• Other Energy Stories of Interest: Thu, May 17, 2018

    The “best of the rest”–stories that caught MDN’s eye that you may be interested in reading: Dominion seeks OK to work on Atlantic Coast Pipe in North Carolina; Haynesville Shale making a major production comeback; these 2 oil shale plays are making a comeback too; natural gas curbs actually hurt the environment; Charif Souki says LNG plant financing needs a new model; Trump admin considering “fossil fuel alliance” to promote coal & natgas; Enbridge sells midstream biz in U.S. for $1.12B; longest lateral in Canada drilled; and more!
    Read More “Other Energy Stories of Interest: Thu, May 17, 2018”

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    Average Workers at Top Marcellus Drillers Make $100K+ Salary

    The average worker who works for producers (i.e. drillers) in the Pennsylvania Marcellus makes among the highest average salaries of any industry in the state. Looking at six of the state’s top Marcellus drillers, the average worker made $113,610 last year! That’s an average taken from workers at CNX Resources, Range Resources, Chesapeake Energy, Southwestern Energy, EQT and Cabot Oil & Gas. We hasten to add not “all workers” but “average” or “median” workers–meaning there are people who make below that number and people who make well above that number. It also means the majority of Marcellus workers in those companies made at least $100,000 per year. Those working for oilfield services (OFS) companies like Halliburton, Baker Hughes and others didn’t fare quite as well, making an average of $52,000-$80,000 per year. Still, hey, it ain’t bad money! Here’s a look at the average wage for top Marcellus drillers and the OFS companies that serve them…
    Read More “Average Workers at Top Marcellus Drillers Make $100K+ Salary”

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    Investor Owning 3% of Range Stock Voting Against Mgmt Compensation

    Although the average employee at Range Resources made $123,500 last year (see today’s lead story, Average Worker at Top Marcellus Drillers Makes $100K+ Salary), those in upper management at Range made considerably more. We don’t have the 2017 number, but in 2016, Range CEO Jeff Ventura made $9.8 million (see EQT Pay Dispute – Comparing CEO Salaries for Top M-U Firms). Ventura’s salary works out to be 79 times the average Range worker’s salary–actually far better than the average for all industries which averages 140 times as much. Still, not everyone is happy with the what Range’s upper management gives themselves. A significant investor in Range, Stelliam Investment Management, which owns around 3% of all outstanding Range stock, has issued a press release and an open letter to the board to say they intend to vote against Range’s proposed management compensation plan at today’s annual meeting. Stelliam says over the past four years management compensation has “remained generous” while during the same period the company’s stock price has slipped a huge 80% in value. So who is Stelliam, and does their vote of no confidence create any issues for Range management?…
    Read More “Investor Owning 3% of Range Stock Voting Against Mgmt Compensation”

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    Shell’s PA Ethane Cracker Plant Gets a Name: Shell Polymers

    If you’ve read MDN for any length of time, you know about a $6 billion ethane cracker plant being built by Shell in Monaca (Beaver County), PA–near Pittsburgh. The plant will chemically “crack” ethane, an abundant natural gas liquid (NGL) that comes out of the ground along with methane, creating polyethylene from the ethane. Polyethylene is, in essence, raw plastic. Manufacturers in the region and beyond will use the plastic pellets Shell will produce at the plant to create an unlimited variety products. Shell is a smart company. They’re as much a marketing company as they are an oil and gas producer and petrochemical manufacturer. They know the value of positioning and mind share. We hadn’t thought about it previously, but we always just thought of and called the project the “Shell cracker plant.” The plant now has a name: Shell Polymers. The name Shell Polymers has been around for a long time but had fallen out of use when Shell largely exited the plastics business. With the new cracker coming online in the next few years, it’s time to revive the Shell Polymers name/brand and apply it to the cracker plant, which is how the project was being pitched at the last week’s NPE2018 (formerly called the National Plastics Exposition) in Orlando, Florida…
    Read More “Shell’s PA Ethane Cracker Plant Gets a Name: Shell Polymers”

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    Gas-Fired Elec Plant Near Indianapolis Starts Up, Fueled by M-U?

