Marcellus Drilling News

Economic Impact | Industrywide Issues | Lycoming County | Pennsylvania

Is the Marcellus Already Going Bust in Lycoming County, PA?
November 25, 2013November 25, 2013

Has the Marcellus Shale drilling industry already going bust? If you read the headlines of say, oh, the Philadelphia Inquirer, that may be the conclusion you reach. But if you read beyond the headlines you’ll find a different story.

The number of drilling rigs in the Marcellus is down a bit from what it was a year or two ago, that’s for sure. With less drilling comes less of a lot of other things needed for drilling (hotel visits, construction, security, catering, etc.). However, it may be more accurate to view the Marcellus drilling industry as more like taking a breather. Regrouping. Assessing. One thing is for sure, although some parts of the Marcellus drilling industry may have dipped (not gone bust, but slowed a bit), other parts of it are just picking up steam. A better metaphor is “ebb and flow”…
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Hydraulic Fracturing | Industrywide Issues

CO2 Instead of Water for Fracking – Seriously?!
November 25, 2013November 25, 2013

From time to time MDN likes to highlight new technologies used in shale drilling. We’ve talked about the recent trend in drillers switching from using diesel to run drilling rigs to using natural gas. A number of Marcellus drillers now use pure natgas or dual fuel drilling rigs, drillers including Cabot, Seneca, Antero, CONSOL, EQT (see this MDN search for a list of those stories). We’ve also talked about companies who have developed alternatives to water as a fracking fluid–most recently eCORP Stimulation Technologies’ liquefied petroleum gas (LPG or propane) fracking (see ecorpStim Tries to Interest France in Waterless Fracking Tech).

MDN always hastens to add, there’s nothing inherently wrong with using water as a fracking fluid. It’s cheap, it’s plentiful and the amount used is so tiny in comparison to other uses, it’s not an environmental problem–at least not in the northeastern U.S. However, there are places were water is not abundant, so enterprising companies are still trying to create innovative solutions. Some of those enterprising companies are now looking at that evil, nasty compound that is the cause of so much angst for global warmers: carbon dioxide (goes by the gang name CO2). CO2 is plentiful–it’s the stuff you breathe out with every breath and the stuff plants and trees need to breath in so they can produce oxygen. But we digress. Engineers are looking at CO2 as a possible solution to replace water fracking. If they can figure it out, we say, grrrreat!…
Read More “CO2 Instead of Water for Fracking – Seriously?!”
Economic Impact | Hydraulic Fracturing | Industrywide Issues | Ohio | Pennsylvania | Pipelines | Processing Plants | Research | Statewide OH | Statewide PA | Statewide WV | West Virginia

Deloitte & EIA: 90,000 Marcellus Wells Drilled in Next 20 Years
November 25, 2013November 25, 2013

A new report published by consulting powerhouse Deloitte references (and affirms) U.S. Energy Information Administration’s predictions that it will take at least $5 trillion of investment in the oil and gas sector between now and 2035 to main current levels of oil and natural gas production and meet future demand as it rises. The report is titled “The challenge of renaissance: Managing an unprecedented wave of oil and gas investment.” Unfortunately we couldn’t locate a copy–but reportedly it’s full of interesting facts–like the $5 trillion number.

Another eye-popping number from the report: Current estimates are that 90,000 Marcellus Shale wells will be drilled over the next 20 years. That kind of activity will spur an unfathomable economic revival in the northeast like we haven’t seen in since, well, forever! The study says while “trillions” will be spent on upstream (drilling), “hundreds of billions” will need to be spent on midstream (pipelines & processing plants) in order to keep up with the production. More from the Deloitte study…
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About MDN | Allegheny County | Industrywide Issues | Jobs | MDN Resources | Pennsylvania | Supply Chain | Washington County

Want to Plug in to the Marcellus Industry? These Groups Can Help
November 25, 2013November 25, 2013

For individuals living in Greater Pittsburgh looking for a job in the drilling industry, or companies looking to break into the Marcellus Shale supply chain, the Pittsburgh Business Times published a helpful list of organizations (and their websites) that may be able to give you an assist with your pursuit…
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Best of the Rest

Marcellus & Utica Shale Story Links: Mon, Nov 25, 2013
November 25, 2013November 25, 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: Mon, Nov 25, 2013”
Air Quality | Anti-Drilling/Fossil Fuel | Industrywide Issues | Pennsylvania | Susquehanna County

The One Issue on Which Anti- and Pro-Drillers Agree
November 22, 2013November 22, 2013

Is there an issue on which both anti- and pro-drillers can agree? Is there ever a time both sides can sit at the same table and discuss a potential problem, and do so without hyperbole and snarky comments? Is there an issue over which both sides can talk and not have it end in shouting? Indeed there is–and it is the issue of air pollution. MDN realizes we’re on shaky ground with our industry friends by writing this, but on several occasions we’ve pointed out there is a growing body of evidence that shows a marked increase in air pollution in heavily drilled areas–mostly from compressor plants, but also from drilling rigs, truck traffic, etc. (see PA DEP Report: Counties with Fracking Have More Air Pollution). The issue of air pollution is enough to unite two neighbors from Dimock, PA who were formerly on opposite sides of the drilling debate.

One of those neighbors starred in Josh Fox’s Gasland II fiction–Victoria Switzer (see More on “Pro-Drilling” Conversion of Gasland II Star from Dimock). We wouldn’t say Vickie is exactly pro-drilling these days, but she’s decided to be realistic and constructive, instead of obstructive, and that’s a positive change. She’s once again on speaking terms with her Dimock neighbor Ron Teel, a pro-drilling landowner. Ron and Vickie both belong to the local advocacy group Breathe Easy Susquehanna County…
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Beaver County | Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Processing Plants | Shell

Cracker Talk: Shell Rumored to be Buying Up Land Near Site
November 22, 2013November 22, 2013

Yes, more “cracker talk,” but we’re hopelessly addicted to cracker talk. The Pittsburgh Post-Gazette is reporting that Shell is buying up more land around a proposed ethane cracker site in Beaver County, PA. If Shell has decided to not build the cracker, it certainly doesn’t make sense for them to spend money on purchasing land. So, maybe this is a good sign that Shell is moving forward with their cracker?

The race is now on to see who will build the first ethane cracker in the northeast: PA or WV. Is the talk about Shell buying land just more hype by the Pittsburgh media? Or is there something “there” with this story? The latest scuttlebutt about the Shell cracker…
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Energy Services | Industrywide Issues | NGLs | Pennsylvania | Pipelines | Statewide PA | Sunoco Logistics

Sunoco Logistics Planning Second Mariner East Pipeline for NGLs
November 22, 2013November 22, 2013

More than a year ago MDN brought you the news that Sunoco Logistics’ Mariner East pipeline–an existing pipeline being upgraded to convey propane and ethane from western Pennsylvania all the way to the Marcus Hook refinery near Philadelphia–was completely spoken for (see Mariner East Pipeline to Philly Refinery 100% Committed). Range Resources announced at the time that they would be the main user of the pipeline (see Range Announces They’re Main Shipper for Mariner East Pipeline). Upgrades to the Mariner East are under way now and will be online beginning in 2014.

In re-reading those stories from last year, we should have noticed something we did not. Sunoco said they were considering a second “open season” for Mariner East. If the pipeline is already 100% committed, how can they take on even more customers? Answer: Build a second Mariner East pipeline. Thanks to an excellent bit of reporting in the Harrisburg Patriot-News, we now understand what that statement meant last year. In a story published yesterday, the Patriot-News says Sunoco is working on a plan to build a second Mariner East pipeline across PA. Although there are currently few details, the outlines of where the pipeline may go are taking shape thanks to notifications received by PA landowners in the Susquehanna Valley area…

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Anti-Drilling/Fossil Fuel | Industrywide Issues | Jobs | Research

Anti-Drilling Cabal Issues Biased Report on Marcellus/Utica Jobs
November 22, 2013November 22, 2013

A collection of highly partisan anti-drillers (people who abjectly hate fossil fuels) get together and issue a “report” that claims to be backed by “research” (a few interviews with a few people in a few counties), and it’s instantly news. The officious sounding and never before heard from Multi-State Shale Research Collaborative has just issued a report saying, “Nah, the Marcellus and Utica Shale industry doesn’t create all that many jobs after all.” Er, right. Who is the Multi-State Shale Research Collaborative? A group of five anti-drilling groups who use the word “nonpartisan” so many times if we had a nickle for every time it appears on their websites…you get the idea. This new league of anti-drillers (“cabal” about pegs it) attempts to appear nonpartisan and above it all. They are not. They are completely partisan on the issue of drilling. How do we know? Look at who funds them and their so-called research on employment: The Heinz Endowments, Hillsdale Fund, Park Foundation, and Stoneman Family Foundation. Need we say more?

Below are the press release and the full report issued by the cabal. It’s not really worth anyone’s time to read it–we present it to you so you are informed of the latest coordinated and scripted attack against shale drilling–so when you see Reuters/Bloomberg/AP/Gannett et all pick it up and breathlessly report it as real news, you’ll know what you’re looking at. Just more propaganda from the usual suspects…
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Industrywide Issues | Lackawanna County | Pennsylvania | Taxation

Marcellus Drilling Helps Fix Biggest Polluter of Chesapeake Bay
November 22, 2013November 22, 2013

Natural gas will help clean up the single largest source of pollution to the Chesapeake Bay. What is that source? Acid mine drainage that pours out of a single hole called the Old Forge borehole drilled by the federal government (Army Corps of Engineers) in 1962. Some 60-100 million gallons of acid mine water pour out of that hole every day–into the Lackawanna River which dumps into the Susquehanna River which empties into the Chesapeake Bay.

