Marcellus Drilling News

Energy Services | Ethane | Industrywide Issues | NGLs | NOVA Chemicals | Processing Plants

NOVA Chemicals Plans Expansion of Corunna Cracker in Sarnia
December 19, 2013December 19, 2013

If the ethane produced in the Utica and Marcellus region doesn’t get processed in our region by way of an ethane cracker plant–and it won’t for at least another five years, even if a plant is green lighted today–it has to go somewhere else to be processed. That somewhere else is either the Gulf Coast or Canada, where large cracker plants are located. One of those crackers is operated by NOVA Chemicals in Sarnia, Ontario, Canada. Yesterday NOVA issued a press release that talks about their plans to expand the Corunna cracker to handle an additional 20% capacity coming from the Utica/Marcellus, which is good news for producers in the northeast.

NOVA is also planning to expand the manufacturing facilities that accept the output of the Corunna cracker, including a plant that manufactures polyethylene. Here’s the NOVA announcement from yesterday about what’s coming in the next few years in Sarnia…
Read More “NOVA Chemicals Plans Expansion of Corunna Cracker in Sarnia”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Litigation | New York | Statewide NY

NYC Comptroller-Elect Scott Stringer: Anti-Fracking “Bully”
December 19, 2013December 19, 2013

New York City’s anti-drilling comptroller-elect, Scott Stringer, will take office in January. Even before he ascends to his throne, Stringer is filing a friend of the court (or “amicus”) brief on behalf of the Town of Dryden. Dryden, you may recall, illegally voted to ban fracking and has been challenged all the way to the state’s top court. In filing the amicus brief, Stringer said he wants to use the law as a “bully pulpit”. More like he just wants to bully other people by (ab)using the law.

The really troubling aspect of Stringer’s character is his blatant disregard and mafia-like attitude that he’ll do what he wants to do and no one will stop him. Case in point: Stringer has not “ruled out” (meaning he’s planning to use) the $140 billion pension fund he’ll control when he assumes office to bully corporate boards over issues like fracking. Really nice guy that Scott Stringer…
Read More “NYC Comptroller-Elect Scott Stringer: Anti-Fracking “Bully””
Energy Companies | Halcon Resources | Industrywide Issues | Ohio | Pipelines | Trumbull County

Niles, OH Does Complete Turnaround, Leases Land for Pipeline
December 19, 2013December 19, 2013

What a complete turnaround–dare we say a “revelation”–in Niles, OH. In August, the Niles City Council voted to ban drilling. The measure they passed also prohibited the city from doing business with the drilling industry, which is a problem because the city does a lot of business with the industry (see Niles, OH Considers Vote to Rescind Ill-Advised Frack Ban). So a month after they passed the measure, City Council voted to rescind it (see Niles, OH Votes to Lift Frack Ban One Month After Passing It).

In a complete turnaround from their anti-drilling ways of just a few months ago, City Council voted yesterday, unanimously, to let Halcon Resources lay a new pipeline under a portion of city-owned land…
Read More “Niles, OH Does Complete Turnaround, Leases Land for Pipeline”
Coterra Energy (Cabot O&G) | Economic Impact | Energy Companies | Industrywide Issues | Jobs | Pennsylvania | Supply Chain | Susquehanna County

Scranton TV Station: NEPA Community Benefits from Cabot (Video)
December 19, 2013December 19, 2013

An interesting TV segment was recently filmed about the role of Cabot Oil & Gas in providing local jobs and a boost to the local economy where they drill in rural Susquehanna County, PA. The video, filmed by Scranton TV station WNEP Channel 16, highlights the partnership Cabot has developed with several vendors (supply chain) and points out Cabot’s long-term commitment to the community–a commitment that will go on for decades to come.

If you want “the other side of the story,” the side that shows what a good corporate citizen looks like and how gas drilling enormously benefits an entire community, take the time to watch this enlightening 6-minute video:
Read More “Scranton TV Station: NEPA Community Benefits from Cabot (Video)”
Best of the Rest

Marcellus & Utica Shale Story Links: Thu, Dec 19, 2013
December 19, 2013December 19, 2013

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, Dec 19, 2013”
Energy Companies | Hydraulic Fracturing | Industrywide Issues | Litigation | New York | Norse Energy | Regulation | Statewide NY

Norse Energy Sues Gov. Cuomo to Force Release of Fracking Regs
December 18, 2013December 18, 2013

Newly appointed Norse Energy lawyer Tom West (from Albany) is a man of his word. He says what he means and means what he says. Exactly two weeks ago West had a “demand” letter hand-delivered to NY Dept. of Environmental Conservation (DEC) Commissioner Joe Martens. The letter, “demanding” to have a release date for the now 5 1/2 year-old draft fracking regulations, was also delivered to State Health Commissioner Nirav Shah and to Gov. Andrew Cuomo himself (see Tom West Demands DEC Com. Martens Release the SGEIS – Soon). The unstated threat was that if there is no response, West fully intends to file an Article 78 lawsuit against all three to force the release. Article 78 is a provision that makes recalcitrant (and ineffective) government officials do their job.