    IPL’s Eagle Valley Generating Station, located in Martinsville, Indiana (click for larger version)

    Seems like a day doesn’t by that we don’t notice yet another natural gas-fired electric plant project has been announced, or in this case, has come online! Here’s a project not previously on our radar. Indianapolis Power & Light (IPL) built and recently brought online a 671-megawatt combined-cycle natural gas-fired electric plant about 30 miles southwest of downtown Indianapolis. The new plant can power up to 370,000 homes. Gas-fired plants are a huge market for Marcellus/Utica gas. “But Jim,” you say. “This plant is in Indiana! There’s no Marcellus/Utica gas in Indiana. In fact, Rover, NEXUS and other pipelines don’t go through Indiana, so why are you excited about this plant?” Good question. We’re excited because there ARE pipelines in the vicinity that flow our gas–including the mighty Rockies Express (REX), which was reversed in June 2014 and now flows our gas all the way to points in Missouri (see Rockies Express Pipeline Reverses Flow from Utica to Midwest). According to a statement issued by IPL, the new Eagle Valley gas-fired plant can access “low-cost fuel” from the Rockies Express Pipeline and Texas Gas interstate pipelines. That is, Marcellus/Utica gas…
    Read More “Gas-Fired Elec Plant Near Indianapolis Starts Up, Fueled by M-U?”

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    PA Green Group Uses Kids to Sue Feds for “Indifference to Science”

    In August 2015, MDN told you about a lawsuit brought by a group of left coast radicalized children who want to force the federal government to become communist and “force action” on mythical climate change (see Group of Kids Sues U.S. Govt to Force Action on “Climate Change”). There have been a number of legal twists and turns since that time, but the bottom line is the U.S. Court of Appeals for the Ninth Circuit (in California), often called the “Ninth Circus” because of the clowns who pass for judges who sit on the bench, in March ruled the lawsuit can proceed (see 9th Circus Allows Climate Lawsuit by Radicalized Kids to Proceed). What we didn’t know/realize is that Pennsylvania has its own version of the same lawsuit playing out. The Philadelphia-based Clean Air Council (radical enviro group) glommed onto two children to perpetrate the same kind of fraudulent lawsuit in federal court in the Keystone State. In November 2017, CAC and the two kids they’ve tricked sued Donald Trump (President), Scott Pruitt (EPA), Rick Perry (Dept. of Energy) and Ryan Zinke (Dept. of Interior) claiming their collective actions in “rolling back” environmental protections (put in place by Lord Obama) shows “reckless indifference to science” and should not be allowed. No, this is not the script for a sitcom. This is real. On May 3, the defendants (the federal government) filed a motion to dismiss this nonsensical lawsuit. On May 11, the CAC and radicalized kids responded asking the court to not dismiss…
    Read More “PA Green Group Uses Kids to Sue Feds for “Indifference to Science””

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    Statoil Gets a New Name Starting Today – Equinor

    Can you imagine an oil company being ashamed of the word “oil”? Sounds like a European thing–and indeed it is. Statoil, Norway’s largest oil company (in fact, the single largest company in Norway period) with operations in 36 countries around the world and over 20,000 employees–is ashamed of its own name. And so, as of today, Statoil is changing its name to Equinor. “Equi” stands for equal, equality, or equilibrium (take your pick), and “nor” stands for Norway. Whatever. We mention this bit of tomfoolery because Statoil (now Equinor) still has meaningful leases and assets in the Ohio Utica. According to MDN’s forthcoming Marcellus & Utica Shale Upstream Almanac 2018 (on sale June 1st), in 2017 Statoil had 42 spud wells in the Ohio Utica, with 18 of them producing. Not huge, but also not nothin’. Here’s the tale of the oil company that doesn’t want to be called an oil company any more–even though they still are…
    Read More “Statoil Gets a New Name Starting Today – Equinor”

