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Marcellus Drilling News
  • Electrical Generation | Greene County (PA) | Industrywide Issues | Pennsylvania | Regulation

    PA DEP Issues Air Permit for Gas-fired Elec Plant Next to Pot Farm

    December 7, 2017December 7, 2017

    In early October MDN told you about a second Marcellus gas-fired electric generating plant being planned for Greene County, PA (see 2nd Marcellus-Fired Electric Plant Proposed for Greene County, PA). Hill Top Energy Center, based in Huntington Bay, N.Y., is planning to build a 620 megawatt plant (original story had it wrong, saying 536 MW) on 41 acres of land off Thomas Road in Cumberland Township. The PA Dept. of Environmental Protection (DEP) held a public hearing in early November about the project. Only 20 people turned up and nobody objected. Last Friday the DEP issued an air quality permit for the project–the last major hurdle before the project can begin. In press coverage of the permit and the project advancing, we discovered one piece of new information: The plant will be built next door to a “medical marijuana operation”–i.e., a pot growing farm. Well now that’s interesting! Workers at the new electric plant can slip out the back door on break and roll a joint for later…
    Read More “PA DEP Issues Air Permit for Gas-fired Elec Plant Next to Pot Farm”

  • Industrywide Issues | Research | Statewide WV | West Virginia

    WVU Gets $1.3M Grant to Research Ways to Use More NatGas In-State

    December 7, 2017December 7, 2017

    West Virginia University (WVU) is a research powerhouse. They have lots of researchers doing important work in a variety of disciplines. One of those disciplines is natural gas. WVU founded the Center for Innovation in Gas Research and Utilization (CIGRU) to “conduct transformative, fundamental, research directed at innovative pathways for shale gas utilization and upgrading.” CIGRU, along with two other non-shale related research programs, have just collectively received a $3.9 million Research Challenge Grant from the West Virginia Higher Education Policy Commission. The WVU press release doesn’t say how each of the three different recipients (CIGRU being one of them) got, but we figure they likely divided it evenly, hence our assumption that CIGRU got $1.3 million. And what will CIGRU do with the money? Figure out ways to keep more of the Marcellus/Utica gas coming out of West Virginia’s rocks in the state–used by residents and businesses who reside in WV. They want to grow the “downstream” sector of end users of natural gas and other byproducts from shale drilling…
    Read More “WVU Gets $1.3M Grant to Research Ways to Use More NatGas In-State”

  • Energy Services | Patterson-UTI

    Patterson-UTI Rig Count Gains 3 in November, Back Up to 161

    December 7, 2017December 7, 2017

    As we do every month (and have for more than two years), MDN tracks how many rigs oilfield services company Patterson-UTI Energy reports operating–as a proxy for rig count health in general and rig count health in the Marcellus/Utica in particular. Patterson recently bought out and merged in Seventy Seven Energy (see Patterson-UTI Energy Completes Merger with Seventy Seven Energy). The addition of SSE’s rigs served to rocket Patterson’s rig count number in April and May much higher (see Patterson-UTI Rig Count Continues to Rocket Skyward – 159 in May). With SSE now fully absorbed into Patterson, the rig count number settled down. In September Patterson’s rig count slipped by 1–the first loss since June 2016. In October the count retreated another three, to 158. But what’s this? The numbers for November were just released and show that the count jumped again–back up to 161…
    Read More “Patterson-UTI Rig Count Gains 3 in November, Back Up to 161”

  • Dominion Energy | Duke Energy | Energy Services | Industrywide Issues | Pipelines

