Marcellus Drilling News

Air Quality | Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY

Latest Laughable NY Anti Tactic – Not Enough Gas, Just Move Along
November 1, 2013November 1, 2013

A couple of nights ago a group of four retired anti-drilling ~~hippies~~ “smart people” tried the latest tact in the sad tale of frackless (and feckless) New York: Try to convince the unthinking masses with charts and maps and bamboozling bullcrap that recoverable, profitable natural gas stops at the border of Pennsylvania and New York. Yes that’s right folks. “Don’t bother to drill in NY because there just ain’t enough gas in the ground to make it worthwhile.” That’s what passed for smart and insightful, as delivered by Jerry Acton (pictured), Chip Northrup, Lou Allstadt and Brian Brock (anti-drillers all) at the once great Cornell University.

Master of ceremonies? The itinerant stand-up comedian and Cornell professor, Tony Ingraffea, of course…
Read More “Latest Laughable NY Anti Tactic – Not Enough Gas, Just Move Along”
Allegheny County | Anti-Drilling/Fossil Fuel | Industrywide Issues | Pennsylvania

PA Anti-Drillers Shove Their Children Before the Microphones
November 1, 2013November 1, 2013

Whether or not drilling under county parks is a good idea or not, we’ll leave for another post. We’re not at all concerned about safety or pollution–it’s safe and it doesn’t pollute. It’s just a PR headache, though, to keep pushing the boulder uphill all the time–fighting rank ignorance and outright lies. At any rate, such proposals do exist including a proposal to drill under some of the parks in Allegheny County, PA (Pittsburgh area). The energy company in question, Huntley & Huntley, has floated a proposal to county officials. They want to drill under, not on, the parks–drill under them from adjacent non-park land.

Well known anti-driller PA State Sen. Jim Ferlo convened a *@#!%-fest to complain about it. Nothing new there. What caught our eye about meeting, however, is the shameless way some anti-drillers use their own children as props–like pushing an 8 year-old in front of the cameras and microphones after filling her head with lies about how drilling will poison precious Mother Earth. It was on full display at yesterday’s Ferlo’s Follies…
Read More “PA Anti-Drillers Shove Their Children Before the Microphones”
Boardwalk Pipeline Partners | Energy Services | Enterprise Products Partners | Industrywide Issues | Kinder Morgan | MarkWest Energy | Pipelines | Sunoco Logistics | Williams

“Midstream Knife Fight” – Who Will Have 1st Operational NGL Pipeline to Gulf?
November 1, 2013November 1, 2013

In the race to be the first pipeline to flow ethane from the Marcellus/Utica region to a cracker plant elsewhere, it looks like Sunoco Logistics may have won. Their Mariner West pipeline to Sarnia, Canada has been in testing since July and due to turn throw the valve wide open in November, according to Range Resources (see Range Resources 3Q13: Nearing 1 Bcf/d, Rev Up 29%, Costs Down 12%). However, not to be outdone, the Appalachia to Texas Express (ATEX) ethane pipeline being built by Enterprise Products Partners now says they will go fully online in December, months ahead of schedule (see ATEX Ethane Pipeline to Begin Pumping Dec 2013, Ahead of Schedule). Both pipelines going online a month apart? We’d call it a photo finish with Mariner West winning by a nose.

Now everyone’s attention is turning to mixed NGL (natural gas liquids) pipelines. There’s another horse race heating up. Williams and Boardwalk Pipeline Partners are building the Bluegrass pipeline to the Gulf Coast (see Bluegrass Pipeline Launches Open Season, on Track for 2015 Launch). And then there is Kinder Morgan and MarkWest Utica who have joined forces to build a mixed NGL pipeline to the Gulf Coast too (see 2 New OH Projects: Cryo Processing Plant & NGL Pipeline to Gulf). Which one will be the first to go operational? Several analysts weigh in with their colorful opinions…
Read More ““Midstream Knife Fight” – Who Will Have 1st Operational NGL Pipeline to Gulf?”
Energy Services | Williams

Williams 3Q13: Income Down 10% Companywide, NE Still Not Profitable
November 1, 2013November 1, 2013

Williams Partners is one of the biggest midstream companies (pipelines and processing plants) in the Marcellus/Utica region. Wednesday they issued their third quarter financial and operational update in the never-ending parade of quarterly updates. And what did it show? The company overall saw a 10% decrease in net income for 3Q13 vs 3Q12, mostly because of lower prices for natural gas liquids and the compounds made from them. The news from Williams’ northeast operations is that they continue to bleed money (in the red) in 3Q13, but not as bad as 3Q12. Revenues are up in the northeast, but spending to build out their infrastructure is up more.

