Utica Shale

Why Plans to Turn America’s Rust Belt into a New Plastics Belt Are Bad News for the Climate

Read time: 12 mins
Pipes from the former Bethlehem Steel Plant in Pennsylvania

The petrochemical industry anticipates spending a total of over $200 billion on factories, pipelines, and other infrastructure in the U.S. that will rely on shale gas, the American Chemistry Council announced in September. Construction is already underway at many sites.

This building spree would dramatically expand the Gulf Coast’s petrochemical corridor (known locally as “Cancer Alley”) — and establish a new plastics and petrochemical belt across states like Ohio, Pennsylvania, and West Virginia.

TransCanada's New 'Best-In-Class' Gas Pipeline Explodes in West Virginia, Causing Fiery Blast

Read time: 5 mins
Gas pipeline flames

This morning, residents of Marshall County, West Virginia, awoke at 4:15 a.m. to a major natural gas rupture and explosion on TransCanada's Leach XPress pipeline on Nixon Ridge — a quickly built pipeline only half a year old.

The fire was visible for miles, local TV news reported. Police warned anyone who could see the flames to evacuate — and the Emergency Management Agency director of neighboring Ohio County said officials had received dozens of 911 calls from locals able to see the fire, which was extinguished roughly four hours later. The blast was so powerful that one resident told a local CBS affiliate it felt like a tornado was passing through.

No one was injured, and no property damage was reported, TransCananda said in a statement released today, adding that the cause of the explosion was not yet determined.

The Leach XPress pipeline is just six months old, having been put into service on January 1, 2018.

FERC, Which Rejected 2 Gas Pipelines Out of 400 Since 1999, to Review Approval Policy

Read time: 5 mins
Beyond Extreme Energy protesters outside the FERC headquarters

The new chairman for the U.S. Federal Energy Regulatory Commission (FERC), Kevin McIntyre, says the agency plans to review its permitting process and procedures for natural gas pipelines.

FERC has come under fire for serving as a “rubber stamp” for these pipelines, which these days mostly carry gas obtained via the horizontal drilling and injection technique known as hydraulic fracturing (“fracking”). The agency has rejected only two out of the approximately 400 pipeline applications received since 1999, when it last updated its gas pipeline review process. That's according to a report published in November by Susan Tierney, currently employed by economic consulting firm Analysis Group and former member of the Obama-era Department of Energy's Natural Gas Subcommittee.

1999 was quite a while ago, particularly in the natural gas pipeline area. So much has changed. So much has changed in our entire industry, of course, since then,” McIntyre told reporters at a December 21 FERC meeting, according to The Hill. “But it would be hard to find an area that has changed more than natural gas and our pipeline industry.”

Behind Trump’s Push for "American Steel" in Pipelines, Another Russian Company with Putin Ties Stands to Benefit

Read time: 8 mins

In his speech at the Conservative Political Action Conference (CPAC) last week, President Donald Trump commemorated the one-month anniversary of his executive orders calling for the approval of the Keystone XL and Dakota Access pipelines, as well as one calling for U.S. pipelines to get their line pipe steel from U.S. facilities.

“I said, who makes the pipes for the pipeline?” Trump told the CPAC crowd. “If they want a pipeline in the United States, they're going to use pipe that's made in the United States, do we agree?”

But while the pipe may be made in the U.S., as DeSmog has shown in previous investigations, ownership tells a different story. Enter: TMK IPSCO, a massive producer of steel for U.S. oil country tubular goods (OCTG) and line pipe, and a subsidiary of TMK Group. A DeSmog investigation has found ties between TMK Group's Board of Directors and Russian President Vladimir Putin.

Top Drillers Shut Down U.S. Fracking Operations as Oil Prices Continue to Tank

Read time: 3 mins

It was a tumultuous week in the world of hydraulic fracturing (“fracking”) for shale oil and gas, with a few of the biggest companies in the U.S. announcing temporary shutdowns at their drilling operations in various areas until oil prices rise again from the ashes.

Among them: Chesapeake Energy, Continental Resources and Whiting Petroleum. Chesapeake formerly sat as the second most prolific fracker in the U.S. behind ExxonMobil, while Continental has been hailed by many as the “King of the Bakken” shale basin located primarily in North Dakota.

Fracker Aubrey McClendon Signs Deal in Mexico with Firm Led by Former Mexican President

Read time: 4 mins

Aubrey McClendon, former CEO of hydraulic fracturing (“fracking”) giant Chesapeake Energy and current CEO of American Energy Partners (AEP), has signed a joint venture with a private equity firm led* by former Mexico president Vicente Fox.* 

In a joint press release, AEP and EIM (Energy and Infrastructure Mexico) Capital announced a “long-term, landmark partnership to explore the vast exploration and development opportunities offered by Mexico's abundant oil and gas energy resources.” The deal serves as another case study of U.S.-based companies cashing in on the Mexico energy sector privatization policy the U.S. State Department helped make possible under both the Obama Administration and the Bush Administration.