    Atlantic Coast Pipeline’s Future Plans: Expand in NC & SC

    December 7, 2017December 7, 2017

    Atlantic Coast Pipeline is a $5 billion, 594-mile natural gas pipeline that will stretch from West Virginia through Virginia and into North Carolina. The project will be built by Dominion Energy (lead) and Duke Energy (important partner). Years after the project filed with the Federal Energy Regulatory Commission (FERC), it was finally approved by FERC in October (see FERC Approves Atlantic Coast, Mountain Valley Pipeline Projects). In November, the U.S. Forest Service granted its blessing for the pipeline to traverse small portions of two national forests (see USFS Approves Atlantic Coast Pipeline Thru 2 National Forests). But the project is not without it’s problems. The National Association for the Advancement of Colored People declared the pipeline racist (see NAACP Claims Atlantic Coast Pipeline is Racist, Harms Blacks Most). That’s basically a PR stunt by the NAACP to use as a fundraiser. The more important and troublesome development is in North Carolina, where the state Dept. of Environmental Quality is playing a game of delay with questions (see NC Plays “Death by a Thousand Questions” with Atlantic Coast Pipe). Even with setbacks, the companies building the project appear to be confident it happen. So confident that Duke Energy let leak that once the project is built, it likely won’t end there. Duke says there are “great opportunities” to extend the pipeline into more areas of North Carolina–and even extend it on down into South Carolina…
    Read More “Atlantic Coast Pipeline’s Future Plans: Expand in NC & SC”

  • Energy Services | Weatherford Intl

    Weatherford Looks to Sell Off Pieces of the Business

    December 7, 2017December 7, 2017

    We’ve had our eye on oilfield services (OFS) company Weatherford International for some time. They are the fourth largest OFS company in the world. In 2016 they lost $3.4 billion. Not good. Earlier this year (in February) the company floated $2.5 billion in new debt and equity securities in an attempt to claw their way out of the hole they’ve dug (see Weatherford Tries to Dig Out of Debt – $2.5B Securities Offering). In March, Mark McCollum, who had been Chief Financial Officer (CFO) of Halliburton, the world’s second largest oilfield services company, left to become the CEO of Weatherford (see Halliburton CFO Leaves to Become Weatherford CEO). We haven’t heard much since, but McCollum, a bean counter by training, appears to be hard at working counting beans at Weatherford. News broke a few weeks ago that Weatherford has hired investment bank powerhouse Morgan Stanley to help sell off pieces of the company. They’re still trying to claw their way out of the debt hole. By the end of the third quarter this year Weatherford’s debt had climbed to an eye-popping $7.9 billion…
    Read More “Weatherford Looks to Sell Off Pieces of the Business”

  • Anti-Drilling/Fossil Fuel | Industrywide Issues | Pipelines | Regulation

    FERC’s Chatterjee to Actor James Cromwell: ‘Come at me bro!’

    December 7, 2017December 7, 2017

    We continue to be really impressed with the current Acting Chairman of the Federal Energy Regulatory Commission (FERC), Neil Chatterjee, and his willingness to take the fight right back to radical antis. Chatterjee is not unlike President Trump, who appointed him to the post. Frankly, it’s a surprise for us, since Chatterjee has worked for years for Senate Majority Leader Mitch McConnell (a swamp dweller). We figured Chatterjee was a swamp dweller too–but perhaps we misjudged him. Chatterjee recently turned up the heat with Facebook posts aimed at nutty Hollywood actor James Cromwell (he of Babe and Star Trek: First Contact fame). Cromwell recently attended a FERC meeting chaired by Chaterjee and proceed to make a king-sized @$$ of himself in the meeting room, requiring security to escort him from the room (see Old Hippie/Actor James Cromwell “Escorted Out” of FERC Meeting). Chatterjee fired off some choice words at Cromwell, including a comment that invites Cromwell to “Come at me bro!” What’s obvious when you read Chatterjee’s comments is that it’s done in a lighthearted way–not mean or nasty. He’s tweaking Cromwell and other antis, using humor to do it. And they are a humorless bunch. Chatterjee’s lighthearted humor in tweaking Cromwell went right over the heads of mainstream media and the inside-the-Beltway swamp dwellers, who are all aghast, criticizing Chatterjee as not acting like a regulator should act. We wish more government officials acted like Chatterjee–and Trump…
    Read More “FERC’s Chatterjee to Actor James Cromwell: ‘Come at me bro!’”

