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    PennEast: The Long, Careful, Deliberate Road to Pipeline Approval

    The latest theme/meme being pedaled by groups like THE Delaware Riverkeeper (Maya van Rossum) and other anti-fossil fuel groups is that the Federal Energy Regulatory Commission (FERC) is just a big ole rubber stamp for Big Oil and Big Gas. FERC, they say, never met a pipeline project they didn’t approve. FERC is in the back pocket of the fossil fuel industry. Yada yada yada. Some of the crazier of the crazies took to attending open FERC meetings in Washington, DC and disrupting those meetings (see FERC Clears the Room at DC HQ After Riff Raff Start Mouthing Off). Once they were banned from attending, they began to illegally block entrance to the building (see 24 Anti-Drilling Protesters Arrested by Homeland Security in DC). FERC has been made a kindergartenish bogyman by those who oppose pipelines. To counter some of the nonsense pedaled by these groups (and their willing accomplices in the media), PennEast Pipeline recently published an article to set the record straight. FERC doesn’t simply rubber stamp a pipeline application like PennEast’s–a pipeline proposed to run from Wilkes-Barre, PA to Trenton, NJ. PennEast faces a “gauntlet of approvals”–including 11 federal, state and local agencies that must approve thousands of pages of plans, much of it stringent safety requirements. Approving a pipeline is an intense, detailed, and LONG process in which no stone is left unturned. There is no rubber stamp except in the childish minds of irrational anti-fossil fuelers…
    Read More “PennEast: The Long, Careful, Deliberate Road to Pipeline Approval”

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    Patterson-UTI Rig Count Hits New Low in November

    As we do every month, MDN tracks how many rigs oilfield services company Patterson-UTI Energy reports operating–as a proxy for when/if the drop in rig counts for the Marcellus/Utica will turn around. Patterson operates a number of rigs in the northeast, as well as other areas of the continental United States (and Canada). The company has just issued their report for November, and once again the rig count went down. However, the company reports idling only one more rig in November over October–operating 91 rigs in November vs 92 in October. Is the slide in rig counts finally ending? About to turn around?…
    Read More “Patterson-UTI Rig Count Hits New Low in November”

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    Seneca Res. Cuts Deal with IOG Capital to Fund Up to 80 PA Wells

    Art of the DealYesterday National Fuel Gas Company, the utility giant headquartered in Buffalo, NY and parent of Marcellus driller Seneca Resources, announced that Seneca has partnered up with energy investor IOG Capital to essentially fund Seneca’s Marcellus drilling program in Elk, McKean and Cameron counties in north-central Pennsylvania. The outlines of the deal are thus: IOG will provide the cash and Seneca will do the drilling on up to 80 Marcellus wells on 10,500 acres in the Clermont/Rich Valley area of PA. IOG will get an 80% working interest in the wells. In addition to drilling the wells, National Fuel’s midstream subsidiary will connect the wells and get the gas to market. What this deal means is that Marcellus drilling activity in the Clermont/Rich Valley area will pick up over the few years. Here’s the details of this somewhat complicated deal…
    Read More “Seneca Res. Cuts Deal with IOG Capital to Fund Up to 80 PA Wells”

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    Marcellus Driller Cabot Oil & Gas Gets 2 New Board Members

    Cabot Oil & Gas, one of the largest and one of the most important Marcellus drillers, has just added two more people to their Board of Directors. One of the two is Dorothy Ables, Chief Administrative Officer of midstream (pipeline) giant Spectra Energy. Cabot’s CEO Dan Dinges calls Dorothy a midstream expert that will help guide them as midstream becomes critical moving forward. The second new member is Robert Boswell, Chairman and CEO of Laramie Energy II, a privately held oil and gas exploration and production company headquartered in Denver. Boswell has started–and successfully sold–several previous drilling companies before starting Laramie Energy II, focused on the Piceance Basin in Colorado, in 2007. Boswell is there to replace board member Robert Keiser who is retiring from the board next year. Here’s the announcement…
    Read More “Marcellus Driller Cabot Oil & Gas Gets 2 New Board Members”