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    San Francisco Play Exposes $18B Environmental Fraud

    A shocking and at times farcical tale of how an environmental lawsuit turned into the world’s biggest fraud is revealed in a new play. The world premiere of “The $18-Billion Prize,” based on the true story of rainforest natives and their New York lawyer “fighting for justice” against one of the world’s biggest oil companies, opens May 19 at San Francisco’s Phoenix Theatre. Performances continue through June 3. Written, or perhaps a better word is assembled, by Phelim McAleer and Jonathan Leaf, the play uses exact words from transcripts of court documents. In 1993, Steven Donziger, a Harvard-educated American lawyer, represented indigenous groups from Ecuador’s rainforest in a class action lawsuit against Chevron–a shakedown. The case received an enormous amount of media attention, including major coverage by Vanity Fair, Rolling Stone and 60 Minutes to name a few, and it drew the support of international celebrities. Chevron, to their credit, fought back. An American court found evidence of fraud and ordered Donziger to hand over his files and diaries, which exposed a massive bribery and corruption scheme. The play will make you laugh, and cry, and make you angry that such a long-running fraud could be perpetrated here in the United States…
    Read More “San Francisco Play Exposes $18B Environmental Fraud”

  • Other Energy Stories of Interest: Wed, May 16, 2018

    The “best of the rest”–stories that caught MDN’s eye that you may be interested in reading: Decision looms regarding proposed natgas facility in Keene, NH; Hilcorp awarded Utica permit in Lawrence County, PA; Louisiana gets tough on pipeline protesters with new law; FERC tax decision prompts fight between gas operators/shippers; western Canada sees chance to one-up US Gulf Coast in LNG export fight; and more!
    Read More “Other Energy Stories of Interest: Wed, May 16, 2018”

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    Dela. Riverkeeper Suffers Major Defeat in Martian Well Case

    Nearly a year ago MDN reported that Big Green group THE Delaware Riverkeeper (aka Maya van Rossum) and the odious Philadelphia-based Clean Air Council (CAC) had suffered a crushing legal defeat in their attempt to interfere with shale drilling on the opposite side of the state from where the Delaware River and Philly is located (see Dela. Riverkeeper Loses Martian Case to Stop Rex Energy Drilling). A small group of anti-drilling parents from the Mars School District (whom we affectionately call “Martians”) in Butler County, PA, backed by money and legal help from Riverkeeper and CAC, filed frivolous lawsuit after frivolous lawsuit aimed at denying landowners in Middlesex Township revenue from legally permitted drilling. Even amid the back and forth lawsuits, at least two of the wells were permitted and drilled by Rex Energy, despite the bleatings of the Martians (see Martian Victory! 2 Wells Near Mars School Nearly Done Drilling). Following last year’s final word by PA Commonwealth Court, we thought that was the end of it. However, Riverkeeper and CAC tried one last, desperate attempt–by filing an appeal with the Environmental Hearing Board. The EHB is a special court set up to hear appeals of decisions made by the Dept. of Environmental Protection (DEP). Riverkeeper and CAC argued that the DEP abrogated their responsibilities under the PA Environmental Rights Amendment (ERA) to protect PA’s environment by issuing permits for Rex’s Martian wells. Last Friday the EHB ruled that DEP was well within its rights and did not, in fact, violate the ERA by allowing the Rex wells…
    Read More “Dela. Riverkeeper Suffers Major Defeat in Martian Well Case”

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    EIA May ’18 Drilling Report: M-U Gas & Permian Oil on Fire

