WV’s Acting Secretary of Commerce is MIA – Hurting Investment?
In an act still befuddling for us, West Virginia Gov. Jim Justice fired Commerce Secretary Woody Thrasher in June (see WV Commerce Secretary Who Brokered $83B China Deal…Fired). Thrasher took over as Commerce Secretary in January 2017 as part of the new Gov. Jim Justice Administration. Thrasher is “the guy” most responsible for putting together the massive $83.7 billion deal signed by China last November to invest in WV shale and petrochemicals (see China Agrees to Invest Amazing $83.7 BILLION in WV Shale, Petchem). It was the relationships established by Thrasher that led to that deal. So what happened to Thrasher? Why was he fired? It has nothing to do with the China deal. Anyway, Justice appointed W. Clayton Burch as Acting Secretary of Commerce. According to attendees at the recent West Virginia Chamber of Commerce Annual Meeting and Business Summit, nobody has seen Burch. Or at least, almost nobody. The head of the Chamber had face-to-face meeting with him once. Business leaders and legislators in WV are grumbling that they haven’t seen or heard from Burch since his appointment 80 days ago. It’s pretty obvious he’s just filling in until Justice gets off his derriere and appoints a new, permanent Secretary. The concern is that important projects, like the $83.7 billion deal with China, are suffering. Who will invest in WV if there’s no one to make decisions and propel projects forward?…
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The Marcellus and Utica Shale layers in Southwestern Pennsylvania, northern West Virginia and eastern Ohio produce a boatload of NGLs–natural gas liquids. One company had the foresight to plan a strategy to separate, transport and sell those NGLs. That company was MarkWest Energy, now known as MPLX following a purchase by/merger into Marathon Petroleum. MarkWest’s plan is firing on all cylinders. The experts at RBN Energy have analyzed MarkWest’s initial strategy, now largely complete, and their long-term strategy, still in the works, to give us a great snapshot of how NGLs are moving from our region to Midwestern and Canadian markets…
This another one of those high finance thangs we don’t fully understand. Dominion Energy spent $4 billion to build their Cove Point LNG export facility in Lusby, Maryland. Somehow and somewhere they got money to build it–investors perhaps, or maybe Dominion had some cash tucked away under the corporate mattress. Dominion wants to get some of that debt off its books, so it has just structured a three-year loan with 20 lenders for $3 billion, reducing the company’s “parent level debt”–as opposed to child or subsidiary level debt. What it all means, if we’re understanding it correctly, is that Dominion is moving debt from the parent company’s balance sheet to the Cove Point subsidiary company’s balance sheet. Prior to this, Cove Point “owed” the money to Dominion itself (all in the family), and now, instead, the Cove Point subsidiary will owe that money to lenders directly. That’s our take. Hopefully it won’t take long for Cove Point to pay off the debt…
Houston-based Schlumberger (pronounced Shlum-Bur-Zhay) is the world’s largest oilfield services company. They’re the company a majority of exploration and production companies (drillers) call when they want a new well drilled. The #2 company on speed dial for drilling new wells is Halliburton, and they’re not even close in size to #1 Schlumberger. Here in the U.S., the #3 company on speed dial for drilling is Baker Hughes, still (for now) owned by GE. We mention all that because most folks recognize the names Halliburton and Baker Hughes, yet are often not familiar with the hard-to-pronounce Schlumberger. Even so, Schlumberger has a big presence in the Marcellus/Utica region. In a gesture of “giving back,” the company has just made a VERY generous grant of $14 million of its own proprietary software used for modeling and assessing risk associated with drilling new wells, to Youngstown State University. Most major E&Ps use Schlumberger’s software, even if they don’t use Schlumberger itself to do the actual drilling. While at first glance the gift of software may seem self-serving, it’s not. This gift means that students will be trained on the latest and greatest software that they will need to know, coming right out of college. It helps the kids gain a valuable skill, making them more employable once they hit the workforce…
Events related (or of interest) to the Marcellus and Utica Shale, primarily pro-drilling events. To have your event included (or if you are aware of a worthy event you believe should be on this page), please send the details and/or a link to have it included to the calendar@marcellusdrilling.com email address.
The “best of the rest”–stories that caught MDN’s eye that you may be interested in reading: Chambersburg project to extend natgas line costing $1.2M, “significant impact”; CNX, Hess complete deal to sell their joint OH Utica assets to Ascent; WVU researchers to study methane emissions from well pads; OH Supreme Court rules against NEXUS pipeline referendum; Cali commits fossil fuel suicide, unlivable by 2045; NAFTA 2.0 must promote natgas trade with Canada; Texas power couple behind many of the deals you read about; FERC speeds up process for 12 LNG export projects; China’s natgas imports soar; and more!
