• Other Energy Stories of Interest: Fri, Feb 23, 2018

    The “best of the rest”–stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: DCNR to release PA state forest drilling report by early summer; 2017 was a good year for Washington County’s economy, thx to shale; what Ohioans need to know about PA serial protester; Marcellus/Utica fighting strong Gulf of Mexico bias; oil price jumps; shale remains leading source of U.S. crude; a downside for midstreamers in new tax law; Shell backing both deepwater and shale; and more!
    Read More “Other Energy Stories of Interest: Fri, Feb 23, 2018”

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    EQT Pulls Trigger to Split Company in Two: Drilling & Pipelines

    After EQT announced its plan to buy/merge in Rice Energy last year, the company got pushback from a couple of so-called activist investors (i.e. corporate raiders). One raider, Jana Partners, tried its best to stop the EQT/Rice deal outright (see Proxy Fight: Jana Partners, Atlas Tries to Stop EQT/Rice Deal). Jana slithered away after the merger happened (see Corp Raider Slinks Away After Losing EQT Fight; Selling Stock). However, a second raider, D.E. Shaw, supported the merger but lobbied hard that once the merger is complete, the company should split itself into two companies: upstream (drilling) and midstream (pipelines). Shaw’s pressure made EQT tap dance to their tune (see Under Pressure, EQT Moves Up Timeline to Explore Splitting Co.). True to their word, once Rice was merged in, EQT then added a couple of new board members and set about exploring how to separate the company into two companies. The theory is that by separating, each company can focus on what it does best (drilling or pipelines), meaning each separately will have a higher valuation/stock price than the two combined. That is, “the sum of the parts” is worth more than the whole. The review process is now done, and EQT’s Board of Directors voted to proceed with a plan to divide the company in two…
    Read More “EQT Pulls Trigger to Split Company in Two: Drilling & Pipelines”

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    XTO Exploded Belmont Well Still Not Capped, Neighbors Stay Away

    Last Thursday XTO Energy was drilling a Utica Shale well on the Schnegg well pad near Captina Creek (York Township, Belmont County, OH) when they “lost control” of the well and it exploded and caught fire (see XTO Energy Utica Well Explosion in Belmont County – 100 Evacuated). As we reported yesterday, most evacuees were allowed to return home, with just a few still not able to access their homes (see Most Evacuees Return Home After XTO Well Explosion in Ohio). However, we’ve since that time, we’ve learned that although evacuees were allowed to return home (and some did, to check on things/grab items), none of them stayed overnight in their own homes. Why? The well is still not capped. And as long as it’s not capped and continues to “spew” methane into the air, residents don’t feel safe. Can’t say that we blame them. We wouldn’t want to be in the vicinity either. The latest news is this: Power was restored to the area yesterday, but since the power has been out since last Thursday, you can imagine the condition of refrigerators and freezers in those homes where power was off. XTO has pledged to replace all fridges and freezers, and compensate residents for the cost of food lost, from having the power turned off. There’s still no estimate on when the well will be capped (a damaged crane has to be removed first)…
    Read More “XTO Exploded Belmont Well Still Not Capped, Neighbors Stay Away”

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    Rover Starts Up 2nd Mainline Compressor, Volume Grows to 2 Bcf/d

    Yesterday the Federal Energy Regulatory Commission (FERC) granted Rover Pipeline permission to start operations at its Mainline Compressor Station 2 in Wayne County, OH. Rover is a “monster” pipeline, a $3.7 billion, 711-mile natural gas pipeline that runs from western PA, northern WV and eastern OH through OH into Michigan and eventually to Canada. Rover is the largest of all Marcellus/Utica pipeline projects that will (within the next month or so) begin to flow 3.25 billion cubic feet per day (Bcf/d). With the startup of this second mainline compressor, volume along the portions of the completed pipeline will flow 2 Bcf/d. The company maintains it is on track to have the pipeline fully operational by the end of March. It is an engineering marvel, although not without some bumps along the way (see yesterday’s post, Ohio EPA Continues to Target Rover Pipe in New FERC Letter). Here’s the stellar news that the Wayne compressor is, likely as you read this, up and running…
    Read More “Rover Starts Up 2nd Mainline Compressor, Volume Grows to 2 Bcf/d”

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    New WV Facility Ships First Compressors for M-U Pipe Customers

    Bidell Gas Compression facility in Weirton, WV (click for larger version)

