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Demand for pipelines bolsters master limited partnerships

Alaskan PipelineBy Stephanie Ritenbaugh / Pittsburgh Post-Gazette

Two companies with Marcellus Shale assets, Consol Energy and Noble Energy, announced plans earlier this month to form a master limited partnership to handle pipeline and processing demands in the shale play.  They are among the most recent in a long line of companies to use a master limited partnership (MLP), a tax vehicle developed in the 1980s that gives companies incentives to invest in energy infrastructure.And they likely won’t be the last.

Master limited partnerships are publicly traded entities that pass on earnings directly to their shareholders who then pay taxes on that income. The first one was formed by Apache Petroleum Co in 1981. Later, the Tax Reform Act of 1986 under the Reagan administration accelerated their use as a way to invest in domestic energy infrastructure.

The MLP structure is different than that of a traditional energy company. And pipeline companies, in particular, are well suited for the model, said Andrew Brooks, vice president for Moody’s Investors Service.

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Multiple deals inked to move Marcellus gas to Gulf Coast, Canada

pipelineBy Stephanie Ritenbaugh / Pittsburgh Post-Gazette

Midstream company Energy Transfer Partners said Thursday it is planning a new pipeline to connect Marcellus and Utica shale production to Canada and the Gulf Coast.

Meanwhile, Range Resources, a drilling company with operations in the shale plays, inked multiple deals to ship natural gas and ethane on one of Energy Transfer‘‍s projects and others targeting production from the northeastern shale plays.

Dallas-based Energy Transfer Partners approved building a new pipeline to transport natural gas from processing facilities in the prolific Marcellus and Utica. The company said it signed long-term agreements with multiple shippers and is launching a binding open season for drillers to reserve space on the pipeline system.

The planned natural gas pipeline, called ET Rover Pipeline, is currently sized to transport 2.2 billion cubic feet per day (Bcf/d). Depending on additional shipper commitments, the project could be expanded to transport up to 3.25 Bcf/d.

Energy Transfer said the three largest shippers on the project are American Energy–Utica, Antero Resources and Range Resources. American Energy and Antero Resources both have options to purchase non-operating equity interests in the project, according to Energy Transfer Partners.

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U.S. Shale Operations Cushioning ‘Iraq Effect’ on Oil Prices

SONY DSCBy Oilprice.com

The rise in crude oil extraction from shale in the United States has been lessening the effect of the fighting in Iraq on the price of oil, according to some oil analysts. And a recent report by Barclays says this isn’t just a coincidence.

The increased application of methods such as hydraulic fracturing and horizontal drilling has led to a surge in U.S. crude output and kept the price of oil from rising even further during the past month, according to Nansen Saleri, the CEO of Quantum Reservoir Impact, a consultancy in Houston.

Saleri, once the chief of reservoir management at the Saudi Arabian Oil Co., said the U.S. benchmark crude, West Texas Intermediate, has risen only about $5 to $10 over the past 30 days because of concern about the oil flow from Iraq, the second-greatest producer in OPEC. Without the U.S. surge, that increase would have been more like $20 to $30, he said.

During the week of June 8, the production of U.S. crude increased by 17,000 barrels to 8.477 million barrels, much of it from shale extraction. “The surge in U.S. production is a hugely stabilizing factor,” Saleri told Bloomberg news.

The surge is not only making up for expected shortfalls from Iraq, but also from Libya and Iran, Christof Ruhl, the chief economist of BP, said in New York.

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PA ENERGY GAMES LOGOSeptember 6, 2014 – Lycoming County Fairgrounds, Williamsport, PA

About the PA Energy Games The goal of the PA Energy Games is to show Pennsylvanians the true impact energy has on people’s everyday lives and the economy throughout the Commonwealth.The talents of Pennsylvania energy workers are showcased through friendly competitions that help to educate the public on the skills required to safely develop and distribute energy to homes and businesses. Education is the driving force behind the 2014 Games. Education that shows that it’s people, individuals like all of us, who are responsible for energy. From coal miners and linemen to gas drillers and windmill erectors, all are talented, well-trained and committed individuals. It’s these energy workers, our neighbors, that produce power from the abundance of natural resources that are available throughout the Commonwealth.The PA Energy games demonstrate just how important this industry is to all of us. It’s also a celebration of all things energy in a festival atmosphere. And while the entertainment serves to attract people to the Games; it is our hope that they will come away with a better sense of the workings of the industry and a broader understanding of energy production, distribution and support.

As Governor Tom Corbett said last year about the PA Energy Games:

“Pennsylvania has a robust and diverse energy sector that is vital to our economic growth. PA Energy Games is committed to showcasing the Commonwealth’s energy production, delivery and conservation, and I commend the organization and its volunteers and sponsors for organizing this event. It is my hope that PA Energy Games will continue to educate our community about the importance of natural resources in maintaining a strong economy and healthy environment for generations to come.”

Click Here for Press Release

PA Energy Games Board of Directors
William Holbrook, president
Tony Brouse, vice-president/treasurer
Todd Stager, secretary
Board Members
Stephanie Paluda, Nicole Jacobs, Brian Slavinski
Howard Soule, Shawn Deluca, Jason Fink
John Harris Group, Event Planner; Adverteria, Media & MarketingPA Energy Games, Inc.
a non-profit corporation

PO Box 1012 • Harrisburg, PA 17108 • 570-






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The Real Significance Behind That Oil Export Hoopla

exportBy Christopher Helman

There was a lot of hoopla recently over the news that the U.S. Department of Commerce had seemingly loosened rules governing the export of condensate — light weight hydrocarbons recovered from oil and gas wells. The excitement was palpable; shares in oil refiners sold off. Was this the start of the big policy shift that oil producers have been dreaming of? An end to the 40-year oil export ban?

Maybe. But not in the way people thought. “I’m not sure reality lived up to the fanfare,” says Harold York, principal analyst with energy consultancy WoodMackenzie.

Andy Weissman, senior energy advisor at law firm Haynes & Boone says, “I think it’s quite important, but it’s a very technical ruling, like dotting an ‘i’ more than anything else.”The White House, caught off guard by the initial coverage in the Wall Street Journal, said there had been no change in oil export policy. It’s still illegal to export American crude.The Bureau of Industry and Security had, it seems, done little more than issue private letter rulings to Pioneer Natural Resources PXD -0.11%and Enterprise Products Partners agreeing that those companies’ plans for processing condensate were sufficient to qualify the condensate as exportable.

Read more: http://www.forbes.com/sites/christopherhelman/2014/06/30/the-real-significance-behind-that-oil-export-hoopla/il. It’s still illegal to export unprocessed “lease condensate.”

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