Marcellus Drilling News

Accidents | Blue Racer Midstream | Energy Services | Industrywide Issues | Monroe County | Ohio | Pipelines

Blue Racer Condensate Pipeline Ruptures/Burns in Monroe County, OH
October 30, 2014October 30, 2014

A Blue Racer Midstream condensate pipeline caught fire early Tuesday morning near Cameron (eastern part of Monroe County, OH). Condensate is lighter than crude oil but heavier than natural gas liquids. Think of it as really light oil. Blue Racer’s condensate pipeline runs from Utica wells in eastern Ohio to Blue Racer’s processing plant in Natrium, WV. According to officials, the rupture in the 8-inch pipeline burned for several hours and burned several acres of surrounding woods before burning itself out. Fortunately it was a remote area where the accident occurred and no one was injured…
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Energy Services | Industrywide Issues | Lebanon County | Pennsylvania | Pipelines | Statewide PA | Sunoco Logistics

Mariner East NGL Pipeline Begins Tests in Lebanon, PA
October 30, 2014October 30, 2014

It’s funny how reading anti-drilling media reports you get the impression that projects like Sunoco Logistics’ Mariner East Pipeline may be in jeopardy. The pipeline runs 300 miles from the western edge of Pennsylvania (and beyond) to southeastern PA in the Philadelphia area–to the Marcus Hook refinery. The pipeline, which will flow ethane and propane (natural gas liquids) is already in the ground except for a few miles in western PA. The only thing needed is approval to build 18 pump stations and 17 valve control stations in 31 municipalities along the route. Some of the municipalities are resisting by throwing up legal roadblocks (see West Goshen’s Legal Shenanigans Try to Block Mariner East Pipeline). Meanwhile, Sunoco plows ahead and has started testing the pipeline, to get it ready to go. In other words, this is not a question of if, it’s a question of when…
Read More “Mariner East NGL Pipeline Begins Tests in Lebanon, PA”
Anti-Drilling/Fossil Fuel | Health Impacts | Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY

Cuomo Staff Explains “End of Year” Deadline for Frack Report
October 30, 2014October 30, 2014

In the recent (and only) gubernatorial debate held in New York State, the man-child Andrew Cuomo, someone who can’t make a decision, when questioned/pressured about the issue of the now six-year moratorium on fracking, gave (yet another) new deadline for when he’ll make a decision. Cuomo said that the report due from the state Dept. of Health, originally due in February of 2013, but delayed from unknown reasons, will be ready by “the end of this year.” If we had a nickel for every time Cuomo has lied about the DOH report and about when a decision on fracking would be made, we’d be millionaires. A few days after the debate Cuomo’s staff had to clean up Andy’s poopy mess and say that the end of the year isn’t the man-child’s deadline–oh no–that deadline is what the DOH itself has privately told the man-child. In other words, more political CYA just in case the report doesn’t materialize by “end of year”…
Read More “Cuomo Staff Explains “End of Year” Deadline for Frack Report”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Landfills | Pennsylvania | Regulation | Statewide PA | Wastewater

PA Dem Congressman Demands Info from DEP on Frack Waste
October 30, 2014October 30, 2014

An anti-drilling Pennsylvania Democrat Congressman, Matt Cartwright, believes Washington, DC and not the individual states should be the ones regulating shale oil and gas drilling. So Cartwright, under the pretense of seeking information, has sent a letter to the acting Secretary of the PA Dept. of Environmental Protection (DEP) seeking information on how the state oversees frack waste disposal (wastewater and drill cuttings). Cartwright is the just the latest PA Democrat to bash away at the single industry keeping the PA economy out of the economic crapper. Cartwright, in his letter, refers to the flawed “report” from another high profile PA Dem who is critical of the industry, state Auditor General Eugene DePasquale (see Anti-Drilling PA Auditor General Criticizes DEP in “Report”)…
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Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Spectra Energy | Statewide PA | UGI Energy Services

Spectra Energy Becomes 6th Partner in PennEast Pipeline Project
October 30, 2014October 30, 2014

