Marcellus Drilling News

Economic Impact | Hydraulic Fracturing | Industrywide Issues

U.S. Passes Saudis (Oil) & Russia (NatGas) to Become #1 Worldwide
October 7, 2013

None other than the U.S. Energy Information Administration (EIA) released a report on Friday that says the United States will pass Saudi Arabia to become the #1 oil producing country in the world, and will pass Russia to be the #1 natural gas producing country in the world–THIS YEAR. How? Why? Shale energy, of course. No wonder the Saudi’s are worried (see Top Saudi investor says US energy boom could doom kingdom’s economy) and even the braggadocio Vladimir Putin is showing signs of concern (see Worried by shale gas, Putin calls for new energy strategy).

This is really big news folks…
Read More “U.S. Passes Saudis (Oil) & Russia (NatGas) to Become #1 Worldwide”
Hydraulic Fracturing | Industrywide Issues | Litigation | New York | Regulation | Statewide NY

NY Frack Ban Cases Make (Glacial) Progress, Some Dates to Share
October 7, 2013

In August MDN told you that New York’s highest court, the Court of Appeals, would hear the twin cases of Dryden and Middlefield (see BREAKING: NY Court of Appeals will Hear Dryden/Middlefield Case). There are two things that keep shale drilling away from New York right now: (1) Gov. Andrew Cuomo’s spineless inability to take a stand and do the right thing to allow it, and (2) the Dryden/Middlefield cases. MDN believes the court cases are the more important of the two. Cuomo will come around sooner or later–he has to. However, if the court says a majority vote from a local town board can ban fracking thereby denying property rights for landowners throughout an entire township–that’s the death knell for drilling in New York. No sizable driller will gamble with hundreds of millions in lease money to see a local town simply vote to shut it all down. Too risky. (For our analysis of the New York situation, see the post: Anti-Drillers Attempt a Brave Face with NY Appeals Court Decision.)

So the Dryden/Middlefield cases are of supreme importance in the fight for property rights and to allow drilling for New York’s landowners. What’s the latest in those all-important cases? They’re moving along at the speed of a glacier–but at least we now have some dates to share…
Read More “NY Frack Ban Cases Make (Glacial) Progress, Some Dates to Share”
Carrizo Oil & Gas | Energy Companies | Ohio | Statewide OH | Utica Shale

Carrizo’s New Drilling Strategy: Closer Well Spacing
October 7, 2013October 7, 2013

An analysis by brokerage firm Sterne Agee turns up an interesting strategy change by Carrizo Oil & Gas. Carrizo is a driller in the Utica Shale. They also have active drilling in the Eagle Ford “oily” play (in Texas).

The interesting change-up in their strategy? In the Eagle Ford Carrizo is experimenting with well spacing. Currently the company spaces wells on 105-acre sections. But lately they’re trying it on 80-acre sections, which allows them to place more wells on their leased acreage. Will they use the same strategy in the Utica?…
Read More “Carrizo’s New Drilling Strategy: Closer Well Spacing”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Pennsylvania | Washington County

Strange Twist: Rep. Jesse White Calls His Own Words “Hate Speech”
October 7, 2013October 7, 2013

For some time MDN has chronicled the sad story of western PA Rep. Jesse White, an anti-driller with a grudge against Range Resources who turned to using fake online IDs in order to trash talk his own constituents (see How the Mighty Have Fallen: PA Rep White Admits Guilt, Not Sorry). White eventually (months later) saw the error of his ways when he was outed at Harvard summer school and his “peers” told him “Jesse, you done wrong” (see PA Rep. White Says Fake IDs were “Error in Judgment”).

So get this. Some of White’s constituents, rightly outraged that he is still in office, put his own fake ID words on a big poster board and showed it at an information table set up at the local Fall Festival at an area park. Local Democrat officials were miffed that someone had the audacity to tell the truth about one of their own–in public! Some of the local Dems resigned from their respective boards in protest over the booth. Jesse called his own words on that poster “hate speech.” Huh? That’s right–the fact that someone took his exact words and showed them to local residents (because the media continues to fail to do its job), and White said it’s hate speech. Yeah Jesse, we’re glad you agree that what you previously said is indeed “hate speech”…
Read More “Strange Twist: Rep. Jesse White Calls His Own Words “Hate Speech””
American Energy Partners | Carroll County | Columbiana County | Energy Companies | Lease & Royalty Payments | Ohio | Utica Shale

Aubrey Leases More Land for Drilling — in the Northern Utica!
October 7, 2013October 7, 2013

The puzzle pieces continue to fall into place with respect to the deals being done by former Chesapeake Energy CEO Aubrey McClendon in the Utica Shale. Last week MDN told you about a joint venture between McClendon’s new company, American Energy, and Red Hill Development, to lease land for drilling in southeastern Ohio–counties like Guernsey and Harrison (see McClendon’s Utica Company Does JV with OH Driller, Drilling Soon). We now know about a second joint venture–this one with Great River Energy–a new production company formed through a partnership between McClendon’s American Energy and Texas firm Orange Energy Consultants.

