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    MDN Weekly Update – Jan 29, 2012: Are You Serious Mr. President?

    poll resultsLast week’s MDN poll asked about the hot button question of whether or not you think the EPA should have a role in investigating water contamination in Dimock, PA. Although our weekly MDN polls often get criticized by anti-drillers, the MDN audience does not always think the way editor Jim Willis does! This week’s poll is evidence. More of you think the EPA has a role than those of us who don’t think so (including Jim). Here are the results:

    Should the federal EPA investigate the Dimock, PA water contamination case?

    Yes (52%, 142 Votes)
    No (44%, 120 Votes)
    Not sure (4%, 11 Votes)

    Total Voters: 273

    This Week’s Poll: Is President Obama Now a Fracking Shale Gas Supporter?

    Just last week MDN wrote a “rant” about the out-of-control Environmental Protection Agency (EPA) and their latest attempt to smear hydraulic fracturing by inserting themselves into an investigation at Dimock, PA (see this MDN Weekly Update). EPA wants to control oil and gas drilling in this country, and their illicit ticket to ride is by trying to find at least one case where fracking has resulted in chemical contamination of ground water supplies. They’re looking for just a single case (of out an estimated 19,000 wells that will be fracked this year). Just a single, solitary case out of the hundreds of thousands of wells that have been fracked going back 50 years. Anything! Of course even if the EPA were to find a single case, it would still be statistically zero, but oh what a hatchet job the environmental extremists and media could do with a single case!

    So MDN found it amusing, and we’re sure the EPA was apoplectic, when President Obama essentially said in his State of the Union address this past week that fracking is good and will result in 600,000 jobs (see this MDN story). But MDN is also suspicious of election year conversions. Most pro-drilling organizations and landowner coalitions have hailed Obama’s words in his speech, and since, as turning a corner. It’s given new hope to landowners in New York State that perhaps Gov. Andrew Cuomo will now have enough political cover to move forward with lifting the moratorium in that state (“hey, Obama says it’s OK).

    MDN remains a hardened skeptic. “Show me the money!” Or in this case, “Show me you’re serious!” How can the President prove he is serious about shale gas drilling and his stated support of fracking? The first thing he can do is tell the EPA to butt out of Dimock. It is his EPA. The EPA, like it or not, is an arm of the presidency. It is an agency in the Executive branch of government. That means Obama is the boss. If he wanted to, he could tell Lisa Jackson to quit fiddling around in Dimock. Second, while he’s at it, he could tell Lisa to end the multi-year study of fracking the EPA is currently conducting. Fracking has been studied to death already—the EPA will learn nothing new. But the not-so-subtle threat is that the EPA will gin up enough suspect data to make a grab at regulating oil and gas drilling through the back door by controlling fracking. And where there’s a threat of government interference, there’s uncertainty, and where’s there’s uncertainty, companies are slow to invest and move forward. And when companies are slow to invest and move forward, less business is done and fewer jobs are created. Fracking is already heavily regulated in the individual states where it’s used. We don’t need the EPA usurping the states and adding yet another layer of regulation, smothering the industry.

    Although oil is not natural gas, the two are closely tied together. Fracking has resulted in an unprecedented renaissance of oil drilling in our own country—witness the miracle of the Bakken fields of North Dakota. ND now has the lowest unemployment rate in the country and has had the lowest unemployment for what, going on two years now? Why? Fracking. ND is producing boatloads of oil. One of the ways to get oil from where it’s drilled to where it needs to be processed and sold is via pipeline. Obama effectively killed the Keystone XL pipeline that would have come from Canada, and along the way, would have gone through the Bakken and taken that oil, along with cheap Canadian oil, and transported it to the Midwest and the Gulf Coast. Want to prove your serious about fracking Mr. Obama? Reverse course and grant the permits to allow the Keystone pipeline to be built. That would be a huge way to show you’re serious about fracking and energy production in this country.

    Saying something and doing something are two different things. We’ll take Obama’s statements supporting shale gas drilling and fracking, but it would be so much better if his actions backed up his words. Don’t hold your breath.

    What do you think? Is Obama now a genuine convert and supporter of fracking and shale gas? Or is this just an election year stunt to get votes? Register your vote in this week’s poll along the right side of any page.

