Marcellus Drilling News

Sunoco & Carlyle Group Ink Joint Venture for Philly Refinery

July 2, 2012July 2, 2012

Apparently the merger underway between Energy Transfer Partners and Sunoco is going well enough, and the promise of Marcellus and Utica Shale big enough, that Sunoco has inked a deal with The Carlyle Group to form a joint venture to keep the Philadelphia refinery operating. The new joint venture will save 850 jobs at the plant. Wording in the extensive press release below indicates that shale—Marcellus, Utica and Bakken—will all play an important role for the refinery moving forward.

This is good news for the workers at the refinery, and good news for consumers who will continue to have access to low-cost oil, natural gas and other petrochemical products that will be produced by the refinery. Here’s the press release announcing the deal:

Devon Energy | Energy Companies | Ohio | Wayne County (OH)

Devon Energy Receives First Utica Permit for Wayne County, OH

July 2, 2012July 2, 2012

Devon Energy has just received the first permit to drill a Utica Shale well in Wayne County, Ohio. No timeline is set for when the drilling will begin, but Devon hopes the well will yield not only methane but oil too.

Exterran Wins Contract to Build 3 WV NatGas Processing Plants

July 2, 2012July 2, 2012

A big “get” for Exterran Holdings. They’ve won the contract to build three natural gas processing plants being built by Williams Partners in West Virginia.

From the Exterran press release:

PA Budget with Shell Cracker Plant Tax Credit Passes

July 2, 2012July 2, 2012

At 11:45 pm Saturday, Pennsylvania Gov. Tom Corbett, for the second year in a row (and his second year in office), signed into law an on-time budget for the state—a budget that does not raise taxes. No small feat given the current sad state of the economy.

One of the biggest victories for Corbett in this year’s budget (supported by both Republicans and Democrats) was the passage of a tax credit for Shell and other companies who invest in an ethane cracker plant for the state:

Hydraulic Fracturing | Industrywide Issues

Delaware Riverkeeper Launches Anti-Fracking Ad Nationally

July 2, 2012July 2, 2012

The anti-drilling Delaware Riverkeeper has launched a new anti-gas ad airing on Lifetime, MSNBC, CNBC, and FOX News. Yes, Fox News too. No doubt using the deep pockets of Hollywood types (like Mark Ruffalo) and money from billionaires (like the lefty George Soros), the ad tries to turn up the fear factor on gas drilling and smear the miracle of hydraulic fracturing. Perhaps you’ve seen the new ad? MDN editor Jim Willis watched it online here (he kicked the time-wasting TV habit years ago).

MDN notices that some lazy (obedient?) news outlets have picked up the Riverkeeper press release and printed it word for word as actual news, not even bothering to identify it as a biased press release (like the Hunterdon County Democrat).

Here’s the press release as issued by Riverkeeper (and as found in the Hunterdon County Democrat):

Best of the Rest

Marcellus & Utica Shale Story Links: Mon, Jul 2, 2012

July 2, 2012July 2, 2012

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

About MDN | Calendar

Calendar of Events for Jul 2-15, 2012

July 2, 2012July 2, 2012

Below are upcoming events for this week and next.

New York

Pennsylvania

Webcasts/Online

2012-07-12 John Hanger: The Truth About Gas Drilling & America’s Energy Choices – Webinar

About MDN | MDN Resources

MDN’s First Webinar: The Truth About Gas Drilling and America’s Energy Choices

June 29, 2012July 13, 2012

Please join MDN editor Jim Willis has he welcomes former Sec. of the PA DEP John Hanger for a FREE webinar on Thursday, July 12, 2012 @ 7:00 PM EDT.

John will present on the truth about gas drilling, and its alternatives, in MDN’s first-ever public webinar. It’s free to attend, just sign up by clicking the link below.

Register Now! (Spaces are limited)
https://attendee.gotowebinar.com/0h532/register/2692075399046932736

Hydraulic Fracturing | Industrywide Issues

UK Academy of Engineering Study: Fracking is Safe

June 29, 2012June 29, 2012

A refreshing report has been issued by the UK Royal Academy of Engineering and the Royal Society that says, in essence, hydraulic fracturing should be expanded in that country and when it’s properly regulated, fracking is perfectly safe. Issued earlier this month, the 76-page report is titled “Shale gas extraction in the UK: a review of hydraulic fracturing” (a full copy is embedded below).

