January 23, 2012
Natural gas futures soared by 7.8 percent Monday after Chesapeake Energy Corp. announced it would dramatically reduce drilling in Pennsylvania's Marcellus Shale and in other gas-producing areas. The announcement came after natural gas prices have plummeted in the last month because of an oversupply, caused by warm weather and enormous shale-gas production. The share prices of natural gas producers also soared Monday on the prospect of greater profits from higher prices. Despite the increase, natural gas prices are still off 18 percent so far this year.
January 17, 2012 |
We last wrote about Master Limited Partnerships in April 2011, and most of these energy investments have since posted significant run-ups in price. So is it time to sell and take some profits? Perhaps, say investors, if you think the price of energy is going to crash, and that doesn't look very likely. For instance, the price of natural gas is at historic lows, and probably can't fall much further (natural gas and oil used to be correlated in price, but that relationship has decoupled, for reasons few understand)
January 11, 2012
A Radnor energy company is proposing to build a 28.8-mile Marcellus Shale gathering pipeline in Susquehanna County along the old right-of-way of the Delaware and Hudson Railroad. Penn Virginia Resource Partners L.P. announced Wednesday it has acquired an option to purchase a pipeline easement from the Rail-Trail Council of Northeastern Pennsylvania. The 24-inch pipeline would run from the New York border through the towns of Thompson and Lanesboro to Union Dale, where it would deliver gas to the Tennessee Pipeline for transport to northeastern states.
December 23, 2011 |
In the raging shale-gas debate, there is much disagreement about the economic benefits of drilling. An Ohio State University report released this week argues that industry-funded studies hype the number of jobs created in Ohio from drilling the Utica and Marcellus Shale formations. The 27-page study is already providing ammunition to anti-drilling activists, who believe that the environmental risks of shale gas outweigh the economic benefits. While rival academics can argue about which econometric model is better at predicting the future, a relatively narrow measure of the benefit of shale gas is already affecting our monthly utility bills.
December 22, 2011
The Pennsylvania Department of Environmental Protection on Thursday fined Chesapeake Energy's pipeline division $19,510 for numerous erosion- and sediment-control violations found last winter at a compressor station in Albany Township, Bradford County. The fine against Appalachia Midstream Services L.L.C. of Horseheads, N.Y., represents about six minutes worth of profit of Chesapeake Energy, the largest Marcellus Shale operator, which last year earned $1.8 billion. - Andrew Maykuth
December 14, 2011
The abundance of natural gas from formations such as Pennsylvania's Marcellus Shale may spark a U.S. manufacturing renaissance that could add one million jobs by 2025, according to a report released Wednesday by PwC, the professional services firm, formally PricewaterhouseCoopers L.L.P. PwC says manufacturers could save as much as $11.6 billion a year by 2025 from lower gas prices. Natural gas is used as a fuel source and as a raw material for commodities like plastics and fertilizer.
December 13, 2011 |
LAWMAKERS in Harrisburg will soon decide whether they are interested in taking an affirmative step and making a real investment in our roads, bridges and mass transit using funds from natural-gas extraction. This can happen only if the Marcellus Shale fee legislation now poised for action in both the Senate and House is changed to generate more fee revenue from shale drillers. If that occurs, the shale fee can serve as a catalyst for rebuilding our infrastructure and creating jobs. What we now need is leadership to make this new energy source work for all Pennsylvania.
November 30, 2011
By Charles K. Ebinger Let me say up front that I have always been a Democrat. However, I also vote my conscience, and energy policy is one area where I think my party is wrong. I wasn't always a disillusioned Democrat. For decades, the party's policies ensured that the United States had adequate supplies of domestic oil, natural gas, coal, hydroelectric power, and uranium to fuel our growing economy while providing well-paying jobs to the men and women who produced our energy and transported it. These policies helped create America's affluence in the 1950s, '60s, and early '70s.
November 27, 2011
Thanks to Delaware Gov. Jack Markell, it's still safe to drink the water in the Philadelphia region - for now, at least. The First State leader fortunately put the brakes on the likely lifting of a moratorium on natural-gas drilling in the Delaware River watershed, which quenches the thirst of 15 million people. Markell's announcement that Delaware would join New York in voting against ending the moratorium, only days before a scheduled meeting of the multistate agency that has jurisdiction over the watershed, led to the Delaware River Basin Commission session's being scrubbed abruptly.
November 19, 2011 |
The U.S. Congress approved delayed legislation on Friday that will allow Sunoco Inc. to transport ethane, a form of liquefied natural gas (LNG), from the Philadelphia area to the Gulf Coast. By unanimous consent, the House on Friday approved a bill that permits three LNG tankers to participate in "coastwise" trade - carrying cargo between U.S. ports. The Senate approved the legislation on Thursday. The Mariner Project, a joint venture between Sunoco Logistics Partners L.P. and MarkWest Energy Partners L.P., would transport ethane produced from the Marcellus Shale by pipeline to Marcus Hook and then by sea to the Gulf Coast, where ethane is used to make plastics.