Marcellus Drilling News

Commodity Price | Economic Impact | Hydraulic Fracturing | Industrywide Issues | Statewide WV | West Virginia

WV Gas Utility Files to Reduce Rates for All Customers
September 17, 2012September 17, 2012

Once again an abundance of clean-burning Marcellus Shale natural gas is benefiting everyone—not just energy companies and landowners. Mountaineer Gas Company, serving 226,000 residential and business customers and the largest natural gas distribution company in West Virginia, recently filed to lower rates on natural gas for its customers by a substantial amount:

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About MDN | Calendar

Calendar of Events for Sep 17-30, 2012 [Free]
September 17, 2012September 17, 2012

Below are upcoming events for this week and next.

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Best of the Rest

Marcellus & Utica Shale Story Links: Mon, Sep 17, 2012
September 17, 2012September 17, 2012

The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading:

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Michigan | Statewide MI | Utica Shale

Is Michigan the Next State to See Widespread Shale Drilling?
September 14, 2012September 14, 2012

Is Michigan the next place where horizontal drilling and fracking of shale will take off? Maybe. The U.S. has a myriad of shale plays across it. It just so happens the Marcellus is the largest (land-wise) and the Utica is right now one of the hottest (with oil and natural gas liquids).

Part of the Utica formation underlies Michigan. But the formation of note in Michigan is the Collingwood Shale layer. The Utica is above it, so it’s often referred to as the Utica-Collingwood. The Collingwood is two miles (or more) below the surface. Encana and others have been testing the Utica-Collingwood in Michigan, but lately, it seems like activity in the state is picking up beyond the “just testing” stage (see the map below). Is this a sign of things to come?

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CNX Resources | CONSOL Energy | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Mahoning County | Ohio

CNX Gas Starts Utica Well in Meander Reservoir Watershed
September 14, 2012September 14, 2012

The third Utica Shale well to be drilled in Mahoning County, Ohio is set to begin any day now. The well is being drilled by CNX Gas (subsidiary of CONSOL Energy). While the fact that a new well is being drilled may not seem like news (it’s the third well to be drilled in Mahoning County), where it’s being drilled in the county is big news: in the watershed of the Meander Reservoir, which provides drinking water to 300,000 people in the Mahoning Valley.

When completed, this will be a great example of the fact that drilling and fracking is safe—even in watershed areas (pay attention New York):

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Coshocton County | Energy Services | Enterprise Products Partners | Industrywide Issues | Ohio | Pipelines

ATEX Express Ethane Pipeline Begins Construction in Ohio
September 14, 2012September 14, 2012

Earlier this year, Enterprise Products Partners announced a 1,230 mile ethane pipeline called the ATEX Express (Appalachia to Texas) that will run from Pennsylvania to the Gulf Coast (see this MDN story). Part of the pipeline repurposes an existing pipeline from Cape Girardeau, Missouri south to Texas. But part of the line is new construction through Ohio.

Not long after the new pipeline was announced, there was a dispute over whether or not Enterprise would need permission from the Ohio Power Siting Board to build new line through the state (see this MDN story). Apparently the issue is now resolved because construction in Ohio is beginning in Coshocton County:

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Energy Companies | EOG Resources | Noble Energy | Pennsylvania | Statewide PA | Talisman Energy

Drillers Talk about Marcellus Advantage over Other Shales
September 14, 2012September 14, 2012

Interfax Energy’s Natural Gas Daily ran a highly interesting and useful article on the advantages of the Marcellus Shale, why it’s attracting capital investments, along with who is ramping up and who is scaling back drilling in the Marcellus.

Among the points made in the article:

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Butler County | Economic Impact | Industrywide Issues | Pennsylvania | Processing Plants

Chemical Manufacturer to Build Gas-to-Liquids Plant in PA
September 14, 2012September 14, 2012

MDN has heard of many uses for natural gas, and of many companies moving to or expanding in states like Pennsylvania to take advantage of the low price of Marcellus natural gas. But this is a new one for us.

Last week, Calumet Special Products, with a chemical plant in Karns City, PA, announced they will likely build a new gas-to-liquids (GTL) plant at their facility in Karns to convert natural gas into feedstock (raw materials) they will then use to manufacture white mineral oils, petrolatums, aliphatic solvents and other gelled hydrocarbon products at the plant. They believe the price of natural gas in the Marcellus is so economical, and will remain so, that they can convert it themselves at a better price than buying the raw materials. How cool is that?

