Marcellus Drilling News

Energy Companies | Keystone Mountaineer | Mountaineer Keystone | PDC Mountaineer | Statewide WV | West Virginia

Major New Player in the Marcellus Emerges: Mountaineer Keystone
October 16, 2014November 19, 2015

Earlier this week Mountaineer Keystone, a shale driller headquartered in Pittsburgh, announced it had bought out PDC Mountaineer for half a billion dollars ($500 million). Who are these two players? Mountaineer Keystone is backed by the money of investment firm First Reserve. PDC Mountaineer is a joint venture between PDC Energy and investment firm Lime Rock Partners. The deal means Mountaineer Keystone picks up a huge 131,000 net acres in the Marcellus/Utica region, boosting the company’s position to a new 181,000 net acres. Also part of the deal is a small gathering pipeline operation. Here’s the details…
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Earthquakes | Harrison County | Industrywide Issues | Ohio | Research | Utica Shale

Study Says Series of Unfelt Earthquakes in OH from Utica Fracking
October 16, 2014October 16, 2014

Another day, another “study” that says fracking causes earthquakes–this time in Ohio’s Utica Shale. In typical and now predictable fashion, mainstream media does a “drive-by” with the information–like a drive-by shooting–and then continues on its merry way. Here at MDN we’ll break it down and explain it so you have ALL the facts and not anti-drilling “impressions” of what the data says. First off, an admission that we don’t (yet) have a full copy of the newly published study, which has reportedly been published in the journal Seismological Research Letters (but which we can’t find on their website). We’ve requested a full copy of the paper and are awaiting it and hope to share it with you when we get it. The study is titled, “Characterization of an earthquake sequence triggered by hydraulic fracturing in Harrison County Ohio” and looks at a series of “400 earthquakes” that were so tiny as to be unfelt by anyone–but detectable by finely tuned equipment. The earthquakes happened in Harrison County, OH and are thought (but not proven) to be the result of fracking several Utica wells over top of a previously unknown geologic fault. The author of the study himself says the earthquakes couldn’t even be felt by anyone…
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Industrywide Issues | Pennsylvania | Pipelines | Regulation | Statewide PA | Taxation

New PA Legislation SB 1499 Would Stop Many Pipeline Projects
October 16, 2014October 16, 2014

In a cleverly disguised move to stop Marcellus drilling, two Philadelphia-area state senators–Andy Dinniman (Democrat, Chester) and John Rafferty (RINO, Montgomery)–have teamed up to introduce legislation, Senate Bill (SB) 1499 (full copy below) that would assess an “impact fee” on new pipelines and possibly existing pipelines re-purposed for a different use. The pipelines getting this new fee are pipelines that specifically carry natural gas, NGLs or oil (other pipelines don’t count). The fee would only be assessed on pipelines in what they define as “high-consequence areas” like, you know, the Philly area. Places with lots of residences and businesses. You live in the sticks? They don’t care. You don’t get nuthin. You live someplace “important” like Philly? Soak ’em. Similar to the current drilling impact fee part of Act 13 (this is what’s clever), the money raised stays local–50% of it to the county, 40% to the town/city where the pipeline runs, and 10% to the state Public Utility Commission. How much of this new “impact fee” does the landowner get–the people who are most inconvenienced by having the pipeline? 0%…
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Allegheny County | Beaver County | Energy Companies | Energy Services | Ethane | Industrywide Issues | Odebrecht | Pennsylvania | Processing Plants | Shell | Statewide PA | Statewide WV | West Virginia | Wood County

Odebrect Cracker Aims to Attract Chemical/Plastics Manufacturing
October 16, 2014October 16, 2014

David Peebles, Odebrecht’s vice president of business development and the guy working to make the $4 billion ethane cracker and petrochemical plant project in Parkersburg, WV a reality, gave some great insights into just how vast and complex a process building that plant is. Speaking yesterday at the Penn State Natural Gas Utilization Conference in Southpointe, PA, Peebles said…
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Energy Services | Kinder Morgan

Kinder Morgan 3Q14 Update: NED and UTOPIA, Etc.
October 16, 2014October 16, 2014

Yesterday the largest pipeline company in America, Kinder Morgan, issued its third quarter 2014 update. The big news during 3Q14 was, of course, that Kinder has decided to shed its MLP (master limited partner) structure whereby the company is carved into different pieces for the sake of investors–and rejoin all of the pieces into one. Also bubbling along at Kinder is the massive Tennessee Gas Pipeline through Massachusetts, called the Northeast Energy Direct (NED) project, that will bring abundant supplies of Marcellus Shale gas to New England; and the Utica to Ontario Pipeline Access (UTOPIA) project that will pipe ethane to Canada. The Kinder press release with the update was massively long with teeny tiny type. We’ve waded through it to pull out just those bits that will be of most interest for those of us in the northeast…
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CNG/LNG | Dominion Energy | Energy Services | Exporting | Industrywide Issues | Maryland | Statewide MD

Dominion Midstream IPO Blows by Best Expectations
October 16, 2014October 16, 2014

On Tuesday MDN told you that Dominion was looking to raise $350 million with an initial public offering (IPO) for its new Dominion Midstream subsidiary (see Dominion Midstream IPO Seeks $350M for Cove Point Work). Today we’re happy to report the numbers are in–and Dominion surpassed their goal…
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Industrywide Issues | Jobs | Research

IL Study Finds Marcellus Shale Created 45K Construction Jobs
October 16, 2014October 16, 2014

The director of the labor education program at the University of Illinois at Urbana-Champaign, Dr. Robert Bruno, recently published recently published a new study titled, “Study of Construction Employment in Marcellus Shale Related Oil and Gas Industry” (full copy embedded below). The study looks at natural gas/Marcellus Shale employment data from 2008-2014 for parts of OH, PA, and WV. The study found that the number of jobs for electricians, plumbers, welders, equipment operators and laborers–skilled people who work with their hands–went through the roof because of the Marcellus Shale. Over 45,000 new construction jobs linked to the Marcellus were created. In one year, from 2012-2013, spending in the Marcellus area on construction and maintenance grew over 60%!…
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Commodity Price | Industrywide Issues

EIA Says Marcellus Prices Often Swing $1 Mcf Below Henry Hub
October 16, 2014October 16, 2014

An article published by the U.S. Energy Information Administration (EIA) on their online Today in Energy publication from yesterday highlights the ongoing struggle for prices in the Marcellus Shale region to keep pace with the benchmark Henry Hub in southern Louisiana. As MDN pointed out just a few weeks ago, it’s not inconceivable that a delivery point in the Marcellus will one day replace the venerated Henry Hub as the new benchmark price (see Will ‘Dominion South’ Replace ‘Henry Hub’ for Natgas Pricing?). The EIA story points out an obvious truth that bears repeating: When you have more production than you have in pipeline capacity to get that production to markets that want it–you get a surplus of supply and much lower prices. Sometimes those prices can, on a dime, swing to a dollar or more lower than the Henry Hub price…
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Best of the Rest

Marcellus & Utica Shale Story Links: Thu, Oct 16, 2014
October 16, 2014October 16, 2014

The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading:
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Crime | Greene County (PA) | Industrywide Issues | Pennsylvania | Regulation | Wastewater

Illegal Wastewater Dumping in Greene County, PA?
October 15, 2014October 15, 2014

A disturbing bit of news. Officials in Waynesburg, PA (county seat of Greene County, in the very southwestern tip of PA) say about 4,000 gallons of a “gray, milky substance” flowed through the local sewage treatment plant and that the plant’s flow meters spiked up when it happened. In other words, someone, somewhere dumped something down a manhole and that something got processed by the plant and ultimately discharged into Ten Mile Creek. The disturbing bit is that the plant’s operators, along with the PA Dept. of Environmental Protection (DEP), think the substance dumped may have been frack wastewater…
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Energy Companies | Pennsylvania | Statewide PA | WPX Energy

WPX Marcellus Assets Being Shopped in “Controlled Auction”
October 15, 2014October 15, 2014

As MDN has pointed out for some time now, Elvis, er um, WPX has left the building. Meaning WPX, although finishing up wells already permitted and started in the Marcellus–will not drill any new wells in the Marcellus. Does that mean landowners should be concerned that WPX will sell their already-drilled (and producing) wells in the Marcellus? In February, WPX spokeswoman Susan Oliver told MDN the company is definitely not selling their already drilled wells–100 of them or so (see WPX Gives MDN an Update on Their 2014 Marcellus Plans). However, an analysis by a trusted energy analyst has us wondering…
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Industrywide Issues | Research