    Below are the most recent “top 5” lists and the calendar of Marcellus-related events for the next two weeks.

    Happy reading,
    Jim Willis, Editor

    P.S. MDN is working on a new permits report that will be published soon (in February). Keep watching MDN for details in the coming weeks. This new report is better than the last by orders of magnitude!

    Read More “MDN Weekly Update – Jan 29, 2012: Are You Serious Mr. President?”

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    Cabot Letter to EPA: You Need to Rethink Dimock Decision

    rethinkCabot Oil & Gas President & CEO Dan Dinges sent a letter yesterday to federal Environmental Protection Agency (EPA) Administrator Lisa Jackson about the EPA’s sudden change of plans concerning the situation in Dimock, PA (the full letter is embedded below). The upshot of the letter? You need to rethink your recent decision to interfere in Dimock.

    Read More “Cabot Letter to EPA: You Need to Rethink Dimock Decision”

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    Obama Takes Credit for Shale Gas Drilling in Election Year

    In a Wall Street Journal op-ed earlier this week (We Don’t Need More Foreign Oil and Gas), Obama supporters and long-time Democrat flacks John Podesta and Tom Steyer tried to make the argument that we don’t need Canada’s oil (and natural gas) because we now have enough of our own, thank you very much. Apparently Obama is getting heat for his disastrous decision to pander to environmental extremists and reject the Keystone XL pipeline that would not only have brought cheap Canadian oil to the U.S. (at a time of record-highs for oil), but also would have brought more U.S. oil to the U.S. from North Dakota’s Bakken field.

    Read More “Obama Takes Credit for Shale Gas Drilling in Election Year”

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    EQT Production Up 44% in 2011, Suspends Huron Shale Drilling

    Pittsburgh-based EQT Corp. released 2011 results yesterday. Because of the prolific gas volumes in the Marcellus Shale, EQT reports production for natural gas was up an astonishing 44 percent over 2010. Some 42 percent of EQT’s production is from the Marcellus, which was up 18.9 percent last year.

    EQT reports drilling 222 gross wells in 2011, 105 of them in the Marcellus Shale and 115 in the Huron Shale. The Huron is located mostly in western West Virginia, with very small slices in Ohio, Kentucky and Virginia. Because of slumping prices for natural gas, EQT has announced they are suspending drilling in the Huron and instead will concentrate on the liquids-rich portion of the Marcellus.

    Read More “EQT Production Up 44% in 2011, Suspends Huron Shale Drilling”

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    CONSOL Will Spend $130M Less on Marcellus Drilling in 2012

    CONSOL Energy, the coal and natural gas giant with drilling operations in the Marcellus and Utica Shales, released it’s fourth quarter results along with a year-in-review yesterday. Even though the price of natural gas steadily declined during 2011, CONSOL was able to pay off all of its short term debt and ended the year with a cash balance of $376 million. CONSOL spent $1.4 billion on capital projects in 2011 and paid out dividends to shareholders totaling $96 million. The company has increased its regular quarterly dividend by 25 percent. The annual dividend is now $0.50 per share.

    Read More “CONSOL Will Spend $130M Less on Marcellus Drilling in 2012”

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    Drilling Industry Responds to Obama’s Call for Transparency

    transparencyLess than 24 hours after President Obama called for full disclosure of chemicals used in hydraulic fracturing, the drilling industry held its first public meeting to roll out FracFocus.org, an online database that does just what the President requested. The meeting, held in Williamsport, PA, brought together drilling companies, environmental engineers and other experts, along with the public, to answer questions and address people’s concerns.

    Read More “Drilling Industry Responds to Obama’s Call for Transparency”

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    PA DEP Sides with Homeowner Against Atlas in Well Water Issue

    In 2008, a homeowner located near gas wells drilled in Westmoreland County, PA by Atlas Energy says his well water turned muddy immediately after drilling was done. At the time, Atlas told him to stop drinking the water and supplied him with a water buffalo, making fresh water deliveries ever since. That is, until two weeks ago when Atlas says that after re-testing the water is now safe to drink, so they ended the water deliveries. The homeowner disagrees and the PA Department of Environmental Protection (DEP) is siding with the homeowner in this case.

