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    Ohio Democrats Float Bill to Cap Injection Wells at 23 per County

    Liberal Democrat State Rep. Glenn Holmes (from Girard, Trumbull County, OH) is attempting to use a hammer to kill a fly. That is, he’s floating House Bill 723 to cap the number of injection wells at 23 per county, in an attempt to block a new injection well from getting built in Hubbard Township. Currently Trumbull County has 17 live and functioning wastewater injection wells. Five more are currently under construction. If the bill passes, it would prevent a newly-proposed well in Hubbard from getting built. Come here fly, see this hammer? Instead of debating the merits (or lack thereof) of the single well in Hubbard, how many wells are too many in Trumbull County, Holmes wants to limit injection wells everywhere in the state as his preferred solution. Right now Trumbull and Ashtabula counties are tied for the top spot with 17 active injection wells each. Nearby Portgage and Stark counties both have 16 injection wells. Meigs County, in southeast Ohio, has 14 active injection wells. Here’s the latest Democrat shenanigan aimed at stifling the Utica (and Marcellus) industry in Ohio…
    Read More “Ohio Democrats Float Bill to Cap Injection Wells at 23 per County”

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    Philly RINO Wants “Risk Assessment” of ME2, Now That It’s Built

    RINO (Republican In Name Only) Pennsylvania House of Representatives member Chris Quinn, from the Philadelphia area, introduced House Resolution 1034 last Wednesday. The resolution instructs the PA Dept. of Environmental Protection (DEP) and the PA Public Utility Commission (PUC) to prepare a “comprehensive risk assessment of the Mariner East 2 [ME2] Pipeline.” Even though ME2 is 99% built and will soon go online. The resolution, which if passed doesn’t have any practical effect since it’s not a law, is actually an exercise in political derrière covering. What if the DEP and PUC performed such a risk assessment, and what if the report they issued found there are some risks associated with ME2 (as there are will any/all pipeline projects, roads, electric lines, stepping outside your door, etc.)? What then? The pipeline isn’t going away. It’s still going to be used, now that it’s built. Such is how the game is played by political swamp dwellers. Quinn also says he’s about to introduce House Bill (HB) 2609 requiring the state Attorney General to draft a landowner “bill of rights”–issued to landowners who may be subject to eminent domain for pipelines. Can’t wait to see what that bill says…
    Read More “Philly RINO Wants “Risk Assessment” of ME2, Now That It’s Built”

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    Eclipse Resources Stock Hits New 1-Yr Low – $1.17/Share

    We typically don’t report on the ups and downs of the stock price for Marcellus/Utica companies, primarily because the per-share price goes up, then it goes, down, then it goes up again…You get the picture. However, today we’re reporting on the share price for Eclipse Resources (as of last Friday) because it hit a new one-year low of $1.17 per share, before closing at $1.28/share. Bumping around the bottom of the barrel. Why pick on Eclipse about their stock price? Because they’re in the middle of getting bought out and merged into Blue Ridge Mountain Resources, the former Magnum Hunter Resources (see Eclipse Resources Merging with Former Magnum Hunter). And because it’s a shame the stock price is that low, given that Eclipse has had a stellar record of drilling long laterals–currently the record-holder for longest onshore laterals in the world! (All drilled in the Ohio Utica Shale.) We hate to see a star performer like Eclipse under-perform financially. It doesn’t seem to balance on the scales of cosmic justice. What now seems obvious, in retrospect, is that Eclipse has been in a financial pickle for some time–hence their sale to Blue Ridge Mountain…
    Read More “Eclipse Resources Stock Hits New 1-Yr Low – $1.17/Share”

  • Energy Stories of Interest: Mon, Sep 10, 2018

    The “best of the rest”–stories that caught MDN’s eye that you may be interested in reading: Appalachian basin natural gas production expected to jump; No need to feel guilty about reliance on Utica shale gas; Sharp divisions over nuclear, natural gas in NJ’s new energy plan; Number of producing wells in Utica surpasses 2,000; Venture Global LNG in 20-year supply deal with Repsol; Haynesville natural gas production quietly surging behind Appalachia, Permian; EPA lost more than 1,500 workers in first 18 months of Trump administration; EPA’s Wheeler says all 10 regional offices to remain; US natural gas demand is expected to grow 40% in ten years; U.S. House of Representatives approval for small scale LNG would up exports to Latin America; 10 incredible facts about American LNG exports; How long will natural gas be a bridge fuel?; and much more!
    Read More “Energy Stories of Interest: Mon, Sep 10, 2018”

