ET & DEP Still Squabbling over Revolution Pipe, New Violations
Energy Transfer’s Revolution Pipeline runs through Bulter, Beaver, Allegheny, and Washington counties in southwest PA. The 24-inch gathering pipeline shifted and exploded in September 2018, just as it was entering service (see Revolution Pipeline Near Pittsburgh Explodes – Home & Barn Destroyed). What happened that led to a landslide and explosion of the pipeline? ET says historic, unprecedented rain caused the problem. The Pennsylvania Dept. of Environmental Protection (DEP) says ET took shortcuts and performed work without getting permission–work not up to code. The two sides squabbled until January of this year when the DEP levied a record-high $30.6 million fine (see ET Allowed to Fix/Restart Revolution Pipe…After Record $30M Fine).
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The full U.S. Court of Appeals for the District of Columbia (DC Circuit) heard oral arguments yesterday in a case of major importance to the future of all federally-approved pipeline projects. The case revolves around the Federal Energy Regulatory Commission’s (FERC) use of something called a tolling order in approving Atlantic Sunrise Pipeline (in the PA Marcellus). Big Green groups launched the lawsuit in an effort to strip away FERC’s right to use tolling orders when considering requests to “rehear” decisions to approve pipelines.
The shutdown of the world’s economy is not only affecting oil usage (and prices), it’s also affecting the usage and prices of LNG–liquefied natural gas. LNG and natgas usage are down around the world–particularly in Europe and Asia. Less demand means lower prices, and (in this case) the cancelation of a number of tankers that were supposed to deliver our LNG to other countries. Reuters is reporting 23 or more U.S. LNG cargoes for June loading have now been canceled.
In contrast to today’s story about LNG being on the ropes (see US LNG Export Cargoes Canceled as Coronavirus Destroys Demand), the International Gas Union (IGU) published its annual LNG report yesterday. The report highlights the material changes in the global LNG industry happening in 2019. The worldwide LNG trade increased by 13% to a total of 354.7 MT (million tons). The Marcellus/Utica gets a prominent shoutout in the report.
A Standford University professor who sued another scientist who dared to criticize his wacky views on renewable energy in a journal article sued the scientist and the journal for defamation. It took a while for the lawsuit to play out (two years), but a judge in the case recently ruled the Standford prof was wrong in filing the lawsuit and must now pay the attorney’s fees for those whom he sued. Sweet justice.
MARCELLUS/UTICA REGION: ExxonMobil donates medical-grade sanitizer to Pa. for COVID-19 response; Pipelines, transmission lines impacted by hold on federal stream permits; OTHER U.S. REGIONS: Final phase of natural gas line expansion between Wallingford, Middletown begins; Permian natural gas forwards curve signals better days ahead; Gas well projects spike amid negative oil prices; NATIONAL: Low liquidity and limited available storage pushed WTI crude oil futures prices below zero; Oklahoma governor says pandemic “Act of God,” asks Trump to help oil & gas; Trump faces big decisions on energy industry rescue as U.S. runs out of places to store oil; Natural gas broke a bearish trading pattern last week; As oil prices plunge, energy job losses soar; INTERNATIONAL: Hidden threat: Japan has only 2-week stockpile of LNG.
Last Friday PTT Global Chemical, the huge Thailand-based petrochemical company looking to build a world-class ethane cracker plant in Belmont County, OH, issued an update for the project. In February PTT’s CEO signaled that a final investment decision (FID) on whether (or not) to build the project would happen by “mid-year 2020” (see 
Last week as Chesapeake Energy’s stock plunged toward $0 in value, it seemed as if it was a matter of when (not if) the company would either declare bankruptcy or get bought out/taken over. The board of directors, sensing the takeover sharks were swirling, adopted a “shareholder rights plan” (aka poison pill) last Thursday to try and prevent another company or person or group from swooping in and buying up the company’s assets. And then a funny thing happened. On Friday Chessy’s stock price zoomed up 45%.
When will the practice of THE Delaware Riverkeeper (radial leftist “environmental” group) of filing frivolous lawsuits stop? Using money from the William Penn Foundation and the Heinz Endowments (both of which should be investigated by the IRS for violations of their 501(c)3 status by engaging in political activities via proxies like Riverkeeper), THE Delaware Riverkeeper has launched yet another attack on the New Fortress Energy proposed loading dock on the New Jersey side of the Delaware River, where Marcellus Shale LNG is due to be loaded onto ships bound for other countries.
In the end, physics and not government intervention is forcing the end of large amounts of shale oil production across the U.S. With a forced shutdown of the world’s economy (including the U.S. economy) due to the coronavirus pandemic, some 30 million barrels per day of oil the world would have used (out of a previous 100 million bpd) has disappeared. Demand has dried up. Yes, the oil apocalypse is here. Welcome to Hades. Some of our favorite oil superheroes will not make it out alive.
Yesterday EQT, the country’s largest natural gas-producing company (based in Pittsburgh) released “preliminary highlights” for financial and operational performance in first-quarter 2020, ahead of the official full release on May 7. It was a tease of good things to come in the full release. What did it show?
Great news! The Mariner East 2 pipeline project along with Shell’s mighty ethane cracker project will once again be able to restart their stopped construction. At least according to our reading of the law. As you may know the Pennsylvania Dept. of Community and Economic Development (DCED) has been “reviewing” waiver requests to allow all work to resume for both ME2 and the cracker project (see 
The first phase (of three) for Sabal Trail, a $3.2 billion, 515-mile interstate natural gas pipeline in Florida, Georgia, and Alabama to deliver Marcellus gas to the southeast, came online in June 2017 (see