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Marcellus Drilling News
  • Industrywide Issues | Research

    EIA Nov ’18 Drilling Report: Shale Gas Output Up 1 Bcf/d – Again!

    November 14, 2018December 18, 2018

    We’re speechless–and that doesn’t happen often. The U.S. Energy Information Administration’s (EIA) monthly “Drilling Productivity Report” (DPR) said that in October the country’s seven major shale plays would produce an amazing, all-time high of 73 billion cubic feet per day (Bcf/d) of natural gas production (see EIA Sep ’18 Drilling Report: Shale Output Flies Past 73 Bcf/d). Last month, EIA said that in November shale gas output would rise a dramatic 1 Bcf/d to 74 Bcf/d (see EIA Oct ’18 Drilling Report: Shale Gas Output Up Another 1 Bcf/d). And now, it’s happened again! EIA issued the the latest DPR yesterday and said that in December, shale gas output will go up ANOTHER 1 Bcf/d, to 75 Bcf/d.
    Read More “EIA Nov ’18 Drilling Report: Shale Gas Output Up 1 Bcf/d – Again!”

  • Baker Hughes | Energy Services

    GE Begins Divesting from Baker Hughes Early

    November 14, 2018November 14, 2018

    Less than one year after buying Baker Hughes (in July 2017), GE decided in June of this year it didn’t want its bright shiny new toy any more and would, over the next 2-3 years, divest itself of Baker Hughes (see GE Dumping Baker Hughes in Bid to Boost Stock Price). We figured GE would look for a new buyer and sell the whole thing all at once. But that’s not how it works in the world of high finance. GE owns 62.5% of all Baker Hughes stock (BH is, on paper, a separate company). Instead of waiting 2-3 years, GE is moving ahead now, beginning to sell some of its BH stock. Ever so gradually (don’t want to flood the market all at once). The plan, being called “mutually beneficial for both companies” by GE CEO Larry Culp, will draw down GE’s ownership to just over 50%, with an eye to completing the breakup sometime in late 2019.
    Read More “GE Begins Divesting from Baker Hughes Early”

  • Electrical Generation | Industrywide Issues

    Natural Gas with Zero Emissions? This Will Give Antis Heartburn

    November 14, 2018November 14, 2018

    Natural gas-fired electric generating plants are a big deal. They burn far more efficiently, and pollute way less, than either coal or oil plants. Yet anti-fossil fuelers still hate them because, well, they burn a fossil fuel. And that means they put carbon dioxide (CO2) into the air. And ya know, CO2 is going to make Mom Earth fry “someday.” Whatever. But what if you could capture all of the CO2 and use it/channel it somewhere else, so it didn’t escape into the air? And what if you could ensure that no methane (CH4) escaped either? What if you had a truly zero-emissions natural gas-fired electric generating plant? Such a thing IS possible, and three investors, including Exelon (Fortune 100 electric generating company) is betting on this new technology as the future of electric generation. The question is, will antis shed their prejudice and embrace this new technology?
    Read More “Natural Gas with Zero Emissions? This Will Give Antis Heartburn”

  • Best of the Rest

    Energy Stories of Interest: Wed, Nov 14, 2018

    November 14, 2018November 14, 2018

    The “best of the rest”–stories that caught MDN’s eye that you may be interested in reading: Paid to protest: Lifting the curtain on Keep Wayne Wild, LLC; McCormick: WV should pitch energy jobs to veterans; Prometheus, Summit open Lebanon, Missouri LNG facility; Massachusetts lawmakers schedule 2 hearings natural gas disaster issues; Natural gas: The $4 dam is breaking for the bears; How much could coal generation stem gas price upside in a cold winter?; And just like that, everybody stopped talking about $100 oil; Oil plunges over 8% as Trump faces off with Saudi Arabia, Russia over production; Structure of fossil-fuel source rocks is finally decoded; IEA says gas to overtake coal in energy mix by 2030; New global emissions rules boost LNG as shipping fuel; First U.S. LNG cargo since 10 percent tariff enacted arrives in China.
    Read More “Energy Stories of Interest: Wed, Nov 14, 2018”

