One of the largest natural gas pipelines built in the United States will start full scale shipping of natural gas from Ohio to the Midwest on Saturday.
Those shipments to the Chicago area and elsewhere are expected to have a big impact on natural gas movements in the United States and Canada, according to experts.
“That is really a big deal,” said Shawn Bennett, executive director of the Ohio Oil and Gas Association. “It’s huge.”
It will provide a new means for Ohio drillers to get their natural gas out of Appalachia and to get better prices than they are getting now, he said. Ohio drillers have been getting depressed prices because of limited shipment options, he said.
The Utica and Marcellus shales together are producing 25 percent of the natural gas in the United States today, and natutral gas prices in the region are among the lowest in the country, he said.
The 1,698-mile Rockies Express Pipeline (REX) previously was used to ship natural gas from Colorado and Wyoming to Ohio. But the shale boom in Ohio, Pennsylvania and West Virginia has reduced the demand for natural gas shipped east in the pipeline.
It will start moving 1.8 billion cubic feet of natural gas per day from Clarington in eastern Ohio to Moultrie, Ill. There have been limited east-to-west shipments for about a year.
It will also be able to continue west-to-east shipments.
The expanded shipments to the west are fully supported by contracts with drillers. The pipeline also offers connections to other pipelines along its route.
The REX Pipeline runs from Opal in southwest Wyoming and Meeker in northwest Colorado east to Clarington on the Ohio River in Monroe County.
It is operated under a joint venture by Kansas-based Tallgrass Energy Partners.
It went into commercial operation in late 2009 as a west-to east line.
It is 36 and 42 inches in diameter in various spots and can handle up to 1.8 billion cubic feet of natural gas per day. That’s enough natural gas to heat about 4 million homes.
The pipeline includes a 14-mile pipeline to MarkWest Energy Partners’ Seneca natural gas processing plant in Noble County.
From the Center for Liquified Natural Gas today:
Washington, D.C.: The Center for Liquefied Natural Gas (CLNG) today commended the Senate Energy and Natural Resources Committee for supporting a provision in the proposed Energy Policy Modernization Act that will offer greater certainty to the United States’ natural gas industry. Under the terms of the legislation, the Department of Energy must issue a decision on any application to export U.S. liquefied natural gas to non-free trade agreement countries no later than 45 days after the Federal Energy Regulatory Commission has concluded its review.To read more or comment...
From PJM Interconnection today:
PJM Interconnection – a regional transmission organization that coordinates wholesale electricity for 13 states and the District of Columbia – and several large natural gas pipelines that provide fuel for electric power generators in the PJM footprint have agreed to work more closely with each other to improve operational planning and address growing interdependence between the electric and natural gas industries.
“This agreement sets the stage for greater coordination between electric generators and the natural gas pipeline industry” said Mike Kormos, PJM Chief Operations Officer. “As electricity-generating facilities increasingly turn to natural gas, it is important that we all communicate clearly to assure reliable service.”
“These individual pipeline companies and PJM are to be commended for taking the initiative to create a process to promote greater transparency and shared knowledge. Continued dialogue will result in more informed decisions by the PJM market participants that operate and rely upon gas-fired electric generators,” said Don Santa, president and CEO of the Interstate Natural Gas Association of America.To read more or comment...
From Environment America today:
WASHINGTON, D.C. -- Divided along party lines, today the U.S. Senate Committee on Energy and Natural Resources approved a bill to allow oil exports and expand offshore drilling. In addition to lifting the longstanding ban on crude exports, the measure combines three pro-drilling bills:
Environment America’s Rachel Richardson, director of the organization’s Stop Drilling program, issued the following statement:
“We’ve seen it time and time again: when you drill, you spill. Yet too many senators voted today to expand dirty drilling and put our beachgoers, our coasts, and precious marine life in harm’s way. What’s more, lifting the ban on oil exports increases pollution worldwide and consigns us to a more dangerous climate, while doing nothing to help our energy independence.
“Construction for the nation’s first offshore wind farm has just begun in Rhode Island. That’s the energy source off our coast that senators should pursue, and that our beaches, our wildlife, and future generations deserve. Rather than double down on dirty energy sources of the past, senators should heed wide majorities of Americans and support clean, renewable energy for the future.”
From the Ohio Oil and Gas Energy Education Program in response to a Bloomberg story about high school students dropping out of school to get good-paying drilling jobs:
Response to Bloomberg Article about Teen Dropouts
From: Charlie Dixon, Safety and Workforce Director, Ohio Oil and Gas Energy Education Program
The Ohio Oil and Gas Energy Education Program (OOGEEP) would like to take an opportunity to respond to an article recently linked from Bloomberg news.To read more or comment...
Philadelphia Energy Solutions is seeking to complete a joint venture that would give it a controlling interest in crude-oil loading terminals and storage tanks in North Dakota, the source of the Bakken Shale crude that is processed by the South Philadelphia refinery, says NPR's StateImpact Pennsylvania.
The refiner said in a Securities and Exchange Commission filing on July 27 that it has agreed in principle to enter into a joint venture with BOE Midstream, which owns the rail-loading and oil-storage facilities.
Click here to read the rest of the story.To read more or comment...
Oklahoma-based Williams Partners today reported a 2Q 2015 EBITDA of $1.01 billion, a $291 million or 41 percent increase from 2Q 2014.
Click here to read the full post-merger story.To read more or comment...
From Rex Energy on Wednesday:
STATE COLLEGE, Pa., July 29, 2015 (GLOBE NEWSWIRE) -- Rex Energy Corporation (Nasdaq:REXX) announced second quarter 2015 production volumes and price realizations.
Production Results and Price RealizationsTo read more or comment...
The U.S. natural gas market is waking up.
Seasonal price swings will intensify as the country begins shipping liquefied natural gas cargoes to Asia and Europe later this year, said Bank of America Corp., RBC Capital Markets LLC and Wood Mackenzie Ltd.
While that’s good news for traders yearning for volatility, it could be bad news for consumers. Average retail gas prices also will rise with LNG exports, according to Bloomberg New Energy Finance.
Click here to read the full story.To read more or comment...
Texas-based Range Resources Corp., one of the biggest players in Pennsylvania's Marcellus Shale, has cut its work force by 11 percent this year due to low commodity prices.
The company, the fourth largest driller in Pennsylvania, has about 500 employees in Pennsylvania in addition to its contractors.
Click here to read more.
To read more or comment...
Chesapeake Energy Corp,the Oklahoma-based firm is the No. 1 driller in Ohio.
Rig Count Interactive Map by Baker Hughes, an energy services company.
Shale Sheet Fracking, a Youngstown Vindicator blog.
The Ohio Environmental Council, a statewide eco-group based in Columbus.
Earthjustice, a national eco-group.
People's Oil and Gas Collaborative-Ohio, a grass-roots group in Northeast Ohio.
Concerned Citizens of Medina County, a grass-roots group.
No Frack Ohio, a Columbus-based grass-roots group.
Fracking: Gas Drilling's Environmental Threat by ProPublica, an online journalism site.
Pipeline, blog from Pittsburgh Post-Gazette on Marcellus shale drilling.
Allegheny Front, environmental public radio for Western Pennsylvania.