Monday, November 8, 2010

Marcellus News for Pennsylvania

Been a busy few weeks and the news was flooded with pre-election BS. I hope now to get back to a weekly Monday round-up.

Resource Developments:
-People are now beginning the question the meme that shale gas will be a cornucopia of endless energy, jobs and money. Rigzone discusses the sharp drop-off in production that occurs in fracked wells, but holds out for a technological solution.
Business Insider reprints an article from the Peak Oil site The Oil Drum helpfully titled: Here's Why The Marcellus Shale Discovery Will Be A Disappointment. It makes many of the same points as the first piece, but is much more detailed and pessimistic. Definitely worth a close read. Both stories show that doubts over the gas shale hype exist within the industry.
-But the hype goes on, with Penn State forming all sorts of allegedly lucrative partnerships with industry. And the Penn State Cooperative Extension plans to diversify into gas shale ops..

Environmental Developments:
-The state DEP released a preliminary air-quality survey for a small samples of wells. DEP Secretary John Hanger stated, "This short-term study only provides a snapshot of the air contaminants we found at surveyed sites, but the data shows no emission levels that would constitute a concern to the health of residents living near these operations."  Read the full story on PR Newswire
-The Pennsylvania Environmental Council has named Paul M. King president and chief executive officer.
Political Developments (Party like its 1886):
-Over at WSJ, there was crowing that a "Red" Pennsylvania will kill off renewable energy and that Governor-elect Corbett will lift that silly Rendell moratorium on drilling in State Forests. That's a reasonable report compared to this nonsense, but at least they admit its all about gorging on finite resources for profit now and damn the future consequences.
-Inside the meeting, Karl Rove acknowledged that the new governor, state legislature and House of Reps will make life easier for drillers by removing many of them there pesky regulations. Folks, remember the Canned Ham when the energy and climate crises hit with full force.
-Peregrine Keystone Gas Pipeline is seeking public utility status that will allow them to take private land by eminent domain to run their pipelines.

Business developments:
-Canadian based Talisman will be reducing its Marcellus production due to low gas prices and focus on the Eagle Ford Shale in Texas, which produces more profitable condensates such as propane and butane.
-However, low gas prices won't stop National Fuel from drilling more wells in the Marcellus Play
-National Fuel reports it 2010 earnings, up $8.7 million for the fiscal year.
-Stone Energy also reported its 3rd quarter earnings, For January through September 30, 2010, Stone reported net income of $76.0 million, compared to a net loss of $147.6 million for the comparable 2009 period.

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