Marcellus Drilling News

Industrywide Issues | Ohio | Regulation | Washington County (OH) | Wastewater

Ohio Injection Wells Under ODNR Microscope
January 19, 2016January 19, 2016

Water Energy Services has completed the final part of a project that eliminates the need for trucks to climb Harmer Hill, hauling brine to an injection well located along Ohio Route 676 in Washington County, OH. Instead, brine is hauled to and deposited at a facility on Ohio Route 7, and from there the brine is pumped, via pipeline, to three injection wells at the top of Harmar Hill. Just to give you an idea of how closely regulated these injection wells (and the pumping station) are, inspectors from the Ohio Dept. of Natural Resources (ODNR) make 2-3 inspections PER WEEK of the facility. There’s seismic monitors for each of the three injection wells that constantly report their data directly to the state. Every load of brine brought to the facility is tracked and logged. This facility (and others like) are, quite literally, under the ODNR microscope, which should alleviate resident’s concerns…
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Energy Services | Ethane | Industrywide Issues | Kinder Morgan | Ohio | Pipelines | Regulation | Statewide OH

Kinder Morgan Ready to Move Forward with UTOPIA East Pipeline
January 19, 2016January 19, 2016

In April 2015 MDN told you that the Federal Energy Regulatory Commission (FERC) will not be involved with approving or overseeing construction for Kinder Morgan’s UTOPIA (Utica To Ontario Pipeline Access) ethane pipeline (see FERC Will Not Oversee UTOPIA NGL Pipeline Project in Ohio). Why not? Because UTOPIA, a 12-inch ethane pipeline running 240 miles will only be built in Ohio–it won’t cross state lines. It will, however, connect to another pipeline that crosses Michigan and enters Canada where the ethane (and some propane) will feed a NOVA Chemical cracker plant in Windsor, Ontario. Because it’s all within Ohio, the lead agency for approval and oversight for UTOPIA will be the U.S. Army Corps of Engineers, with an assist from the Ohio Dept. of Natural Resources (ODNR), the Ohio Environmental Protection Agency and the U.S. Fish and Wildlife Service. Kinder is saying they are ready to move forward with the UTOPIA project and will file for the necessary permits from state and federal authorities “within the next few months”…
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Energy Services | Energy Transfer Partners | Industrywide Issues | M&A | Williams

Williams Board “Unanimously” Committed to Selling to ETE
January 19, 2016January 19, 2016

Apparently somebody has been whispering nasty rumors that Williams isn’t really all that committed to completing a sale of themselves to Energy Transfer Equity (ETE). After six months of wooing Williams, ETE got tired of being rebuffed and went public with their bid to buy out Williams, one of the northeast’s biggest midstream companies (see Energy Transfer Makes “Indecent Proposal” to Buy Williams for $48B). In the end Williams caved and decided to sell, but they did it too late. By the time they accepted ETE’s offer in September, the market (and stock prices) in the oil/gas sector had already started a downward spiral, and Williams ended up getting $10 billion less than originally proposed (see Williams Accepts ETE’s “Indecent Proposal” – Price Went Down $10B). It’s now January and the deal is still not closed. And apparently somebody has either been telling tales out of school, or simply spreading nasty rumors, because the entire board of Williams voted, unanimously, to tell the world they really do want to sell. Really. Williams felt compelled to issue a press release stating as much…
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Accidents | Energy Companies | Industrywide Issues | Litigation | Lycoming County | Pennsylvania | XTO

XTO Sues DOJ for Documents Needed in PA Trial over 2010 Spill
January 19, 2016January 19, 2016

Last Thursday XTO Energy sued the U.S. Department of Justice to obtain documents that XTO says may help clear its good name in the vicious (we’d say illegal) criminal lawsuit against it over an accidental spill that happened in Lycoming County, PA in 2010. The DOJ investigated and found XTO did not act criminally and the case was settled. Then, more than three years later, PA’s new Attorney General, Kathleen Kane (now under criminal indictment herself and about to be removed from office) decided she would charge XTO with crimes against the environment–for an accident (see PA AG Abuses Her Authority, Files Criminal Charges Against XTO). Since the feds had already investigated and found no wrongdoing, XTO would like their documents to use in defending themselves in a lawsuit that’s about to begin (see XTO Criminal Trial for Accident Spill in PA Delayed Until 2016). But the feds are dragging their feet and making fishy excuses, like they don’t have enough secretaries to find and copy all of the documents requested. XTO has had to sue the DOJ to force them to go find the documents…
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Allegheny County | Pennsylvania | Statewide PA

Finalists Announced for 4th Annual Northeast Oil & Gas Awards
January 19, 2016January 12, 2017