  • Energy Companies | EQT Corp | Industrywide Issues | Lease & Royalty Payments | Litigation | Statewide WV | West Virginia

    WV Class Action Against EQT re Royalty Deductions Heads to Court

    November 13, 2018November 13, 2018

    It’s been five years in the making, but finally a class action lawsuit that began in 2013, on behalf of 10,000 West Virginia landowners and royalty rights owners against EQT’s practice of deducting post-production expenses from royalty payments, will finally get its day in court in two weeks. That’s what we learn from an extended article published by ProPublica and the Charleston Gazette-Mail on the topic of WV drillers and their practice of “whittling away payments” from rights owners. Just over a month ago MDN told you about an elderly WV couple who won their private lawsuit against EQT on the same matter (see EQT Loses Post-Production Deduction Lawsuit to WV Couple). Based on the outcome of that lawsuit, EQT should be a tad nervous about this class action proceeding to trial.
    Read More “WV Class Action Against EQT re Royalty Deductions Heads to Court”

  • Energy Companies | Energy Services | EQT Corp | Equitrans/EQT Midstream

    It’s Here! EQT Midstream Division Now Split into Standalone Co.

    November 13, 2018November 13, 2018

    As of today, EQT Midstream, a division of EQT (the driller), is no more. In its place is Equitrans Midstream Corporation–a completely new, standalone company that is no longer tied to, nor a part of, EQT. The changeover happened at 11:59 pm Eastern time last night. Today is the first full day of a new era for EQT and its former midstream division. Thomas F. Karam is president and chief executive officer of the new Equitrans Midstream. What led to the split between EQT (the driller) and EQT (the midstream company)? We’ll explain.
    Read More “It’s Here! EQT Midstream Division Now Split into Standalone Co.”

  • Chesapeake Energy | Energy Companies | Industrywide Issues | Sand/Proppant

    Chesapeake Signs Frac Sand Deal with Hi-Crush for Marcellus

    November 13, 2018November 13, 2018
    Click for larger version

    Hi-Crush Partners announced yesterday they’ve gotten Chesapeake Energy to sign a new, long-term frac sand supply agreement to buy Northern White frac sand to support Chessy’s completions program in the Marcellus (in Pennsylvania) and Powder River Basin (in Wyoming). Northern White sand comes from mines in Wisconsin, Illinois and Minnesota. But sand is sand, right? Why schlep sand all the way from Wisconsin (via rail) to Pennsylvania? Because sand is *not* just sand. Northern White has special properties that make it superior for fracking.
    Read More “Chesapeake Signs Frac Sand Deal with Hi-Crush for Marcellus”

  • Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Pipelines | Williams

    NJ Antis Rally Against Williams NE Supply Enhancement Compressor

    November 13, 2018November 13, 2018
    Stop compressor station rally in NJ

    The Northeast Supply Enhancement (NESE) is a Williams Transco Pipeline project meant to increase pipeline capacity and flows heading into northeastern markets (see Time to Support Transco’s Northeast Supply Enhancement Project). There are a number of components to NESE, but the key component, the heart of the project, is a new 23-mile pipeline from the shore of New Jersey into (on the bottom of) the Raritan Bay–running parallel to the existing Transco pipeline–before connecting to the Transco pipeline offshore. Williams wants to build a compressor station on the Jersey side to help push the gas through. Antis rallied yesterday just prior to a NJ DEP public hearing on the project, to express their opposition to the Franklin Township (Somerset County) compressor station.
    Read More “NJ Antis Rally Against Williams NE Supply Enhancement Compressor”

  • Dominion Energy | Energy Services | Equitrans/EQT Midstream | Industrywide Issues | Pipelines

    Update on ACP, MVP Projects – Will Delays Affect Gas Markets?

