Fracking Arithmetic: U.S. Citizens Saved $1 TRILLION in 10 Years
It’s election (i.e. silly) season all year long, until November. One of the key issues shaping up to influence the presidential election this year is, yes, FRACKING. The term fracking, or hydraulic fracturing, has been bastardized to the point it now means (in the public’s mind) “fossil fuels.” All of the Democrat presidential hopefuls are in favor of severely limiting, or outright banning, fracking. By which they mean the production of new oil and natural gas from shale deposits. It is a losing platform on which to run–yet that’s what they’re doing. We spotted an article on the Forbes website that uses simple arithmetic to calculate the impact fracking has (so far) had on Americans.
Read More “Fracking Arithmetic: U.S. Citizens Saved $1 TRILLION in 10 Years”
MARCELLUS/UTICA REGION: DEP invites comments on Adelphia Gateway pipeline erosion & sedimentation permit; Pitt fossil fuel disinvestment activists begin occupation of cathedral; Encino Energy and Habitat for Humanity partner to build homes and community; Let’s drive West Virginia’s future; Gas pipeline upgrades underway in Covington; OTHER U.S. REGIONS: Rehearing of Atlantic Bridge flash decision denied by FERC; Protest at natural gas site in Weymouth draws 13 arrests; What REX pipeline’s contract changes mean for gas flows, prices; NATIONAL: Working natgas stocks will end 2019–20 heating season at highest level since 2017; Natural-gas exporters struggle to lock up buyers despite ‘freedom gas’ pitch; Want to help the environment? Don’t ban fracking.; Shale production is on DUC life support and will need it going forward; Researchers awarded DOE/NETL grant to develop one-step process for converting natural gas into liquids; The obvious reality of more U.S. oil and natural gas; INTERNATIONAL: Aramco to spend $110 bil on Saudi Arabia’s largest unconventional gas field.
In early December when Williams withdrew their fourth and final permit application to build the Northeast Supply Enhancement (NESE) pipeline project with the New Jersey Dept. of Environmental Protection (NJDEP), we feared that maybe Williams had given up on the project (see 
Williams issued its fourth-quarter and full-year 2019 update yesterday. Among the gems shared, the company reported gathering 13.3 billion cubic feet per day (Bcf/d) of natural gas and equivalents during 4Q19, up 10% from 4Q18. Just to put that in perspective, there was 85.5 Bcf/d of shale natural gas production in December 2019, according to the EIA. Williams gathered 15% of all the shale gas produced. That is an amazing statistic! Here’s an even more amazing stat: Although Williams gathered 13.3 Bcf/d during 4Q, their pipeline networks moved/flowed gas gathered by other companies too, to the tune of 21.8 Bcf/d (up 8% from 4Q18). That means the Williams pipe network moves fully 25% of all the shale natural gas that moves throughout the country.
In January the Pennsylvania Dept. of Environmental Protection (DEP) lifted a moratorium (in place for more than a year) on new construction permits for the Mariner East 2 pipeline project (see 
Energy Transfer, a huge pipeline company that builds and maintains Marcellus/Utica pipelines including Rover and the Mariner projects, released its fourth-quarter and full-year 2019 update earlier this week. The company reports making the most profit it has ever made in its 25-year history–$3.6 billion in profit for 2019 (more than triple the $1.1 billion made in 2018). Although ET’s financial performance is impressive, it was comments made during the quarterly conference call with analysts about the Mariner East pipeline project that caught our attention.
The Pennsylvania Democrat Party is about to get politically fracked–i.e., underground explosions that create large fractures, breaking it apart. Ironically, the Dems are getting fracked over fracking. As we have been reporting, all of the Democrat presidential candidates have signed on to either severely limit, or outright ban, hydraulic fracturing. Some of the more extreme elements, like crazy Bernie Sanders, want all fracking banned within five years–on public AND private land (see 
The former Chester County District Attorney, Tom Hogan, is guilty of politicizing his office (we’d call it legal malpractice) by charging a couple of off-duty constables (peace officers) with a crime–just because they moonlighted by working as security guards to protect anti-pipeline nuts from hurting themselves at Mariner East 2 pipeline construction sites (see 
TC Energy (once upon a time called TransCanada Corporation) is a major pipeline company in North America. The company has a big presence in the Marcellus/Utica region via its Columbia Pipeline subsidiary. Last week TC Energy issued its fourth-quarter and full-year 2019 update and hosted a quarterly conference call with analysts. While the official update contains a mention about the company’s Buckeye XPress project (see 
Score another victory for the Mariner East Pipeline project in southeast Pennsylvania. On Tuesday Pennsylvania Commonwealth Court ruled against Chester County Commissioners and their attempt to obtain an injunction to stop construction of the Mariner East pipeline project. The petition fought to curtail open trench construction rather than horizontal directional drilling on two easements the county gave to the pipeline. Energy Transfer/Sunoco Logistics wants to change from using underground horizontal directional drilling (HDD) to instead use conventional bore or open trench technology on those easements, which would avoid more problems with HDD already experienced during construction.
The West Virginia House of Delegates Finance Committee approved two bills yesterday that would create two new tax credits. The aim is to boost more development in the natural gas industry in the Mountain State. One bill, House Bill (HB) 4421, is meant to attract a natural gas storage hub and an ethane cracker plant to the state. The other, HB 4019, is meant to attract “downstream” natural gas manufacturing facilities. Both bills now go to the full House for a vote.
You’ve read the news that Democrats like Sen. Bernie Sanders and Rep. Alexandria Ocasio-Cortez, along with most (if not all) of the Democrat presidential candidates, support a full-on ban of hydraulic fracturing for oil and gas (see 
Our favorite government agency, the U.S. Energy Information Administration, is out with another intriguing post. EIA takes a look at their best estimates of natural gas production in the U.S. over the next 30 years, to 2050. When the number crunchers at EIA analyze this stuff, they run multiple scenarios. One scenario (or “case”) assumes a rosy picture, with high oil and gas supplies. Another case assumes high oil prices. Another case assumes low oil prices. And yet another case assumes low oil and gas supplies. Finally, there is the “reference” case–or the scenario EIA thinks is most likely to happen. As the data geeks look out over the next three decades, in all but one of their scenarios/cases they see natural gas production increase.
LNG (liquefied natural gas) is one of two primary new “demand centers” for the natural gas produced in the Marcellus/Utica. The other demand center is gas-fired electric power plants. Last week S&P Global held its 19th annual S&P Global Platts LNG Conference in Houston. The message was loud and clear: U.S. LNG producers are being told to either shut in some of their production (for now), or find new markets (beyond Asia and Europe). Otherwise, prices for LNG will continue to crash worldwide and new plants may not get built.
Royal Dutch Shell, one of the world’s supermajors (oil and gas driller), is, in fact, one of (perhaps THE) largest producer of LNG, or liquefied natural gas, in the world. The company has just released its fourth annual LNG Outlook 2020 (full copy below) which highlights key trends in 2019 and hauls out the crystal ball to predict where things are heading over the next 20 years. Shell says global demand for LNG is expected to double to 700 million tonnes by 2040. Why? Because natgas emits less carbon dioxide into the atmosphere than other alternatives.