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    FREE Audio: MDN Top 5 Stories for Week of September 3, 2018

    Below is an audio recording (“podcast”) featuring the Top 5 stories most read over the past week on MDN. Just click on the green button to listen. Below the recording is a list of the Top 5 with links to click to read the full stories (available only for subscribers). This list is meant as a way for folks to quickly catch up on the most essential news of the week–“essential” as determined by MDN’s audience of readers. Enjoy!


    Read More “FREE Audio: MDN Top 5 Stories for Week of September 3, 2018”

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    3 Counties, 5 Drillers Led OH’s 50% Increase in 2Q Gas Production

    The Pareto Principle is alive and well in the Buckeye State. You may know it as the 80/20 rule, or in this case, the 75/25 rule. The rule that states roughly 80% of the results come from 20% of the effort. Last week MDN brought you the latest update from the Ohio Dept. of Natural Resources–their second quarter 2018 report showing all production coming from the Ohio Utica Shale (see Top 25 Producing Gas & Oil Wells in Ohio Utica for 2Q18). While MDN provided you with Top 25 lists showing the best-performing wells (both gas and oil) during 2Q, and while we provided you with a better spreadsheet to view the information than that provided by the ODNR itself, our analysis was basic and high level. Utica natgas production was up a big 42% over the same period last year, and Utica oil production was up 11%–a cumulative 50% increase when you convert it all into equivalents. The experts at S&P Global Platts have done a deep dive into the numbers and have found that three counties represent 75% of all production in 2Q18, and five drillers represent 75% of all production in 2Q18. Which counties and which drillers? Read on…
    Read More “3 Counties, 5 Drillers Led OH’s 50% Increase in 2Q Gas Production”

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    Weird: NC Republicans Target Dem Gov for Supporting M-U Pipeline

    It doesn’t typically happen this way, which makes us feel like we’re Alice that’s just fallen through the looking glass. Normally (not always) Republicans support fracking and pipelines and fossil fuels in general, and Democrats (increasingly) do not. But in North Carolina, the roles are reversed. Republicans in the NC legislature have launched an investigation into Democrat Gov. Roy Cooper over his support of Dominion Energy’s Atlantic Coast Pipeline project. The lawmakers claim a $57.8 million discretionary fund set up by Cooper was, in fact, a “pay to play” slush fund, funded by ACP partners (including Dominion) to help them obtain a permit from the NC Department of Environmental Quality. The allegation is that Cooper got the companies to commit to giving the state $57.8 million, and a day later voila, they had their permit. Quid pro quo. Cooper says the money will be used to repair so-called environmental damage from constructing the pipeline. Republicans say it stinks to high heaven and he needs to “let go” of the money. Seems to us like this is just the latest skirmish in a long-running war between the two sides, and the Atlantic Coast Pipeline project is collateral damage, caught in the middle…
    Read More “Weird: NC Republicans Target Dem Gov for Supporting M-U Pipeline”

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    CEC Interview: 6-9 Mo Delays for New Drilling Permits in PA

    Civil & Environmental Consultants (CEC) is a large engineering firm with offices scattered across the country. We’re not sure which office is “headquarters,” but we know they have a sizable office in Pittsburgh. While CEC provides services to a number of industries, they have been a big part of the Marcellus/Utica since its birth in the 2000s. As the Farmer’s Insurance commercials say, “They know a thing or two because they’ve seen a thing or two.” Which is, of course, an understatement. They know a lot because they’ve seen (and done) a lot–when it comes to the Marcellus. Another large company, law firm Buchanan Ingersoll & Rooney (headquartered in Pittsburgh), recently interviewed CEC Founding Principal and Strategic Development Officer Greg Quatchak for their “Energy Insider” series of interviews. Quatchak talks about CEC and it’s important role (as he should), but woven into the responses to BIR’s questions we learn some important information, like this: It still takes 6-9 months on average for Pennsylvania Dept. of Environmental Protection to issue Marcellus Shale drilling permits. In Texas it takes their counterpart (the Texas Railroad Commission) about a week to issue the same type of permit. Yes, there are important differences between Texas and PA–geography, wetlands, threatened/endangered species, archaeology. And yes, the time to get a permit in PA has improved over the past year or two. But come on, 6-9 months! Here’s an interesting interview of one of the principals in an employee-owned company…
    Read More “CEC Interview: 6-9 Mo Delays for New Drilling Permits in PA”