EIA Report: Marcellus Exceeds 16 Bcf/d, Produces 37% of Shale Gas
October 15, 2014October 15, 2014

Yesterday the U.S. Energy Information Administration (EIA) released the latest monthly Drilling Productivity Report (DPR)–our favorite government agency and our favorite report. The October report, which makes predictions of volumes for November, shows the Marcellus Shale’s output of natural gas pushing by 16 billion cubic feet per day (Bcf/d), which is more than twice the output of any other shale play (the next highest is the Eagle Ford producing just over 7 Bcf/d). Another amazing number: the output from the Marcellus represents 37% of all shale gas output in the U.S. Below is the full October DPR…
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Anti-Drilling/Fossil Fuel | Erie County (NY) | Industrywide Issues | New York | Pennsylvania | Potter County | Statewide PA | Tioga County (PA)

MDN Prediction Comes True: Anti Criticizes Bills Sale to Fracker
October 15, 2014October 15, 2014

Just last week, with respect to the sale of the Buffalo “Marcellus” Bills to East Resources CEO Terry Pegula, we said the following tongue-in-cheek: “What’s interesting to us is that there’s zero talk about how Marcellus “blood money” has purchased the Bills. No talk that Pegula is an evil, nasty fracker….The talk, universally, is of a really great guy with a big heart that’s whip smart and committed to the Buffalo region (he previously bought the NHL Buffalo Sabres team). Where are the crazies and their loony toons criticisms? Where are the protesters? Nowhere to be found” (see Buffalo “Marcellus” Bills – Team Sold to Fracker for $1.4B). Well, such a loon has now been found, and a Wilkes-Barre newspaper published his rantings…
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Industrywide Issues | Jobs | Statewide WV | West Virginia

WV Shale Jobs Make Slight Increase, Wages Up Avg $2,400/Year
October 15, 2014October 15, 2014

According to the 2011 West Virginia Horizontal Well Control law, the Dept. of Commerce’s Workforce West Virginia agency is required to file an annual report detailing the number of jobs created (or lost) in the shale drilling industry in the state. The report is due by Nov. 1 each year. Last year, the 2013 report showed a big jump of 20%, with wages going up $5,500 in just one year–to $75,580 (see Looking for a Job in the Marcellus? Think WV). A lot of WV’s employment is tied to building pipelines. The report for 2014 is fresh out. What does it show? It shows 1,100 more people found jobs in the industry this year–however, many pipeline projects ended and with them, jobs working on those pipelines. In the end, according to the report, only 69 net new jobs were created throughout the industry over the past year when you add the new workers and take out the temp jobs now ended. However, the average wage for all workers in the oil & gas sector in WV went up again–another $2,400 per year…
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Broome County | Hydraulic Fracturing | Industrywide Issues | New York | Statewide NY

Cornell’s Dr. Cathles to Discuss Methane Migration on Radio Program
October 15, 2014October 15, 2014

Mark your calendar now. MDN is happy to announce “Another Good News Table Talk” radio program, coming to you on Nov. 2 from 7-8:00 pm on Binghamton’s WNBF (AM) Radio 1290 (also available online at WNBF.com). Two Joint Landowners Coalition of New York (JLCNY) Field Directors, Victor Furman and Frank Cherenga (both MDN subscribers, by the way), will interview Cornell Professor Dr. Larry Cathles about methane migration and other issues related to shale drilling. Please tune in to this one-hour interview to hear the facts presented! You may recall MDN has reported on Dr. Cathles a number of times…
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Anti-Drilling/Fossil Fuel | Industrywide Issues | Statewide VA | Statewide WV | Virginia | West Virginia

Trout Unlimited Volunteers to Watch GWNF for Fracking Effects
October 15, 2014October 15, 2014

Two anti-drilling groups with benign-sounding names, Trout Unlimted and Wild Virginia, are training volunteers to monitor streams for effects from (so far) non-existent shale drilling in the George Washington National Forest. Trout Unlimited has been doing this sort of training/testing for years in places like the Delaware River Basin (see TU: Just Eyeball Those Streams, You Know What Shouldn’t Be There). Testing, testing, testing. And what have they found from all of their testing? An environmental holocaust from fracking shale wells? Some mild environmental impacts? Nope. They’ve found nothing. Zero. Nada. But they keep on testing…
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