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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”

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    Kinder Morgan Steps Up Marcellus/Utica Investment with NGPL Buyout

    On Monday the largest pipeline company in the United States, Kinder Morgan, and their partner Brookfield Infrastructure Partners, announced a deal to buy out a third partner in the Natural Gas Pipeline Company of America (NGPL). When the deal is done, both Kinder Morgan and Brookfield will each own 50% of NGPL, although Kinder is the pipeline operator. NGPL, in case you haven’t heard of it, is a huge interstate pipeline system located in the Midwest and southwest. (See a copy of Kinder Morgan’s pipeline systems map below. The dark green lines represent NGPL.) So why is the NGPL buyout in the Midwest/southwest a Marcellus/Utica story? Because NGPL is currently building an expansion in the Chicago area, appropriately called the Chicago Market Expansion Project. That expansion will carry gas coming into the NGPL pipeline where it intersects with the Rockies Express (REX) pipeline in in Moultrie County, Illinois northward into the Chicago area. REX recently reversed its flow and now carries Marcellus/Utica gas to Moultrie—meaning more Marcellus/Utica gas will be flowing to the Chicago area starting in 2016 when the Expansion Project is put into service (see 1.8 Bcf/d of Marcellus/Utica Gas Heads West on REX Starting Aug 1). A little over two months ago Kinder Morgan announced they would reverse the flow for part of NGPL and begin sending northeast gas south, to the Gulf Coast (see Marcellus/Utica Gas Heading to TX LNG Export Plant…in 2018), meaning gas arriving at Moultrie will not only go north, it eventually will go south too. So the NGPL purchase is very much about the Marcellus/Utica…
    Read More “Kinder Morgan Steps Up Marcellus/Utica Investment with NGPL Buyout”

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    Columbia Pipeline Group Floats 51M Shares of New Stock

    Columbia Pipeline Group, a major player in the Marcellus/Utica midstream, was spun out into its own company in July from parent NiSource (see NiSource/Columbia Pipeline Divorce is Final). The new company has made a number of investments in major projects, including $1.2 billion worth of investments in pipelines for the northeast in 2015 (see Columbia Pipeline 2Q15: Investing $1.2B in NE Projects This Year). With prices plummeting and investments increasing, how does a company like Columbia get more money to keep operating and expanding? One way is to sell debt (bonds and IOUs). Another way, the preferred way in our book, is to sell equity, or stocks. Right on cue Columbia announced yesterday they are floating 51 million shares of new stock in an effort raise money. The company doesn’t say how much they want to raise, but if you do some simple math and multiply this morning’s share price of $19.03 by 51 million you get a whopping $970.5 million–nearly $1 billion! They likely won’t get a full $19.03 per share, but hey, if even if they only get $15 per share that’s still $765M big ones. Here’s the announcement offering new stock in Columbia Pipeline…
    Read More “Columbia Pipeline Group Floats 51M Shares of New Stock”

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    PDC Energy’s CFO Gysle Shellum Sells $297K Worth of Co Stock

    PDC Energy is primarily focused on drilling new shale wells in Colorado’s Wattenberg Field. However, they do have a small operation in the Ohio Utica Shale as well. At last check-in PDC was contemplating whether or not to restart their paused Utica drilling program (see PDC May Un-pause OH Utica Shale Drilling Earlier than Expected). We believe they have reactivated their Utica program based on the fact they received permits to drill four wells from May through August 2015, according to the latest volume of the 2015 Marcellus and Utica Shale Databook. Today we told you in a related story that Toby Rice, President & COO of Rice Energy, recently purchased $100,000 worth of his own company’s stock. PDC Energy’s Chief Financial Officer, Gysle Shellum, has just sold $297,000 worth of his company’s stock…
    Read More “PDC Energy’s CFO Gysle Shellum Sells $297K Worth of Co Stock”

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    Rice Energy President Toby Rice Buys $100K Worth of Co Stock

    From time to time (not all of the time) when we notice a drilling or midstream company executive buying or selling company stock–called insider buying or insider selling–we bring you that news. We always take it as a good sign when those responsible for a company–either senior management or the board of directors–buys stock in the company they manage. For us, it’s evidence of confidence in the direction of the company. “Eating your own dog food.” Such is the case with one of our favorite Marcellus/Utica drillers–Rice Energy. Rice is a young company led by three young brothers–Dan (CEO), Toby (President & COO) and Derek (EVP). Toby has just purchased 7,500 shares of Rice Energy for $99,750…
    Read More “Rice Energy President Toby Rice Buys $100K Worth of Co Stock”

