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    1.1 Billion Barrels of Chesapeake Oil Disappear with a Keystroke

    Accounting is the “language of business.” Sometimes it appears to be spoken in a foreign tongue that is hard to understand. In addition to Chesapeake Energy’s major problems with lawsuits over royalties (see today’s top story about PA Attorney General Kane suing them), Chesapeake’s claim of how much oil (and gas) it can extract from its leased acreage, an important number on which loans are made, will decrease by an astonishing 45% this week. Poof! Nearly half what Chessy says is in the ground and available to extract just disappeared. How can that be? Accounting. In order to make a claim that “we have X barrels of oil, or X billion cubic feet of gas available to extract,” you have to be able to sell what you extract *at a profit* or it makes no sense to extract it and sell it. The formula drillers must use to prove they can extract it at a profit is set by the Securities and Exchange Commission. Because the price of oil and gas is low and not going up any time sooner, many companies, including Chesapeake, must now re-evaluate their numbers and restate their claims of how much inventory they have. And nearly half of Chessy’s inventory is now gone, with a few keystrokes and a spreadsheet formula…
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    Phys.org, Others Run 3 Yr-Old New York Frack Study as New News

    We found this one kind of amusing, and instructive, illustrating how anti-drillers unthinkingly get their “news.” On September 26, 2012 (yes, over three years ago) Syracuse University issued a press release about a program begun earlier in 2012 called Project SWIFT (Shale-Water Interaction Forensic Tools). The aim of the research project was to baseline test water wells for homeowners in New York State so when/if fracking arrives, there is solid scientific evidence for the condition of water before and then after fracking. The study also, as it turns out, innovated a few new techniques, including a method to measure salinity in water, the use of iodine as a tracer when testing, etc. Here’s the thing–the study was concluded in 2014 and of course in 2014 Gov. Cuomo banned fracking for the foreseeable future in the Empire State. So it’s all over and done with. No need for more testing. The project ran its course. But what’s this? Several authoritative “science” sites all of a sudden re-ran the original Syracuse University press release about Project SWFIT–with this week’s date on it! Word for word, same press release as 3+ years ago–slapping a new date from this week on it. One of the sites was EurekAlert!. Another was Phys.org. Their postings created a cascading or domino effect with a number of enviro sites picking it up and running it as new news. Egg on face anyone?…
    Read More “Phys.org, Others Run 3 Yr-Old New York Frack Study as New News”

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    Federal EPA’s New Ozone Standard: Air Not Cleaner, PA Jobs Killer

    In the name of protecting us, the federal Environmental Protection Agency (EPA) continues rogue actions in regulating the oil and gas industry–against the express dictates of the U.S. Constitution. The latest violation from the EPA is a new regulation lowering ozone levels. As David Williams from the Taxpayers Protection Alliance and a Pennsylvania native explains below, the “simple” act of lowering the ozone standard from 75 parts per BILLION to 70 ppb won’t do much at all to actually clean the air, but will directly result is lost jobs in Pennsylvania…
    Read More “Federal EPA’s New Ozone Standard: Air Not Cleaner, PA Jobs Killer”

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    What’s Up with Carrizo Top Mgmt Continued Selling of Co. Stock?

    Carrizo Oil & Gas CEO Chip Johnson continues to sell off his company stock. On June 1, Johnson sold 24,661 shares of company stock for $1.2 million. A few days later, on June 5, he sold another 6,000 shares for $309,000. Then again on September 8, Johnson sold another 6,000 shares netting him $217,000. And on October 5, Johnson sold yet another tranche of 6,000 shares, this time for $227,040 (see Carrizo O&G CEO Chip Johnson Continues to Sell His Company Stock). In an “Oops, I did it again,” Johnson sold another tranche of 6,000 shares earlier this week–this time for $193,440. That makes the grand total of Johnson’s stock sales 48,661 shares since June for a grand total of $2.1 million. But Johnson isn’t the only Carrizo top dog to sell. Others have sold their shares, including board member Roger Ramsey who this week sold 1,000 shares for $33,310. This is the third time–that we know of–that Ramsey has sold stock in the company he helps oversee (see Carrizo CEO Chip Johnson Sells Another 6K Shares of Stock and Carrizo Oil & Gas “Insiders” Continue to Sell Company Stock). We have to ask, what in the world is going on at Carrizo that top management continues to sell off their stock?…
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    Virginia Anti Groups Pressure Gov McAuliffe to Shut Down Fracking

    A group of virulent anti-drilling groups, including Clean Water Action, the Virginia Sierra Club and Shenandoah Riverkeeper, are pushing Virginia’s Democrat Governor Terry McAuliffe to halt any new fracking permits in the state until they can muster enough public support (through their lying public relations campaigns) to permanently shut down fracking in the Old Dominion, like has been done in the Empire State (i.e. New York). Said groups, which always position their “requests” as even-handed and really the only wise thing to do–have pulled this stunt in state after state after state. Fracking is a miracle. Fracking is safe. Fracking produces jobs. Fracking does not pollute water, air, land, etc. But you wouldn’t know that by the propaganda issued by these disgusting groups. We hope McAuliffe doesn’t cave to their pressure the way man-child Andy Cuomo did…
    Read More “Virginia Anti Groups Pressure Gov McAuliffe to Shut Down Fracking”