    In March 2017, Bidell Gas Compression, a subsidiary of Canadian company Total Energy Services, announced it would establish its U.S. manufacturing headquarters in Weirton (Hancock County), WV–in the northern panhandle of WV (see Biddel Gas Compression Selects WV Northern Panhandle for US HQ). Biddel manufactures and sells pipeline compressors. The site they chose in Weirton includes a 100,000 square-foot building, part of the old ArcelorMittal machine shop operation. On Monday, Biddel shipped out from the new Weirton facility, their very first truckload of newly manufactured compressors. The news article we spotted says delivery of the compressors will happen today. We’re assuming delivery is to a Marcellus/Utica pipeline project, somewhere in our region, given the short time between shipment and delivery. This is a feel-good story. It is one more evidence that our industry, which used to import everything from workers to equipment, has matured. We now make what we use right here at home! Here’s the deets on Biddel’s first compressor shipment…
    Read More “New WV Facility Ships First Compressors for M-U Pipe Customers”

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    Weatherford Intl – On the Road to Recovery…or to Bankruptcy?

    Schlumberger is the world’s largest oilfield services (OFS) company. Weatherford International is the world’s fourth largest OFS company. They both have operations in the Marcellus/Utica region. We’ve posted a number of stories about Weatherford’s financial troubles–and seemingly inevitable march toward bankruptcy (see our stories here). In order to stay in business, in March 2017 Weatherford formed a joint venture with Schlumberger to service fracking markets in the U.S. and Canada (see Schlumberger Throws Weatherford a Lifeline, Challenges Halliburton). Nine months later, Weatherford sold their portion of the jv to Schlumberger, liquidating their fracking business here in the U.S. (see Weatherford Sells U.S. Fracking Business to Schlumberger for $430M). Financially it’s been a wild ride for Weatherford. But perhaps the company has now turned a corner. At least, that’s what some (certainly not all) analysts are saying. Yesterday Weatherford announced a “multi-step debt financing plan” to help take the pressure off, financially. The plan is to float $600 million of new IOUs (called notes). The notes will be “senior” notes–but unsecured. Meaning if the company does go belly up, good luck with cashing in your notes. The purpose of floating the notes is to pay off older notes. Floating new debt to pay off old debt. You can’t do that forever. But apparently you can do it for at least a few years…
    Read More “Weatherford Intl – On the Road to Recovery…or to Bankruptcy?”

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    Time to Go on Offense and Sue PA Big Green Groups

    Yesterday MDN brought you the news that THE Delaware Riverkeeper and several residents from West Goshen, PA (in Chester County, near Philadelphia) had lost a court appeal that would have stopped Sunoco’s Mariner East 2 pipeline in the town due to a violation of a local zoning ordinance (see PA Town Loses Appeal to Block ME2 Pipe with Local Zoning Ordinance). Our coverage of that story was from the perspective that local town ordinances do not trump state oil and gas regulations. Which is true. However, MDN friend Tom Shepstone, writing on his always-excellent Natural Gas Now website, had a slightly different take on the importance of the lawsuit. There is a deeper, more insidious strategy at play by Riverkeeper that Tom picked up on in this lawsuit. He does a masterful job of exposing that strategy (using the PA Environmental Rights Amendment) in his post, which we reproduce below. Which is interesting, and everyone needs to be aware of what’s happening. However, it was Tom’s final solution/admonition that had us standing up and cheering. Tom concludes (as MDN has been advocating for years) that it’s time to take the fight to the opposition. Their strategy of endless, frivolous lawsuits is having a negative effect on our industry. It’s time we litigate them in return–and expose their fraudulent use of our tax system to shield their overt political activities. It’s time to sue them…
    Read More “Time to Go on Offense and Sue PA Big Green Groups”

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    Shell Gives “Transformational” $1M Gift to Pa. Community College

    Shell Chemicals this week announced the donation of a $1 million gift to the Community College of Beaver County (CCBC). The gift will benefit the school’s process technology program and will be used to construct a new Shell Center for Process Technology Education building. CCBC President Chris Reber called it a “transformational gift” and an “extraordinary investment.” The gift will ultimately help train students to work for Shell and other companies that will benefit from Shell’s ethane cracker plant (being built in Beaver County). This isn’t the first huge gift for the process technology program at CCBC. In December, the Allegheny Foundation donated $1 million toward the first phase of the program’s expansion. Shell’s donation will fund the second phase. Aside from the big $1M announcement, Shell also awarded $2,500 (each) scholarships to 13 students in the CCBC process technology program. Shell has really stepped up to the plate in SWPA. They are investing in local talent and local institutions…
    Read More “Shell Gives “Transformational” $1M Gift to Pa. Community College”

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    Keep It…Sell It…GE Now Back to Keeping Baker Hughes