  • Air Quality | Electrical Generation | Industrywide Issues

    The World’s First Zero-Emissions Natgas-Fired Power Plant

    December 7, 2017December 7, 2017

    We spotted an article that intrigued us with the headline, “A radical startup has invented the world’s first zero-emissions fossil-fuel power plant.” Most of the article–the first two-thirds of it–is obsequious genuflecting before the man-causes-global-warming gods. Whatever. Believe in fairy stories if you want to. The final one-third of the article is the real meat, which we highlight below. It seems a group of smart people at a company called Net Power, located in Texas, have figured out a way to capture all, as in 100%, of the carbon dioxide that comes from burning natural gas to produce heat to turn a turbine. There are no CO2 emissions that escape into the atmosphere. We bring you details of this new technology because it’s neat and may one day change how electricity is generated in this country. What if (gasp!) natural gas became as “green” as solar or wind? That just doesn’t fit the narrow worldview of radical environmentalists…
    Read More “The World’s First Zero-Emissions Natgas-Fired Power Plant”

  • Industrywide Issues | Research

    Research Breakthrough in Methane to Methanol – Holy Grail?

    December 7, 2017December 7, 2017

    Researchers at Tufts University say they have found a better, cheaper way to convert methane (i.e. natural gas) directly into methanol. “The direct oxidation of methane—found in natural gas—into methanol at low temperatures has long been a holy grail,” so says the Tufts announcement. A group of chemical engineers say they have found a way to do it. What’s the big deal about methanol? Methanol plants convert natural gas into methanol, used as a chemical feedstock (or raw material) to create other things, like gasoline, antifreeze, plastic bottles–even LED and LCD screens. In August 2016 MDN was the first to share the news that US Methanol is building at least two, rumored up to five, methanol plants in West Virginia (see Rumor: US Methanol Building 5 Methanol Plants in WV). Methanol has the potential to be a big market in the Marcellus/Utica region–and a big source of demand for our plentiful gas. If Tufts has figured out a better way to convert natgas into methanol, we’re all ears…
    Read More “Research Breakthrough in Methane to Methanol – Holy Grail?”

  • About MDN

    Important Information About MDN Login

    December 7, 2017December 7, 2017

    A quick note about the Marcellus Drilling News website. Two months ago I began a journey of updating the MDN website. The site has not had a major redesign since it began in 2009 (shame on me!). Hey, if it ain’t broke, don’t fix it, right? The technologies that power the internet have profoundly changed since MDN was launched. It’s time to keep up with the changes. So in early October I launched a new “look and feel” for the website. The feedback was positive–thank you! However, the changes are not yet done. One such change is being forced by Google…
    Read More “Important Information About MDN Login”

  • Best of the Rest

    Marcellus & Utica Shale Story Links: Thu, Dec 7, 2017

    December 7, 2017December 7, 2017

    The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Appalachian Basin produces more natgas than any OPEC country!; Utica rig count falls to 21; PA judge doubles fracking workers’ award in overtime case; Texas looks to overhaul port to keep pace with oil & gas exports; the magic number for oil is $60/barrel; two natgas charts to start winter; new energy source–on Saturn moon; and more!
    Read More “Marcellus & Utica Shale Story Links: Thu, Dec 7, 2017”

  • CNG/LNG | Dominion Energy | Energy Companies | Energy Services | Exporting | Industrywide Issues | Maryland | Processing Plants | Shell | Statewide MD