    Read More “PA DEP Sides with Homeowner Against Atlas in Well Water Issue”

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    Obama Speech Gives NYers Hope that Fracking Will Soon Begin

    President Barack Obama’s State of the Union address, in which he openly supports drilling for natural gas and the “safe” use of hydraulic fracturing, has given a glimmer of hope to landowners in New York State that perhaps the President’s support for fracking will finally end the moratorium on drilling in New York.

    Read More “Obama Speech Gives NYers Hope that Fracking Will Soon Begin”

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    Ohio vs. West Virginia in the Cracker Plant Sweepstakes

    West Virginia, Pennsylvania and Ohio wait on pins and needles for Shell to announce which state they have chosen as a site to build a new $1.5-$2.0 billion ethane cracker plant, each of them looking for an edge to ensure their state is selected. WV Gov. Earl Ray Tomblin is flying to Houston this week to meet with representatives of Shell to make a personal pitch that West Virginia should be that place, with a promise of no property taxes on the plant for 25 years if they do so. Thing is, Ohio Gov. John Kasich has already been to Houston to pitch his state—two months ago. Does that give Ohio an edge?

    Read More “Ohio vs. West Virginia in the Cracker Plant Sweepstakes”

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    Norse Energy Continues Selling Pieces of the Company

    Norse Energy, with leased acreage in both the Marcellus and Utica Shales in New York State, has been fighting to keep the company afloat until New York finally allows hydraulic fracturing and they can take advantage of their leaseholds. But to keep holding on, they’ve sold off bits and pieces of their leaseholds, as well as bits and pieces of the company. A few weeks ago they converted $3.5 million of bonds (or debt) into stock (or ownership) of the company (see this MDN story).

    Yesterday, we learned they’ve sold off another $12.5 million of the company in another bonds for stock swap deal. And now they’re making the same offer to all of their bondholders: Let’s make a deal—soon.

    Read More “Norse Energy Continues Selling Pieces of the Company”

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    Enterprise Scores Second Commitment for New Ethane Pipeline

    Enterprise Products Partners have scored another customer, Range Resources, for their ethane pipeline that will connect the Marcellus and Utica Shales to the Gulf Coast. The 1,230 mile pipeline, dubbed the ATEX Express (Appalachia to Texas) will transport ethane from Washington County, PA to (at first) Cape Girardeau, MO—that’s new pipeline construction. And from Cape Girardeau, Enterprise will reverse an existing 16-inch diameter pipeline and place it into ethane service, going all the way to Mont Belvieu, TX.

    Read More “Enterprise Scores Second Commitment for New Ethane Pipeline”

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    Obama State of the Union: Safe Fracking will Create 600K Jobs

    President Barack ObamaLast night, President Barack Obama delivered his State of the Union address to Congress. Energy and natural gas played a big role in the speech. In particular, Obama acknowledges the jobs-generating power of natural gas drilling, saying it can generate 600,000 jobs by the end of this decade. He also mandated a requirement that gas drillers on public lands disclose the chemicals they use. (Disclosing fracking chemicals is already the law in five states and mostly enforced in a sixth—see this MDN story).

    Obama said the U.S. has enough natural gas to last us 100 years and that he’s going to “take every possible action” to develop it. He also reaffirmed his belief in global warming.

    Read More “Obama State of the Union: Safe Fracking will Create 600K Jobs”

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    Broome County, NY Landowners Get Big Payment from Talisman

    New York landowners in Broome County will receive millions in lease payments this month from Talisman Energy—$5000 per acre (they’ve already received $500 per acre). The landowners belong to the Friendsville Group, a landowner coalition that signed a deal with Talisman in 2009. Most of the Friendsville Group members are landowners just over the border in Pennsylvania, who already received their full $5,500 per acre payments two years ago. The New York members had to wait—either until permits were granted, or January 2012.

    Read More “Broome County, NY Landowners Get Big Payment from Talisman”

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    PA DEP Wants to Use Acid Mine Drainage for Fracking Water

    The Pennsylvania Department of Environmental Protection (DEP) is floating the idea of using a portion of the 300 million gallons of acid mine drainage that flows each and every day from abandoned coal mines in that state as a source of water for Marcellus Shale gas fracking.

    Read More “PA DEP Wants to Use Acid Mine Drainage for Fracking Water”