Marcellus Drilling News

Exporting | Industrywide Issues | Public Opinion

API Poll: Vast Majority of Americans Think NatGas Exports Good
May 22, 2013May 22, 2013

The American Petroleum Institute, the premier organization that represents the drilling industry in the U.S., hired Harris Interactive to poll Americans on their opinion about exporting natural gas. The results (full copy embedded below) are very revealing. Some 71% of American adults either agree strongly or agree somewhat with the statement that exporting will create jobs here at home. A majority also agrees exporting makes us more secure and reduces our trade deficit with other countries.
Read More “API Poll: Vast Majority of Americans Think NatGas Exports Good”
Industrywide Issues | Research

Deloitte Report: Shale Revolution is Bridge to Renewable Future
May 22, 2013May 22, 2013

Consulting firm Deloitte has just released a new white paper/report titled “America’s newfound power: What the U.S. should do to capitalize on the shale and renewable energy revolutions” (full copy embedded below). The paper’s premise or theme is this: Natural gas and oil from shale should be a bridge to a lower-carbon future. The white paper’s author, Joseph Stanislaw, believes shale gas is a means to a renewable energy end. Is he right?
Read More “Deloitte Report: Shale Revolution is Bridge to Renewable Future”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Regulation

Anti-Drilling Sportsmen Group Endorses BLM Fracking Rules
May 22, 2013May 22, 2013

Reaction to the release of the Bureau of Land Management’s (BLM) new rules for fracking on federal lands (see BLM Releases Revised Rules for Fracking – Why it Matters) has been mostly negative–from both sides of the drilling debate. The American Petroleum Institute thinks the rules are completely unnecessary and add an extra layer of regulation, i.e. go too far (see Questions still surround BLM hydraulic fracturing regulations). The Sierra Club doesn’t think the rules go far enough (see Sierra Club Statement on the Bureau of Land Management’s New Fracking Rules).

However, MDN is happy to report there is one contingent from the political left embracing the new BLM fracking rules: The innocent sounding (but extremely partisan) Sportsmen for Responsible Energy Development. The Sportsmen (and presumably Sportswomen) of that group think, like Goldilocks, that BLM’s rules are “just right”…
Read More “Anti-Drilling Sportsmen Group Endorses BLM Fracking Rules”
Harrison County | Ohio | Utica Shale

New Utica Shale Magazine Launches in Harrison County, OH
May 22, 2013May 22, 2013

A brand new full color, glossy magazine aimed at connecting the Utica Shale drilling industry with the local community has just launched in Harrison County, OH. The new Pipeline Connections is published by the owner of the Harrison News-Herald. The magazine is free, but you have to pick up a copy in and around Cadiz…
Read More “New Utica Shale Magazine Launches in Harrison County, OH”
Best of the Rest

Marcellus & Utica Shale Story Links: Wed, May 22, 2013
May 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: Wed, May 22, 2013”
Chesapeake Energy | Energy Companies

Chesapeake Energy Appoints Anadarko Engineer as New CEO
May 21, 2013

Less than two months ago corporate raider Carl Icahn and other mercenary “stockholders” of Chesapeake Energy (with the help of complicit reporters at Bloomberg and Reuters) unceremoniously dumped Aubrey McClendon, founder of Chesapeake, as CEO (see McClendon Exits Chesapeake, Well-Bonused “Friends” Replace Him). Yesterday, Chesapeake announced they’ve hired an executive from rival drilling company Anadarko Petroleum to lead them. Three of Aubrey’s closest “friends” that together were running the company via an “Office of the Chairman”–Archie Dunham, Steve Dixon and Dom Dell’Osso–will now go back to their regularly scheduled jobs (and piles of money). Et tu, Brute?