  • Marcellus & Utica Shale Story Links: Wed, Dec 2, 2015

    The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: it’s getting brutal out there; Oberlin, OH hires attorney to oppose NEXUS pipeline; Cabot O&G – a 2018 story; the shale gas revolution ain’t over yet; converting to propane; National Grid lowers gas prices; wacko Bernie Sanders opposes NED pipeline; Schlumberger axing more jobs; Chesapeake’s Doug Lawler blames Aubrey McClendon for his own failures; and more!
    Read More “Marcellus & Utica Shale Story Links: Wed, Dec 2, 2015”

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    Decision-time for Landowners in Demchak/Chesapeake Royalty Case

    lawsuitIs the long, sordid affair over Chesapeake Energy screwing Pennsylvania landowners out of royalties finally near an end? Chesapeake and some landowners, part of the “Demchak” class action lawsuit–certainly want you to think so. A year ago MDN told you about a settlement between “several thousand” Pennsylvania landowners and Chesapeake over the royalty issue–Chessy deducting post-production payments by pipeline companies in what some call a scam that leaves landowners signed with Chesapeake receiving royalty checks that are pennies on the dollar compared to what they should receive. The new settlement for those “several thousand” would be 2/3 of $11 million, after the lawyers get their 1/3 cut (see Chesapeake & PA Landowners Settle Royalty Lawsuit…Again). Many PA landowners who are leased with Chesapeake now face a decision–and doing nothing is not an option. The lawyers and the court are about to close the door on what is called the Demchak class action lawsuit. PA landowners with a “market enhancement clause” in their lease should have already received a form letter announcing that unless they opt out of the settlement, they will be included. Below we have an excellent outline of what your options are according to the PA National Association of Royalty Owners (NARO), along with the opinion of one Bradford County landowner who is less than thrilled with the Demchak settlement…
    Read More “Decision-time for Landowners in Demchak/Chesapeake Royalty Case”

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    DUC DUC Goose! The Growing Backlog of Uncompleted Shale Wells

    Ever hear of a DUC? No, we didn’t forget the “K” on the end of DUC. It stands for Drilled but UnCompleted (DUC) wells. Completing a well means taking the final step of fracking the well and hooking it up to production. Lately there’s been a lot of talk about DUCs–a large inventory of wells drilled (holes in the ground) not yet completed. Completing a well takes a lot of sand, water and money. There’s little incentive to complete wells when commodity prices for oil and gas are so low. In some cases drillers will drill the borehole and not complete a well as a way of holding their acreage before a lease expires. In other cases, they’d love to finish the job–but the price they will get is too darned low, so they put completion on hold. Sometimes a driller has contracted for a rig and crew to operate it–instead of canceling and owing that money anyway, they go ahead and drill. How many DUCs are there in general, and in the Marcellus/Utica specifically? The honest answer is, no one knows for sure. But smart analysts can make some pretty good guesses, based on company reports and their own industry knowledge. Below we bring you the latest we can find on DUCs–specifically how many DUCs there are in the Marcellus/Utica…
    Read More “DUC DUC Goose! The Growing Backlog of Uncompleted Shale Wells”

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    Shale Gas Faces Double Trouble: Low Prices & Pipeline Opposition

    According to the Institute for Energy Economics and Financial Analysis (IEEFA), the natural gas industry faces a double “new normal” that hobbles the industry: (1) low prices for natural gas for the foreseeable future, and (2) public opposition to pipeline expansion, especially in New England. Here’s what IEEFA’s executive director, Sandy Buchanan, says about this double threat to our beloved industry…
    Read More “Shale Gas Faces Double Trouble: Low Prices & Pipeline Opposition”

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    PA Senate Committee Votes to Recommend AG Kane’s Removal

    Last Wednesday, the Pennsylvania State Senate committee investigating PA Attorney General Kathleen Kane recommended to the full Senate that she be removed from office. Now. Before any more damage is done to the office of the AG. We’ve long covered the scandal that is about to bring down Kathleen Kane (see our Kane stories here). The scandal bringing her down has nothing to do with the Marcellus Shale, other than it will rid us of a liberal Democrat who illegally targets the drilling industry. No–she has herself to thank when she finally walks (or is dragged) through the exit door. She is a mean, vindictive person who sought to discredit a political enemy by leaking privileged grand jury testimony to a reporter (a felony), and then lying under oath about it (which is perjury, another felony). In fact she’s been indicted on a number of crimes. Last week the PA Senate said “enough is enough, it’s time for her to go.” And what did Kane do? Once again, like a broken record, she said a bunch of dirty old men who work for the state and who swapped porn using their state email accounts are out to get her because she discovered their dirty little secret…
    Read More “PA Senate Committee Votes to Recommend AG Kane’s Removal”

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    Jimmy Stewart Makes the Case for NEXUS Gas Pipeline in Ohio

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    Jimmy Stewart, president OGA