    November 13, 2018November 13, 2018

    We’ve covered, it seems endlessly, news about two important new pipeline projects coming in the Marcellus. One is EQT Midstream’s (now Equitrans Midstream) Mountain Valley Pipeline (MVP), a 303-mile pipe from West Virginia to southern Virginia. The other is Dominion Energy’s 600-mile Atlantic Coast Pipeline (ACP), from West Virginia through Virginia and into North Carolina. MVP will, when it’s done, carry 2 billion cubic feet per day (Bcf/d) of natural gas to southern markets, and ACP will carry 1.5 Bcf/d. Both pipelines chart a similar path south. And both pipelines are now stalled, dogged by frivolous lawsuits filed by so-called environmental groups. Both have announced delays for their final completion dates. Our friends at RBN Energy look in detail at both projects, and what a delay may mean for drillers in the Marcellus/Utica. Are more pipeline constraints on the way in our region?
    Read More “Update on ACP, MVP Projects – Will Delays Affect Gas Markets?”

  • Empire Pipeline | Energy Companies | Energy Services | Industrywide Issues | Regulation | Seneca Resources

    Game On: NFG Accepts US EPA “Methane Challenge”

    November 13, 2018November 13, 2018

    We’re not much of a fan of the federal Environmental Protection Agency–especially the agency under the jackboots of the Obamadroids. The Obama years saw egregious abuses and wild new regulations that tried to stamp out the fossil fuel industry. In March 2016, we told you about a new “voluntary” program set up by the Obama EPA called the Natural Gas STAR Methane Challenge Program (see Dominion & NiSource Bow Down to Lord Obama, Worship the EPA). The program is aimed at trying to reduce the amount of so-called fugitive methane escaping into the atmosphere from oil and gas sources (never mind far more methane escapes into the atmosphere from the agriculture industry than oil and gas, such facts just get in the way of partisan politics). We’re still not sure we like the program, but it has (at least for now) remained voluntary. NFG, National Fuel Gas Company, with all five of its subsidiary companies, has just signed on to the program–to prove their dedication as good stewards of environmental resources.
    Read More “Game On: NFG Accepts US EPA “Methane Challenge””

  • Industrywide Issues | Research

    IEA WEO 2018: US Will Provide Half of World O&G Growth by 2025

    November 13, 2018November 13, 2018

    Each year the International Energy Agency (IEA) issues a special World Energy Outlook report. The 2018 edition was released earlier today. A couple of quick facts/findings from the report: (1) The United States is on track to produce half of the growth for the world’s output of oil and gas by the year 2025–just seven short years away. Incredible! The reason is, of course, the miracle of shale fracking. (2) China will surpass the entire European Union to become the world’s largest buyer of natural gas by 2040. (3) There will be a sharp tightening of oil markets in the 2020s. (4) There is no single solution to turn emissions around: renewables, efficiency & a host of innovative technologies are all required.
    Read More “IEA WEO 2018: US Will Provide Half of World O&G Growth by 2025”

  • Best of the Rest

    Energy Stories of Interest: Tue, Nov 13, 2018

    November 13, 2018November 13, 2018

    The “best of the rest”–stories that caught MDN’s eye that you may be interested in reading: Syracuse’s BlueRock Energy sells big chunk of its business; LNG tanker docks at Cheniere’s Corpus Christi plant as 1st shipment nears; The pre-winter rapid rise in U.S. natural gas prices; The new bear market in oil; Big Data adds up to big savings for upstream players; Toshiba exiting U.S. LNG to focus on core businesses; Ahead of Trump-Xi meeting, record-setting oil exports to China at zero for 2nd month.
    Read More “Energy Stories of Interest: Tue, Nov 13, 2018”

  • Anti-Drilling/Fossil Fuel | Apex Energy | Energy Companies | Industrywide Issues | Litigation | Pennsylvania | Westmoreland County