As we reported yesterday, EQT Midstream’s Mountain Valley Pipeline (MVP) got some excellent news–that the Federal Energy Regulatory Commission had lifted a stop-work order on the project (see 
Sometimes counties (and local towns) try to seize power that’s not theirs constitutionally. Particularly when they’re led by liberal Democrats who like to arbitrarily make up their own oil and gas regulations. Such is the case in Fayette County, WV. Most oil and gas regulation is done at the state level–it is a state function. Unless it’s a pipeline that crosses several states. Those projects are regulated at the federal level, to protect citizens in neighboring states from arbitrary and capricious actions (like those New York is engaged in). Counties don’t get to decide whether or not to allow an injection well, or a pipeline. Yet the lib Dems in Fayette believe they can make those decisions. And now, for the second time in two years, a federal court has slapped them down. Two time losers. In August 2017, Fayette County lost a federal court case to block injection wells in the county (see 
Earlier this week CrowdOut Capital announced they have arranged a private, non-bank loan for frack sand company Shale Support to fund “the acquisition of two sand mines, spanning over 1,000 acres that contain more than 100 million tons of recoverable high-grade frac sand, which are located near the prolific shale plays in the southeastern U.S.” No details on the amount of the loan nor the names/location of the sand mines were released. However, as we reported in early July, Shale Support announced a deal to buy two sand mines in Louisiana (see 
The Gas Technology Institute (GTI) continues to offer its popular 100% free training program (worth $3,500) for those interested in a career building pipelines in the Marcellus/Utica region. Starting salaries often exceed $40,000 per year, and a six-figure income is attainable for employees with time and experience. Companies supporting the GTI program have told GTI they anticipate hiring 1,100+ workers over the next two years. There’s no excuse! If you want a high-paying job, get the 4-week training and get yourself to work. Because of ongoing construction programs within the utility and pipeline industry, and because of aging workforce retirements, the M-U pipeline industry has an acute need for reliable gas pipeline workers. The next round of free training, limited to 20 students per section, begins on Sept. 24 at Belmont College in St. Clairsville, OH…
As we reported in March, Empire Pipeline, the midstream (pipeline) subsidiary of National Fuel Gas Company, filed an application with the Federal Energy Regulatory Commission (FERC) to build two new compressor stations along the Empire Pipeline–one in Tioga County, PA, the other in Ontario County, NY (see 
We’ve shared the following story a few times over the years: In 2012 MDN editor Jim Willis took a tour of several Cabot Oil & Gas well sites in Susquehanna County, PA. One of the sites was a completed well pad with four producing wells, located not far from Carter Road in Dimock (the infamous Carter Road memorialized in Gasland). As we stood on the pad, Jim’s tour guide, Bill desRosiers, made this statement: “Cabot has over 4,000 vertical gas wells in West Virginia. You see these four horizontal wells? These four wells produce more natural gas in one day than all 4,000 of those vertical wells in West Virginia.” Behold the power of Marcellus Shale! On June 19, MDN brought you the exclusive news that Diversified Gas & Oil had purchased EQT’s Huron Shale assets in Kentucky, Virginia and West Virginia for $575 million (see 
Some good news to lighten your Thursday. The Federal Energy Regulatory Commission (FERC) issued an order yesterday allowing Mountain Valley Pipeline (MVP) to restart work on virtually all of the 303-mile project–everywhere but 28.5 miles in and around the pipeline’s path through Jefferson National Forest (about 9% of the total). On August 3, FERC told MVP to stop all construction, prompted by an order from the U.S. Court of Appeals for the Fourth Circuit vacating permits issued for the project as it crosses 3.5 miles of Jefferson National Forest in West Virginia and Virginia (see 
Two different townships in the Philadelphia area, amped-up by and using money from Big Green groups like THE Delaware Riverkeeper (aka Maya van Rossum), tried to stop Sunoco Logistics Partners’ Mariner East 2 (ME2) pipeline project by claiming it violated local zoning ordinances. The construction of ME2 is governed by the PA state Public Utility Commission and the state Dept. of Environmental Protection. It is not a federal (i.e. FERC) project. Because it is a state-oversight project, the issue of primacy (whose rules and regulations govern) resides at the state level and not at the local level. Two local townships–one in Chester County the other in Delware County–argued in separate cases before PA Commonwealth Court that local zoning regulations for siting the pipeline should still apply. Commonwealth Court, in a pair of decisions earlier this year, ruled against that view (see