Marcellus Drilling News

Hydraulic Fracturing | Industrywide Issues | Landfills | Pennsylvania | Research | Statewide PA | Wastewater

PA DEP Completes Fracking Radiation Study, Concludes “Little Harm”
January 16, 2015January 16, 2015

We love it when we get to close a loop–especially this one. Exactly two years ago the Pennsylvania Dept. of Environmental Protection, under then Secretary Mike Krancer, embarked on what would become a two-year, top to bottom, “thorough and rigorous” study of radiation in shale drilling (see PA DEP Announces New Study of Radiation in Shale Drilling). That is, they would use real science to figure out whether we will all, as the anti-drillers claim, begin to glow in the dark from exposure to radiation in wastewater, radiation in drill cuttings and radiation in “fracked gas” as they frequently prattle on about. The 200-page study is complete and we have a copy (below). What did the DEP conclude in their “peer reviewed” study? “There is little potential for harm to workers or the public from radiation exposure due to oil and gas development.” That is, the DEP says all of these wild-eyed claims of radiation poisoning are false…
Read More “PA DEP Completes Fracking Radiation Study, Concludes “Little Harm””
Energy Services | Industrywide Issues | Jobs | Schlumberger

Schlumberger Firing 9,000 to Reduce Head Count, “Low Oil Prices”
January 16, 2015January 16, 2015

Wow…is about all we can say. Yesterday Schlumberger (pronounced Shlum-Bur-Zhay), the world’s (and the U.S.’s) largest oilfield services company, issued its fourth quarter 2014 and full-year 2014 operating results. Although revenues in 4Q14 rose 6.2 percent to $12.6 billion, earnings, what they pay investors, decreased by 82%–to $302 million for the quarter, largely because of “one-time charges.” The radical drop in oil prices has deeply affected Schlumberger. However, it wasn’t their financial results but this short mention in yesterday’s update that caught everyone’s attention: “In response to lower commodity pricing and anticipated lower exploration and production spending in 2015, Schlumberger decided to reduce its overall headcount to better align with anticipated activity levels for 2015. Schlumberger recorded a $296 million charge associated with a headcount reduction of approximately 9,000.” Ouch. It makes Doug “the ax” Lawler over at Chesapeake look like a junior achiever by comparison. Schlumberger employs about 120,000 worldwide, so 9,000 represents 7.5% of their workforce. Gone…
Read More “Schlumberger Firing 9,000 to Reduce Head Count, “Low Oil Prices””
Energy Companies | Industrywide Issues | Range Resources Corp | Reserves (Proved and Unproved)

Range Hits Record High 10.3 Tcfe Proved Reserves in 2014
January 16, 2015January 16, 2015

A high level report wrapping up stellar results for 2014 was issued by Range Resources yesterday. Among the things Range is justifiably crowing about: Their proved reserves have increased by 26% to 10.3 trillion cubic feet equivalent (Tcfe). In 2014, it cost Range an average of $0.64 per million cubic feet (Mcf) to find and develop their Marcellus Shale acreage–get it ready to drill. And in 2014, it cost them an average $0.55/Mcf to drill and develop their acreage. That’s a combined $1.19 per Mcf cost to Range to find, drill and product, so you can see they’re still making money on dry gas that sells for less than $3/Mcf (plus they’ve hedged, meaning they get even more for their gas than the going spot price). There’s plenty of other goodies in yesterday’s announcement…
Read More “Range Hits Record High 10.3 Tcfe Proved Reserves in 2014”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Lancaster County | Pennsylvania | Pipelines | Williams

Indians on the War Path Against Pipeline in Lancaster County, PA
January 16, 2015January 16, 2015

A “native American” (i.e. Indian) tribe in Lancaster County, PA doesn’t want the Williams Atlantic Sunrise Pipeline to traverse “sacred” land, and they’re willing to “make noise, protest and rally, block bulldozers” to stop it, according to Chief Carlos Whitewolf. The good Chief Whitewolf is from the Northern Arawak Tribal Nation of Pennsylvania, which arrived in PA in 1898, long after PA was already part of the United States of America. But it gets stranger. There is no Arawak land in Lancaster County. However, there is Conestoga land, belonging to a different tribe. But the Conestoga tribe was “wiped out,” so there are no Conestoga Indians in Lancaster County either. But the good Chief Whitewolf feels an obligation to stick up for them, even though they are no more…
Read More “Indians on the War Path Against Pipeline in Lancaster County, PA”
Industrywide Issues | Pennsylvania | Regulation | Statewide PA

PA Gov Wolf Defends Anti-Drilling Choices for DEP, DCNR
January 16, 2015January 16, 2015