Below are select portions of the Wednesday update. We first provide you with the big picture introductory stuff to the set the stage, and then select out the northeast (Marcellus/Utica) sections:
Read More “Williams 3Q13: Income Down 10% Companywide, NE Still Not Profitable”
Energy Companies | Ohio | PDC Energy | Utica Shale | Washington County (OH)

PDC Energy 3Q13: “Excited” about Utica in Washington County, OH
November 1, 2013

PDC Energy, headquartered in Denver, CO, has drilling operations in both the Marcellus and Utica Shale region. In June of this year, PDC sold off “non-core” assets they owned in Colorado and said they would invest that money in drilling the Utica Shale (see PDC Energy Sells CO Assets, Will Use Money for Utica Drilling). In their third quarter update, issued yesterday, PDC is positively effusive about their first Utica Shale well in Washington County, OH. It is the first well they’ve drilled in their “southern Utica” acreage and judging by the results, they plan to drill many more in that area.

In addition to good tidings from the Utica, PDC announced they raised $276 million from floating a new stock offering. They were also listed in the Russell 2000 index. It’s been a busy three months for PDC. Relevant (Utica) portions of their 3Q13 update:
Read More “PDC Energy 3Q13: “Excited” about Utica in Washington County, OH”
Columbia Pipeline Group | Energy Services | Millennium Pipeline | NiSource | Pennant Midstream

NiSource 3Q13: Income Doubled, Progress on NE Midstream Projects
November 1, 2013November 1, 2013

NiSource, a huge midstream and utility company in the northeast/Midwest and parent of Columbia Gas, released their third quarter operations and financial update yesterday. They report income nearly doubled from a year ago (up 198%), and is on track to invest a massive $2 billion this year in upgrades and expansion projects. NiSource is a major midstream player in the Marcellus/Utica region through NiSource Midstream, Columbia Gas, Millennium Pipeline and Pennant Midstream–together what they consider their Columbia Pipeline Group (CPG).

Here’s relevant portions from yesterday’s update that concern the NiSource’s midstream operations in the Marcellus/Utica region:
Read More “NiSource 3Q13: Income Doubled, Progress on NE Midstream Projects”
About MDN | MDN Sponsor | Ohio | Pennsylvania | Statewide OH | Statewide PA | Statewide WV | West Virginia

Deadline Approaching for 2013 Northeast Oil & Gas Awards
November 1, 2013November 1, 2013

Calling all energy-related companies in the Marcellus/Utica Shale. The Oil & Gas Awards invite you to submit (or be submitted) for recognition in one of 25 different categories. Marcellus Drilling News is pleased to partner with the Oil & Gas Awards to promote their annual, regional events. Specifically, we’re currently promoting the 2013 Northeast Oil & Gas Awards (entries due by Nov. 29, 2013).

The Oil & Gas Awards announcement, with details on how to enter:
Read More “Deadline Approaching for 2013 Northeast Oil & Gas Awards”
Best of the Rest

Marcellus & Utica Shale Story Links: Fri, Nov 1, 2013
November 1, 2013November 1, 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 1, 2013”
Energy Services | GreenHunter Resources | Industrywide Issues | Regulation | Wastewater

Coast Guard Green Lights Barge Transport of Frack Wastewater
October 31, 2013October 31, 2013

Good news for GreenHunter Water and their multiple barge facilities located along the Ohio River: The U.S. Coast Guard issued a proposal on Tuesday that will allow GreenHunter (and other companies) to barge frack wastewater from one point to another for eventual disposal by injection well. MDN reported back in August that the federal government, including the Coast Guard, was “very close” to approving barge transport for frack wastwater (see Federal Approval for Barging Frack Wastewater Very Close).

After a 30-day comment period the Coast Guard will move forward with their proposal and announce a date on which transportation by barge can begin. This is very good news for GreenHunter and others who have been waiting for more than a year to begin barge transport…
Read More “Coast Guard Green Lights Barge Transport of Frack Wastewater”
Anti-Drilling/Fossil Fuel | Industrywide Issues | New York | Regulation | Statewide NY

LNG Storage/Fueling Stations Latest Anti-Drilling Target in NY
October 31, 2013October 31, 2013

New York State is first in all of the things you don’t want to be first in–like having the highest unemployment and taxes of any state in the union–and dead last in all the things you don’t want to be last in. Example: New York is the only state that does not allow liquefied natural gas (LNG) storage and LNG fueling stations. Translation: All of those new trucking fleets being purchased by UPS and other companies can’t operate in New York because there’s no place to fuel up.

LNG fueling stations have nothing to do with whether or not NY decides to allow fracking, but anti-drillers are attempting to make a connection anyway. A group of more than 100 anti-drillers piled into a hearing room in Albany yesterday to tell the state Dept. of Environmental Conservation they oppose the DEC’s plan to allow LNG storage and fueling stations. The usual crowd of hippie retreads from groups like Catskill Mountainkeeper and NY Public Interest Research Group showed up to mouth off–then they piled back into buses powered by dirty diesel fuel to head back to New York City from whence they came. Rank hypocrites, the lot of them…
Read More “LNG Storage/Fueling Stations Latest Anti-Drilling Target in NY”
Ethane | Industrywide Issues | Pipelines

2 Ethane Pipelines May Cause Marcellus/Utica Production to Jump
October 31, 2013October 31, 2013

Is production in the Marcellus and Utica Shale about to increase–dramatically? It may, and not because of a flurry of new wells coming online. Production may soon increase because of two new ethane pipelines due to go online in the next few months–the Mariner West pipeline to Sarnia, Canada, and the ATEX pipeline to the Gulf Coast. When those pipelines become fully operational, drillers that had been scaling back production because of no markets for their ethane will likely turn the valves wide open and let it flow.