    Industrial giant GE (General Electric) wooed and won the hand of Baker Hughes (BH)–the third largest oilfield services company in the world–buying/merging in Baker Hughes with GE’s Oil and Gas division in July 2017 (see Baker Hughes and GE Complete Merger, World’s 1st Fullstream Co.). But four months later, GE’s new CEO, John Flannery, said he wants out of the marriage (see 4 Months After Buying Baker Hughes, GE Wants to Sell It). Flannery said he was looking to sell all of, or part of, GE’s majority stake in what is now called “Baker Hughes, a GE Company.” Then yesterday, Flannery changed his mind again. Can anyone say, “Flaky Flannery” three times really fast? Yesterday GE said the Baker Hughes unit is now off the table and will not be sold as part of a plan to divest the company from $20 billion worth of businesses it owns. GE now “likes the combination [with Baker Hughes] a lot.” Go figure. Here’s the latest…
    Read More “Keep It…Sell It…GE Now Back to Keeping Baker Hughes”

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    US LNG Exports Report 2016 to 2017 – Where is Our Gas Going?

    The U.S. Department of Energy’s Office of Fossil Energy has just released an interesting report that shows the number and volume of LNG (liquefied natural gas) exports from Feb. 2016 (when U.S. LNG exports began) to Dec. 2017. It’s really quite fascinating. For example, which country do you think we have (so far) shipped more LNG to than any other country? Someplace in Europe? Maybe Japan or China? Nope. The #1 one trading partner that received our LNG for 2016-2017 was…Mexico! That’s right, Mexico. Even though we have all sorts of natural gas pipelines crossing the border into Mexico. Apparently those pipelines don’t connect with large parts of the country, so LNG tankers meet the need instead. Number two on the list of countries receiving our LNG exports: South Korea. Followed by China (#3), Japan (#4) and Chile (#5). The report also breaks down deliveries by other criteria. For example, even though Mexico was #1 on the list for our exports, if you break our exports down regionally, Asia/Pacific received most of our exports, while Latin America (including Mexico) was the #2 region. Or how about this: Free Trade Agreement (FTA) countries vs. non-FTA countries. Would it surprise you to learn that non-FTA countries got more of our exported LNG (52.7%) than FTA countries (43.3%)? The reason MDN readers should be interested in LNG exports is because exports are a huge future market for Marcellus/Utica gas. Be sure to spend some time with this important report…
    Read More “US LNG Exports Report 2016 to 2017 – Where is Our Gas Going?”

  • Other Energy Stories of Interest: Thu, Feb 22, 2018

    The “best of the rest”–stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Shell VP says cracker plant “starting to come out of the ground”; FirstEnergy powergen unit headed for bankruptcy; Ted Cruz visits Philly to support refinery; Sierra Club wants NC coal plant to keep burning coal instead of natgas; will natgas prices go up in the spring; Saudi Arabia’s gift to American shale producers; oil & gas continue to be 50%+ of world energy mix in 2040; and more!
    Read More “Other Energy Stories of Interest: Thu, Feb 22, 2018”

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    Most Evacuees Return Home After XTO Well Explosion in Ohio

    As we reported yesterday, last Thursday XTO Energy was drilling a fourth Utica Shale well on the Schnegg well pad near Captina Creek (York Township, Belmont County, OH) when XTO “lost control” of the well and it exploded and caught fire (see XTO Energy Utica Well Explosion in Belmont County – 100 Evacuated). We have an update. Most of the evacuees have now returned to their homes (a few still have not). Also, the well is still not capped, meaning “unknown quantities” of methane are leaking into the air. Which, judging by most press accounts, is a greenhouse gas environmental catastrophe. Actually, it’s nothing of the sort. The amount of gas a single well vents into the atmosphere until it’s capped doesn’t even move the needle on the faux global warming scale. Frankly, it’s laughable. No, we’re not laughing at this accident/disaster. Far from it. We thank God nobody was hurt. It should not have happened. And yes, the well needs to be capped–quickly–which XTO and the company hired to do it (Cudd Energy Services) are working hard to do. We’re just providing balance to the “methane leaking from this uncapped well is the end of the world” narrative so prevalent–even in local news outlets. Here’s the latest update on what’s happening at the Schnegg well pad…
    Read More “Most Evacuees Return Home After XTO Well Explosion in Ohio”

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    Ohio EPA Continues to Target Rover Pipe in New FERC Letter