Here’s the opening two paragraphs, which pretty much sum up the tone and findings of the report:

Erie County (NY) | New York

UB Issues Supportive Statement for its Shale Institute

June 29, 2012June 29, 2012

You may recall that recently the brand new Shale Resources and Society Institute at the University at Buffalo (UB) published a 52-page study that found environmental problems caused by Marcellus Shale gas drilling in Pennsylvania were isolated, mostly minor and on the decline. The enviro-left perceived a threat. This is a major university coming out in support of drilling—something that cannot stand. So the enviro-left flew into action to try and shame, cajole and bully UB into retracting support for its own newly established Institute. And it seemed to work (see this MDN story).

But what’s this? Yesterday UB issued a press statement that supports the Institute. Sort of. Lukewarm. Half-heartedly. UB defended the Institute by saying the university does not and will not dictate the positions taken by its faculty members on controversial topics, and that UB has no plans to get rid of the Institute. Here’s the full statement:

PA Legislature Reaches Deal on Tax Credit for Cracker Plant

June 29, 2012June 29, 2012

A deal has been struck by the Republican majority legislature in Pennsylvania to grant Shell a tax credit over a 25-year period starting in 2017. Gov. Tom Corbett had originally proposed the tax credit be capped at $66 million per year, or a total of $1.7 billion, but the final version of the law, if passed, places no limit on the total amount other than a credit of five cents per gallon of ethane used. So the total deal may exceed $66 million per year.

SRBC Suspends Water Withdrawals in Some Areas

June 29, 2012June 29, 2012

The Susquehanna River Basin Commission (SRBC), unlike the Delaware River Basin Commission (DRBC), actively manages water withdrawals for shale drilling from the rivers and streams that are a part of its jurisdiction. The DRBC allows no water withdrawals at all—yet.

Yesterday the SRBC suspended withdrawals at 37 different locations because water levels have dropped from lack of rain. This happens periodically. Withdrawals in some locations are suspended for a time, and then allowed to restart when levels rise again. The SRBC continues to do a good job of managing water supplies throughout the Chesapeake Bay watershed.

Here’s the press release and list of affected areas:

Ethane | Industrywide Issues | Pipelines | Processing Plants

Ethane, a “Stranded Commodity” About to be Rescued

June 29, 2012June 29, 2012

The Motley Fool blog site has an insightful article today on ethane, “the stranded commodity” that, according to the article, won’t be stranded for long! What does that have to do with Marcellus and Utica Shale gas drilling? Everything, as it turns out.

As explained in the article, ethane is produced from natural gas drilling in “wet gas” areas—mostly southwestern PA, eastern OH, and the northern panhandle of WV. Ethane, as MDN has explained countless times (but there’s always new readers!) can be “cracked” into ethylene, the raw material or “feedstock” used by chemical manufacturers to make plastics and products like tires and antifreeze. But there’s one problem with the ethane coming from the Marcellus and Utica Shale: it currently costs too much to transport it to the Gulf Coast and other points where it can be converted.

According to the author of the article, that will all change soon.

Industrywide Issues | Pennsylvania | Regulation | Washington County

The Politics of Shale Energy

June 29, 2012June 29, 2012

There is a brutal fact of politics no candidate can escape (try as they might): People vote their pocketbooks. The quintessential example of that that political axiom is Washington County, Pennsylvania. Heavily Democrat in voter registration, Washington County voters did something 3 1/2 years ago they haven’t done in over 40 years—they voted for a Republican for president (John McCain). And you can bet your bottom dollar Romney will be their choice this time around.

Best of the Rest

Marcellus & Utica Shale Story Links: Fri, Jun 29, 2012

June 29, 2012June 29, 2012

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

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

DEC Seeks Industry Feedback, Antis Throw a Temper Tantrum

June 28, 2012June 28, 2012

There’s a storm brewing you need to know about. But it’s actually more like a tempest in a teapot. There’s nothing “there” in this story, except posturing by anti-drillers. With that proviso…

The Albany Times Union reports in today’s edition (in a story posted online last night) that last year, the New York Department of Environmental Conservation (DEC) sent preview drafts for a few sections of the proposed new drilling rules (called the SGEIS) to “the industry” in August, a few weeks before the official release of the latest version of the SGEIS in September. Why would the DEC “leak” it to the industry first? Conspiracy? Cozy relationship? No. The DEC shared a few select portions because state law requires the DEC to seek feedback from those who would be regulated by the new rules.