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    6 Charged with Bypassing Emissions Controls on Marcellus Trucks

    We may not always agree with certain rules and regulations, but skirting or ignoring them is not an option. Especially not in the Marcellus industry. A small group of men (six so far) in Williamsport (Lycoming County), PA are accused of conspiring to illegally alter emission systems on 30+ trucks with heavy-duty diesel engines. The trucks belong to Rockwater Northeast of Canonsburg, a subsidiary of Rockwater Energy Solutions Inc. of Houston, Texas, used to haul fresh water and wastewater to/from Marcellus Shale wells being drilled. The men “tampered with and removed emission monitoring devices on trucks to reduce repair costs and maintenance down time.” Five of the six have already plead guilty, and a sixth was recently charged in the scheme. They all face jail time and stiff fines. Folks, this is not acceptable behavior for our industry…
    Read More “6 Charged with Bypassing Emissions Controls on Marcellus Trucks”

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    Small Group of Old Hippies Oppose Shell Ethane Pipeline

    A small group boasting a big name, The Breathe Project, recently sent a letter to the Pennsylvania Dept. of Environmental Protection proclaiming their opposition to Shell’s planned Falcon Ethane Pipeline–a 97-mile pipeline system with two “legs” that will feed Shell’s mighty ethane cracker plant now under construction in Monaca, PA. Right. So the DEP and Shell should simply give up on the $6 billion ethane cracker, which can’t operate without ethane to feed it–ethane that will flow through this pipeline. Of course the group’s opposition is for show, maybe for fundraising, and certainly not serious. The funny thing for us was in viewing a picture of some of the members of the group, standing around clutching signs that say SHELL FALCON PIPELINE with a big circle/slash through it. The group, when you look at them, is the geriatric squad. Old folks. In our opinion, they look like old hippies–people who likely protested the Vietnam War in the 60s and have now found their new reason for living–to defeat a small ethane pipeline. On Thursday a tiny protest of the Falcon Pipeline (under two dozen people) caught the interest of the Pittsburgh Business Times on a slow news day…
    Read More “Small Group of Old Hippies Oppose Shell Ethane Pipeline”

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    PA Consumers Save $30B Over 10 Years Thx to Marcellus Shale

    Although the push is on to get Marcellus molecules to new markets where they can fetch higher prices, there is one group who has benefited in a major way from an overabundance of cheap, clean-burning Marcellus Shale gas. That would be the residents and businesses located in the great state of Pennsylvania. Industry group Consumer Energy Alliance has just published a new report that reveals PA residents and businesses have saved a cumulative $30.5 billion from 2006-2016 as a result of the decreasing price of natural gas in the state. Can you imagine the economic impact! What president or governor or state legislator wouldn’t salivate over a cash infusion of $30 billion over ten years! It’s mind-blowing. And it’s all thanks to the Marcellus Shale. And that $30B is just the savings that went into folks’ pockets (and got spent on other things). That number doesn’t even take into consider the billions upon billions of dollars paid out in signing bonuses, royalties, and drilling work done. The Marcellus industry has single-handedly lifted many PA residents out of poverty. Hey, how much revenue and how many jobs and how much energy savings have groups like Delaware Riverkeeper, Sierra Club, Clean Air Council, Food & Water Watch, PennEnvironment, PennFuture and other radical Big Green groups generated for PA? What’s that? They’ve actually COST the state money? Think about that the next time you read about these so-called environmental groups and how much they “care” about the Keystone State…
    Read More “PA Consumers Save $30B Over 10 Years Thx to Marcellus Shale”

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    Blockchain: Explaining a Complex New Tech + Impact on O&G