Yesterday afternoon West made good on the threat and filed the lawsuit (see a full copy embedded below). Among the justifications for requesting the court to force the release of the fracking regulations (called the SGEIS), is this “hit it out of the park” statement:
Read More “Norse Energy Sues Gov. Cuomo to Force Release of Fracking Regs”
Bradford County | Chesapeake Energy | Chief Oil & Gas | Energy Companies | Lycoming County | Pennsylvania | Sullivan County | Susquehanna County | Wyoming County (PA)

Chief O&G Buys 210K Acres/Operations in NE PA from Chesapeake
December 18, 2013December 18, 2013

Chief Oil & Gas announced yesterday that they’ve purchased 210,000 Marcellus Shale acres from Chesapeake Energy in northeast Pennsylvania. Along with the acreage comes 130,000 million cubic feet per day of natural gas production and 40 wells waiting to be completed and/or connected to a pipeline. This doubles the amount of Marcellus acreage for Chief.

The big question is, does this mean Chesapeake has now completely exited the Marcellus in northeast PA? It may well (we’re not sure). Here’s the statement by Chief about their deal with Chesapeake:
Read More “Chief O&G Buys 210K Acres/Operations in NE PA from Chesapeake”
Hydraulic Fracturing | Industrywide Issues | New York | Research | Statewide NY

USGS Study Finds 15% of NY Water Wells Already Have High Methane
December 18, 2013December 18, 2013

Well, imagine that. Even more scientific evidence has just arrived, courtesy the US Geological Survey (USGS), that there’s a whole lotta methane in the ground in the Southern Tier of New York State. So much methane that 15% of the water wells tested across nearly 2,000 square miles for more than a year by the USGS show methane levels so high that the methane needs to be monitored and/or mitigated. That is, miles away from any fracking or existing gas wells, water wells are saturated with naturally occurring methane. In case you miss the point: Fracking is NOT the cause of methane migrating to water wells in northeast PA and in New York. There is no shale fracking in NY! And yet, there’s methane–so much you can, oh, light your tap on fire?

What say you now anti-frackers? Yeah, we thought so. There’s NOTHING you can say. Your lies are exposed. Here’s the press release and a full copy of the study released yesterday by the USGS with data from their tests of water wells in NY state:
Read More “USGS Study Finds 15% of NY Water Wells Already Have High Methane”
Energy Services | Williams

Bad News: Corporate Raiders Take Aim at Williams
December 18, 2013December 18, 2013

Oh oh. Keith Meister runs a hedge fund (investment fund) called Corvex Capital. Keith Meister is a Carl Icahn student and disciple (have we told you lately how much we despise corporate raiders like Icahn?). Meister’s Corvex Capital has disclosed “surging” its position in midstream company Williams. In fact, Corvex Capital has a signed agreement with Soroban Capital Partners, another big investor in Williams. The two companies together are now the single largest shareholder in Williams. This is definitely not good news. It means the Corvex and Soroban plan to make mischief with Williams.

Corporate raiders like Icahn (and Meister) invest in companies purely to force the sale of assets and the firing of employees (i.e. to “cut costs”) in order to drive up the price of the stock, which they then turn around and sell at a huge profit. It’s sleazy, it’s slimy, and it’s the part of capitalism we don’t like (and we’re raging capitalists here at MDN HQ). Icahn, through his “tool” Doug Lawler, has forced the firings of 1,200 people at Chesapeake in the past year. Will such a fate come to Williams? We’d be nervous if we worked there…
Read More “Bad News: Corporate Raiders Take Aim at Williams”
Energy Companies | Rice Energy

Rice IPO Seeks to Raise $800M – Some Details Leak
December 18, 2013December 18, 2013

As MDN has been reporting since October, Rice Energy will, at some point, float an initial public offering (IPO) and start to trade shares on a stock exchange (see Rice Energy Rumored IPO – Dan Rice Gets Last Laugh). Last week the details started to come into focus. The company may be valued as high as $2.5B, initial initial public offering paperwork had been confidentially filed, and the public will get to the see the paperwork soon, likely in January (see Impending Rice Energy IPO Creating a Buzz).