Robert Douglas (“Doug”) Lawler, 46, until this week, was senior vice president of international and deepwater operations at Anadarko. On June 17, he will join Chessy as CEO and a member of the Board of Directors. Doug is a petroleum engineer with an MBA. Our advice to Doug when he arrives at the corporate board room at Chessy: Watch your back when Carl Icahn is in the room. And you darned well better produce a dramatic turnaround on the balance sheet, quickly, or you too will be histoire.
Read More “Chesapeake Energy Appoints Anadarko Engineer as New CEO”
Coterra Energy (Cabot O&G) | Energy Companies | Pennsylvania | Susquehanna County

Cabot O&G Uses Marcellus Shale Gas to Power Drilling Rigs
May 21, 2013May 21, 2013

Cabot Oil & Gas has jumped on the natural gas-powered drilling rig bandwagon. Yesterday, Cabot announced they have begun using “field gas”–Marcellus Shale gas from the very wells they’re drilling–to help power the drilling rigs they’re using to drill for the gas. According to Cabot, this is the first time field gas has been used in drilling rigs in northeastern PA. Cabot is using Caterpillar engines that run on duel fuel technology–part natural gas, part diesel.

You may recall other Marcellus drillers are also using duel fuel, and some are using 100% natural gas, to power their rigs. Those companies include EQT, CONSOL, Seneca Resources and Antero Resources (see Antero Res 2nd Marcellus Driller to Use 100% NatGas Rig Engines for a description of other drillers’ efforts to date). The unique aspect of Cabot’s announcement is that they’re using field gas and not trucking in LNG to power their duel fuel engines. It means far fewer truck trips to the drill site.
Read More “Cabot O&G Uses Marcellus Shale Gas to Power Drilling Rigs”
Hydraulic Fracturing | Industrywide Issues | New York | Statewide NY

NYSPC Launches Free Webinars to Win Public Support for Fracking
May 21, 2013May 21, 2013

The New York State Petroleum Council (NYSPC), part of the American Petroleum Institute, is launching a free webinar series for the public–particularly residents of New York–tomorrow (Wednesday). Apparently the NYSPC has taken to heart the admonishment of Gov. Andrew Cuomo who recently lectured the NYSPC about getting more of the public on the pro-drilling bandwagon (see Gov. Cuomo Fires Back at NY Petroleum Council over Indecisiveness).

The first session schedule for tomorrow will feature Greg Sovas, former director of the mineral resources division of the NY State Dept. of Environmental Conservation…
Read More “NYSPC Launches Free Webinars to Win Public Support for Fracking”
Industrywide Issues | Lease & Royalty Payments | Pennsylvania | Regulation | Statewide PA

PA House Bill 1414: New Reporting for Royalty Calculations
May 21, 2013May 21, 2013

Listen up drillers and landowners in PA: Pennsylvania House Bill 1414 (copy embedded below) is making its way through the PA legislature. That bill, if passed, will require new reporting standards when it comes to calculating oil and gas royalties.

From the ShaleEnergyLawBlog:
Read More “PA House Bill 1414: New Reporting for Royalty Calculations”
Commodity Price | Exporting | Industrywide Issues | Research

Bipartisan Policy Center: U.S. NatGas Prices Will Stay Low
May 21, 2013May 21, 2013

It seems as if everyone is hauling out their crystal balls to try and divine where the price of natural gas will go in both the short and long term–and they all pretty much say the same thing: The price won’t go much higher for a long time–even if demand really picks up and even if the U.S. starts exporting natgas. The latest organization to take a stab at the prediction game is the Bipartisan Policy Center (BPC), a Washington, D.C. based organization founded by liberal Democrats and moderate Republicans (mainstream media’s definition of bipartisanship).

The BPC’s Energy Project staff released a new report yesterday titled “New Dynamics of the U.S. Natural Gas Market” (full copy embedded below). The key findings of the study will not make the anti-drilling nutters happy, that’s for sure:
Read More “Bipartisan Policy Center: U.S. NatGas Prices Will Stay Low”
Chesapeake Energy | Energy Companies

Chesapeake Donates $1M, Employees Help with OK Tornado Recovery
May 21, 2013May 21, 2013

MDN is no fan of the new Chesapeake Energy under the tutelage of board member and corporate raider Carl Icahn–that you know from reading this site for any length of time. However, when a company like Chesapeake does something good and wholesome and just “right,” we don’t want to overlook that either. Yesterday, Moore, Oklahoma was hit by devastating tornadoes. There were a number of fatalities and a huge amount of property damage. Oklahoma native son company Chesapeake (headquartered in nearby Oklahoma City) announced they will donate $1 million cash to the American Red Cross to help with this tragedy. In addition, Chessy employees are volunteering their time to help in the recovery effort. It is noteworthy, and we applaud them.