The surprise about this new jv? They’re leasing land in Columbiana and Carroll counties, north of what is thought to be the “sweet spot” in the Utica wet gas area. Looks like Aubrey just can’t stay away from the northern Utica!…
Read More “Aubrey Leases More Land for Drilling — in the Northern Utica!”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Inergy | New York | Schuyler County

Walkin’ and Talkin’ and Prayin’…To Seneca Lake?
October 7, 2013October 7, 2013

Saying that “every body of water has a spirit” and attempting to communicate with that spirit, later this week a small group of (wacko) anti-drillers intend to walk 80 miles around Seneca Lake, NY to pray to the lake spirit that no evil fracking comes to harm the little water nymphs that live in the lake. Or something like that.

We long ago gave up on trying to figure out these people…
Read More “Walkin’ and Talkin’ and Prayin’…To Seneca Lake?”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA | Susquehanna County

Gasland II Starlet Leaves Anti-Drilling Behind, Adopts “Realism”
October 7, 2013October 7, 2013

What’s this…one of the stars of Gasland II, someone who trash-talked the shale drilling industry in Dimock, PA has changed sides? Yep. Well, sort of. Victoria Switzer has given up what she calls “tunnel vision” and has adopted “realism.” She says, “Realism is good.” She no longer calls for a halt to drilling in PA and instead wants to ensure it’s done safely–by working with industry and regulators. Welcome to logic and sanity! Glad to have you on our side.

Watch out Josh Fox: Switzer is not the only former anti-driller now whistling a different tune…
Read More “Gasland II Starlet Leaves Anti-Drilling Behind, Adopts “Realism””
Crestwood Midstream | Energy Services | Industrywide Issues | Inergy | M&A

Crestwood/Inergy Complete Their Merger Today, Worth $8B
October 7, 2013October 7, 2013

MDN told you last week that Crestwood Midstream and Inergy Midstream were close to consummating the merger of their two companies and that it would be coming soon (see Crestwood/Inergy $7B Merger Update: Combined Boards Announced). Looks like soon is today.

A press release from Friday says today, Monday, the final paperwork will be filed and the two companies will officially be merged. The new company will take the name Crestwood Midstream Partners and starting tomorrow it will trade on the New York Stock Exchange with the ticker symbol of CMLP. The two companies together, contrary to previous estimates, will be worth $8 billion (not $7B previously reported), a true midstream giant…
Read More “Crestwood/Inergy Complete Their Merger Today, Worth $8B”
Ashtabula County | Industrywide Issues | Ohio | Processing Plants | Utica Shale

More Details on Ashtabula, OH Gas-to-Liquids Plant
October 7, 2013October 7, 2013

A few weeks ago MDN told you about a new gas-to-liquids plant coming to Ashtabula, OH (see Utica Shale Gas-to-Liquids Plant Planned for Ashtabula, OH).

Another story, this one in Crain’s Cleveland Business, provides a few more details about this $300 million plant that will convert Marcellus and Utica Shale gas into chemicals and even diesel fuel…
Read More “More Details on Ashtabula, OH Gas-to-Liquids Plant”
Best of the Rest

Marcellus & Utica Shale Story Links: Mon, Oct 7, 2013
October 7, 2013October 7, 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, Oct 7, 2013”
Commodity Price | Coterra Energy (Cabot O&G) | Energy Companies | Industrywide Issues | Pennsylvania | Susquehanna County

The Cabot O&G Marcellus Rocketship – To the Moon!
October 4, 2013October 4, 2013

Cabot Oil & Gas, one of our favorite Marcellus drillers, continues to amaze and astound just about everyone. Last Friday (a week ago) the company issued a new “guidance” or “this is our best, educated guess” as to how much natural gas production the company will end up producing for 2013, and how much they believe it will grow in 2014. Given Cabot is already the number one natural gas producer in PA and the first member of what MDN calls the “billion cubic feet per day” club (see Who’s a Member of the Marcellus “1 Bcf/d” Club?), it’s amazing that in 2014 they predict production will be up another 30-50% over this year. Wow!

Something just as startling and no doubt the envy of all their competitors, Cabot CEO Dan Dinges tips their hand as to what the breakeven price is at which the company starts to make money. It’s a LOT lower than even we thought is was…
Read More “The Cabot O&G Marcellus Rocketship – To the Moon!”
Carlyle Group | Energy Services | Energy Transfer Partners | Industrywide Issues | Pennsylvania | Philadelphia Energy Solutions | Processing Plants | Statewide PA

Philly Refinery Processes 190K Barrels/Day of Shale Oil
October 4, 2013October 4, 2013

My how times change. A year ago the then-Sunoco Philadelphia refinery was set to close its doors with a loss of 850 jobs. But something happened on the way to closing down: shale. Shale oil, in particular. Today, the refinery is called Philadelphia Energy Solutions (PES), a joint venture between the Carlyle Group and Sunoco (Sunoco merged with and is now known as Energy Transfer Partners). As MDN chronicled in July 2012, three shale plays will ultimately play an important role for the refinery–the Bakken, the Marcellus and the Utica (see Sunoco & Carlyle Group Ink Joint Venture for Philly Refinery). However, PES is also eyeing other shale plays, like oil from the Permian Basin (in Texas). That would be a hoot–Pennsylvania refining Texas oil!

