 3%, instead of Wolf’s demand of 5% (see Some PA Republicans Beginning to Cave on Severance Tax). However, Christiana’s tax plan would, in time, increase to 5%–just like Wolf’s. Of course all of these numbers are hocus pocus horse manure. The actual percentage goes much higher when you factor in all of the extras. What’s interesting to us is how Democrat-controlled media organizations like the Scranton Times-Tribune (and its subsidiary the Wilkes-Barre Citizens’ Voice) are attempting to spin this news. They published an article referring to Christiana as a “conservative” trying to imply conservatives are now on board with a severance tax on drilling in the Keystone State. Let us assure you, such is not the case. It is another sterling example of media bias and spin…
    Read More “Dem Media Spins New PA Severance Tax Proposal as “Conservative””

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