    Dominion Cove Point LNG Export – Dress Rehearsal Begins

    December 6, 2017December 6, 2017

    Dominion announced yesterday it has introduced “feed gas” into it’s new $4 billion LNG export plant in Cove Point, Maryland. Feed gas is used for testing purposes and is the final step before the plant goes online into full production later this month. Dominion said the feed gas will come from Shell, and Shell will take delivery of the LNG that results. Following the test, Marcellus/Utica gas will begin flowing to the plant and the LNG produced will begin shipping to Japan and India. We are on the cusp of something we’ve waited for, cheered for, and agonized over for more than three years. Think of the Shell’s feed gas as the dress rehearsal the night before a play opens…
    Read More “Dominion Cove Point LNG Export – Dress Rehearsal Begins”

  • BKV/Banpu | Energy Companies | Pennsylvania | Statewide PA

    Thailand’s Banpu Looking to Invest More Money in NEPA Marcellus

    December 6, 2017December 6, 2017

    Over the past year and a half Banpu Pcl, Thailand’s largest coal producer, in cooperation with American-based partner Kalnin Ventures, has snapped up some 55,000 acres and 355 shale wells–in the northeast Pennsylvania Marcellus (see our Banpu stories here). At first we thought Kalnin was simply the “front man” for Banpu. It’s Banpu’s money buying the leases and the wells, so we figured Kalnin was just an American subsidiary on paper for Banpu. But it turns out the truth is more nuanced (see A Closer Look at Kalnin Ventures and Their Marcellus Investments). Kalnin is its own company. Yes, Banpu is the funder, but Kalnin is in the driver’s seat with these Marcellus deals. Regardless of who’s on top, the Banpu/Kalnin team have become important players in the Pennsylvania Marcellus–in the northeast part of the play. Banpu originally promised to invest up to $500 million in Marcellus assets and has spent $417 million on Marcellus assets thus far. Apparently they like those investments. Yesterday Banpu CEO Somruedee Chaimongkol said the company is considering “putting more money on top of the $500 million” in shale gas. Specifically, she said the company will invest in the northeast PA Marcellus because, “It is the sweetest spot for shale gas.” She also said she likes President Trump’s energy policies that are “favourable to coal and natural gas”…
    Read More “Thailand’s Banpu Looking to Invest More Money in NEPA Marcellus”

  • Energy Services | Industrywide Issues | Pipelines | Transco | Williams

    Transco Pipeline Update: 5th Expansion Done, More Coming 2018

    December 6, 2017December 6, 2017
    Transco System Map – click for larger version

    Williams issued a press release yesterday to (deservedly) crow about completing it’s fifth (of five) expansion projects for the mighty Transco Pipeline–a pipeline that stretches from the Gulf Coast to New York. Transo just completed a pipeline segment in Virginia that will feed Virginia’s largest natural gas-fired electric plant, currently under construction by Dominion Energy (see Dominion Begins Building Virginia’s Biggest NatGas Power Station). Williams will provide the gas required by the plant via its Virginia Southside II project, which started service on Dec. 1. But wait–the Dominion plant isn’t done yet, so where will the extra gas go? We expect either (a) even though the pipeline segment/expansion is done, they won’t begin flowing extra gas through it just yet, or (b) extra gas will flow through the expansion, but someone else will buy it, for now. Regardless, the important news is that this is the fifth of five major expansion projects for Transco completed by Williams this year, joining the Gulf Trace, Hillabee Phase 1, Dalton, and New York Bay projects. As part of Williams’ update, they also project Atlantic Sunrise, another major expansion of the Transco system, will be done in “mid-2018.” Good news indeed! Here’s the full update from Williams, with lots of exciting news…
    Read More “Transco Pipeline Update: 5th Expansion Done, More Coming 2018”

  • Electrical Generation | Energy Services | Industrywide Issues | Litigation | Millennium Pipeline | New York | Orange County | Pipelines | Regulation