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    Paris Climate Change Hoaxers Stick Fingers in Ears, Holler La La La

    More news from Paris and the COP21 Climate Conference going on there. You might think scientists would want to know if other scientists have evidence that your hypotheses and theories need to be modified a bit–challenging your theories based on real, actual science. Any good scientist welcomes such a challenge because in the end, either your theory was off-base and you can make it better/more accurate, or your theory was correct all along and you can show the world such is the case. However, the so-called scientists at the Paris Climate Conference want to revoke the credentials/pass to attend for anyone who does not “believe” as they do in the theory that mankind is catastrophically causing Mother Earth to warm up. Can you believe that?! This has gone so far beyond science it’s no longer funny. This is the equivalent of the Catholic Church persecuting Galileo for abandoning the geocentric (earth-at-the-center) view of the solar system for the heliocentric (sun-at-the-center) view. The warmers are the Catholic Church of the Fifteenth Century. If you cross us, if you disagree with us (and use science to do so), you are dirt. You are nothing. You will be expelled. In fact, some of these zealots want to put those of us who don’t believe in man-made global warming in jail (see RIT Professor Says Jail Those Who Don’t Believe in Global Warming). It’s like these climate change hoaxers stick their fingers in their ears and holler, “La la la la la, I can’t HEAR you!” Here’s the latest from Paris, where everything BUT science is being discussed…
    Read More “Paris Climate Change Hoaxers Stick Fingers in Ears, Holler La La La”

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    Spoiled Rotten Kids Disrupt Paris Climate Conf over Fracked Gas

    Captain PlanetThe United Nations COP21 Climate Conference in Paris is attracting some of the craziest of the climate crazies. And they’re from the northeast, no less! A group of college kids–know-nothings–interrupted a panel discussion that included Vermont’s Democrat Governor Peter Shumlin because, they say, the guv is supporting a pipeline that will bring “fracked gas” to the state. We call them clinically insane. If they knew how many pipelines already exist beneath Vermont soil that flow natural gas, we expect they would have an aneurysm. During the panel two of the know-nothings stood up and unfurled a big banner that said Fracked Gas = Climate Change, complete with a kindergartenish drawing that depicts fractures reaching up into the water table (which doesn’t happen–ever). In our day and age of blaming your asinine actions on your parents, or your teachers, or even on cartoons–we’ll blame it on the cartoons. We expect these kids grew up watching Captain Planet on Saturday mornings and believed it hook, line and sinker. Here’s the story of spoiled rotten kids behaving like…spoiled rotten kids….
    Read More “Spoiled Rotten Kids Disrupt Paris Climate Conf over Fracked Gas”

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    Bernie Sanders Energy Plan: Ban Fossil Fuels, Turn Thermostat Down

    We always smile when we hear the name “Bernie Sanders.” He’s a hapless old idiot. A commie. Someone totally out of his league in running for president. But you know, he has a certain appeal–interestingly enough, with young people. The young people who like Sanders were no doubt mis-educated–not taught of the wonders and superiority of capitalism and freedom over communism/socialism/tyranny. But whatever. Bernie has a large following, which makes it somewhat scary when he announces an energy plan that includes banning all fossil fuels. Ole Bernie thinks we can stick up a windmill about every 150 feet, and solar panels on every home’s roof, and that’ll do it. We’ll be able to “save Mom Earth” by ending our “dependency” on evil, nasty fossil fuels. What dopes–Bernie AND his supporters…
    Read More “Bernie Sanders Energy Plan: Ban Fossil Fuels, Turn Thermostat Down”

  • Marcellus & Utica Shale Story Links: Thu, Dec 10, 2015

    The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Gulfport dominates Utica production; shale’s future discussed in Cambridge; Atlantic Coast pipeline told to reroute around forest; global crude supply & demand thru 2025; stop drilling or it’s a race to the bottom; Shell juggling projects; Ford F150 keeps natgas truck option; and more!
    Read More “Marcellus & Utica Shale Story Links: Thu, Dec 10, 2015”

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    New Marcellus/Utica Drilling Company is Born – LOLA Energy

    lola energyIt’s not often we have the pleasure of announcing the birth of a new company–in particular a new drilling company in the Marcellus/Utica in what has to be the worst economic conditions in a generation in the industry. But, pop the cork on the champagne and break out the cigars! A group of former EQT executives have just launched LOLA Energy with a $250 million investment from private equity firm Denham Capital. The new company is headquartered in Wexford (Pittsburgh area), PA and has already begun leasing land in the Marcellus/Utica. Company execs say they expect to create 10 to 20 new jobs in the Pittsburgh area over the next year. LOLA’s CEO is Jim Crockard, former senior vice president in charge of production for EQT. The strategy of the fledgling company is to pick up good properties cast off by other drillers because there’s not enough money (or enough profit) to drill in this low price environment…
    Read More “New Marcellus/Utica Drilling Company is Born – LOLA Energy”