    Perhaps our headline uses a poor choice of words, but that’s what immediately comes to mind in describing the enormous amount of gas (and oil) production coming from America’s shale plays–in particular the Marcellus/Utica (for gas) and the Permian (for oil). Yesterday our favorite government agency, the U.S. Energy Information Administration (EIA), issued our favorite monthly report, the Drilling Productivity Report (DPR). The DPR is the EIA’s best guess, based on expert data crunchers, as to how much each of the U.S.’s seven major shale plays will produce for both oil and natural gas in the coming month. We sound like a broken record, but the numbers continue to be mind-blowing–hitting new all-time, breath-taking highs each month. This month is no exception. Last month the EIA predicated natural gas output from the seven major shale plays would go up another 1+ billion cubic feet per day (see EIA Apr ’18 Drilling Report: M-U Production Through the Roof). Once again this month EIA says collective gas production in the seven plays will go another 1 Bcf/d! A full one-third of that increase–373 million cubic feet per day (MMcf/d)–will come from the Marcellus/Utica region. The second highest jump will come from the Texas Permian oil play with 225 MMcf/d of gas production, because gas comes out along with oil and drillers are sinking holes like crazy in the Permian. Here’s the latest mind-blowing news about American oil and gas shale production…
    Read More “EIA May ’18 Drilling Report: M-U Gas & Permian Oil on Fire”

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    WV Coal Industry Continues to Fight NatGas Electric Plants

    West Virginia has a long, proud history as a coal producer. And according to West Virginia Coal Association President Bill Raney, some 95% of the electricity produced and used in the Mountain State comes from coal-fired plants. However, natural gas burns cleaner than coal, and frankly, natgas is now cheaper than coal. Yet WV still has not permitted or allowed a single new gas-fired plant to be constructed. Why not? The obvious answer is because Big Coal is pushing back and pushing back hard. Last September WV’s Secretary of Commerce, Woody Thrasher, admitted publicly that his beloved state is unfriendly to new natgas-fired electric plant projects (see WV Sec Commerce Says State Unfriendly to Gas-Fired Power Plants). In a speech before state legislators, Thrasher said while Ohio has built 19 new gas-fired power plants, and Pennsylvania has built 22 new gas-fired power plants, WV has built NONE. Zero. Nada. Even though perhaps a dozen such projects have now been proposed. When will the situation change? If Big Coal has its way, it won’t…
    Read More “WV Coal Industry Continues to Fight NatGas Electric Plants”

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    Penn Twp About to Adopt Meaningless (?) Injection Well Ban

    Last November we updated you on a lawsuit filed by a group of anti-fossil fuelers in Penn Township (Westmoreland County), PA (see Penn Twp Ninny Nannies File Lawsuit to Block Apex, H&H Wells). A group calling themselves Protect PT, backed with money and legal help from Big Green group PennFuture, filed a lawsuit to try and stop Apex Energy and Huntley & Huntley (H&H) from drilling wells in the township. The lawsuit finally made it to a county judge who heard testimony in April (see Penn Twp Antis Try to Use PA ERA to Block Shale Drilling). The peril with Protect PT’s lawsuit is that it uses Pennsylvania’s so-called Environmental Rights Amendment (ERA), which liberal PA judges have, in recent years, breathed new life into. The argument is that fracking denies those who live near this temporary activity their “right” to enjoy Mom Nature, therefore it should be banished forever. Protect PT is attempting to pull off a total frack ban in the Penn Township. Meanwhile, Protect PT is working on a parallel effort. They’ve convinced (pressured, bullied) the town board to adopt an injection well ordinance that essentially bans injection wells in the town. Here’s the thing: Nobody has even whispered the hint of wanting to locate a wastewater injection well in Penn Township–ever. It is a meaningless gesture–unless you consider that Protect PT calls the injection well ordinance a “victory” and (our inference) if they can get this injection well ordinance passed, then maybe they can get a more restrictive drilling ordinance passed too. That is, the injection well ordinance is the back door to getting a wider frack ban enacted by a now-susceptible and weakened town board…
    Read More “Penn Twp About to Adopt Meaningless (?) Injection Well Ban”

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    Short Pipeline from NW Pa. to NE Ohio May Not Get Done This Year