The more the merrier. The quintet of companies who are partnering to build the 100-mile PennEast Pipeline from northeastern PA to Trenton, NJ has turned into a sextet. Large regional utility company UGI has been/continues to be the lead company building the pipeline (see 3rd New NEPA Marcellus Pipeline Proposed, Connects to Trenton, NJ). The other original investors were AGL Resources, NJR Pipeline Company (subsidiary of New Jersey Resources) and South Jersey Industries. In September, the four original partners were joined by PSEG Power, New Jersey’s largest utility (see NJ’s Largest Utility Becomes 5th Partner in PennEast Pipeline). Now it’s partner number six: Spectra Energy…
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Energy Companies | Range Resources Corp

Range Resources 3Q14: Production Hits 1.2 Bcf/d, Big Credit Line
October 30, 2014October 30, 2014

Range Resources released their third quarter 2014 operational and financial update yesterday. The report shows the company is now producing 1.2 billion cubic feet per day, on average, of natural gas equivalents–up 26% from the same time last year. The company says they continue to realize “outstanding” well results in the Marcellus Shale, which is their main focus. Range also has a new bank line of credit agreement in place that allows them to borrow up to a massive $4 billion…
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Energy Companies | Hess | Ohio | Statewide OH | Utica Shale

Hess 3Q14: Says Almost Nothing About Utica Operations
October 30, 2014October 30, 2014

Not long ago Hess sold off its retail (gas stations) and transportation operations, completing its transformation into an E&P-only company (see Marathon Petroleum Buys the Hess Truck! What Will We Do for Xmas?). One of the operational areas for Hess is the Utica Shale in Ohio. In May of this year, the company said it was in the process of drilling 35 Utica wells this year (see Hess Likes Early OH Utica Results, Drilling 35 Utica Wells in ’14). However, when we look at the latest quarterly update from the company, published yesterday, we find the following very brief references to the Utica…
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Industrywide Issues | Sand/Proppant | Supply Chain

SandBox Logistics Begins Work in Marcellus/Utica
October 30, 2014October 30, 2014

SandBox Logistics (clever name) provides trans-loading, storage, and “last mile delivery” of frac sand used in hydraulic fracturing. Sandbox’s delivery process is patented. According to the company, their delivery process and the containerization process they use increases operational efficiency by eliminating many of the logistics problems and transportation bottlenecks that can happen. The SandBox system also substantially reduces silica dust and noise pollution. Why go on about SandBox? Because drilling services company U.S. Well Services has just signed a contract with SandBox to use them in their Marcellus/Utica operations. It marks the first time SandBox has done business in our neck of the woods…
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Best of the Rest

Marcellus & Utica Shale Story Links: Thu, Oct 30, 2014
October 30, 2014October 30, 2014

The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading:
Read More “Marcellus & Utica Shale Story Links: Thu, Oct 30, 2014”
Coterra Energy (Cabot O&G) | Energy Companies | Pennsylvania | Susquehanna County

Cabot O&G 3Q14: A Wandering Eye + Welcome to the 2 Bcf/d Club!
October 29, 2014October 29, 2014

Last week Cabot Oil & Gas issued its third quarter update. The official announcement was long on the financials and very short on details for their ongoing Marcellus Shale program in Susquehanna County, PA. We’ve lifted the relevant (short) section below. However, the company also held the ubiquitous analyst phone call and in that phone call (transcript below), we get a lot more detail about Cabot’s Marcellus program. One gem: the company is now producing 1.8 to 2.0 billion cubic feet per day of natural gas in the Marcellus. Cabot will be the first company to be officially inducted into the record-breaking 2 Bcf/d Club! Although the company plans to drill 180-190 new wells in 2015, only about half of those wells will be in the Marcellus. Alas, another shale play is now turning the head of Cabot…
Read More “Cabot O&G 3Q14: A Wandering Eye + Welcome to the 2 Bcf/d Club!”
Bradford County | Energy Companies | Lycoming County | Pennsylvania | Southwestern Energy | Susquehanna County