The Fourth Annual Northeast Oil & Gas Awards will take place on Wednesday, March 30 in Pittsburgh. The O&G Awards have just released the list of this year’s finalists. These companies, all of them already winners in our book, have been shortlisted by the judging panel for their commitment to the key areas of Health & Safety, Operational Excellence, Innovation, Corporate Social Responsibility and Environmental Stewardship. MDN congratulates the following finalist companies in the Fourth Annual Northeast Oil & Gas Awards…
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Commodity Price | Industrywide Issues

Just How Low Will Price of Oil & Gas Go?
January 19, 2016January 19, 2016

Just how low will oil and natural gas prices go? A good question, on everyone’s mind. End of day yesterday the price of WTI (West Texas Intermediate) crude oil traded at $29.42, with some analysts predicting it may be headed to $20/barrel. Ouch. Such prices were unthinkable even six months ago! What about natural gas? Yesterday the benchmark Henry Hub saw gas trading at $2.10 per thousand cubic feet (Mcf). Will it go below $2/Mcf? In the middle of winter?? What is the absolute bottom these commodities will trade at? A reporter at the Canton Repository shares the latest thinking/rumors on where the price of oil and gas will go in 2016…
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About MDN | Calendar

Calendar of Events for Jan 19 – Apr 18 (90 Days)
January 19, 2016January 19, 2016

Below are upcoming events for the next three months (90 days). To see the full list of future events, visit this page: //marcellusdrilling.com/calendar/.

NOTE: To have an item included, please email it to: calendar@marcellusdrilling.com.
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Best of the Rest

Marcellus & Utica Shale Story Links: Tue, Jan 19, 2016
January 19, 2016January 19, 2016

The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: What shale slowdown, Marcellus/Utica production strong; Cuomo bans fracking, then floats climate plan powered by natgas; NED natgas to feed massive new electric plant; mythical climate change influences shareholders; Sunoco transferring jobs from Philly to Dallas; new safety legislation “possible” for WV drillers; NH AG wants say on NED pipeline; oil goes below $30; Carl Ichan’s investments don’t pan out; O&G’s “shuffling toward death”; how shale has made us safer; $15 oil in Canada – right now; and more!
Read More “Marcellus & Utica Shale Story Links: Tue, Jan 19, 2016”
About MDN

MDN Off Today – MLK Holiday
January 18, 2016

Marcellus Drilling News will take a brief break today in observance of Martin Luther King, Jr. Day and return tomorrow, Tuesday, Jan. 18.

Take the 17 minutes to watch Dr. King’s “I Have a Dream” speech. Truly inspiring.

(Search for it on Youtube.com — we won’t display it here because the King estate maintains the copyright for the speech).
Dominion Energy | Energy Services

Dominion Warns Investors to Reject “Mini-Tender” by TRC Capital
January 15, 2016January 15, 2016

Dominion Resources, a midstream (pipeline) company and energy producer with major operations in the Appalachian region is warning investors about a parasitic play for their stocks from a company called TRC Capital Corporation. TRC is floating what’s called a “mini-tender” in which they attempt to buy up to 5% of a company’s stock. Why only up to 5%? Because over 5% and certain Securities and Exchange Commission rules kick in to protect/alert investors. Under that limit and there’s far more wiggle room. What does TRC plan to do with the Dominion stock they buy? Their modus operandi is to purchase stock for a price below market value now, or what they think will be the market value in the near future. They lock it up, wait until the price rises, and then sell it at the higher price. They prey on people’s fears that stock prices will eminently crash, profiting from those fears, or they leverage investor ignorance. Sleazy? You bet. Illegal? Unfortunately, no. That’s why Dominion is warning shareholders to “just say no” to TRC’s below-market offer…
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Anti-Drilling/Fossil Fuel | Athens County | Industrywide Issues | Ohio | Regulation | Washington County (OH)

Small Progress with Drilling in Ohio’s Wayne National Forest
January 15, 2016January 15, 2016

There’s been some progress on the now nearly 10-year delay in drilling in the Wayne National Forest (WNF) in Ohio. WNF is the only national forest in Ohio and portions of it are found in Athens, Gallia, Hocking, Jackson, Monroe, Morgan, Noble, Lawrence, Perry, Scioto, Vinton, and Washington counties. WNF is a “patchwork” of public land scattered among private land. Some 60% of the mineral rights below WNF are privately owned. Those mineral rights owners have been denied the use of their property rights going on a decade. It’s a travesty. The federal Bureau of Land Management (BLM) controls drilling on federally-protected lands like WNF. Last November the BLM held a series of hearings about finally beginning to drill in WNF. The hearing held in Marietta (Washington County) was civil and orderly, with landowners respectfully asking questions and getting answers (see Overwhelming Support for Wayne Natl Forest Drilling @ BLM Mtg). The hearing held in Athens, OH, a hotbed of lefty lunatics, got out of control when they didn’t have a microphone to throw up on (see Anti-Frackers Out of Control at Athens Mtg on Wayne Natl Forest). Athens antis can breathe easy. The BLM has decided to wait on pursuing drilling in the “Athens Unit” until 2017. However, the BLM is taking the next step in the “Marietta Unit” now…
Read More “Small Progress with Drilling in Ohio’s Wayne National Forest”
American Energy Partners | Energy Companies