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Energy Services | Industrywide Issues | Merrick Systems | Wastewater

Merrick Systems Launches New Software to Track Shale Wastewater
September 14, 2012September 14, 2012

Merrick Systems just announced the release of new software to keep track of “produced water” (i.e. wastewater) from shale drilling operations, including wastewater from the Marcellus and Utica Shale. The company says their new software helps measure and track the source, transportation and final disposition of wastewater, which helps with both regulatory compliance and cost savings.

From the Merrick press release:

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Broome County | Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY

A Reasonable Anti-Driller in New York?!
September 14, 2012September 14, 2012

Is there such a thing as a reasonable anti-driller? MDN doubted it, until we read a guest viewpoint in today’s Binghamton Press & Sun-Bulletin, by John Orzel. Mr. Orzel is a Democrat, former social studies teacher, resident of Broome County and running against Republican incumbent Tom Libous for the 52nd State Senate seat in New York.

Most anti-drillers attempt to obfuscate the fact they oppose drilling because of their bias against fossil fuels. Mr. Orzel owns up to it. Refreshing! He also owns up to the fact we still live in a free country with the best system known to exist for the fair distribution of wealth: capitalism. In MDN’s book, he constitutes one of the few examples of a reasonable, and truthful, anti-driller.

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Best of the Rest

Marcellus & Utica Shale Story Links: Fri, Sep 14, 2012
September 14, 2012September 18, 2012

The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading:

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Hydraulic Fracturing | Industrywide Issues | Statewide WV | West Virginia

WV Chapter of Sierra Club Takes MDN to Task
September 13, 2012September 13, 2012

Yesterday MDN reported on a Tuesday gathering of anti-drillers in West Virginia calling for no further Marcellus Shale drilling permits to be issued until certain conditions are met (see this MDN story). Jim Sconyers, chairman of the WV Sierra Club, wrote to MDN, taking us to task over our characterization of that meeting.

Here’s Mr. Sconyer’s email:

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Pennsylvania | Statewide PA

PIOGA Says, “You’ve Been Green-Slimed”
September 13, 2012September 13, 2012

Anti-drilling organizations like PennFuture can make all sorts of wild accusations against the drilling industry in Pennsylvania and the media simply nods its collective head up and down like bobble heads, never questioning, always regurgitating what they’re fed. But when someone in the industry hits back, the media (and the anti-drillers) squeal like little girls.

PIOGA, the Pennsylvania Independent Oil & Gas Association, sponsored a couple of billboards along the PA Turnpike about 35 miles from Pittsburgh a few days ago hitting back (see the picture below). What does PennFuture and the Associated Press do? Because “PIOGA” is not emblazoned across the billboard as the sponsor, they try to gin up a controversy that somehow “the industry” is trying to “hide the fact they sponsored it.” You can tell something is effective when you receive a reaction like this one.

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Education | Erie County (NY) | Hydraulic Fracturing | Industrywide Issues | New York | Research

SUNY Bd of Trustees Orders UB to Report on Shale Institute
September 13, 2012September 13, 2012

Started by the George Soros-funded Public Accountability Initiative, the witch hunt at University at Buffalo—the university that dared to establish a Shale Resources Institute—continues full force (see this MDN story for background). Now the State University of New York (SUNY) Board of Trustees is “ordering” UB to report back to them details about the Institute. Interesting the kind of influence money can buy.

Here’s what’s being reported:

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Brooke County | Economic Impact | Industrywide Issues | Processing Plants | West Virginia

Veiled Reference to New Cracker Plant for WV?
September 13, 2012September 13, 2012

Joe Eddy, president and CEO of Eagle Manufacturing in Wellsburg, WV made a presentation to the Wellsburg City Council on Tuesday. During his presentation, he made a mysterious reference to news that an ethane cracker plant may “come to the region in the next six months” and then said he could not elaborate any further. This is a synopsis of what he said:

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Industrywide Issues | New York | Public Opinion | Statewide NY

New Poll Finds Most Upstate NYers Favor Fracking
September 13, 2012September 13, 2012

A regular and ongoing Quinnipiac University poll of New York residents, the latest version which was released yesterday, finds that Upstate NY voters have tipped in favor of fracking. A majority of Upstaters, 45%, support fracking, while 41% oppose it. And it’s no surprise that 72% of Republicans are in favor of fracking while 54% of Democrats oppose it. Like it or not, fracking is a political issue.

The questions from the poll dealing with shale gas drilling in New York are embedded below so you can see the breakout by groups. Here’s a summary of the findings as reported by Quinnipiac:

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