Southwestern 3Q14: 2 Wells Near NY Border are “Promising”
October 29, 2014October 29, 2014

Southwestern Energy released their third quarter financial and operational update late last week. Picking through the release we find that their Marcellus gas production is up 47% from a year ago this time. At the end of September, the company had 234 operating Marcellus wells in production, and another 102 wells in various stages of being drilled. The vast majority of Southwestern’s wells are in Susquehanna and Bradford counties (PA), with a fair number also in Lycoming County, PA. Southwestern says they continue to test “the Upper Marcellus” and have drilled three such wells to date. Perhaps the biggest news (for New Yorkers) is this statement: “Two wells have also been drilled near the New York border in Susquehanna County. Early results are positive and work has begun to build a gathering system for future development in this area.” You can’t tell us there isn’t a boatload of gas sitting right across the border in the Empire State–if only the man-child Andrew Cuomo would make up his mind to allow drilling…
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CONSOL Energy | Energy Companies

CONSOL Energy 3Q14: Splitting the Company in Two, 1 Bcf/d Club
October 29, 2014October 29, 2014

CONSOL Energy continues its transformation from coal company to oil and gas company. In fact, it’s nearly complete. On a conference call yesterday discussing the company’s stellar performance in the Marcellus and Utica Shale, CONSOL officials hinted that they will soon split the company, putting the coal operation into its own master limited partnership (MLP). Meanwhile, also on the same call, CONSOL CEO Nick Deluliis said any day now the company’s production volume will blow on by the 1 billion cubic feet per day mark. Welcome to the 1 Bcf/d club!…
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Energy Companies | Noble Energy

Noble Energy 3Q14: Production Up 95%, Drilled 23 New Wells
October 29, 2014October 29, 2014

Noble Energy released their third quarter numbers and operational update yesterday. The company operates in several U.S. shale basins as well as the Gulf of Mexico and several foreign locations. Of note is their ongoing program in the Marcellus Shale. Production for Noble from the Marcellus is up 31% from 2Q14 and up a big 95% year over year in 3Q14. They drilled 23 Marcellus wells during 3Q14 and brought 23 wells online during the quarter as well. Here’s the low down on Noble’s Marcellus program over the last three months:
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Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Kinder Morgan | Pipelines | Tennessee Gas Pipeline

MDN is Outraged at Massachusetts Anti-Pipeline Outrage
October 29, 2014October 29, 2014

We’re outraged at the outrage of hypocritical anti-drillers. An article from Massachusetts begins this way: “Gas pipeline opponents throughout the state of Massachusetts are outraged about a new pipeline support coalition that has formed because the group not only has ties to the company trying to put the pipeline in place, but is also putting big businesses before residential concerns.” That set us off! Here’s what we’re outraged about…
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Best of the Rest

Marcellus & Utica Shale Story Links: Wed, Oct 29, 2014
October 29, 2014October 29, 2014

The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading:
Read More “Marcellus & Utica Shale Story Links: Wed, Oct 29, 2014”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Pennsylvania | Statewide PA | UIL Holdings

Philly City Council Kills the Phila. Gas Works $1.86B Deal
October 28, 2014October 28, 2014

There’s a reason Philadelphia has the reputation of being one of the most corrupt cities in America–because it is. We have proof. Back in March of this year, after a long, hard process, the Democrat Mayor of Philly, Michael Nutter, announced a deal to sell the municipally-owned (and bleeding money) Philadelphia Gas Works to UIL Holdings Corporation, a Connecticut-based investor-owned gas and electric utility holding company (see Phila. Gas Works Deal for $1.86B – Marcellus/Utica One of Keys). The deal would have injected $424 million into the city’s failing pension fund. It was a win/win all the way around. What did the corrupt City Council do? Diddle around, giving special interests time to mount opposition (see Philly City Council Continues to Diddle Around on PGW Sale). Yesterday the corrupt City Council announced they were killing the deal Nutter, one of their own, worked so hard to negotiate…
Read More “Philly City Council Kills the Phila. Gas Works $1.86B Deal”