McClendon Signs Deal with Argentina to Drill in “Dead Cow” Shale
January 15, 2016January 15, 2016

One has to marvel at how Aubrey McClendon has done, and keeps doing it. The “it” being raising money for drilling holes in the ground. McClendon, as we and others have chronicled over the past several years, was unceremoniously dumped as CEO of the company he co-founded, Chesapeake Energy, by corporate raiders Carl Ichan and Mason Hawkins. Chesapeake is still in the crapper, financially, so we see how that’s turned out. McClendon went on to found American Energy Parnters (AEP), raising billions of dollars of investments for various drilling programs, notably in the Utica Shale. McClendon is about to pull another $500 million rabbit out of his hat. McClendon has just inked a deal with Argentina’s YPF SA to drill 20 wells in Argentina’s Vaca Muerta (translated “dead cow”) shale formation, located in the Patagonian Province of Neuquén. Argentina is the biggest shale gas producer outside of the U.S. In order to seal the deal, McClendon has to raise $500M in the next three months. If anyone can do it, Aubrey can!…
Read More “McClendon Signs Deal with Argentina to Drill in “Dead Cow” Shale”
Commodity Price | Crude Oil | Industrywide Issues

US Gasoline Prices Lowest Since 2009 – Thx to Fracking
January 15, 2016January 15, 2016

The average price for gasoline in the United States is now $1.99 per gallon. That’s the lowest price it’s been since 2009, the year Barack Hussein Obama was coronated as our dictator-in-chief. After Obama took office the price of gasoline steadily went up, until 2012. Since that time (Obama’s second term) the price of gas has remained steady and, recently, has dropped. Why? The miracle of fracking and horizontal drilling. Because of a new abundance of crude oil being produced in the United State, which caused Saudi Arabia to pump oil like there’s no tomorrow to defend their own market share, the world is now awash in oil, driving the price down. Gasoline is refined from crude oil, so eventually the price of gasoline followed the price of oil down. And it’s all because of fracking and the private sector–nothing to do with the government policies or Our Dear Leader…
Read More “US Gasoline Prices Lowest Since 2009 – Thx to Fracking”
Industrywide Issues | Pennsylvania | Statewide PA | Taxation

PA Gov Wolf’s Pathological Need for a Severance Tax
January 15, 2016January 15, 2016

We suspect that Pennsylvania Gov. Tom Wolf may suffer from OCD–obsessive compulsive disorder. What else could explain the fact that even though PA doesn’t have a completed 2015 budget, he’s about to introduce a 2016 budget that once again calls for a severance tax on oil and gas–when the industry in his state has gone nearly dormant because of low prices? Shale drillers are struggling to stay solvent and to keep drilling at least a few new wells. And Wolf is, once again, insisting on a severance tax, that will essentially stop all drilling. Perhaps a better word for it is pathological…
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Chesapeake Energy | Coterra Energy (Cabot O&G) | Energy Companies | Range Resources Corp | Southwestern Energy

4 Biggest Marcellus Gas Drillers Cutting Budgets 53% This Year
January 15, 2016January 15, 2016

We spotted a mention of “the four largest U.S. independent gas producers” (meaning natural gas producers) in an article about the challenges drillers are facing in cutting their spending while getting less money for the gas they produce. The article is a somber look at just how hard it is to not spend more than you make, if you’re a gas driller. Oh, and those four largest gas producers in the U.S.? Yep, everyone of them is a major player in the Marcellus/Utica…
Read More “4 Biggest Marcellus Gas Drillers Cutting Budgets 53% This Year”
Industrywide Issues | Research

Wood Mackenzie Says Cuts in Drilling Projects “Brutal”
January 15, 2016January 15, 2016

Global research firm Wood Mackenzie has just released an update to their July analysis on the continuing impact of low oil and gas prices on upstream (drilling) projects. The new analysis finds that in the last six months of 2015 an additional 22 major projects and seven billion barrels of oil equivalent (boe) of commercial reserves have been put on hold, on top of the 46 developments and 20 billion boe of reserves identified previously. The “good news,” if you can call it that, is that deepwater projects have been hit the hardest, more so than shale projects. One Wood analyst calls the impact of lower oil prices “brutal” for new projects. He says, “What began in late-2014 as a haircut to discretionary spend on exploration and pre-development projects has become a full surgical operation to cut out all non-essential operational and capital expenditure”…
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