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    Rumor: NY Gov. Andrew Cuomo Will Be Indicted Jan 2 for Corruption

    New York State, when it comes to our elected officials, is a corrupt as it gets. U.S. Attorney Preet Bharara has been on a mission to clean up corruption in the Empire State. Bharara is making a name for himself like another former U.S. Attorney–Rudy Giuliani. Bharara has been extremely successful so far: Both former Assembly Speaker Sheldon Silver (Democrat) and former Senate Deputy Majority Leader Tom Libous (Republican) have been convicted of corruption and removed from office. Currently the former Senate Majority Leader, Dean Skelos, is on trial in federal court in Manhattan and almost certainly will be convicted as well (see our story from yesterday, Bombshell Revelation: Cuomo was on Cusp of Lifting Frack Ban). NY State’s politics has always been known as “three men in a room” because the Governor, Assembly Speaker and Senate Majority Leader are the power brokers who cut deals that then get adopted. With two of the three men in the room either convicted (or about to be convicted) as corrupt felons, it makes you wonder about the third man–Gov. Andrew Cuomo. Another bombshell revelation: sources are telling the Buffalo Chronicle (a blog site) what has long been rumored–that Preet Bharara will go after Andrew Cuomo next. In fact, three (!) sources have told the Chronicle that Bharara will file an indictment against Cuomo on Jan. 2, 2016. So what does this have to do with shale drilling?…
    Read More “Rumor: NY Gov. Andrew Cuomo Will Be Indicted Jan 2 for Corruption”

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    Water Well Testing Near OH Injection Wells Comes Back Negative

    Athens County, OH is infested with liberal Democrats who irrationally hate fossil fuels. Let’s just get the facts out there on the table, shall we? The ninny nannies in Athens finally (after years of agitation) browbeat their neighbors into voting for a frack ban last year (see 3 of 4 Frack Ban Ballot Measures in Ohio Fail – Athens Exception). Whatever. Athens County hosts eight wastewater injection wells and that drives the crazies every crazier. They’re doing their damnedest to get all eight shut down, and to deny a permit for a ninth well (see Athens County Asks Gov Kasich & ODNR to Stop New Injection Wells). One of their strategies is to prove that the existing wastewater injection wells are causing pollution of nearby water wells and groundwater supplies. So a study was done, testing nine different water wells for the presence of volatile organic compounds–a signal that wastewater is leaking into the wells. Guess what they found? Nothing. Nada. Zip. Zero. The injection wells are not contaminating groundwater and water well sources. What do the crazies want? More testing! More more more more more. They want to test until they find something–or rig the tests so something gets found…
    Read More “Water Well Testing Near OH Injection Wells Comes Back Negative”

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    Top 20 NatGas Pipelines in 2015 – Ranked by Traded Volume

    The amazing thing about this wonderful industry we’re in–the fossil fuel energy industry–is that you learn something new every day. Like there’s a service called the Capacity Center (CapacityCenter.com) that tracks flows of physical natural gas in every interstate pipeline in the U.S. Each year (for the eighth year running) the Capacity Center issues a report detailing the Top 20 Traders (buyers and sellers) of natural gas along those pipelines, and the Top 20 Pipelines by volume of natural gas flowing through the pipeline. We’re intrigued–particularly by the Top 20 pipelines, because a number of them operate in the Marcellus/Utica region. Below is the full Capacity Center Top 20 Capacity Traders & Top 20 Pipelines Report for 2015. If you’re like us, you’ll dig it too…
    Read More “Top 20 NatGas Pipelines in 2015 – Ranked by Traded Volume”

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    NEPA Electric Plant Converted from Coal to NatGas a Huge Success