The Rice story continues to fascinate and more information continues to “leak” out. The latest: The company is looking to raise $800M with their IPO. They’ve been losing money, but certainly not a lot as a percentage of the money they’re spending to drill. And, we have more insight into the (very young) management structure of the company…
Read More “Rice IPO Seeks to Raise $800M – Some Details Leak”
Pennsylvania | Statewide PA

Marcellus Moves PA to #2 Top NatGas Producing State
December 18, 2013December 18, 2013

Yesterday the U.S. Energy Information Administration (EIA) released an analysis that says Pennsylvania, because of the Marcellus Shale, is now the third largest producer of natural gas in the U.S., and it will almost certainly blow by Louisiana to become the #2 producer by the end of this year. PA’s production is up a mind-blowing 72% from 2011 to 2012–in one year! When the numbers are finally in this year, EIA expects another remarkable year for the Keystone State.

Also of note: For the first time (in a long time) West Virginia has broken into the top 10. Here’s the latest top-notch analysis issued by the EIA (the one government agency we actually love), that crows about PA and has a cool chart of the top 10 U.S. natural gas producing states:
Read More “Marcellus Moves PA to #2 Top NatGas Producing State”
Energy Companies | Energy Services | Industrywide Issues | Kinder Morgan | Pipelines | Seneca Resources | Tennessee Gas Pipeline

TGP Signs up Seneca Resources for Niagara Expansion to Canada
December 18, 2013December 18, 2013

MDN already brought you the announcement that Kinder Morgan, owner of the Tennessee Gas Pipeline, successfully closed an open season that will allow the the TGP to expand their service to the Gulf Coast. A second announcement from KM yesterday says they’re also expanding service northward, to eastern Canada. KM said they’ve signed up Seneca Resources (drilling subsidiary of Buffalo-based National Fuel) to ship 158,000 dekatherms of natural gas per day to eastern Canadian markets on what KM calls their Niagara Expansion Project.

Seneca and their Marcellus Shale production will be the “foundation shipper” for the $74 million Niagara Expansion. Here’s the second KM announcement from yesterday:
Read More “TGP Signs up Seneca Resources for Niagara Expansion to Canada”
Energy Services | Industrywide Issues | Kinder Morgan | Pipelines | Tennessee Gas Pipeline

TGP Pipeline Hits Open Season Target, $150M Expansion Coming
December 18, 2013December 18, 2013

Kinder Morgan, owner of the Tennessee Gas Pipeline (TGP), recently ran an open season to sell more capacity along the TGP to deliver Marcellus and Utica Shale gas to points along the Gulf Coast. They were looking to sell an extra 500,000 dekatherms per day. Yesterday KM announced they hit pay dirt and had achieved their goal. KM says they’ll now spend $150 million to extend and expand the TGP to meet the new demand.

Yesterday’s KM TGP announcement:
Read More “TGP Pipeline Hits Open Season Target, $150M Expansion Coming”
Energy Services | MarkWest Energy

Midstreamer MarkWest Issues (More) Stock to Raise $301M in Cash
December 18, 2013December 18, 2013

MarkWest Energy Partners is one of, if not THE largest midstream company in the Marcellus and now the Utica Shale. They have a LOT of irons in the fire, with multiple processing plants and pipeline projects under way in the northeast. Billions of dollars worth of projects. Which means every now and again you have to feed the cash monster–shovel in some new money–to keep those projects moving forward.

And so yesterday MarkWest announced yet another round of new stock being offered in hopes of raising a quick and cool $301 million worth of cold, hard cash to fuel continued growth and progress. Here’s the announcement:
Read More “Midstreamer MarkWest Issues (More) Stock to Raise $301M in Cash”
Best of the Rest

Marcellus & Utica Shale Story Links: Wed, Dec 18, 2013
December 18, 2013December 18, 2013

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, Dec 18, 2013”
Energy Companies | Ethane | Industrywide Issues | Pipelines | Range Resources Corp

Range Resources Inducted into the Marcellus “1 Bcf/d Club”
December 17, 2013December 17, 2013

Range Resources issued an update today on recent activities and recent milestones achieved. They’ve just achieved a huge one. Range is now the third driller to achieve 1 billion cubic feet per day of production in the Marcellus Shale, joining Cabot Oil & Gas and EQT in that distinguished and exclusive “club” (see EQT 2Q13: Welcome to the Marcellus “1 Bcf/d Club”). Range also, ahead of an official announcement from Enterprise Products Partners, says that the ATEX (Appalachia-to-Texas Express) pipeline to the Gulf Coast is now up and running and they’re using it to ship up to 10,000 barrels of ethane per day. MDN knew the pipeline was in the testing phase but we did not know it’s now fully operational (see Let it Flow! ATEX Ethane Pipeline Testing Now, Online Soon).

The full update from Range:
Read More “Range Resources Inducted into the Marcellus “1 Bcf/d Club””