    We don’t know about you, but hardly a day goes by we don’t notice the word “blockchain” in the headlines. Increasingly that word is used in oil and gas news. We had some vague idea that blockchain has something to do with digital currency–using Bitcoin instead of dollars. Whatever Bitcoin is! So what could blockchain possibly have to do with oil and gas? As it turns out, blockchain the technology is much more than just a technology that makes digital currency possible. We spotted an article on the World Oil website about blockchain and took the opportunity to dig into this new tech sweeping the world by storm. Put simply, blockchain is an ironclad “way of tracking things.” Those things can be money (the earliest adopter of the technology), but also other things, like legal documents. The technology can also be used to guard against hackers breaking into a company’s network. Cybersecurity is often mentioned as a huge benefit of using blockchain in the oil and gas industry. Blockchain tech can protect against hackers breaking into a remotely controlled drilling rig, for example. Or breaking into a computer that controls shipments of goods and materials. Drilling companies have some of the most complex logistics operations in the world. They plan out drilling new shale wells up to a year in advance, coordinating it so that trucks hauling equipment (even the rig itself) arrive on the exact day they need to be there. And they coordinate deliveries of water and sand used in fracking–down to the day those deliveries need to arrive, figuring out how to get them shipped via train and truck. A year in advance! Can you imagine a hacker breaking into a network and screwing with that information? It could be economically catastrophic for the driller. Blockchain guards against it. Here’s more about blockchain and how it’s coming (fast) to the shale industry…
    Read More “Blockchain: Explaining a Complex New Tech + Impact on O&G”

  • Energy Stories of Interest: Fri, Sep 7, 2018

    The “best of the rest”–stories that caught MDN’s eye that you may be interested in reading: Senate Environmental Committee sets Sept. 25 hearing on foreign influence on natgas dev in PA; With oil and gas on upswing, is Jefferson County on way to economic recovery?; Power to save: compressed natural gas buses in Luzerne County; Injection well protest planned Saturday near turnpike; NY Comptroller Stringer statement opposing the Williams pipeline; What sets these GoRaleigh buses apart is what’s in the tank; Stop nuclear cronyism; Russia’s huge natural gas pipeline to China nearly complete.
    Read More “Energy Stories of Interest: Fri, Sep 7, 2018”

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    Cabot O&G Fracks Its First OH Knox Well, Drilling 3rd OH Well

    According to a news account from Ohio, Cabot Oil & Gas is either in the midst of, or just recently completed, fracking their very first shale well in central Ohio. The well is located in Ashland County’s Green Township. As we previously reported, Cabot is targeting the Knox formation (see Cabot O&G Opens Branch Office in OH – Hoping to Find Oil in Knox). Cabot has already drilled two wells, fracked one, and moved their drilling rig last week to Vermillion Township (also in Ashland County) to begin drilling a third well. The first three wells are all located in Ashland. As for the next two, Cabot isn’t 100% sure. Maybe another well in Ashland, but maybe a well in Richland County instead. Cabot’s George Stark says to stay tuned for the location of the final two test wells the company will drill. Cabot plans to have all five test wells drilled and fracked by the end of this year. “It should be a busy September and October,” according to Stark…
    Read More “Cabot O&G Fracks Its First OH Knox Well, Drilling 3rd OH Well”

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    Price of PA Marcellus Gas Going Higher, Even with More Production

    In an interesting coincidence, we spotted two different stories on the same day about the price of gas in the Marcellus Shale–detailing how prices this year are much higher than they were last year at this same time, and speculating that the perhaps we have finally turned a corner and our prices (compared with the benchmark Henry Hub price) will stay higher. Which is good news for both drillers and landowners who get royalty checks from those drillers. Why are northeast gas prices higher today and staying higher? In a word, pipelines. With Rover Pipeline now online and the final laterals that feed it going online soon, with NEXUS coming online by the end of this year (both of those projects carting gas to the Midwest and Canada), and with Atlantic Sunrise and other pipelines coming online to cart gas to the south, even as far as the Gulf Coast, Marcellus/Utica molecules are finding new homes in higher-paying markets. As Martha Stewart says, “That’s a good thing!”…
    Read More “Price of PA Marcellus Gas Going Higher, Even with More Production”