    As MDN has previously chronicled, Chicago-based Invenergy hopes to build what will be the largest (to date) electric generating plant in the state of Pennsylvania powered by natural gas. Invenergy hopes to build the 1300-megawatt plant in the borough of Jessup (Lackawanna County), near Scranton. But there’s been quite a bit of opposition, most of it from anti-fossil fuelers (see our Jessup power plant stories here). The folks in Jessup might want to cast their eyes on another project not far away, in Luzerne County, where a former coal-fired power plant was recently converted to burn natural gas. That plant, owned and operated by UGI, reduced sulfur dioxide emissions by 99%, and reduced nitrogen oxide emissions by 95%. That is, natgas-fired electric plants are one of the lowest polluting ways to generate electricity–and far more reliable than alternatives like solar and wind…
    Read More “NEPA Electric Plant Converted from Coal to NatGas a Huge Success”

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    Trader Calls CONSOL Stock “Widow Maker” – Profits Some, Not Others

    We’re not above admitting when we’ve been wrong. Last July MDN shared a rumor–and stressed it was a rumor–that CONSOL Energy was in talks to sell it’s CNX Gas division to Noble Energy (see Rumors Circulate that CONSOL May Sell Itself to Noble Energy). A few days later we modified that rumor to say that Noble Energy would take over the joint venture acreage the two have together (see CONSOL Energy/Noble Energy Rumors Continue to Swirl). Neither of those things ended up happening–at least not yet. However, CONSOL’s largest single investor, corporate raider Mason Hawkins (who in league with corporate raider Carl Ichan have been screwing with Chesapeake Energy) told CONSOL to separate their coal business from the natural gas business, which they’ve begun to do (see CONSOL’s #1 Stockholder Says Spin Off CNX Gas…or Sell It). Parent company CONSOL’s stock is traded as CNX. A new coal division (for investors) was created, CNX Coal (CNXC), although some (much?) of the coal assets are still part of the CNX entity. CONSOL’s midstream/pipeline business, called CONE Midstream (a jv with Noble Energy) is traded as CNNX. Yes, it’s all a mish mash. We mention all of this as background to an article by a trader commenting on CONSOL’s CNX stock which has literally crashed over the past year–down more than 80% in value. The trader calls the CNX stock a “widow maker”–meaning if you have the chops and can stick it out, there may be money to be had by investing in CNX stock. But, it’s a huge gamble, and not for the feint of heart, according to this trader…
    Read More “Trader Calls CONSOL Stock “Widow Maker” – Profits Some, Not Others”

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    Columbia Pipeline’s 51M Share/Stock Offering Aims to Raise $892.5M

    Yesterday MDN told you that Columbia Pipeline Group, a major player in the Marcellus/Utica midstream, announced a stock offering of 51 million shares (see Columbia Pipeline Group Floats 51M Shares of New Stock). We speculated if they got the then-current price of $19.03 per share, they’d haul in close to $1 billion in new revenue. Of course stock offerings like this almost never receive the existing/going price. We also said if they got $15 a share, that would net them $756 million. We now know, a day later, what they’re aiming for: $17.50 per share, which will bring in $892.5 million…
    Read More “Columbia Pipeline’s 51M Share/Stock Offering Aims to Raise $892.5M”

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    GDS Intl Adopts GE Software to Increase Efficiency, Reduce Costs

    You may not think that computer software would have much to do with drilling holes in the ground and extracting natural gas and oil. But you would be wrong. If you ever visit a drilling rig and are fortunate enough to make a visit to “the dog house,” which is the equivalent of a jetliner cockpit where the rig is controlled by high-powered computers (and software), you’ll quickly understand how high-tech drilling has become. But it’s not just controlling a rig where computers are used in the oil and gas business–they’re used throughout the business. In fact there is software that, well, monitors other software. GE (nee General Electric) has a software offering that monitors drilling rigs and other equipment at drill sites. At least that’s how we understand it. GE issued a press release yesterday to tout the fact that GDS (Global Drilling Support) International is using GE’s “Equipment Insight” solution at rigs in both the Marcellus and Utica Shale in a six-month pilot program to squeeze ever more efficiency from the drilling process…
    Read More “GDS Intl Adopts GE Software to Increase Efficiency, Reduce Costs”

