• MDN M-U Upstream Almanac 2018 – Who’s Drilling Where & How Much?

    MDN is very excited to announce the publication of the Marcellus & Utica Shale Upstream Almanac 2018. The Almanac is a deep dive into the numbers, designed to answer the questions: “Who’s drilling where and how much?” and, “What are the trends? Is drilling going up, down, or maintaining?” It has taken us nearly one year to research and produce this 397-page report. Using data from the Pennsylvania Dept. of Environmental Protection, Ohio Dept. of Natural Resources, and West Virginia Dept. of Environmental Protection, MDN has produced the only report of its kind, looking year by year at (1) how many Marcellus/Utica wells were spud (drilled or begun to be drilled), (2) how many wells are actually producing, (3) how many permits have been issued for new shale wells, (4) how much production was generated for methane, oil and NGLs. This information is available year by year for 2011-2017–not only by each individual county where there was any kind of M-U activity, but also by individual driller. We even show detailed data down to the town level. Because we analyze the data year by year using charts to map the data, important trends become obvious. If Marcellus/Utica drilling activity is important to you, the Almanac is THE critical tool that will help answer many of the questions you have…
    Read More “MDN M-U Upstream Almanac 2018 – Who’s Drilling Where & How Much?”

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    Other Pipelines Pick Up Slack for Exploded Leach XPress

    Leach XPress fire

    As we told you last week, Columbia Gas Transmission’s Leach XPress Pipeline, which only came online in January, experienced an explosion and fire in Marshall County, WV last Thursday (see Leach Xpress Pipeline Explodes in Marshall County, WV). It’s early days yet, but so far, no word on what may have caused the explosion and resulting fire. The problem is that most (if not all) of the 1.5 billion cubic feet per day of Marcellus/Utica gas flowing through the pipeline is now stopped. What do shippers do? They find alternatives. And so they have. A Reuters article reports that shippers have cut deals with Energy Transfer’s Rover, Tallgrass’ Rockies Express (REX), EQT’s Equitrans, and Enbridge’s Texas Eastern Transmission (Tetco) pipelines to flow their gas out of the region. Below is the article highlighting the alternate routes shippers are using, along a second article speculating (in the absence of any hard facts) about what may have caused the explosion…
    Read More “Other Pipelines Pick Up Slack for Exploded Leach XPress”

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    Columbia Sues WV Landowners for Delaying Mountaineer XPress Work

    It’s one thing for a landowner (or Big Green supporter, sometimes one and the same) to oppose a pipeline project by protesting, asking politicians to get involved, writing to regulatory agencies, etc. We have a great American tradition of free speech. Go for it. But it’s quite another thing to “harass, intimidate and interfere” with work crews in an area by screaming at them and shooting your “large caliber gun” near where they’re working. Columbia Gas Transmission is currently building the Mountaineer XPress Pipeline, a $2 billion, 170-mile pipeline that will flow 2.7 billion cubic feet (Bcf) per day of natural gas from existing and future points of receipt along or near the Columbia pipeline system–most of it located in West Virginia (see Details on Columbia Pipeline Mountaineer XPress Pipeline Project). At 2.7 Bcf/d, Mountaineer XPress is the second largest (by volume) new pipeline project for the Marcellus/Utica region–second only to Rover’s 3.25 Bcf/d pipeline. It is a big and important project. And yet, a single couple whose land the pipeline does NOT cross can delay the entire project with threats and intimidation and interference. That’s the charge Columbia has made in court. On April 30, Columbia sued a couple in Doddridge County who live near an active construction site for Mountaineer XPress, claiming their hostile actions toward workers have caused a delay for the entire project–and that’s costing Columbia big bucks. Columbia wants to ask a jury to extract some of that lost revenue from the hostile couple as compensation. Lesson: Your (hostile, threatening) actions have consequences, and may cost you money…
    Read More “Columbia Sues WV Landowners for Delaying Mountaineer XPress Work”

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    Antis Fight Plan to Convert 2 Class II Injection Wells in OH to Class I

    In 2013, Buckeye Brine, a relatively young Ohio-based company, added a second shale wastewater injection well in Coshocton County (see Buckeye Brine Adds Second Injection Well, Business Expands Rapidly). Buckeye later added a third injection well. After an oil or gas well is drilled and fracked, wastewater from fracking flows back out for a week or two. After that, over time (years in most cases) naturally occurring water from deep underground continues to flow. That naturally occurring water contains a lot of dissolved minerals in it, making it much “saltier” than even ocean water–hence the term brine. Buckeye Brine has operated their three Class II (as they are known) injection wells “flawlessly” for the past five years. No earthquakes. No spills. No leaks back to the surface. Nothing. Buckeye now wants to re-designate two of the three wells as Class I wells, which would allow them to accept non-shale wastewater–from industrial equipment operators, soap manufacturers, food processors, power plants, and municipal wastewater treatment plants. The new wastewater sources for a Class I well are considered “nonhazardous.” However, so-called environmental groups are opposing the change from Class II to Class I…
    Read More “Antis Fight Plan to Convert 2 Class II Injection Wells in OH to Class I”

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    Antis Rally Near Philly to Permanently Shut Down ME1/ME2 Pipes

    PA State Sen. Andy Dinniman

    In May, anti-fossil fuel pipeline opponents finally found a single, liberal administrative judge to shut down the Mariner East 1 (ME1) NGL pipeline–a pipeline that’s been operating without any problems for more than a year (see Antis Get Lib Judge to Shut Down All Mariner East Pipes, Dems Rejoice). Sunoco Logistics Partners, the owner of ME1, and the builder of the Mariner East 2 (ME2) Pipeline project, appealed the judge’s decision to the full Public Utility Commission (PUC). A decision about the shutdown (whether to lift is) is due any time. In an attempt to pressure the PUC and Gov. Tom Wolf to *permanently* shut down ME1 and ME2, a group of 150 or so rallied near Philadelphia on Saturday. Something you should know: A total shutdown of ME1 and ME2 is not going to happen. But that doesn’t stop self-deluding nutters from trying. Inevitably the protesters are disappointed. They talk themselves into the fictional fantasy that a pipeline that has been fully permissioned and 98% done (ME2) will simply stop and not be allowed to finish construction and begin operations. They tell themselves they can get a pipeline with a perfect safety record (running for more than a year) permanently shut down. Ain’t gonna happen. But they tell themselves these things, over and over, convincing themselves. People like PA State Sen. Andy “Tony Soprano” Dinniman, recklessly feeds his kook nutbase these fantasies. Totally irresponsible. So they gather, as they did this past weekend, to protest and “demand” that the PUC shut down these projects. What will happen when the full PUC overturns the liberal judge’s biased decision? How will the protesters handle the defeat?…
    Read More “Antis Rally Near Philly to Permanently Shut Down ME1/ME2 Pipes”

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    2 Bills Affecting Utica Shale Head to Gov Kasich for Signature

    OH Gov. John Kasich

    A pair of bills recently passed the Ohio State legislature and have gone to Gov. John Kasich’s desk for his signature. Both bills affect companies in the oil and gas space, in particular those drilling in the Utica Shale. One bill, House Bill (HB) 430, tightens up the tax code, what is and what is not allowed as deductions for drilling companies. Ohio state auditors have taken advantage of unclear language to aggressively go after oil and gas companies over legitimate tax breaks they receive under Ohio law (to not pay taxes on equipment used directly in producing oil and gas). Lawmakers want to end the tax witch hunts by clearing up language. They did so back in 2016, but Kasich and Democrats successfully spun the issue as a “tax break” under which up to $264 million would have to be refunded to Big Oil. Total lie. But Kasich vetoed that bill and it died (see OH Gov Kasich Vetoed Misnamed ‘Tax Relief’ for Utica Drillers). The bill is back, in a different form, and sent to Kasich for a signature. Will he sign it this time? The second bill, House Bill (HB) 225, addresses the issue of plugging some of the estimated 600 orphan wells in the Buckeye State. HB 225 triples the amount of money set aside to cap orphan wells (money which comes from Ohio’s severance tax, paid for by oil and gas producers). The bill also “creates a more streamlined and efficient process for identifying and plugging” orphan wells. The amazing thing about HB 225 is that both Big Green groups and the drilling industry support it! We predict a quick signature on this one…
    Read More “2 Bills Affecting Utica Shale Head to Gov Kasich for Signature”

  • Energy Stories of Interest: Mon, Jun 11, 2018

    The “best of the rest”–stories that caught MDN’s eye that you may be interested in reading: PA Senate to consider important o&g bills on June 12; PA House to work on well permit reforms on June 12; California not the only place where anti messages are having an impact; hot commodity in the shale boom–truckers; southern Cali heading for natgas shortage this summer; rising oil prices good for more than just oil companies; White House challenging FERC on grid security; natgas–the miracle fuel; Venezuela’s oil exports heading toward zero; and more!
    Read More “Energy Stories of Interest: Mon, Jun 11, 2018”

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    Leach Xpress Pipeline Explodes in Marshall County, WV

    Click image for larger version

    This is not the kind of news we like to share–but it’s important. A newly installed pipeline–that went online in January–experienced an explosion and huge fireball, in Marshall County, WV. TransCanada’s Leach XPress project–some 160 miles of new natural gas pipeline and compression facilities in southeastern Ohio and West Virginia’s northern panhandle which flows 1.5 billion cubic feet (Bcf) of gas all the way to Leach, Kentucky (hence the name), went online January 1st (see Leach XPress Goes Online; FERC Approves Mountaineer & Gulf XPress). Leach XPress is part of the Columbia Gas Transmission system. From Leach, KY, the gas hitches a ride on TransCanada’s Rayne XPress pipeline to the South and Gulf Coast. A portion of Leach XPress, this brand new, “best-in-class” pipeline (so said TransCanada’s CEO in January), exploded and caught fire at 4:15 am yesterday in Moundsville (Marshall County), WV, sending flames hundreds of feet into the air. Fortunately no one was injured. Some nearby residents fled their homes. Most of the pipeline is now shut down, curtailing 1.3 Bcf/d (out of the 1.5 Bcf/d) of gas volumes “indefinitely.” Here’s what we know (and don’t know) about the accident…
    Read More “Leach Xpress Pipeline Explodes in Marshall County, WV”

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    Country’s Biggest NatGas Power Plant Breaking Ground in OH Oct-Nov

    In April 2016 MDN told you about the Guernsey Power Station–a new Utica/Marcellus natural gas-fired electric generating plant proposed for Guernsey County, OH (see New Utica-Powered Electric Plant Proposed for Guernsey County, OH). Apex Power Group at that time said they want to build a large 1,100 megawatt plant in Valley Township–producing enough electricity to power 1 million homes. Apex said construction is targeted to begin in 2018 and the plant will go online in 2020. At the end of December 2017, Apex and joint venture partner Caithness Energy filed a pre-application for the project–and the application showed they no longer want to build an 1,100 megawatt plant, but instead a whopping 1,650 megawatt plant (see Planned OH Utica-Powered Electric Plant Goes from 1,100 to 1,650 MW). That’s the biggest natgas-fired electric plant we’ve heard of so far–anywhere. A record-holder! We spotted an article in the local Daily Jeffersonian (Cambridge, OH) that says Apex is on track to break ground this coming October/November, which is fabulous news, although that time frame is delayed from a previously announced May start…
    Read More “Country’s Biggest NatGas Power Plant Breaking Ground in OH Oct-Nov”

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    Lebanon County Judge Rules ME1 is Public Utility, Pump Stn OK

    This story stretches back four years. In November 2014, MDN told you about anti-drillers in Lebanon County, PA who had succumbed to shiny object syndrome and transferred their irrational hatred of fossil fuels from the Williams Atlantic Sunrise pipeline project to the already-in-the-ground but getting repurposed Sunoco Logistics Mariner East 1 pipeline (see New Target for Lebanon, PA Antis: Mariner East Pipeline). As part of converting ME1 from an oil pipeline to flow natural gas liquids, including propane and ethane, from western PA to the Philadelphia area, some 31 pump and valve stations needed to be built–one of them in West Cornwall in Lebanon County. Three local residents and an anti-drilling group called Concerned Citizens of Lebanon County filed an appeal with the zoning board to force the town to rescind permits they granted to allow the pump station. In May 2015, the West Cornwall Township Zoning Hearing Board declared the appeal “moot”–meaning denied (see Antis’ Zoning Appeal re Mariner East Pump Stn in Lebanon “Moot”). The antis decided to throw good money after bad and appealed the matter to Lebanon County Court of Common Pleas (i.e. county court). Finally, after years, the judge in the case backed ME1 over the antis, delivering his decision earlier this week. The judge ruled that ME1 is exempt from certain local zoning restrictions because it is (yes), a “public utility.” Which should not surprise anyone. Just last week the U.S. Supreme Court said the same thing when it refused to hear an eminent domain case for ME2, a different but closely related pipeline (see U.S. Supreme Court Lets Stand Eminent Domain for ME2 Pipeline). Like ME2, ME1 is a public utility. So say all the courts…
    Read More “Lebanon County Judge Rules ME1 is Public Utility, Pump Stn OK”

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    Richmond, VA Police Train to Handle Anti-Pipeline Protests

    A faux religious group calling itself the Interfaith Alliance for Climate Justice (IACJ) is mad that this past Tuesday 27 agencies (many of them police departments) from across the Richmond, VA metro region trained together for a large-scale civil unrest opposing pipelines. Which is totally realistic. The IACJ, a Virginia-based nonprofit 501(c)(3), says it was organized for “supporting resistance to the Mountain Valley Pipeline and Atlantic Coast Pipeline.” Community organizers. Anarchists who refuse to follow the rule of law. That the police in the greater Richmond area are preparing to deal with them is smart. IACJ calls it, “American fascism, state violence, late stage capitalism, state repression.” We call the IACJ not only anti-capitalist, but anti-American. They are the fascists, in the truest sense of the word…
    Read More “Richmond, VA Police Train to Handle Anti-Pipeline Protests”

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    Southpointe Event Focuses on M-U NGL Storage Hub

    Yesterday the second annual Appalachian Storage Hub Conference convened at the Hilton Garden Inn Pittsburgh/Southpointe. Topic A (and B and C) was the proposed $10 billion NGL storage hub, which we’ve written about in the past (see our stories here). When you drill for one hydrocarbon, like natural gas (methane), you inevitably get other hydrocarbons coming out of the ground along with it. In southwestern PA, the northern panhandle of WV, and eastern OH, those other hydrocarbons are NGLs–natural gas liquids–including ethane, propane, and butane. NGLs are key to the petrochemical industry. Ethane can be chemically “cracked” to produce ethylene, or raw plastics. Shell is building a $6 billion ethane cracker in Monaca (Beaver County), PA, near Pittsburgh. A second ethane cracker is likely to get built in Belmont County, OH–by PTT Global Chemical. Manufacturing companies then locate near the crackers so they can use the ethylene pellets created by the crackers in their own manufacturing processes. It’s all connected. And right in the center of it, at the nexus, is the ability to store ethane and other NGLs. Without storage, you have to immediately use the NGLs as soon as they are produced. Which doesn’t often happen. There is a mismatch–a delay between the time NGLs are produced and the time they are needed at the plant for cracking/processing. A storage hub addresses that issue and makes everything work. A storage hub is so critical that an entire one-day event was organized to talk about it…
    Read More “Southpointe Event Focuses on M-U NGL Storage Hub”

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    Who *Sells* the Most NatGas in the U.S.?

    Who are the biggest natural gas sellers in the U.S.? You might be surprised to learn that the biggest sellers are not necessarily the biggest producers of natural gas. Oh, you might recognize some of the names of the top sellers (BP, Shell, ConocoPhillips). But others might be more of a mystery (Macquarie, Tenaska, Direct Energy). Would it surprise you to learn that BP (i.e. British Petroleum) is the #1 seller of natgas in the U.S., and has been for years? Last quarter BP sold 22.10 billion cubic feet per day of natural gas here in the colonies. That represents 18% of all natural gas bought and sold. Each quarter NGI (Natural Gas Intelligence) runs the numbers and publishes the list of 25 top natural gas marketers in the U.S. They recently published the first quarter 2018 list, which shows that for a second quarter in a row, overall volumes are up from the same quarter a year ago. Here’s the cool thing: NGI publishes the list absolutely free on their website! As we scan down the list of who sells (i.e. markets) the most natgas in the U.S., we can’t help but notice that many of them have operations in the Marcellus/Utica region…
    Read More “Who *Sells* the Most NatGas in the U.S.?”

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    Frack Gel Now Made from 4 Grocery Store Products

    The fracking revolution continues to revolutionize itself. Last time we checked, the #1 most visited article on MDN (by far) was this one, from 2010: List of 78 Chemicals Used in Hydraulic Fracturing Fluid in Pennsylvania. A LOT has changed since 2010. Fracking chemicals have become more “green” in recent years. Antis claim fracking uses “dangerous” chemicals in large quantities. How about this? Nowadays, fracking gel can be made from four items you can pick up at the local grocery store: guar gum, milk of magnesia, Visine original eye drops, and distilled white vinegar. That’s it! We’ve come a long way since 2010…
    Read More “Frack Gel Now Made from 4 Grocery Store Products”

  • Energy Stories of Interest: Fri, Jun 8, 2018

    The “best of the rest”–stories that caught MDN’s eye that you may be interested in reading: Southern Tier Solar Works threaten local pro-gas advocate; OH Utica permits pace slows in April; geologist says Ohio Valley most profitable region for petchem plants; U.S. shale oil too waxy?; OPEC’s stumbling; can U.S. play swing producer with higher oil prices?; by backing coal and nuclear, Trump is shunning natgas; U.S. chemical industry has big advantage thx to shale gas; Schumer calls for tighter restrictions on crude-by-rail; and more!
    Read More “Energy Stories of Interest: Fri, Jun 8, 2018”