Once Burned, Twice Shy? Utica Shale Touted to Investors As Shale Drillers Continue Posting Losses

Read time: 7 mins

For the past several weeks, the drilling industry — hammered by bad financial results — has begun promoting its next big thing: the Utica shale, generating the sort of headlines you might have seen five years ago, when the shale drilling rush was gaining speed. “Utica Shale Holds 20 Times More Gas Than Previous Estimates”, read one headline. “Utica Bigger Than Marcellus”, proclaimed another.

Drilling Deeper: New Report Casts Doubt on Fracking Production Numbers

Read time: 7 mins

Post Carbon Institute has published a report and multiple related resources calling into question the production statistics touted by promoters of hydraulic fracturing (“fracking”)

By calculating the production numbers on a well-by-well basis for shale gas and tight oil fields throughout the U.S., Post Carbon concludes that the future of fracking is not nearly as bright as industry cheerleaders suggest. The report, “Drilling Deeper: A Reality Check on U.S. Government Forecasts for a Lasting Tight Oil & Shale Gas Boom,” authored by Post Carbon fellow J. David Hughes, updates an earlier report he authored for Post Carbon in 2012.

Hughes analyzed the production stats for seven tight oil basins and seven gas basins, which account for 88-percent and 89-percent of current shale gas production.

Among the key findings: 

-By 2040, production rates from the Bakken Shale and Eagle Ford Shale will be less than a tenth of that projected by the Energy Department. For the top three shale gas fields — the Marcellus Shale, Eagle Ford and Bakken — production rates from these plays will be about a third of the EIA forecast.

-The three year average well decline rates for the seven shale oil basins measured for the report range from an astounding 60-percent to 91-percent. That means over those three years, the amount of oil coming out of the wells decreases by that percentage. This translates to 43-percent to 64-percent of their estimated ultimate recovery dug out during the first three years of the well's existence.

-Four of the seven shale gas basins are already in terminal decline in terms of their well productivity: the Haynesville Shale, Fayetteville Shale, Woodford Shale and Barnett Shale.

-The three year average well decline rates for the seven shale gas basins measured for the report ranges between 74-percent to 82-percent. 

-The average annual decline rates in the seven shale gas basins examined equals between 23-percent and 49-percent. Translation: between one-quarter and one-half of all production in each basin must be replaced annually just to keep running at the same pace on the drilling treadmill and keep getting the same amount of gas out of the earth.

Court Files: Coal CEO Robert Murray Unearths Lease from Aubrey McClendon's New Fracking Company

Read time: 7 mins
Robert E. Murray, CEO Murray Energy Corporation

DeSmogBlog has obtained a copy of a sample hydraulic fracturing (“fracking”) lease distributed to Ohio landowners by embattled former CEO and founder of Chesapeake Energy, Aubrey McClendon, now CEO of American Energy Partners

Elisabeth Radow, a New York-based attorney who examined a copy of the lease, told DeSmogBlog she believes the lease “has the effect of granting American Energy Partners the right to use the surface and subsurface to such a great extent that it takes away substantially all of the rights attributable to homeownership.”

The American Energy Partners fracking lease was shaken loose as part of the discovery dispute process in an ongoing court case pitting coal industry executive Robert E. Murraycontroversial CEO of Murray Energy Corporation and American Energy Corporation — against McClendon in the U.S. District Court for the Southern District of Ohio Eastern Division

Murray brought the suit against McClendon back in August 2013, alleging McClendon committed trademark and copyright infringement by using the “American Energy” moniker. Murray’s attorneys used the lease as an exhibit in a Motion to Compel Discovery, filed on September 8, over a year after Murray brought his initial lawsuit. 

The case has ground to a slow halt as the two sides duke it out over discovery issues and related protective order issues, making a large swath of the court records available only to both sides’ attorneys and causing many other records to be heavily redacted.

Out of that dispute has come the American Energy Partners lease, published here for the first time.

Ohio Geologists Link Earthquakes to Fracking, State Introduces Seismic Monitoring

Read time: 2 mins

The Ohio Department of Natural Resources announced earlier this month that it will start requiring oil and gas companies to install networks of sensitive seismic monitors on their wells to detect small earthquakes that could be caused by hydraulic fracturing, or “fracking.” 

The special requirement will kick in if companies request permits to drill horizontal wells within three miles of known fault lines, or where earthquakes greater than a 2.0 magnitude have already been recorded. If the monitors detect any tremors in excess of 1.0 magnitude, drilling must cease while experts investigate the cause of the seismic activity. 

The new rules are the department's response to recent earthquakes in Ohio's Poland Township in Mahoning County — which Rick Simmers, chief of the Ohio Department of Natural Resource's oil and gas division, says have a “probable connection” to hydraulic fracturing activity in the area.

The March earthquakes mark the first time state geologists in Ohio have definitively linked earthquakes to gas drilling. They believe that fracking for gas in the Utica Shale beneath the Appalachian mountains caused five earthquakes in the area by increasing pressure on a previously unknown fault. 

Ohio has also imposed an indefinite moratorium on new drilling in the area of the earthquakes, but will allow extraction to continue at five other existing wells at the site.

Pages

Subscribe to Utica Shale