  • Marcellus & Utica Shale Story Links: Thu, Dec 3, 2015

    The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Youngstown anti-frack vote recount shows antis still losers; PA budget impasse continues; VA antis call for tough drilling rules; 150 canceled big oil projects; $3.4 trillion in fossil fuel divestment; last shoe drops for Hi-Crush; the party is over for oil; and more!
    Read More “Marcellus & Utica Shale Story Links: Thu, Dec 3, 2015”

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    MarkWest Energy Investors/Unitholders Approve Merger with Marathon

    At a special meeting yesterday, the unitholders (i.e. shareholders) of MarkWest Energy voted to approve the merger/buyout offer from Marathon Petroleum. MarkWest will, by Friday of this week, become a wholly-owned subsidiary of Ohio-based Marathon. The approval comes after both co-founders of the company, John Fox and Brian O’Neill, came out strongly against the deal (see Both MarkWest Co-Founders Strongly Against Sale to Marathon). One of their criticisms is that current MarkWest management gets a “golden parachute” from the deal–they personally make boatloads of money for selling the company. But that didn’t seem to bother investors/unitholders who obviously think MarkWest combined with Marathon is better than MarkWest on its own. Here’s the official MarkWest announcement following the vote…
    Read More “MarkWest Energy Investors/Unitholders Approve Merger with Marathon”

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    Shell Closing Pittsburgh Office, Moving 180 People to Houston, TX

    Shell is closing its Pittsburgh-area office and moving “most of” the 180 workers who worked there to its U.S. HQ in Houston, Texas–so says a Shell spokesperson. A few workers may remain and redeploy to various field offices that Shell intends to keep open–including a field office in Tioga County, PA where they have an active drilling program. Shell drilled just eight wells in PA this year, compared to 17 last year and 31 the year before that. Notice a pattern? Perhaps most importantly Shell stresses the office closure has nothing to do with the work on a proposed ethane cracker plant in Beaver County…
    Read More “Shell Closing Pittsburgh Office, Moving 180 People to Houston, TX”

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    Bombshell Revelation: Cuomo was on Cusp of Lifting Frack Ban

    An interesting update on what is now ancient history in New York State with regard to Andrew Cuomo and his ban on fracking. According to secretly recorded wiretaps of conversations of the son of former NY Senate Majority Leader Dean Skelos, a Cuomo official made the rounds to several prominent Senate Republicans to ask if there would be any “blowback” when (not if) Cuomo lifted a ban on fracking. If true, the revelation is a bombshell–that Cuomo had intended to lift the moratorium but changed his mind at the last minute. The problem with the recorded conversations is that Skelos’ son Adam, in talking with three different lobbyists, attributes the conversation to different Cuomo Administration sources. That is, he changes his story, making his story less credible. Both father Dean and son Adam Skelos are on trial in Manhattan for corruption. Dean tried to help his son get work with sweetheart deals–something that happens every day in New York with both Republicans and Democrats. We’re not excusing corruption–just pointing out the context and circumstances…
    Read More “Bombshell Revelation: Cuomo was on Cusp of Lifting Frack Ban”

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    Reuters Says Marcellus “Finally Succumbs” to Production Downturn

    The Reuters news service is, somewhat gleefully, reporting that America’s biggest gas field–the Mighty Marcellus–“finally succumbs to downturn.” The article in which they announce this “fact” breathlessly reports preliminary (i.e. not yet solid, as in draft) figures from DrillingInfo are at odds with projections from the U.S. Energy Information Administration (EIA). According to Reuters, the EIA’s numbers are too rosy, showing a year-over-year decrease in Marcellus production won’t happen until 2019. DrillingInfo, according to Reuters, indicates a year-over-year decline will come next year, in 2016. Who’s right?…
    Read More “Reuters Says Marcellus “Finally Succumbs” to Production Downturn”