Pennsylvania Gov.-Elect Tom Wolf is already playing defense about his pick of two people–John Quigley and Cindy Dunn, both of whom have worked for the anti-drilling PennFuture organization–to run the Dept. of Environmental Protection and the Dept. of Conservation and Natural Resources, respectively (see Wolf Officially Announces Quigley to Head DEP, Dunn to Head DCNR). He’s also pretty thin-skinned about the valid observation that he seems to using a lot of Rendell retreads in his administration–both Quigley and Dunn, as well as others, worked for former Gov. Ed “Fast Eddie” Rendell. Seems that Wolf’s “outsider” facade is being ripped right off his face. Wolf’s team is composed of consummate Harrisburg insiders. Here’s what Wolf snipped to reporters yesterday when asked about it…
Read More “PA Gov Wolf Defends Anti-Drilling Choices for DEP, DCNR”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | PennEast Pipeline | Pipelines

Brainwashing NJ Students Against the PennEast Pipeline
January 16, 2015January 16, 2015

There’s plenty of brainwashing of children going on in New Jersey. The brain washers include the Delaware Riverkeeper and the NJ Sierra Clubbers. Like good little mind-numbed robots, the members of the environmental club at Delaware Valley Regional High School in Hunterdon County, NJ invited Riverkeeper and the Sierra Club to present their dog and pony show bashing away at the PennEast pipeline–and apparently they lapped it right up. Note that no one from PennEast was invited to present the other side of the issue. It’s really important that children be brainwashed early on and not be exposed to opposing arguments (i.e. the truth)–so they can enjoy a lifetime of never having to think for themselves…
Read More “Brainwashing NJ Students Against the PennEast Pipeline”
Allegheny County | Industrywide Issues | Pennsylvania | Supply Chain

Pittsburgh Oilfield Services Co Expands with Local Investment
January 16, 2015January 16, 2015

Three Pittsburgh-area oilfield services companies–White’s Equipment Rental, Crossfire Production Services, and White’s Welding–are collectively owned by a single company, White’s Holdings. Owner Calvin White started White’s Welding first, in Oklahoma, and grew the enterprise from there, eventually expanding into the northeast. White’s move to the northeast was prescient. The Marcellus/Utica has supercharged his businesses in the region. It was time to grow, and is often the case, small businesses growing into medium-sized businesses need cash to do so. Enter another Pittsburgh-area company, F.N.B. Capital Partners (FNBCP), a private equity firm. FNBCP has just announced they’ve made an investment in White’s Holdings so the company can expand. That is, White has traded away some ownership (retaining majority ownership) in return for cash to expand the three businesses that serve the drilling industry in the northeast. Another jobs and economic miracle courtesy of fracking…
Read More “Pittsburgh Oilfield Services Co Expands with Local Investment”
Best of the Rest

Marcellus & Utica Shale Story Links: Fri, Jan 16, 2015
January 16, 2015January 16, 2015

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: Fri, Jan 16, 2015”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Pennsylvania | Regulation | Westmoreland County

Anti-Drillers Go “Out of Control” at Ligonier, PA Town Meeting
January 15, 2015January 15, 2015

If there’s one thing you NEVER do, it’s get between an anti-driller and a camera/microphone. Elected town leaders in Ligonier Township (Westmoreland County), PA found that out the hard way Tuesday night. At the regular town board meeting there was a 45-minute section of the meeting, out of a much longer meeting, devoted to discussion of new zoning regulations for Marcellus Shale drilling in the township. The new zoning regs are, according to town leaders, a “work in progress.” About 100 people showed up at the meeting, 50 of whom wanted to talk about this “work in progress.” It was a regular town board meeting and not the time to devote the 3-4 hours necessary for anti-drillers to preen before the cameras and spew their same old same old. Ligonier supervisors kept to the 45-minute time limit and shut down the freak show at that point. That enraged a handful of mouthy anti-drillers and, according to witnesses, the meeting got “out of control”…
Read More “Anti-Drillers Go “Out of Control” at Ligonier, PA Town Meeting”
Air Quality | Industrywide Issues | Regulation

Reaction to Obama’s Draconian Plan to Cut “Fugitive” Methane 45%
January 15, 2015January 15, 2015

Yesterday President Obama signaled now the war on coal is largely won (coal lost), he’s moved on to a war on the oil and gas industry. The White House announced their intent to have the federal EPA and other agencies, like the Bureau of Land Management, impose onerous new “rules” on so-called fugitive methane emissions in the oil and gas industry (see White House Pledges to Cut “Fugitive” Methane by 40-45%). Here’s what you need to know about yesterday’s announcement: So far, there are no specifics as to how the EPA will cut those emissions by 40-45%–what draconian measures they will adopt. That’s coming along this summer. Yesterday’s announcement was simply “get ready for the next shoe to drop.” It was Obama, like the bully he is, telling his intended victims he’s coming and he’s going to beat them up, real bad. So now we wait until “summer” when the shoe will drop. Below we have reaction, both praising and condemning Obama’s plan to regulate methane emissions…
Read More “Reaction to Obama’s Draconian Plan to Cut “Fugitive” Methane 45%”
Anti-Drilling/Fossil Fuel | Industrywide Issues | New York | Pennsylvania | Research | Statewide NY | Statewide PA | Statewide WV | Wastewater | West Virginia