Where does all that water come from (what causes it), and what does natural gas have to do with fixing the problem? Read on…
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Hydraulic Fracturing | Industrywide Issues | Research

New Report Goes Back to Basics: What is Fracking & Is It Safe?
November 22, 2013November 22, 2013

Every now and again it helps to take a step back and review the fundamentals–the basics. A wide swath of the American public still doesn’t understand what fracking is, and only reads the occasional headline that seems to paint the picture that shale drilling is negative or dangerous for the environment. Wouldn’t it be great to have a “this is basics of shale drilling and fracking” kind of document? A primer of sorts, that strips out the wild allegations and concentrates on the facts–including facts about the negatives of shale drilling?

We now have such a document. Earlier this week, the nonpartisan Heartland Institute issued a 36-page primer/research paper titled, “Hydraulic Fracturing: A Game-Changer for U.S. Energy and Economies” (full copy embedded below). This excellent paper answers the “What is it and how does it work?” questions along with environmental safety questions. The paper is written in understandable language and is extensively footnoted (i.e. they offer proof for their statements). Here’s the announcement about this important new resource:
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Lease & Royalty Payments

AAPL Seeks to Set the Record Straight on Role of Landmen
November 22, 2013January 16, 2014

Landmen, rightly or wrongly, sometimes have a bad reputation. Landmen fulfill an important role in signing landowners to leases to allow shale drilling on or under their property. The common perception (misperception) is that a landman swoops in to town and using equal parts carrot and stick, entices/cajoles/pressures dimwitted country bumpkin landowners into signing a lease they might not have otherwise signed (see MDN Goes to the ‘Promised Land’). Are there some bad landman apples in the barrel? Like any profession, the answer is yes (see When Landmen Go Bad: Butler, PA Landman Arrested for Fraud). However, the vast majority are honest, upstanding and dedicated professionals–and they do a job vital to the drilling process.

The American Association of Professional Landmen (AAPL) has 18,000 members. They recently launched a public relations campaign called “Meet Us” in which they use short videos to convey the truth about who landmen are, what they do, and how they do it…
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Best of the Rest

Marcellus & Utica Shale Story Links: Fri, Nov 22, 2013
November 22, 2013November 22, 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: Fri, Nov 22, 2013”
Crime | Industrywide Issues | M&A | Mahoning County | Ohio

Denver Co Buys OH Wastewater Polluter D&L Energy for $20.7M
November 21, 2013

MDN has long chronicled the bad actions of Ben Lupo, the guy who directed one of his employees to dump thousands of gallons of frack wastewater down a drain that eventually ended up in the Mahoning River near Youngstown, OH (see Youngstown Business Dumped >200K Gal of Untreated Wastewater). The business that did the dumping was Hardrock Excavating, but because Lupo owns several businesses and because they’re all so intertwined together, another of his businesses, D&L Energy, got caught in the mess and ended up in bankruptcy (see OH Wastewater Dumper D&L Energy Gets Business Death Sentence).

For a time, the Ohio Dept. of Natural Resources would not let D&L sell off it’s assets (see D&L Wants to Sell Remaining Assets at Auction, ODNR Says No). However, they finally agreed to a plan for D&L to auction its assets and that happened last week. The U.S. Bankruptcy Court of the Northern District of Ohio approved the auction yesterday. Who bought D&L? And what does it mean for landowners who signed with D&L (the company owned over 30,000 acres of shale drilling leases)? Read on…
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Hydraulic Fracturing | Industrywide Issues | Regulation

House Passes Bills to De-Fang BLM Frack Rules, Speed Up Permits
November 21, 2013November 21, 2013

Republicans have grown tired of heavy-handed regulations coming out of the Obama administration, from the Obama EPA and Dept. of Interior (DOI) that seek to strangle the blossoming energy industry in this country due to shale drilling. Mainstream media tells you Obama is an “all of the above” guy–he likes that shale drilling stuff ’cause he’s a big thinker and sees the big picture, and even some in his own party grumble and complain about his support for drilling. It’s bunkum. Obama and his sycophants seek to enforce federal regulations on drilling any way they can–to slow it down.

Republicans have had enough and passed two bills yesterday: one would de-fang the DOI Bureau of Land Management’s plan to enforce new fracking regulations on federal lands; the other speeds up the permitting process for drilling on federal lands, to allow more drilling more quickly…
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Economic Impact | Hydraulic Fracturing | Industrywide Issues | New York | Ohio | Pennsylvania | Research | Statewide NY | Statewide OH | Statewide PA | Statewide WV | West Virginia

Marcellus/Utica States Slip in Global Petroleum Survey
November 21, 2013November 21, 2013

Each year, the Canadian-based Fraser Institute surveys petroleum industry executives and managers (864 of them for 2013) asking them their opinions on the barriers to investing in exploration and production in various geographies across the globe. That is, what makes them more likely or less likely to spend money drilling in a particular location? It’s vitally important to understand what drives investors because without money, drilling doesn’t happen.

The Global Petroleum Survey, as it’s called, tallies the survey responses and ranks each geography from most desirable place to invest, to least desirable. MDN reported the rankings last year (see Energy Execs Rank Drilling Locations Including WV, OH, PA, NY). A copy of this year’s full report/rankings is embedded below. How did Pennsylvania, Ohio, West Virginia and (yes) New York fare this year, compared to last?…
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