Rhode Island Lefties Proclaim They Want More Gas Pipes
We about fell out of our chair when we read an editorial appearing in the far-left Providence (Rhode Island) Journal. We call Rhode Island the “People’s Republic of Rhode Island” because it’s about as far left as North Korea or China. Most folks in the state irrationally hate all fossil fuels and believe renewables will save them from man-made global warming. At least, that was our impression. We were shocked to read an editorial in yesterday’s Journal that makes a strong case for, pleads for, new natural gas pipelines to get built in New England.
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MARCELLUS/UTICA REGION: Dominion Energy, American Red Cross present April 6 preparedness day at nine Ohio locations; Pa. Senate bill aims to aid state nuclear plants; Dominion Energy CEO: Making the switch from coal to natural gas; OTHER U.S. REGIONS: Pacific Northwest sees highest daily natural gas spot prices in the U.S. since 2014; California’s oil industry collapses despite shale boom; Chesapeake opens ‘green’ natural gas vehicle fueling stop in Dover; Washington state rail bill could put 150,000 b/d of Bakken oil shipments at risk; NATIONAL: U.S. natural gas prices unmoved by colder winter, low inventories; The U.S. oil boom is sinking OPEC imports; INTERNATIONAL: Top 10 destinations for US LNG exports; South Korea’s crude oil imports from the US could surpass 40 mil barrels in H1 2019; LNG will be big part of China-U.S. trade once tensions resolved; U.S. LNG producers offer alternative pricing to woo buyers.
A notable development in a lawsuit that before now, we were unaware of. Several landowners in Venango County (northwest PA) filed a lawsuit against Shell’s SWEPI drilling subsidiary in 2013 claiming SWEPI had stiffed them out of lease bonus payments due under duly signed lease contracts. The landowners attempted to turn the lawsuit into a class action, claiming the same thing had happened for about 300 leases in the area. A federal judge has just ruled against converting the lawsuit into a class action.
A second lawsuit we’re reporting on today that had previously slipped by our usually good radar. A former Cabot Oil & Gas employee filed a lawsuit in October 2017 alleging that he and a number of other “employees” had been stiffed out of overtime payments by Cabot–that Cabot had treated them as independent contractors rather than as employees. The lawsuit was granted class certification.
One of the arguments often heard from those who oppose natural gas pipelines is that “nobody” benefits from the pipeline except the sleazy Big Corporation that builds and profits from it. A single pipeline running through Ohio and Michigan puts that lie to rest. Rover Pipeline, built and operated by Energy Transfer, paid out some $73 million in local property taxes in 2018 when the pipeline first began operation. For 2019, with the full pipeline operating at 100% capacity for the entire year, Rover says they will pay out ~$180 million in property taxes! Taxes that fund schools, roads, first responders and other worthy causes.
There are plenty of jobs in the shale industry in northeastern Pennsylvania–IF you have certain skills. What kind of skills? The kind that are taught at programs like at the Lackawanna College School of Petroleum and Natural Gas (PNG) in their two-year program. Or skills you can pick up at the Susquehanna County Career and Technology Center.
We read on a regular basis in mainstream media that shale companies spend more money than they bring in, and that investors are growing tired of pumping money into companies without a return on their investment. We’ve recently noticed a renewed commitment on the part of major drillers to get their financial houses in order–spend less and drill less in order to make more money. We spotted an article by Reuters on the “shale drillers aren’t profitable/healthy” meme which got us investigating the financial health (or lack thereof) for Marcellus/Utica drillers. What we found may interest you.
New York Gov. Andrew Cuomo finally got his wish last year by forcing the operator of the Indian Point Energy Center (nuclear power plant) located near New York City to agree to partially close down next year, and fully close down in 2021. We recently got a small preview of what will happen when Indian Point goes offline. In March Indian Point went completely offline for two weeks–scheduled outage for one reactor, and a malfunction in the other. Guess which form of energy took up the slack? It wasn’t solar. It wasn’t wind. It wasn’t hydro. It wasn’t magic fairy dust. It was natural gas that rode in to save the day.
This is nuts! This is insane! Because of overproduction, lack of pipelines, and an existing pipeline down for maintenance, natural gas sellers at the Waha natural gas trading hub (in West Texas) are actually paying buyers to take the gas off their hands–up to an amazing $5 per thousand cubic feet!!!!
Shale driller Huntley & Huntley, headquartered in Monroeville (Allegheny County), PA drilled at least one well last year in the Pittsburgh suburb of Plum (also in Allegheny County). According to a landowner living nearby, H&H’s drilling and fracking of the Midas 8M well led to their water well becoming fouled. H&H disputes the claim.
Pennsylvania towns that pass sketchy local ordinances that skirt state laws are on notice: It’s going to cost you. Big. For the past several years we’ve reported on the case of Grant Township, PA that passed an ordinance cooked up by the radical Community Environmental Legal Defense Fund (CELDF) to try and block a state-approved injection well. The ordinance was tossed by a judge, and now the town will have to pay $102,000 in legal fees incurred by the operator.