    Anti Group Loses Penn Twp Frack Ban Case in PA Commonwealth Court

    November 12, 2018November 12, 2018

    The last time we checked in (June) on a brewing frack ban in Penn Township (Westmoreland County), PA, a challenge to a local ordinance which allows Apex Energy and Huntley & Huntley to drill and operate wells rested with a county judge. Things have since rapidly progressed. We’re guessing the local judge ruled in favor of allowing the wells to be drilled because the case was appealed to PA Commonwealth Court. Late last week the judges in Commonwealth Court issued a ruling in favor of Penn Township’s “special exception” permits awarded to Apex Energy, allowing them to drill shale wells.
    Read More “Anti Group Loses Penn Twp Frack Ban Case in PA Commonwealth Court”

  • Industrywide Issues | Pipelines

    Eversource Gives Up on New England Pipe, Blames Boston Tragedy

    November 12, 2018November 12, 2018

    Utility giant Eversource (formerly Northeast Utilities), one of the companies backing the Access Northeast pipeline project, is calling it quits on the project. At least for the foreseeable future. Access Northeast, a proposed ~$3 billion project, would connect four different pipeline systems: Texas Eastern, Algonquin Gas Transmission, Iroquois and Maritimes & Northeast. Eversource desperately needs the gas that would flow through the connected system, but after the Columbia Gas tragedy near Boston in September (see Local NatGas Pipes Explode Near Boston Killing 1, Injuring 25), Eversource says completing the Access Northeast project is unlikely, due to public opposition. So the bean counters inside Eversource have written off the company’s $33 million stake in the project, reckoning its worthless.
    Read More “Eversource Gives Up on New England Pipe, Blames Boston Tragedy”

  • Bradford County | CNG/LNG | Economic Impact | Industrywide Issues | Jobs | Pennsylvania | Processing Plants | Trucking

    Marcellus LNG Export Plant in NEPA Will Generate Lots of Traffic

    November 12, 2018November 12, 2018

    Last week MDN brought you the exciting news that New Fortress Energy is planning to build an LNG (liquefied natural gas) liquefaction plant in Wyalusing (Bradford County), PA (see Big News! Marcellus LNG Export Plant Coming to Landlocked NEPA). The $800 million plant will supercool and liquefy locally extracted Marcellus Shale gas and ship it first by truck, eventually by rail, to “customers in the U.S. as well as abroad.” The plant received initial blessing from the Wyalusing Town Planning Commission last week. But not all is butterflies and unicorns. At a planning commission meeting, a New Fortress Energy official revealed that the plant will generate 10-15 tractor trailer trips per hour–24/7/365. That’s a truck turning in to the facility once every 4-6 minutes–call it an average of one every 5 minutes.
    Read More “Marcellus LNG Export Plant in NEPA Will Generate Lots of Traffic”

  • Anti-Drilling/Fossil Fuel | Energy Services | Energy Transfer Partners | Industrywide Issues | Pipelines | Sunoco Logistics

    Philly Antis Furious that ME2 Pipe Going Online by Christmas

    November 12, 2018November 12, 2018

    Last week MDN picked up on news shared by top management for Energy Transfer that their long-delayed Mariner East 2 pipeline system will be up and running by the end of the year (see Energy Transfer 3Q18: Mariner East 2 Pipeline Online by Christmas). In order to get the full pipeline running, they’ve had to patch together substitute pipelines in a few areas where construction of the final pipeline is stalled due to problems like sinkholes. Antis have now picked up on the fact that ME2 will be live “by Christmas” and are furiously crying foul–that they couldn’t stop the project. They claim the “patchwork” of substitute pipelines will be dangerous and unsafe. Their complaints amount to a lot of spitting and sputtering.
    Read More “Philly Antis Furious that ME2 Pipe Going Online by Christmas”

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