More than half of the refinery’s 350,000 barrel per day capacity now comes from the Bakken Shale in North Dakota. How? Mostly by railroad, with the rest by barge. According to PA Gov. Tom Corbett, on hand for a ribbon-cutting ceremony at the refinery earlier this week, the Marcellus and Utica will soon play a role at the refinery too: “There’s a pipeline coming over here soon that’s going to be bringing natural gas over. You’re using natural gas now to fuel some of your efforts here but also to create a propane and ethane facility here”…
Read More “Philly Refinery Processes 190K Barrels/Day of Shale Oil”
Delaware County | Energy Services | Industrywide Issues | Millennium Pipeline | New York | Pipelines | Regulation

Millennium Pipeline Gets FERC Approval for Hancock, NY Compressor
October 4, 2013October 4, 2013

The Millennium Pipeline is a major northeastern natural gas transmission pipeline that starts in Steuben County, NY, runs along the center/bottom of the state (an area called New York’s Southern Tier) and angles down through the Catskill Mountains toward New York City, ending in Rockland County, NY. If you know anything about the geography of New York, it roughly parallels State Route 17 (in parts now called Interstate 86). The Millennium runs close to where MDN sits, not far from Binghamton. It handles an increasing amount of Marcellus Shale gas and is one of the important ways Marcellus gas gets to market.

Just down the road about 33 miles from MDN is a little town called Hancock, NY–in Delaware County. The Millennium runs by Hancock. The company previously filed a request with the Federal Energy Regulatory Commission (FERC) to build a new compressor plant near Hancock, at a location called Hungry Hill. The Millennium wants to install a single 15,900 horsepower compressor engine to increase pressure and throughput of gas in the pipeline as it flows through Delaware County. A compressor at Hungry Hill would add 107,500 thousand cubic feet per day of additional capacity to the pipeline. FERC has just green lighted the project…
Read More “Millennium Pipeline Gets FERC Approval for Hancock, NY Compressor”
Crestwood Midstream | Energy Services | Industrywide Issues | Inergy | M&A

Crestwood/Inergy $7B Merger Update: Combined Boards Announced
October 4, 2013October 4, 2013

In May, MDN told you that Crestwood Midstream, with pipelines and processing plants in the Marcellus, and Inergy Midstream, America’s fourth largest propane retailer, trying to establish a new underground propane storage facility near Watkins Glen, NY but is being frustrated by the state’s DEC, would merge to form a $7 billion midstream behemoth (see M&A Mania: Crestwood Midstream & Inergy will Merge). In June the two companies tied 2/3 of the knot (see Crestwood Midstream & Inergy Tie 2/3 of the Merger Knot).

The companies remain at a 2/3 merger–at this stage. However, they have announced the composition of the boards of directors (plural) for Inergy. There is Inergy GP the parent/umbrella company, and Inergy Midstream GP, which will merge with Crestwood. Both boards of directors (see below) contain Crestwood people on them starting next week. So it appears the consummation of this merger marriage will happen soon…
Read More “Crestwood/Inergy $7B Merger Update: Combined Boards Announced”
Boardwalk Pipeline Partners | Energy Services | Exporting | Industrywide Issues | NGLs | Pipelines | Processing Plants | Williams

Rumor Now Reality: Williams/Boardwalk to Build Gulf LPG Terminal
October 4, 2013October 4, 2013

Williams and Boardwalk Pipeline Partners announced in March they will build a natural gas liquids (NGL) pipeline that would run from the Marcellus/Utica region all the way to the Gulf Coast. They dubbed the new pipeline the Bluegrass Pipeline (see Williams, Boardwalk Announce Marcellus-to-Gulf Coast NGL Pipeline). But where would the new pipeline connect to along the Gulf Coast to process the NGLs? In July, we heard rumors that Williams and Boardwalk were considering building a new LPG export facility to process and export the Marcellus/Utica NGLs (see Bluegrass NGL Pipeline Recap, Builders Eye LNG Exports Too).

It’s no longer a rumor…
Read More “Rumor Now Reality: Williams/Boardwalk to Build Gulf LPG Terminal”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Regulation

MA Dems Propose Frack Ban on Non-Existent Shale Drilling – Duh!
October 4, 2013October 4, 2013

Anti-drilling nutters in Massachusetts have introduced legislation to ban fracking in the state, even though there’s no frackable shale to be found. Why do it? To make a political statement, of course. Symbolism over substance reigns supreme in the Bay State controlled by you-know-which political party.

So, you might expect the following editorial that strongly criticizes said politicians for proposing a frack ban bill, and criticizing the state for supporting alternative energy sources only (sources that require huge infusions of taxpayer money to make them work), to be an editorial penned by MDN. Or perhaps from a Tea Party organization. But, you would be wrong. The strongly-worded editorial below is from none other than the editors of the Boston Herald…
Read More “MA Dems Propose Frack Ban on Non-Existent Shale Drilling – Duh!”