An excellent bit of analysis about the impact of these two new pipelines from Platts…
Read More “2 Ethane Pipelines May Cause Marcellus/Utica Production to Jump”
Energy Companies | Pennsylvania | Range Resources Corp | Statewide PA

Range Resources 3Q13 Investor Call: Bull’s-eye in the Marcellus
October 31, 2013October 31, 2013

Range Resources, the very first driller to sink a well into the Marcellus, is also perhaps the biggest cheerleader and booster of the Marcellus. And why not? The Marcellus has been very good to Range.

Most of Range Resources’ wells and acreage is located in southwestern PA, in the “wet gas” area of the play. On a call with analysts yesterday discussing third quarter results, Range officials, including CEO Jeff Ventura, effused about the Marcellus, saying Range has enough acreage and opportunity in the Marcellus to allow them to continue drilling new wells for at least another 20 years. That is, they’ve hit the bull’s-eye (our words) in the Marcellus…
Read More “Range Resources 3Q13 Investor Call: Bull’s-eye in the Marcellus”
Anti-Drilling/Fossil Fuel | Centre County | Electrical Generation | Industrywide Issues | Pennsylvania | Pipelines

Deniers Would Rather Penn State Keep Burning Coal than Use NatGas
October 31, 2013October 31, 2013

Witnessing the psychology of those who are anti-drilling, and the reasons for being anti-drilling, is instructive. Some people are honestly afraid that fracking and an increased use of natural gas will lead to an environmental holocaust. We’ll call them lazily ignorant. They don’t bother to investigate or think through the information being spoon fed to them with a critical, logical mind. They just accept the fantastical yarns they hear as the truth. Then there are the true believer fanatics who have gone on over the edge, believing mythical “renewables” can power the planet–now–if only we had the political spine to man-up and change. Bring back the horse and buggies! We’ll call them dangerously stupid.

Regardless of whether you’re lazily ignorant or dangerously stupid (i.e. regardless of why you believe), what you believe does matter. Case in point: A “few dozen” residents and students who live near Penn State in State College, PA want the university to forget about their plan to convert their electric generation plant from being powered by coal to being powered by cheaper, clean-burning natural gas…
Read More “Deniers Would Rather Penn State Keep Burning Coal than Use NatGas”
Access Midstream Partners | Cardinal Gas Services | Economic Impact | Energy Services | Industrywide Issues | Ohio | Pennsylvania | Pipelines | Processing Plants | Statewide OH | Statewide PA | Statewide WV | Utica East Ohio Midstream | West Virginia

Access Midstream Will Invest $3.8B in Marcellus/Utica by End 2015
October 31, 2013October 31, 2013

Access Midstream Partners is heavily involved with the pipeline/processing plant infrastructure buildout happening in both the Marcellus and Utica Shale region. Access is the lead company in the joint venture known as Cardinal Gas Services (the other partners being TOTAL and EnerVest), and an important partner in Utica East Ohio Buckeye (along with M3 Midstream and EnerVest). According to Access CEO Mike Stice on an investors call yesterday, his company’s total investment in the Marcellus Shale by the end of 2015 will be $1.8 billion, and the total investment in the Utica will be $2 billion.

A combined $3.8 billion investment in the northeast spanning 2012-2015–from one company. Simply astonishing! Here’s a few highlights from Stice’s talk yesterday…
Read More “Access Midstream Will Invest $3.8B in Marcellus/Utica by End 2015”
Energy Companies | Hess | Ohio | Statewide OH | Utica Shale

Hess Officials Talks About the Utica on 3Q13 Earnings Call
October 31, 2013October 31, 2013

Yesterday the parade of third quarter earnings calls continued. One of them was held by Hess, continues to be a major player in the Utica Shale.

MDN has slogged through the transcript from yesterday’s call and selected out those portions where Hess officials talk about the Utica, their recent accomplishments and their plans going forward…
Read More “Hess Officials Talks About the Utica on 3Q13 Earnings Call”
Hydraulic Fracturing | Industrywide Issues | Regulation

House Dems Want OMB/EPA Tag Team to Ban Diesel in Fracking Fluid
October 31, 2013October 31, 2013

More federal interference in fracking appears to be on the way. Two House Democrats–Henry Waxman and Diana DeGette–have “asked” (demanded?) the Office of Management and Budget (OMB) to finalize a permitting guidance rule from the federal Environmental Protection Agency (EPA) that disallows using diesel fuel in fracking fluids. Waxman and DeGette say the current rule in place is not specific enough and that some drillers continue to use diesel in fracking fluids. Accusing drillers of using diesel fuel in fracking fluid gives politicians a talking point to stoke their radical green supporters (and increase campaign contributions).

MDN asks: Is the OMB/EPA rule a good thing, or a bad thing?…
Read More “House Dems Want OMB/EPA Tag Team to Ban Diesel in Fracking Fluid”