Monthly Archives: April 2015

Midstream, in the oil and gas business, involves the construction of pipelines and processing plants to deliver Utica energy to its customers. Despite the decline in Utica exploration due to low oil and gas prices, midstream remains strong. There are pipelines to build and business needs to be met. Utica Midstream, a business development seminar produced by the Canton Regional Chamber of Commerce and presented by Dawood Engineering, will be June 10, 8 a.m. to 1:30 p.m., at the Barrette Center at Walsh University. Among the speakers at the seminar will be: Nick P. Homan, commercial development manager at Marathon Pipe Line LLC, a subsidiary of Marathon Petroleum. Marathon Pipe Line will be building the 50-mile Cornerstone pipeline from Harrison County to the Marathon refinery in Canton. Kris Evanto, manager of development in the Utica for Williams, which recently acquired Access Midstream and its Utica operations office in North Canton. Anne Moore, director of business development at


The announcement of another cracker in the Appalachian Basin has prompted me to provide an update to the various comments that I’ve heard regarding cracker plants in the Appalachian Basin. Shell cracker plant – supposedly, Shell has told PA Governor Wolf that if his severance tax plan adversely affects the oil and gas industry, it may not proceed with the cracker plants. After all if there is less drilling in PA, where is Shell getting its feedstock? (RUMOR) Braskem plant – the Odebrecht officials are telling everyone they are re-evaluating its plan. I wondering the Petrobras problems are impacting this development. Appalachian Resins has supposedly purchased land in Salem Township Monroe County, OH. PTT Global Chemical – Marubeni joint venture has just announced plans for a cracker plant in Belmont County, OH Foreign entity is looking in Parkersburg, WV. The possibility of five cracker plants in the Appalachian Basin is a phenomenon that no one visualized four or five years.

Get involved with decision makers early and often or the prosperity that natural gas drilling/production has brought to Pennsylvania in the last six years could slow substantially, speakers agreed at the Upstream PA 2015 oil and natural gas program last Thursday, April 16. Regulation, proposed tax legislation and the proverbial elephant in the shale play, bottom-hugging natural gas prices, collectively were cited by speakers as having a huge impact on which direction production moves in the Keystone State. Everyone Has ‘Skin in the Game’ “People say they don’t have any skin in the game, if they aren’t employed in the oil and gas industry, but I would say everyone has skin in this game,” Dave Spigelmyer, President of the trade group Marcellus Shale Coalition, told an audience of roughly 150 at Upstream 2015. “We have to be involved in the debate about which way this industry goes,” said Jim Rodgers, Marketing & Business Development Director with Harrisburg, PA-based Daw

There has been considerable attention given to rig counts ever since the price of oil started to decline in early October 2014. The rig count in PA has fallen slightly since that time. In fact, the rig count then was 52. This week’s count is 48 which is a minimal decline compared to the Bakken, Permian, Eagle Ford and Niobrara where the rig counts have declined over 50%. While the PA rig count has declined slights, the permitting decline is much more drastic. I collected the permitting date from April 1, 2015 to April 9, 2015 which had 307 permits issued. That number, 307, pales in comparison to the last year’s 989 permits during the same period. There are three factors driving the slow down: Natural gas prices Lack of infrastructure – need more pipelines Legislative uncertainty in PA – severance tax and other pending regulatory issues A look at the permitting numbers to date in 2015: Top 5 counties – 26 counties in PA have received drilling permits in 2015 Bradford 60 Green

For years, it has been known that shale is a goldmine. Embedded deeply in its layers are large naturally occurring deposits of oil and gas. While there is much political debate over what to do with the shale plays in the United States, businesses had been looking for a profitable way to tap into these resources. Over the last 10 years, the shale mining industry has boomed and with the development of the Marcellus and the Utica in Pennsylvania and Ohio respectively, energy demand has grown steadily with the supply. Although prices are low now, they are projected to rise modestly. As prices rise, the more beneficial it will become for energy businesses to focus on the investment and development of domestic shale plays. Profitability No one can deny how profitable the shale mining industry is to the United States. Billions of dollars are spent each year on improving and creating operations and infrastructure. Although the industry requires such a large investment to make profits, it make

To many people, fracking (hydraulic fracturing) denotes a dangerous way to produce oil and natural gas. To others, it’s the name of an industry that appears to be the saving grace for the United States economy.  A Controversial Subject  Surrounding the fracking industry is much controversy regarding its effect on the environment and human health. Although advancements in fracking technology have resulted in a significant increase in the United States natural gas and oil production, many anti-fracking activists are seeking to shut the industry down. Their protests are leading to an increasing amount of bans in the industry as the debate continues to grow on the potential negative aspects of fracking. As more attention is drawn to its potential negative side and impact to the environment, less attention is being paid to its benefits. To economists, US energy companies, and other proponents, fracking is a revolutionary development in the energy sector. Many local energy exploration a

Notice of Binding Open Season February 9 – March 13, 2015 Extended to April 13, 2015 Marathon Pipe Line LLC and Ohio River Pipe Line LLC, subsidiaries of MPLX LP have announced an extension of the binding open season to assess interest and solicit commitments from prospective shippers for transportation service on the Cornerstone Pipeline and other associated Utica Shale build-out projects. The proposed Cornerstone Pipeline will originate in Harrison County, Ohio and deliver to Marathon Petroleum Company LP s (MPC) Canton, Ohio refinery and to ORPL’s East Sparta, Ohio tank farm.  The Cornerstone Pipeline is being designed as a 16” diameter pipeline system that will be routed to provide the opportunity for connections to various Utica Shale condensate stabilization facilities, fractionator facilities, cryogenic facilities, along with potential future gathering and storage facilities.  The Cornerstone Pipeline will be a batched system with the ability to transport condensate, na