Marcellus Drilling News

Marcellus Waste Processing Facility Planned for Sunbury, PA

March 28, 2012March 28, 2012

Clean Harbors Environmental Services of Norwell, Mass. has applied for a permit to build a “waste processing facility” in Sunbury (Northumberland County), PA. The facility will accept up to 1,000 tons of Marcellus Shale drill cuttings, drilling mud and other materials per day. Although the waste is not toxic, some local officials are concerned and upset that the state DEP alone will make a decision about whether or not to approve the permit (Sunbury has no say in the matter). Sunbury mayor David Persing supports the new facility.

Change in Location for MarkWest Processing Plant in Ohio

March 28, 2012March 28, 2012

A new natural gas processing plant to be built by MarkWest Energy was supposed to be built in Monroe County, Ohio, but the geography has now shifted west and the plant will be built in neighboring Noble County, Ohio instead.

Industrywide Issues | Pipelines | Processing Plants

Private Investors Aim Their Money at Pipelines/Midstream

March 28, 2012March 28, 2012

Pipelines and the “midstream” are the next big investment opportunities for investors—so says an article by Bloomberg.

A quick primer on the oil and gas business. Drilling for oil and gas, often referred to as exploration and production (or E&P) is what is usually called “upstream.” The term “midstream” refers to the pipelines, compressor stations and processing plants that move and refine oil and gas. “Downstream” is the distribution and marketing of oil and gas to end customers. There’s some blurring of those lines; for example, big oil refineries are usually considered downstream. But you get the idea.

Alternative Energy | Industrywide Issues

Fracking’s Existential Threat to Green Energy

March 28, 2012March 28, 2012

Check out an excellent column today by Paul Driessen on the TownHall.com website. Paul is a senior policy adviser for the Committee For A Constructive Tomorrow (CFACT), and a senior policy adviser to the Congress of Racial Equality. He’s also author of Eco-Imperialism: Green Power – Black Death.

In today’s column, Paul makes the point that the Sierra Club and other so-called environmental groups oppose clean-burning natural gas and shale drilling because it’s a threat to their alternative-energy-nirvana ideology (something MDN has long pointed out). The column starts this way:

Best of the Rest

Marcellus & Utica Shale Story Links: Wed, Mar 28, 2012

March 28, 2012March 28, 2012

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

Economic Impact | Industrywide Issues | Jobs | Pennsylvania | Statewide PA

Wells Fargo Study: 60% of New PA Jobs from Gas Drilling

March 27, 2012March 27, 2012

jobs Wells Fargo Securities economists recently issued a report on the effects of Marcellus Shale drilling on Pennsylvania jobs (a copy of the 12-page report is embedded below). The report offers both an optimistic and pessimistic forecast of job growth, along with what they believe to be a realistic forecast. And all of their numbers are backed up with plenty of commentary so the reader understands why they predict what they predict. The bottom line?

Shell’s ‘Silent’ Partner in Building Cracker Plant: The EPA

March 27, 2012March 27, 2012

Shell will decide whether or not to build an ethane cracker plant in Beaver County, PA over the next two years (see this MDN story). If they decide to build, which seems likely, it will take between four and 10 years and $3 billion to build it. It’s a massive project. And Shell will have the federal Environmental Protection Agency looking over their shoulder the whole time, according to an EPA rep from Texas:

New York | Statewide NY

NY Anti-Fracking Groups Join Forces

March 27, 2012March 27, 2012

Sensing that Gov. Andrew Cuomo may be close to moving forward with issuing permits for shale gas drilling, anti-drilling groups are joining forces in New York State to form a coalition called New Yorkers Against Fracking. Movie star Mark Ruffalo, who plays Bruce Banner (the Hulk) in the upcoming movie The Avengers, is on board with the effort. (Those who support drilling may want to consider bypassing The Avengers to send a message to Mr. Ruffalo and Hollywood.)

Industrywide Issues | Maryland | Statewide MD | Taxation

Maryland House Votes to Tax Non-Existent Shale Drilling

March 27, 2012March 27, 2012

From the “things that amuse us from Maryland” file: The Maryland House of Delegates passed a vote on a severance tax on shale gas drilling in the state. They generously reduced the original proposal from a 15 percent tax down to 7.5 percent. Thing is, there is no shale gas drilling in the state and there won’t be until 2014 at the earliest when a report commissioned by Gov. Martin O’Malley is due. And it’s a big “if” as to whether or not Maryland will ever allow drilling. The House seems awfully eager to tax something they haven’t even decided they will allow.

Economic Impact | Industrywide Issues | Pennsylvania | Statewide PA

Marcellus Revitalizes PA Company 150 Miles from Nearest Well

March 27, 2012March 27, 2012

PA State Senator Tim Solobay, a Democrat serving western PA’s 46th district, made the following report about the “broad-reaching economic impact” of Marcellus shale drilling and it’s power to revitalize businesses in the state:

Federal Judge Upholds Water Ban in Allegheny National Forest

March 27, 2012March 27, 2012

In a lawsuit to allow active drilling in the Allegheny National Forest (ANF) in Pennsylvania, a federal judge ruled last Friday that the U.S. Forest Service does not have to end a ban they imposed on drillers who want to use surface water from the ANF for hydraulic fracturing. Drillers have argued that the Forest Service’s actions in banning water withdrawals from the ANF, and in delaying signoff on new drilling permits, have in essence stopped drilling in the ANF—a de facto ban. For a background on the long-running dispute, see this MDN story from last November.

Commodity Price | Industrywide Issues | Pennsylvania | Statewide PA

Number of NatGas Drilling Rigs Continues Slow Decline in PA

March 27, 2012March 27, 2012

The number of gas drilling rigs continues a slow decline in Pennsylvania as companies reallocate those rigs to Ohio and to areas in the country where shale oil drilling is expanding.

Energy Companies | Seneca Resources

National Fuel Gas Announces Second Cutback in Marcellus

March 27, 2012March 27, 2012

National Fuel Gas Company and its subsidiary Seneca Resources announced yesterday that for the second time in two months they are further scaling back Marcellus Shale drilling in light of low natural gas prices. According to CEO David Smith they will curtail production by “a modest amount” and delay some completions in the Marcellus.

From the press release:

Best of the Rest

Marcellus & Utica Shale Story Links: Tue, Mar 27, 2012

March 27, 2012March 27, 2012

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

Lease & Royalty Payments | Ohio | Statewide OH | Utica Shale

Who’s Drilling Where (and How Much) in Ohio’s Utica Shale

March 26, 2012March 26, 2012

score card In one of the best “round up” articles MDN has seen, journalist Bob Downing from the Akron Beacon Journal gives a rundown of who’s drilling where in Ohio’s Utica Shale. From the introduction of the article:

Hydraulic Fracturing | Industrywide Issues | Ohio | Statewide OH

OH Enviro Groups Warn Against Water Withdrawals for Fracking

March 26, 2012March 26, 2012

With the rapid expansion of natural gas drilling in Ohio’s Utica Shale comes a need for water used in the hydraulic fracturing process. Each well drilled can use upward of five million gallons of water. Some it comes from recycled wastewater from other fracking operations, but there’s still an ongoing need for water.