Steel Nation Gets New Engineering Manager
Steel Nation, headquartered in Washington County, PA, works primarily in the energy sector of North America. Steel Nation is a leading designer and builder of transmission, storage and compression facilities for the midstream and transmission operations of the oil and gas industry throughout the Marcellus and Utica Shale region, as well as other resource plays. MDN is tickled pink that Steel Nation is our 2019 premier sponsor. We’re excited to announce the addition of an important new member to the Steel Nation team.
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OTHER U.S. REGIONS: Colorado oil industry gets overhaul by regulators; Is this the end of Colorado’s shale boom?; Understanding microbial communities in fractured shales goal of NSF-sponsored project; The world’s cheapest natural gas; NATIONAL: California imports the most electricity from other states; Pennsylvania exports the most; U.S. oil, gas land deals plunge to 10-year low in first quarter; Natgas volumes headed for 108 Bcf/d by 2024, crude economics to ‘wreak havoc’ on gas; Cheniere’s secret? Stick to tested strategy even as LNG industry pushes new business models; House Democrats voted for a natural gas future, and nobody noticed; Citing differences, Shell walks away from U.S. refining lobby; INTERNATIONAL: Carbon tax hits diesel prices in four Canadian provinces.
MDN recently received a hot tip from a reader that says Shell (i.e. SWEPI) may have recently sold its Tioga County, PA assets in northcentral PA. Yesterday, Pin Oak Energy issued a press release to say they have cut a deal to buy Shell’s northwestern PA assets, some 43,000 acres in the Utica. Which all feeds into the rumor we shared with you last November that Shell is pulling out of PA drilling (see 
The Cuomo-corrupted New York Dept. of Environmental Conservation (DEC) is spitting and sputtering, “warning” the Federal Energy Regulatory Commission that if they (FERC) decide to rule that NY took too long to approve the Williams Constitution Pipeline and now gives the project a go-ahead, the DEC intends to rain down all sorts of legal hell on the agency. Which tells us one thing: the DEC is VERY nervous that their power to block pipeline projects is about to be neutered.
The Mariner East 1 pipeline sprung a small leak and spilled 20 barrels (~840 gallons) of ethane and propane in Berks County, near Philadelphia, on April 1, 2017 (see 
A 30-inch segment of Enbridge’s Texas Eastern Transmission Company (Tetco) interstate natural gas pipeline exploded in January, sending two people to the hospital and destroying two nearby homes when fires from the blast spread (see 
We spotted a story about landowners in the Philadelphia suburbs who currently have to live with construction of the Mariner East 2 pipelines (plural, there are two of them, ME2 and ME2X), literally happening in their back yards. While we are strong supporters of the ME2 project, we are not unsympathetic to landowners and the hassles they have to endure while it’s being built.
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.
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.