    Eagle’s Nest Latest Wrinkle in Building 7.8 Mile Pipe to NY Power Plant

    December 6, 2017December 6, 2017

    A bald eagle’s nest built in a pine tree near where a tiny 7.8 mile pipeline is supposed to pass in Orange County, NY is the latest wrinkle that threatens to stop the pipeline in the ongoing soap opera that is corrupt New York State. The pipeline is a short spur, an offshoot, from the nearby Millennium Pipeline. It will feed the Competitive Power Ventures (CPV) gas-fired electric generation plant currently under construction in Wawayanda. The CPV plant is due to be completed early next year. According to Millennium, if they don’t start construction (tree clearing) TODAY, Dec. 6, there is no way to get the pipeline done in time to feed the plant–and that may well drive CPV’s project into bankruptcy. The eagle’s nest is being used as an excuse by New York (and rabid antis) to try and block the pipeline from getting built. Here’s the latest episode in this ongoing soap opera…
    Read More “Eagle’s Nest Latest Wrinkle in Building 7.8 Mile Pipe to NY Power Plant”

  • Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Litigation | Millennium Pipeline | New York | Orange County | Pipelines | Regulation | Statewide NY

    Frenemies: Millennium & NY DEC Fight Riverkeeper on Pipeline Upgrade

    December 6, 2017December 6, 2017

    THE Delaware Riverkeeper herself is back with more of her overlord’s money to file yet another frivolous lawsuit against a pipeline project in New York State. In August 2016, Millennium filed an application for what it calls its Eastern System Upgrade (see Millennium Pipe Asks FERC to Approve Eastern System Upgrade in NY). The ESU would add 7.8 miles of extra looped pipeline in Orange County, upgrade a compressor station in Delaware County, build a new compressor in Sullivan County and make some minor tweaks to metering stations in Rockland County. DON’T confuse this with another story appearing today on MDN–Millennium building a NEW 7.8 mile pipeline to a power plant in Orange County. That’s a completely separate/different project from this one. Although the NY Dept. of Environmental Conservation (DEC) refused to grant a water crossing permit for the 7.8 mile pipeline to connect a power plant, in September the DEC granted the same type of permit for the 7.8 mile looping project, the ESU (see NY DEC Grants Permit for Millennium Pipe Eastern System Upgrade). Here’s the new news: Last week the Federal Energy Regulatory Commission (FERC) granted a final OK for the ESU. The even newer new news: Immediately following FERC’s approval, THE Delaware Riverkeeper filed a request for rehearing with FERC and at the same time filed a lawsuit against the DEC’s September water permit approval for the ESU project. Which puts Millennium and the DEC on the same team opposing Riverkeeper. In one case (the power plant pipeline project) Millennium and the DEC are bitter enemies, suing and countersuing. In this case, they’re frenemies–forced to work together to oppose the nutjobs from Riverkeeper…
    Read More “Frenemies: Millennium & NY DEC Fight Riverkeeper on Pipeline Upgrade”

  • Electrical Generation | Energy Services | Industrywide Issues | Lackawanna County | Pennsylvania | Pipelines | Susquehanna County | UGI Energy Services

    UGI Pipeline to Feed Scranton NatGas-Fired Power Plant “On Track”

    December 6, 2017December 6, 2017

    Invenergy is currently building a state-of-the-art, combined cycle 1,480 megawatt Marcellus-fired electric generating plant in Jessup, PA, just outside Scranton. Construction on the plant–called the Lackawanna Energy Center–has been under way for well over a year now. Some 1,200 people are currently working at the site. MDN previously reported that Cabot Oil & Gas with their prolific Susquehanna County production will feed the plant (see Cabot Cuts Deal to Supply PA’s Largest NatGas-Fired Electric Plant). We also reported that two different companies are building pipelines to supply Cabot’s gas to the plant–UGI and Kinder Morgan’s Tennessee Gas Pipeline (see UGI to Feed Jessup, PA Electric Plant with Marcellus Shale Gas and NEPA Pipeline for Power Plant Gets Positive FERC Assessment). We have a pipeline update. Work on UGI’s pipeline began in May and is close to being done…
    Read More “UGI Pipeline to Feed Scranton NatGas-Fired Power Plant “On Track””

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