    Click for larger version

    Last October MDN brought you details about the proposed $86 million Risberg Line pipeline project (see New 60-Mile Pipeline Proposed from NW Pa. to NE Ohio). The project will use approximately 32 miles of existing pipeline in an established Right of Way originating in the Meadville, PA area. Approximately 16 miles of new pipeline will be installed in Pennsylvania and approximately 12 miles of new pipeline will be installed in Ohio–meaning 28 miles of brand new “greenfield” pipeline needs to get built. In early May, the Federal Energy Regulatory Commission (FERC) said it will issue an environmental assessment (EA) for the project on or by June 29th (see FERC Review of Risberg Pipeline in NE OH/NW PA Coming June 29). Both the U.S. Army Corps of Engineers and the PA Fish and Boat Commission are “cooperating agencies” and part of the EA review process. Following the EA, the clock will begin ticking and FERC will have until Sept. 27th to make a final decision about the project. The original timeline for the project, from the beginning, has been to have it all built and operating by the end of this year. The builder, RH energytrans, is now cautioning that may not happen. Why? Because one never knows with regulatory agencies like FERC and the Army Corps and the Boat Commission. Deadlines come and go and get extended. FERC says the dates they given are targets and not carved in stone. If everything happened as FERC laid out, RH says it would be a challenge, but they can probably get the job done this year. But if the deadline slips, all bets are off…
    Read More “Short Pipeline from NW Pa. to NE Ohio May Not Get Done This Year”

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    Appalachian NGL Storage Hub Conference June 6-7 in Pittsburgh

    MDN has previously written about the Appalachian NGL (natural gas liquids) Storage Hub, a $10+ billion infrastructure project with no specific location identified as yet, but West Virginia often named (see M-U’s Next Mega Project: $10B Appalachian Storage Hub). An upcoming conference dedicated solely to the the Storage Hub is coming to the Pittsburgh area June 6-7. The Appalachian Storage Hub Conference is sponsored by our friends at Shale Directories (Joe Barone), along with TopLine Analytics (Tom Gellrich), in Canonsburg at the Hilton Garden at Southpointe. June 6th will see a cocktail reception in the evening and June 7th is the full conference. The conference will answer questions like, What in the world is a storage hub and why does the Marcellus/Utica need one? What are state governments doing to attract this project, and what remains to be done? What kinds of investment opportunities exist? And, How does our region compare with the Gulf Coast? If you have an interest in petrochemicals and NGLs like ethane, you need to attend this event. Oh! And did we say, seating is very limited? It is, so now is the time to act if you want to attend. There’s a few remaining slots…
    Read More “Appalachian NGL Storage Hub Conference June 6-7 in Pittsburgh”

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    Peak Oil Theorist Art Berman Predicts Doom & Gloom for Shale

    Hee Haw – “Gloom, despair and agony on me”

    Month after month and year after year America’s shale plays produce ever more oil and gas (see today’s story about the latest EIA Drilling Productivity Report). But don’t tell that to Art Berman. Why anyone continues to listen to Berman, the world’s preeminent “peak oil” theorist, is beyond us. For nearly 20 years Berman has predicted that the world is running out of oil and natural gas. And yet the opposite is true. But that doesn’t stop Art from pedaling his particular brand of insanity. Last Thursday at the Texas Energy Council’s annual gathering in Dallas, Berman told attendees that the Permian Basin has another seven years, at most, and then it’s done–out of oil. Oh, and the Eagle Ford, about 350 miles from the Permian–that’s toast too. Why the Texas Energy Council would invite Art to pedal his nonsense is beyond us, except maybe they enjoy a circus side show. In contrast to Berman’s wild fantasies of Permian oil drying up, we have analysis (below) from Richard Zeits, founder of Zeits Oil Analytics, who says the Permian is only just getting started…
    Read More “Peak Oil Theorist Art Berman Predicts Doom & Gloom for Shale”