Read More “Chesapeake Donates $1M, Employees Help with OK Tornado Recovery”
Best of the Rest

Marcellus & Utica Shale Story Links: Tue, May 21, 2013
May 21, 2013May 21, 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: Tue, May 21, 2013”
Accidents | Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Statewide PA

AP’s Non-Story About PA Water Wells “Contaminated” by Drilling
May 20, 2013

Yes ladies and gentlemen, it’s been entirely too long since the Marcellus Shale drilling industry has had a serious allegation of water contamination leveled against it, so it’s time to manufacture a faux “controversy” and attempt to smear the industry. Thank God for the AP and Scranton Times-Tribune, who will readily comply and do just that.

First, the latest smear job by AP that attempts to say that 161 PA water wells have been “contaminated” from 2008-2012, then our analysis of this sham story to set the record straight.
Read More “AP’s Non-Story About PA Water Wells “Contaminated” by Drilling”
Education | Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY

Shock Moderator for JLCNY’s Drilling Education Session in Albany
May 20, 2013May 21, 2013

MDN has to confess this one is a head scratcher. Last week MDN received a media alert that the 77,000-member Joint Landowners Coalition of New York (JLCNY) has taken up Gov. Cuomo’s challenge to educate lawmakers and the general public about shale gas drilling. The JLCNY will host a meeting in Albany for lawmakers, their staff, and “those charged with decisions related to natural gas development in NY state” on May 30. The educational session is appropriately titled, “Top Myths of Natural Gas Development: Debunked.”

The head scratcher is who will moderate it: Anti-drilling former Gannett reporter and author, Tom Wilber…
Read More “Shock Moderator for JLCNY’s Drilling Education Session in Albany”
Energy Services | Exporting | Industrywide Issues | Kinder Morgan | Tennessee Gas Pipeline

Marcellus/Utica Gas Going to Japan: TGP Signs 20-Year Export Deal
May 20, 2013May 20, 2013

Last week the Tennessee Gas Pipeline (TGP), which runs through the Marcellus/Utica region, signed a 20-year agreement with Mitsubishi Corporation of Japan to ship natural gas to the Gulf Coast (Louisiana) where it will be liquefied–turned into LNG–and exported to Japan. This is the second such agreement to export Marcellus and Utica Shale gas to Asia. A little over one month ago Dominion announced a 20-year deal to export 100% of the output from their planned Cove Point, MD LNG plant. The gas from Cove Point will go to both India and Japan (see Dominion’s Cove Point LNG Facility Achieves Important Milestones).
Read More “Marcellus/Utica Gas Going to Japan: TGP Signs 20-Year Export Deal”
Energy Services | GreenHunter Resources | Industrywide Issues | Ohio | Pennsylvania | Regulation | Statewide OH | Statewide PA | Statewide WV | Wastewater | West Virginia

The Long (Federal) Road to Approve GreenHunter’s Barge Terminals
May 20, 2013May 20, 2013

GreenHuner Water has purchased seven facilities along rivers in PA, WV and OH where it hopes to open operations to barge either fracking wastewater or brine to other locations “down river” for disposal by injection wells. The latest barge facility purchase made by GreenHunter is in Wheeling, WV (see GreenHunter Buys Barge Terminal in Wheeling for Frack Wastewater). The big gamble by GreenHunter is that they will receive approval by the U.S. Coast Guard. The gamble got bigger when it was revealed the Obama White House, via the Office of Management and Budget (OMB), would also need to approve it (see Obama “Inches” Toward Approving Barge Shipments of Frack Water).

The gamble is now much bigger by orders of magnitude. The Coast Guard says in addition to themselves and the OMB, the Dept. of Energy, Dept. of Transportation and the federal EPA will also have a hand in the review and decision on whether or not to allow barging of fracking wastewater and brine:
Read More “The Long (Federal) Road to Approve GreenHunter’s Barge Terminals”