Marcellus Drilling News

Blue Ridge Mtn Res/Magnum Hunter | Energy Companies

Magnum Hunter’s Marcellus Production Curtailed from Storm

July 3, 2012July 3, 2012

You may or may not have heard about the severe thunderstorms that moved through the mid-Atlantic region last Friday afternoon. It resulted in 1.3 million people in Washington, D.C., Maryland and northern Virginia losing power. Some of them still don’t have power and won’t until later this week.

But what you may not realize is that the same storm also had a noticeable effect on the Marcellus Shale industry. The storms didn’t just stop around D.C.—they kept on going—right into the heart of Marcellus country. And the power outage caused problems for at least one driller, Magnum Hunter, who issued a press release with an update on the status of their operations in the region.

The Inverse Relationship of Coal and Natural Gas

July 3, 2012July 3, 2012

A heartrending editorial in the Charleston Gazette tells about recent massive layoffs in the West Virginia coal industry. While there’s mention of Obama’s war on coal (and make no mistake, it’s a real war on coal by the global warmists), the editorial puts most of the “blame” on the rise of cheap natural gas, brought about by hydraulic fracturing of shale.

Best of the Rest

Marcellus & Utica Shale Story Links: Tue, Jul 3, 2012

July 3, 2012July 3, 2012

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

Republicans Sneak SE PA Drilling Ban into Budget Deal

July 2, 2012July 2, 2012

11th hour An eleventh hour deal was snuck into the Pennsylvania budget signed into law by Gov. Tom Corbett late Saturday night. On Friday, an amendment was introduced to the budget that would establish a moratorium on drilling in southeastern Pennsylvania in the South Newark Basin, a small area which stretches from New Jersey through Bucks, Montgomery and Berks counties in PA.

The U.S. Geological Survey (USGS) recently completed an evaluation of the South Newark Basin, which contains both shale and coal bed methane deposits, along with four other East Coast basins and issued a report showing how much natural gas each basin contains (a copy is embedded below). The report says the South Newark Basin contains a minimum of 363 billion cubic feet of natural gas deposits, and their best guess is it contains around 876 billion cubic feet. It’s much smaller than the Marcellus, but certainly nothing to sneeze at.

With all of the gas drilling in the rest of the state, and with new drilling laws now in place, why place a temporary moratorium that expires in 2018 on the southeast region of the state? That’s where politics rears its ugly head—and this time it’s the Republicans who are to blame.

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: