• | |

    FERC Commissioner Rob Powelson Leaving Friday – Deadlock Looms

    Our opinion of FERC Commissioner Rob Powelson has gone down over the past month or so (see FERC Gridlock Coming Thx to Rob Powelson (Selfishly) Leaving). Powelson is selfishly leaving FERC after doing excellent work at the agency over the past one year. FERC has five commissioners total. After Powelson leaves, new pipeline projects face the prospect of deadlocked 2-2 FERC votes because two of the commissioners are partisan Democrats who put party bosses above the good of the country (nothing new there). And that makes us angry with Powelson. He should have put his own ambitions on hold for a few more years, for the good of the country, and served out his entire term at FERC. So while Powelson admittedly did good work (he’s from PA and has been a champion for the Marcellus/Utica region), he’s now soiling his reputation by abandoning ship and leaving us with a deadlocked commission. Friday is Powelson’s last official day. He sat down for a final interview with FERC’s official podcast called Open Access…
    Read More “FERC Commissioner Rob Powelson Leaving Friday – Deadlock Looms”

  • |

    Deep Well Services Introducing “Generation 6” Rigs for M-U

    Deep Well Services, a Marcellus/Utica-born company that specializes in “snubbing” work (completing those super-long laterals you read about), sold itself this past April (see Deep Well Services Sells Itself to Houston PE Firm White Deer Energy). Deep Well announced a deal to be bought out by Houston private equity firm White Deer Energy. No, Deep Well and the expert team of 220 who work there now are not going anywhere. The company, headquartered in Zelienpole, PA, is staying put–same workers, same management team. But the new “owner” (perhaps we should say funder) will make it possible for Deep Well to hire more people, and enter other markets, including the Texas Permian oil play. Deep Well has long been known for its technological innovations. They’ve worked on the four longest on-shore lateral wells drilled–in the world. One of the laterals they drilled is 20,800 feet long (almost 4 miles). Incredible! Deep Well issued a press release to announce they’re doing it again. The company is currently building three new “Generation 6” rigs, to be used in the Marcellus/Utica and in the Permian. What’s new and different and better about a Gen6? “…the 300K Hydraulic Completion Units include features such as a quick-pick design and slip interlock system. The 15K PSI-rated units have 10,000 foot-pound rotaries.” Whatever that means. We’re sure some of our sharp MDN readers know exactly what it means and why it’s cool. For us, the news is that Deep Well is at it again, pushing the boundaries of technology, making it possible to drill already incredibly long shale wells even longer…
    Read More “Deep Well Services Introducing “Generation 6” Rigs for M-U”

  • |

    Happy Birthday! Shale Fracking Turns 20 Years Old

    Directional underground (i.e. horizontal) drilling has been around and actively used in oil and gas drilling since the 1930s–nearly 80 years now. Hydraulic fracturing (fracking) has been around for more than 60 years. But the marriage of the two in order to drill in “tight” rock layers, like shale, has only been around for 20 years. In fact, last week marked the 20th anniversary of George Mitchell (Mitchell Energy) successfully blending the two technologies together to drill in the Barnett Shale of north Texas. In 1998, the new technique was a huge success when the first 90 days of gas production from the S.H. Griffin No. 3 well exceeded production of any of Mitchell Energy’s previous wells. The discovery of horizontal fracking led to what is now called the shale revolution. It is not hyperbole to say it changed the planet. Here’s how…
    Read More “Happy Birthday! Shale Fracking Turns 20 Years Old”

  • Energy Stories of Interest: Thu, Aug 9, 2018

    The “best of the rest”–stories that caught MDN’s eye that you may be interested in reading: Repurposing existing pipelines is safe AND necessary; Roanoke radical activist booted from state board following misuse of credentials to protest pipeline; why your family left New York (and other families are too); China LNG tariffs may affect Permian oil drilling; shale drillers boosting capital expenditures this year; investment advisory firms outed as political hucksters trying to pressure fossil fuel companies; Goldman Sachs tries to buy tanker full of LNG; Russians producing more LNG from Arctic; the shale boom that will never happen, in Mexico; and more!
    Read More “Energy Stories of Interest: Thu, Aug 9, 2018”

  • | | | | | |

    Big News: FERC Overrules NY DEC to Approve Northern Access Pipe

    Finally, a New York pipeline story with a happy ending. On Feb. 3, 2017, the Federal Energy Regulatory Commission (FERC) approved a long-delayed project–National Fuel Gas Company’s (NFG) Northern Access 2016 pipeline project (see NFG’s Northern Access Pipe in NY/PA Gets FERC Approval). The $500 million project includes building 97 miles of new pipeline along a power line corridor from northwestern Pennsylvania up to Erie County, NY. The project also calls for 3 miles of new pipeline further up, in Niagara County, along with a new compressor station in the Town of Pendleton. Although FERC granted permission to build it, the State of New York, specifically the state’s Dept. of Environmental Conservation (DEC), arbitrarily and capriciously tried to block it (see Cuomo’s Corrupt NY DEC Blocks NFG Northern Access Pipeline Permit). We’ve seen this movie before. NFG, in no mood to screw around with the Cuomo-corrupted DEC, filed a motion asking FERC for a “reconsideration and clarification” on the role of the DEC in reviewing the project (see Gutsy: NFG Asks FERC to Cut NY DEC Out of Pipeline Approval). On Monday, FERC ruled on that request, ruling in NFG’s favor and against NY DEC. FERC said the DEC took longer than the one year they have under law to issue their rejection, therefore, FERC itself is issuing the water permits. In other words, FERC just struck a blow against corruption in New York State…
    Read More “Big News: FERC Overrules NY DEC to Approve Northern Access Pipe”

  • | | |

    Cabot O&G Opens Branch Office in OH – Hoping to Find Oil in Knox

    Stratigraphy showing Knox Unconformity – click for larger version

    Cabot Oil & Gas is drilling test wells in north central Ohio looking for “what’s next” after the Marcellus. Cabot began to push dirt around on its first OH wellpad (in Ashland) in April, and began to drill a hole on that pad in June (see Cabot O&G to Begin Drilling in Ashland County, OH This Week). Cabot has also begun drilling at a second site, and has filed for a permit to drill at a third site, in Vermillion Township in Ashland County (see Cabot Files Permit #3 for Knox Formation Test Well in Ashland, OH). We’ve read comments by Cabot that the type of exploration they’re doing in OH just as often doesn’t pan out as it does–no doubt trying to manage and tamp down expectations. However, actions speak louder than words. On Monday Cabot held a ribbon-cutting ceremony for a new (albeit small) branch office located in Jeromesville (Ashland County). Sure looks to us like things are getting serious! You don’t just sign a lease for office space if things don’t look promising. In the past Cabot has been cagey about which rock layer they’re targeting in Ohio. We know it’s not the Utica. Devon Energy previously tried drilling the Utica in Ashland and it didn’t work. While both the Knox and the Rome layers have been mentioned in Cabot’s permits, it appears it is the Knox layer that Cabot is targeting. Although Cabot doesn’t admit what they hope to find (oil, gas, NGLs), it’s clear they’re hoping to find oil. Below we have more details on the new office space, and more on the Knox and Cabot’s approach to drilling in it…
    Read More “Cabot O&G Opens Branch Office in OH – Hoping to Find Oil in Knox”

  • | | | |

    Frack Sand Operation in SWPA is Leaking Sand into Nearby Community

    frack sand

    We spotted a story in the Pittsburgh Post-Gazette that concerns us. There is a transloading terminal in Stowe Township (Allegheny County, Pittsburgh area) that handles, among other things, frack sand. The facility has been there since 1969, so the neighbors can’t complain about stuff coming in by barge (or rail) and going back out by never-ending truck trips. You move to that area, you know what you’re getting. However, one thing the neighbors didn’t bargain for is sand–along roads, bridges, even inside on the furniture. Frack sand is super fine–very small–and acts like asbestos when it gets in your lungs. Not a good thing. OSHA has all sorts of rules for how to handle frack sand. And yet the sand in Stowe is leaking out of rail cars and trucks and ending up scattered throughout the nearby community of Stowe and McKees Rocks. The following story is written by Post-Gazette “reporter” Don Hopey–who is an anti-drilling propagandist. He spins whatever minor foible he can find in the shale industry into a major offense, a crime against the environment and humanity. However, in this case, the concerns Hopey writes about are warranted and should be addressed immediately…
    Read More “Frack Sand Operation in SWPA is Leaking Sand into Nearby Community”

  • |

    Eclipse 2Q18: Drilled More Long Wells, Progress on Sale/Merger

    Eclipse Resources, a Marcellus/Utica pure play driller headquartered in State College, PA, is one of the smaller but (in our opinion) more important drillers in our region. Eclipse has drilled the reigning record-holders for longest on-shore lateral wells drilled…in the world (almost 20,000 feet long!). Last week Eclipse issued their second quarter update. Among the items discussed: The company lost $19 million vs. making $11.5 million in 2Q17. They produced an average of 305.5 million cubic feet equivalent per day (MMcfe/d), up a tad from 2Q17’s 287.8 MMcfe/d. Production was 72% natural gas and 28% liquids. They drilled 6 wells with an average lateral length of approximately 15,900 feet. So far the company has drilled 17 “super lateral” wells with an average lateral length of over 18,300 feet–which is why they are an important driller. The company, as we previously reported, is going through a “strategic review process” in which they are looking to combine with, or sell out to, another company (see Eclipse Resources Board Considering Either Merger or Acquisition). Ben Hulburt, CEO, had this to say about progress with the buyout/merger process: “As you all know, we announced that our Board of Directors has initiated a process to evaluate and consider a full range of strategic, operational and financial alternatives to maximize shareholder value. And while we’re pleased to say that substantial progress continues to be made, as we’ve previously stated, there is no definitive timetable for completion of this evaluation nor can there be any assurances that any initiatives will be announced or completed in the future.” In other words, there’s something coming, but we can’t talk about it, so stay tuned…
    Read More “Eclipse 2Q18: Drilled More Long Wells, Progress on Sale/Merger”

  • |

    Southwestern Energy 2Q18: Marcellus Production Booming

    Last week Southwestern Energy, one of the biggest drillers in the Marcellus (4th largest natgas producer in the country), issued its second quarter 2018 update. Southwestern drills in two plays: The Marcellus (i.e. Appalachia), and the Fayetteville (in Arkansas). Production in the Marcellus/Utica was 1.8 billion cubic feet equivalent per day (Bcfe/d) of natural gas in 2Q18, up from 1.4 Bcfe/d in 2Q17. Largely because of the increase in production in the Marcellus region, Southwestern is raising its full-year production “guidance” (best guess) to 955-970 Bcfe, up from the previous range of 930-965 Bcfe. During 2Q Southwestern drilled 37 new wells, completed 55 wells, and brought 43 wells online–all in the Marcellus region. No mention was made of the Briggs “rule of capture” lawsuit Southwestern appealed to the PA Supreme Court in July. Here’s the full 2Q18 update…
    Read More “Southwestern Energy 2Q18: Marcellus Production Booming”

  • | | | | | |

    Crude Oil Truck Drivers Needed in Ohio Utica

    While the Marcellus Shale play is mostly about natural gas, with some natural gas liquids in the southwestern part of the play, the Utica play in Ohio is a different story. Yes, a lot of natgas and NGLs get produced in the Utica, but the Utica also has a lot of oil coming out of the ground. Crude oil. Straight from the Utica/Point Pleasant rock layer. Something that hadn’t dawned on us (until now) is this question: How do Utica drillers get their crude to refineries? With natgas and even NGLs, it’s done mostly via pipelines. When’s the last time you heard about a “gathering pipeline” running to a well pad for crude oil? Yeah, never. So how do drillers get all that oil to refineries? They truck it. Another interesting factoid: those Pilot Flying J truck stops don’t only sell refined petroleum (diesel) to truckers, some of those operations also truck raw crude to refineries. The Pilot Flying J in Canton, OH is one such operation–and they currently have a shortage of truck drivers to haul Utica crude. It’s a “trucker’s market” right now. If you have a Class A commercial driver’s license with Hazmat (hazardous materials) and tanker endorsements, Flying J wants to talk to you, stat…
    Read More “Crude Oil Truck Drivers Needed in Ohio Utica”

  • | | |

    Cool New Video Debunks/Explains PA Severance Tax Issue

    Mark Mathis – Clear Energy Alliance

    A killer video on the topic of a severance tax in Pennsylvania has just been published (on Youtube) by the Clear Energy Alliance. The severance tax issue is one that we’ve tracked and written about for years–since Ed “fast Eddie” Rendell was governor. MDN caught up with Mark Mathis, founder of CEA, to talk about his latest video. Mark is an author and documentary film maker, and before that, a television reporter and anchor for ten years. Mark said he’s “a big language guy.” He began tracking issues in the energy industry some 15 years ago. Mark maintains the language we use to talk about energy is wrong–that the public doesn’t really understand. The PA severance tax issue is a perfect example. According to Mark (and the 4 1/2 minute video) PA Gov. Tom Wolf is being disingenuous when he says PA is “the only state without a severance tax.” While technically that’s true, what Wolf and other Harrisburg politicians don’t say is that PA has an “impact fee”–the equivalent of a severance tax. Plus PA has the second highest corporate income tax in the country, while other severance tax states (like Texas) have no corporate income tax. It’s virtually impossible to run an apples to apples comparison when it comes to how much a given company pays in taxes in a specific state. But according to Mark, slapping an additional tax on natural gas production in PA would be a disaster. The short video (which you MUST watch) explains it all in just a few minutes…
    Read More “Cool New Video Debunks/Explains PA Severance Tax Issue”

  • Energy Stories of Interest: Wed, Aug 8, 2018

    The “best of the rest”–stories that caught MDN’s eye that you may be interested in reading: Chevron Appalachia president says to seize the day now, or lose out; PA teachers union invests $211M in Williams; S&B Engineers moves to larger office in Canonsburg; Enbridge says NEXUS Pipeline will go online by end of 3Q; gov candidate Wagner backpedals (a little) on climate change hoax; EIA natgas price forecast “sags” this year and next; WSJ article says to quit blaming “climate change” for every weather event; and more!
    Read More “Energy Stories of Interest: Wed, Aug 8, 2018”

  • | | | | | | | | | |

    Federal Court Stops Works on Some (All?) of Atlantic Coast Pipe

    In a pattern that has become obvious, and disturbing, the radicalized Sierra Club has once again prevailed in shutting down work on a second mammoth pipeline project–Dominion’s Atlantic Coast Pipeline (ACP)–by concentrating their legal arguments at one small, specific point of the project. This happened with Mountain Valley Pipeline (MVP). As we reported yesterday, the Federal Energy Regulatory Commission (FERC) told MVP to stop work on the entire project, at least for now (see FERC Shuts Down ALL Work on Mountain Valley Pipeline in WV, VA). The Sierra Club convinced the without-experience-in-the-oil-and-gas-industry judges of the federal Fourth Circuit Court of Appeals to overturn permits granted by the U.S. Forest Service (USFS) and Bureau of Land Management (BLM) to build MVP across 3.5 miles of Jefferson National Forest, on the border of WV and VA. This time, with ACP, the Sierra Club convinced the Fourth Circuit to overturn permits granted by the U.S. Fish and Wildlife Service (FWS) and the U.S. National Park Service (NPS) granted to ACP to cross the Blue Ridge Parkway. However, the rolled-back permits affect more of ACP than MVP–about 100 miles of work out of 600+ miles. The court, in rolling back ACP’s permits all but told FERC they need to shut down work on the entire project until this matter is resolved. The court can’t order FERC to do so, but they strongly cautioned FERC that they should do so. Since FERC stopped work on MVP, it stands to reason they will do it with ACP too. So lightening has now struck twice, and it’s not good. Dominion maintains they will continue to build ACP except for those areas where the Fourth Circuit has rolled back permits. In other words, they’ll keep building it in North Carolina and some locations in WV. All eyes are now on FERC. We hate to say this, but our guess is that FERC will shut down the entire ACP project, for now. It’s virtually the same scenario as MVP which FERC elected to shut down. Why would this project be any different?…
    Read More “Federal Court Stops Works on Some (All?) of Atlantic Coast Pipe”

  • | | | | |

    Cuomo Strikes Again: Blocks Completed Gas-Fired Plant from Starting

    Andrew Cuomo is a tinhorn dictator who must be stopped (politically). NOW. Competitive Power Ventures (CPV) Valley Energy Center is a $900 million, 680-megawatt natural gas-fired electric generating plant in Orange County, NY (near the Hudson River). The plant is fully built, and the Millennium pipeline now flows Marcellus gas to it (see Millennium Lateral Pipe to NY Gas-Fired Elec Plant Begins Service). Valley Energy Center is tested, vetted, and ready to start producing electricity. But at the last minute, Cuomo pulled strings with his lapdog head of the Dept. of Environmental Conservation (DEC), Basil Seggos, and the DEC has rejected renewing an air permit for the facility. The DEC, using trickery and doublespeak, now says the project must file for a different kind of air permit, called a Title V Clean Air Act permit, which requires additional mountains of paperwork and (most importantly for Big Green radicals), more time for “public input”–including at least 45 days for review by the U.S. EPA. Why didn’t the DEC require that permit from the start? Why sandbag the project and wait until they’re ready to flip the switch, and then tell them “wrong permit”? This is an underhanded, dirty trick. It is corrupt. And it is Andrew Cuomo at the center of it…
    Read More “Cuomo Strikes Again: Blocks Completed Gas-Fired Plant from Starting”

  • | | |

    Change in Direction for One Leg of Mountaineer Gas Pipe in WV

    In 2017, Mountaineer Gas launched the Eastern Panhandle Expansion pipeline project–a project to deliver natural gas via local distribution channels to a new industrial facility in Berkeley County, WV, and to provide gas to other local businesses and residents in the Tri-State area. Mountaineer’s pipeline expansion will be fed by a 3.5-mile Columbia Gas pipeline under the Potomac River. There are three phases to the Eastern Panhandle Expansion project: Phase One runs a 22.5-mile, 10-inch-diameter steel pipeline from Morgan County to Martinsburg; Phase Two includes a loop to Charles Town; and Phase Three will build a four mile segment of pipeline into Martinsburg. Phase One began construction in March (see Mountaineer Gas Begins Work on Morgan County, WV Pipeline). By all accounts, Phase One is close to being done. Phase Two is up next. There is some confusion (for us) over what was and was not filed by Mountaineer with respect to this project. It appears there was no official Phase Two request previously filed, that Mountaineer’s approach all along has been to run pipelines where the opportunities crop up, filing for permission as circumstances warrant. Since the project was first announced, there’s been a new opportunity. Although Phase Two was originally forecast to run to Charles Town (Jefferson County), that’s now changed–to run to Ranson (also Jefferson County) instead, to feed gas to a new $150 million manufacturing plant being built…
    Read More “Change in Direction for One Leg of Mountaineer Gas Pipe in WV”

  • | | | | | |

    PA Supremes Order Rehearing for Rex Permits Near Martian School

    The Martians and their allies have attacked once again. Run for the hills! This is a long-running story that’s just taken another (unfortunate) twist. A handful of anti-drilling parents from the Mars School District (“Martians”) in Butler County, PA, backed by money and legal help from Philadelphia Big Green groups THE Delaware Riverkeeper and the Clean Air Council, have filed frivolous lawsuit after frivolous lawsuit (see Martians Use Riverkeeper to Continue Court Battle Against Rex). The effort is aimed at denying landowners in Middlesex Township revenue from legally permitted drilling. The actions by these radicalized parents have cost the taxpayers of Middlesex Township over $100,000 in legal fees (we hope the taxpayers enjoying paying for this folly). Eventually most of the lawsuits were won by the good guys and at least two wells got drilled. However, in 2016 the Martians appealed a town ordinance that allows the wells to be drilled about 3/4 of a mile from the school. A panel of three western PA judges in Commonwealth Court heard arguments in the case, and in June 2017 the judges ruled against Riverkeeper and the Martians (see Dela. Riverkeeper Loses Martian Case to Stop Rex Energy Drilling). Riverkeeper, using funding from the William Penn Foundation and Heinz Endowments (among other Big Green funders) pressed on, all the way to the PA Supreme Court. Last Friday the Supremes proved they aren’t so supreme after all. In a ruling, the Supremes told Commonwealth Court to do it over again, this time considering PA’s so-called Environmental Rights Amendment as part of their thinking. In other words, do it over, and rule another way this time–that’s what the Supremes are telling the lower court to do…
    Read More “PA Supremes Order Rehearing for Rex Permits Near Martian School”