Annual Survey Shows O&G Investors Prefer Places Other than M-U
Each year (for the 12th year running) the Canadian-based Fraser Institute surveys petroleum industry executives and managers (256 of them for 2018) asking them their opinions on the barriers to investing in exploration and production in various geographies across the globe. That is, what makes them more likely or less likely to spend money drilling in a particular location? The Global Petroleum Survey (full copy below), tallies the survey responses and ranks each geography from most desirable place to invest, to least desirable. Last year West Virginia was ranked as the fifth most desirable place to invest (see Survey Indicates O&G Investing in WV More Attractive than PA or OH). This year? WV didn’t even make the survey!
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The preliminary numbers are in from the West Virginia Department of Tax and Revenue, and the numbers show that severance taxes paid by drillers in Mountain State hit a new high of $138 million, up 4.3% from in 2017. Six Marcellus/Utica shale counties–Doddridge, Wetzel, Ritchie, Tyler, Marshall, and Harrison–received $1 million or more of that back into county coffers. At the county level, the tax revenue goes for vital public services including first responders, community projects and social programs. Here’s a high-level rundown on who got what from this year’s severance tax honeypot.
Two schools in rural Susquehanna County, PA are saving big bucks and helping the environment at the same time–by switching to burning natural gas. One of those schools, Elk Lake, has made millions of dollars in royalties by hosting two shale wells *on school property* (see 
It takes a loooong time for the wheels of justice to turn, but (usually) turn they do. In 2016 Kathleen Kane, former Pennsylvania Attorney General who prosecuted and persecuted others, particularly in the gas drilling industry, was convicted of committing perjury (i.e. lying under oath) about leaking privileged grand jury information in a case unrelated to gas drilling. She was, in October 2016, sentenced to jail (see 
The “best of the rest”–stories that caught MDN’s eye that you may be interested in reading: PSC agrees to BPU natural gas pipeline purchase; Letter to the Editor: Pipeline workers live here, too; India’s Gail in wants to swap Cove Point LNG cargos; Danos reaches two safety milestones; Sabine Pass LNG cargo heading for UK; U.S. crude oil and natural gas proved reserves set new records in 2017; Steyer hits natural gas prices to advocate for full phase-out; Gazprom Board of Directors reviews prospects of shale gas and LNG sectors.
Two weeks ago MDN told you about a class action lawsuit that’s been brewing in West Virginia since 2013, brought by 10,000 WV landowners and royalty rights owners against EQT over the company’s practice of deducting post-production expenses from royalty payments (see 
We pride ourselves on keeping close tabs on the market. Yet somehow the construction of a smallish NGL (natural gas liquids) pipeline gathering system in western PA slipped by us. The pipeline is now built and the builder, Stonehenge Energy Resources, is putting the “finishing touches” on the Stonehenge Laurel – Clarion Pipeline System before it goes live. The pipeline will connect to Laurel Mountain Energy’s wells in Clarion County and collect up the NGLs (things like ethane and propane) from those wells and flow it neighboring Butler County where the NGLs will hitch a ride via Energy Transfer’s Revolution Pipeline system to Washington County, PA where they will get cleaned up and separated.
In early October MDN reported that the U.S. Court of Appeals for the Fourth Circuit had “vacated” (canceled, overturned) a permit issued by the U.S. Army Corps of Engineers in West Virginia that would allow Mountain Valley Pipeline (MVP) to use a more environmentally friendly form of crossing four rivers in the state than is technically allowed under federal Clean Water Act regulations (see 
In August, the Pennsylvania Commonwealth Court handed PA drillers a partial victory in their quest to block onerous new drilling regulations, part of something called Chapter 78a (see 
Reuters has published a “hit piece” against Energy Transfer (ET) and two of its recent big pipeline projects–Rover Pipeline (in Ohio & Michigan), and Mariner East 2 Pipeline (in Ohio and Pennsylvania). Reuters is usually more balanced than, say, Bloomberg with these types of articles. Reuters usually doesn’t go out of its way to denigrate the industry. The article evaluates the number of permit violations issued for both projects. Together that number exceeds 800. Is that a lot? Reuters says they’ve analyzed “four comparable pipeline projects” and found an average of 19 violations per project (or 38 for two projects). So yeah, 800 vs. 38 sure sounds like a lot to us.
You know those Pilot Flying J truck stops you sometimes visit to fill up as you’re traveling along our nation’s interstate highways? They’re not just big gas stations with convenience stores. Pilot Flying J has its own fleet of trucks. One of the divisions of Flying J targets the exploration and production (E&P) sector, i.e. drillers. Flying J has just announced it has bought out Equipment Transport, LLC, which hauls shale wastewater in the Marcellus, Utica and Permian Basin. Now your favorite truck stop is also your favorite wastewater hauler!
Both Pittsburgh and Philadelphia were in the running to become Headquarters 2 (HQ2) for online shopping behemoth Amazon. But neither got it. They both bent over backward, forward, and sideways, wined and dined Amazon people, and in general did everything they could short of bribery to attract Amazon to their respective cities. In the end, Amazon decided to split HQ2 between New York City and a suburb of Washington, D.C. Now that the distraction of pursuing Amazon is gone, a couple of energy industry players in Pittsburgh say it’s time to focus again on reality. Amazon offered 50,000 jobs to the winner(s) of HQ2. The PA Marcellus industry offers 100,000 jobs that pay way more, IF we hurry to capitalize on it. So says Morgan O’Brien, president and CEO of Peoples Natural Gas, and Stacey Olson, president of Chevron Appalachia.