Yet Another Duke University Study Smears the Marcellus Industry
January 15, 2015January 15, 2015

Let’s see, it’s a new month in a new year–must be time for a new Duke University study (located in North Carolina) to pop up smearing Marcellus Shale drilling (located in Pennsylvania and West Virginia). Yep, that’s just what’s happened. The new study, titled “Iodide, Bromide, and Ammonium in Hydraulic Fracturing and Oil and Gas Wastewaters: Environmental Implications” was published yesterday in the “peer reviewed” journal Environmental Science & Technology. Here’s all you need to know about this “study”: The lead author is a Duke University student (looking to make a name for herself), and it was funded by the virulently anti-drilling Park Foundation. Which means the outcome of the so-called “study” was written before the first test tube was held over a Bunsen burner…
Read More “Yet Another Duke University Study Smears the Marcellus Industry”
Energy Services | EnLink Midstream | Guernsey County | Industrywide Issues | Noble County | Ohio | Pipelines | Washington County (OH)

EnLink Extends Open Season for OH Condensate Pipeline by 6 Weeks
January 15, 2015January 15, 2015

In August 2014, EnLink Midstream announced a new 45-mile condensate pipeline that will stretch across Guernsey, Noble and Washington counties in Ohio (see EnLink Midstream Announces New Condensate Pipeline in ORV). EnLink calls the project, which connects to another EnLink pipeline in Washington County, the Ohio River Valley Pipeline. In mid-December EnLink launched a 30-day binding open season for shippers to sign up for capacity on the new pipeline (see EnLink Launches 1 Month Open Season for ORV Condensate Pipeline). Midstream companies won’t build expensive pipelines (this one will cost $250 million) unless they have 15-20 contracts in place to guarantee they’ll make their money back. Today EnLink announced they’re extending the open season another six weeks–to the end of February. Oh oh, must mean they don’t yet have enough interested customers to build it…
Read More “EnLink Extends Open Season for OH Condensate Pipeline by 6 Weeks”
Economic Impact | Electrical Generation | Industrywide Issues | Jobs | Ohio | Trumbull County

Lordstown Gas-Powered Electric Plant Moves Up Construction Timeline
January 15, 2015January 15, 2015

In April 2014, MDN told you about a proposal from Clean Energy Future to build an $800 million electric generation plant in Lordstown (Trumbull County), OH. The plant will be fired by natural gas from the Utica and Marcellus (see Clean Energy Plans NatGas Electric Generation Plant in Lordstown). At that time, the plan was to begin construction in December 2015 and complete the plant by the end of 2018. There was initial opposition to the plant because the site on Salt Springs Road would need to be re-zoned from residential to industrial. That didn’t go down well with the neighbors. Clean Energy Future has changed the plan to a different location. Those who once opposed the plant now embrace it and want it as a jobs-creator for the area. This is a happy story of industry and residents working together for a positive solution. It illustrates what happens when adults behave like adults…
Read More “Lordstown Gas-Powered Electric Plant Moves Up Construction Timeline”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Pennsylvania | Statewide PA

What’s Next for PA Attorney General Kathleen Kane?
January 15, 2015January 15, 2015

On Monday MDN told you that Pennsylvania’s anti-drilling Democrat Attorney General, Kathleen Kane, is herself under investigation for leaking secret grand jury information to a newspaper (see Impeachment, Arrest Looms for PA AG Kane, Caught Leaking Info). So what happens now to Kane? Does she get arrested (so richly deserved after she’s arrested innocent people in the drilling industry numerous times)? Will she be forced to resign because she can no longer do her job (although one can argue she hasn’t been doing it for the past two years)? Will she be impeached and removed from office? Will nothing happen at all? The Philadelphia Inquirer, right in the center of this controversy (a couple of their reporters have been subpoenaed as receiving the secret info from Kane), delves into what may be next for PA’s in-trouble AG…
Read More “What’s Next for PA Attorney General Kathleen Kane?”
Industrywide Issues | Pennsylvania | Regulation | Statewide PA

Wolf Officially Announces Quigley to Head DEP, Dunn to Head DCNR
January 15, 2015January 15, 2015

It’s official. As we told you two days ago, Pennsylvania Gov.-Elect Tom Wolf would select two anti-drillers to head up the organizations that oversee drilling in the state, those organizations being the Dept. of Environmental Protection (DEP) and the Dept. of Conservation and Natural Resources (DCNR). We told you the leaked-by-Wolf names would be John Quigley for DEP and Cindy Dunn for DCNR (see PA Gov-Elect Wolf Selects Anti-Drillers to Head DEP, DCNR). Both worked for the anti-drilling organization PennFuture (Dunn as its president). The leaked rumor is no longer rumor. Yesterday Wolf’s transition team made the disappointing official announcement…
Read More “Wolf Officially Announces Quigley to Head DEP, Dunn to Head DCNR”
Best of the Rest

Marcellus & Utica Shale Story Links: Thu, Jan 15, 2015
January 15, 2015January 15, 2015

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, Jan 15, 2015”