    Jimmy Stewart (no, not that one, another one!) is the former Majority Leader of the Ohio Senate. After his days in the Senate, Stewart joined the Ohio Gas Association as its President. Perhaps feeling the need to push back against the steady drumbeat of negativity coming from anti-frackers who also oppose pipelines in the Buckeye State, Stewart wrote a powerful guest column for the Cleveland Plain Dealer to make the case for major new natural gas pipelines in general, and to make the case for Spectra Energy’s NEXUS Gas Transmission pipeline in particular. Here is that powerful column…
    Read More “Jimmy Stewart Makes the Case for NEXUS Gas Pipeline in Ohio”

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    Will Low Oil/Gas Prices Lead to ‘Social Unrest’? $25/Bbl Coming?!

    The low price of oil (and gas) is blamed for a lot of things. You can add one more to the list: social unrest. You might think oil and gas prices being obscenely high would lead to “social unrest,” but according to analysts at RBC Capital Markets, it’s the opposite. The theory goes like this…In big oil countries like the U.S., Russia or even “wealthier” Middle Eastern countries like Saudi Arabia, when the price of oil crashes, they have the national resources to ride out the price collapse (i.e. keep welfare programs going)–until the price rebounds. But not all oil exporting countries are so fortunate. What if the price of oil hits the $25 per barrel range next year, as is predicted by RBC Capital Markets? According to their analysts, there are some (socialist) countries that will stop paying for public programs, and that will lead to “social unrest” as those addicted to the public teat get weened (think Greece). Among those countries are what RBC calls “the Fragile Five”–countries where ISIS is believed to be active. Which countries are they?…
    Read More “Will Low Oil/Gas Prices Lead to ‘Social Unrest’? $25/Bbl Coming?!”

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    Paris Climate Summit Jazzes Obama…Why it Doesn’t Matter

    Yesterday our Dear Leader, Barack Hussein Obama (BHO), addressed global warming nutters from around the world who came to Paris to agree to less freedom for citizens of the United States (and to sentence developing countries to lifetimes of misery). That about sums up what the United Nations twenty-first conference of the parties (COP-21) is all about. It’s about limiting economic activity in countries around the world under the pretense of man-made global warming. What’s funny about yesterday is that even one of their own, BHO, was a little too windy for the assembled nutters. Apparently you can have too much wind–who knew? BHO, like other world leaders to address the assembled warmers, was given a 3-minute time slot to spout his opinions blaming the USA for global warming. But BHO, like the Energizer Bunny, just kept going and going and going. At the nine minute mark the Frenchies started to hit the buzzer and kept stabbing it periodically to signal BHO it was time to get his @$$ off the stage. But the tone deaf BHO kept right on jabbering until he was done reading the last word the teleprompter told him to read–some 11 minutes after he began. Below we have the story of BHO’s long-winded address to COP-21, along with some rational views about what this ill-fated conference is really all about, and why no agreement BHO signs will ever see the light of day (or matter) in the good old US of A…
    Read More “Paris Climate Summit Jazzes Obama…Why it Doesn’t Matter”

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    Free Book: Why Scientists Disagree about Global Warming

    All eyes are currently on Paris and the United Nations twenty-first conference of the parties (COP-21). COP-21 is an attempt to force all of the nations of the world to sign on to the myth of man-made global warming–and force them to reduce carbon output, which they believe will lower said global warming. In reality not even the people attending really believe in this nonsense–they use it as a method of controlling the citizens of the world. It’s about power–and the abuse of power. But let’s pretend there are some who do really believe this childish nonsense. What arguments do they use? One of the chief arguments is a lie so often repeated it’s now believed–that there is a “consensus” of scientists that man-made global warming is real. Something like 97% of all scientists believe it. Thing is, that statistic is pulled from an artificially low, select number of scientists. It’s not real. Yesterday, as COP-21 got under way, the Nongovernmental International Panel on Climate Change (NIPCC) released a new book titled “Why Scientists Disagree about Global Warming: The NIPCC Report on Consensus” (get a free copy below). This important new book lays bare and refutes the claim that there is a “scientific consensus” on the causes and consequences of climate change…
    Read More “Free Book: Why Scientists Disagree about Global Warming”

  • Marcellus & Utica Shale Story Links: Tue, Dec 1, 2015

    The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: natgas price expectations & EQT; PA opportunity zones for natgas; PA pipelines are for the common good; PA’s ERA (Environmental Rights Amendment); New England needs more natgas with nuke closing; hedge protection for gas producers disappearing; Chesapeake heading for bankruptcy?; the energy story Obama won’t tell; Russia & Turkey & energy; and more!
    Read More “Marcellus & Utica Shale Story Links: Tue, Dec 1, 2015”