    When will Captain Craig “Ahab” Butler, executive director of the Ohio EPA, realize he’s never going to harpoon his great white whale–Rover Pipeline? Captain Butler is at it again. The Ohio EPA filed a letter with the Federal Energy Regulatory Commission (FERC) last week claiming that testing done by OEPA found the presence of very low levels of the toxic chemical tetrachloroethene at Rover’s underground drilling site at the Tuscarawas River in southern Stark County. OEPA admits they can’t prove the very low levels of the compound actually came from Rover’s drilling activity–but hey, what’s proof got to do with it? Un-coincidentally, two Democrat members of Congress, one from New Jersey, the other from Washington State (one 560 miles away from Ohio, the other 2,400 miles away from Ohio) are asking FERC for a “briefing” on the Rover Pipeline project. Apparently OEPA couldn’t get any Ohio members of Congress to step up and pressure FERC, so OEPA went shopping for sympathetic Dems in other states who would. And oh, by the way, the Dems want (i.e. demand) their “briefing” no later than Feb. 28th…
    Read More “Ohio EPA Continues to Target Rover Pipe in New FERC Letter”

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    PA Town Loses Appeal to Block ME2 Pipe with Local Zoning Ordinance

    Yesterday MDN brought you news that Uwchlan Township (Chester County, PA) has filed a lawsuit in an attempt to stop construction of the Mariner East 2 Pipeline (ME2) through portions of the town, claiming the pipeline violates a town ordinance for “setbacks”–how far the pipeline is located from buildings and other structures (see PA Town Sues Sunoco for ME2 Pipe Construction “Too Close” to Homes). As we said yesterday, while residents in Uwchlan may have legitimate concerns, they are trying to handle those concerns illegitimately–by claiming local ordinances have power over state regulations. It’s the other way around. State regulations trump local ordinances in cases like ME2. Pennsylvania’s Commonwealth Court agrees. Uwchlan isn’t the only town to try this approach. Two towns away in Chester County is West Goshen. We won’t bore you with the details, but suffice it to say West Goshen has tried a number of regulatory and legal actions to block ME2 in the town. One of those actions was a lawsuit brought by the anti-drilling, anti-pipeline THE Delaware Riverkeeper (Maya van Rossum). Riverkeeper, on behalf of a couple of town residents, took Sunoco to court to block ME2 on the basis that it violates a local zoning ordinance. Yesterday Commonwealth Court rejected that claim and reaffirmed what everyone (who knows and obeys the rule of law) knows: State regulations trump local ordinances. The misguided officials in Uwchlan have said they “will evaluate [their] enforcement action in coming days, in light of the Commonwealth Court ruling.” Indeed. If Uwchlan pushes forward with their case, it will be to certain defeat–a total waste of taxpayer money…
    Read More “PA Town Loses Appeal to Block ME2 Pipe with Local Zoning Ordinance”

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    Brooke County WV Power Plant Wins State Approval

    Last September none other than West Virginia’s Secretary of Commerce, Woody Thrasher, admitted publicly that his beloved state is decidedly 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. And that has to change. Pressure from the coal industry and regulatory red tape are preventing new projects from happening. A few years ago it seemed as though a project in Marshall County was ready to begin construction (see Progress for 3 WV NatGas Electric Plants; 1 Breaks Ground in 2016). However, that project is stalled–perhaps even dead (according to rumors we’ve heard). Last week there was a sliver of light when Harrison County commissioners voted to pass a resolution supporting a long-delayed gas power plant project there (see Harrison County, WV Commissioners Vote to Help Delayed Elec Plant). And now, finally, some sunshine breaks through! A power plant project in Brooke County, WV (same developers, Energy Solutions Consortium or ESC) received a siting certificate approval from the WV Public Service Commission. This is a good sign. Finally, a power plant project in WV that is moving forward…
    Read More “Brooke County WV Power Plant Wins State Approval”

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    Pittsylvania County VA Board Approves Mountain Valley Pipe Rezoning

    Uncommon common sense can be found among county leaders in Pittsylvania County, Virginia, who approved a rezoning request last night for the Mountain Valley Pipeline (MVP)–a $3.5 billion, 301-mile pipeline that will run from Wetzel County, WV to the Transco Pipeline in Pittsylvania County. Although the entire path for MVP is important, there are two places where the pipeline’s path is critical and cannot be moved. One of those points is where it starts–and the other where it ends and connects to the mighty Transco. Pittsylvania County is where MVP ends–and where it can’t be moved. There many (many!) people who spoke out against MVP in various county hearings. Here’s where the uncommon common sense was exhibited. In speaking about those who railed against the pipeline, Pittsylvania Supervisor for the Westover District, Ron Scearce, said this: “One thing that’s surprising to me with all of this [opposition] is that there has not been one county resident who was affected by the project who spoke [against it].” Scearce gets it. A very vocal minority of environmental zealots, dedicated to defeating any fossil fuel project, are the ones who show up and speak out. The people across whose land the pipeline will run? They’re fine with it. Scearce and the other supervisors voting last night were not fooled by the tactics of the enviro-left. The property was rezoned to allow MVP by a UNANIMOUS vote…
    Read More “Pittsylvania County VA Board Approves Mountain Valley Pipe Rezoning”