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    Packed Meeting in Towanda Discusses Chesapeake Royalty Settlement

    Last week MDN told you about a very important class action lawsuit that is about to be settled against Chesapeake Energy. It’s called the “Demchak” case and it involves thousands of Pennsylvania landowners who are currently, or even formerly, signed with Chesapeake (see Decision-time for Landowners in Demchak/Chesapeake Royalty Case). Landowners are automatically part of the settlement unless they opt out by December 17. A big confab was held last Wednesday (Dec. 2) at the Towanda (Bradford County), PA High School. It was a packed house with ~650 landowners attending. MDN had our very own reporter, Johnny Williams, on the scene. He files the following report, with important information for landowners…
    Read More “Packed Meeting in Towanda Discusses Chesapeake Royalty Settlement”

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    Letter Writing War Erupts Over Jessup, PA Gas-Fired Power Plant

    An interesting back and forth in letters to the editor of the Democrat-run Scranton Times-Tribune over the proposed electric generating plant in Jessup, PA. 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 (see Public Hearing on NEPA Proposed Marcellus-Powered Electric Plant). Invenergy hopes to build the 1300-megawatt plant in the borough of Jessup (Lackawanna County), near Scranton. In very basic and simple terms, local Democrat anti-drillers (who hate fossil fuels of any kind) are against the plant, and local clear-thinking Republicans are in favor of this clean-burning, jobs-producing, economy-stimulating project. Recently a ginned-up “controversy” over the plant took to the editorial pages of the Times-Tribune. Here’s the (so far) back and forth between two antis and one pro…
    Read More “Letter Writing War Erupts Over Jessup, PA Gas-Fired Power Plant”

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    New Pipeline Threading/Inspection Facility Opening Near Wheeling

    Yes, new businesses do start up to serve the Marcellus/Utica industry–even in this down cycle. And they’re successful. The latest example comes from the Wheeling, WV area where a new state-of-the-art facility is starting up in Benwood to “inspect and place threading on pipe used to carry natural gas.” JLE Industries, based in Dunbar, PA, is investing $6 million to convert the former Wheeling-Pittsburgh Steel facility into a facility opening in January that will, when fully operational, employ 45 people…
    Read More “New Pipeline Threading/Inspection Facility Opening Near Wheeling”

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    EIA Dec. DPR: NatGas Production Decrease Slows, Utica Still Champ

    On Monday our favorite government agency, the U.S. Energy Information Administration (EIA), issued our favorite government report, the Drilling Productivity Report (DPR). The December report predicts what production will show in the month of January for both oil and natural gas from the seven biggest commercial shale plays in the U.S. This new report, while showing most plays will once again produce less natgas in January than they will in December, the amount of drop-off is decreasing. That is, the cuts in production are slowing down–as a whole and in the Marcellus. Once again the Utica will produce MORE natgas in January than it will in December–increasing by 67 addition million cubic feet month over month. The Utica rules! Of course, the Utica only produces about 20% of the production being pumped out by the Marcellus. But still, month after month its creeping up on the Mighty Marcellus…
    Read More “EIA Dec. DPR: NatGas Production Decrease Slows, Utica Still Champ”

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    Is the Halliburton Buyout of Baker Hughes in Trouble?

    Is the Halliburton/Baker Hughes wedding in trouble? Last time we checked in (in September) both companies were holding garage sales to dump business units to comply with regulators’ concerns over anti-competitiveness (see Halliburton/Baker Hughes Hold a Pre-Merger Garage Sale). Halliburton is attempting to buy Baker Hughes in a deal worth $34.6 billion (see Shotgun Wedding: Halliburton Forces Baker Hughes to Sell). The shotgun wedding was supposed to happen by the end of this year, then got pushed into early next year. Halliburton has experienced a series of “headaches” with their proposed buyout of Baker Hughes. Now the headaches are, according to one source, turning into a migraine. Yesterday the country of Brazil lodged complaints and concerns over the proposed merger. Brazil’s opposition alone would not be enough to sink the deal–but Brazil’s opposition combined with opposition coming from other sources just may be enough…
    Read More “Is the Halliburton Buyout of Baker Hughes in Trouble?”

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    Dominion’s Northern VA NatGas Electric Plant an Award Winner

    A natural gas-powered electric generating plant in northern Virginia that MDN told you about more than four years ago is now an award winner. In September 2011 MDN told you that Dominion would build a huge new electric plant, powered by Marcellus Shale gas (see Marcellus is “Game Changer” for New Electric Power Plants). The 1,329-megawatt Warren County Power Station entered into commercial operation on December 10th, 2014. The natural gas-fired power station, located just north of Front Royal, VA, can produce enough electricity to power about 325,000 homes at peak demand. The plant is among the cleanest fossil-fuel fired facilities in the nation, using three combustion turbines and a steam turbine. This clean-burning, environmentally-friendly FOSSIL FUEL PLANT was named Gas-Fired Project of the Year for 2015 by the editors at Power Engineering and Renewable Energy World magazines…
    Read More “Dominion’s Northern VA NatGas Electric Plant an Award Winner”