Royalty payments to mineral owners probably have exceeded the $5 billion mark, according to estimates done by the good folks at www.marcellusgas.org/graphs/PA#royal_current. Nearly 50% of the total payments have flowed into Washington and Greene counties. Both are located in Southwest Pennsylvania, where Marcellus gas wells not only have been drilled in large numbers but also have been connected to pipelines and are delivering gas to consumers.
The Marcellusgas.org folks also have interesting data on how much counties will collect in impact fees. They project that Bradford, Tioga, Washington, Lycoming, Susquehanna, and Greene are projected as the top 6 counties for impact fees.
The impact fees are based on wells drilled or developed, while royalty payments are based on gas volumes flowing into pipelines. Currently a lot of wells drilled are not connected to pipelines in Pennsylvania.
Friday, March 9, 2012
Eagles Make Major Off-Season Acquisition: Wind and Solar
Last year's heralded crop of free agent signings led to an 8-8 season and no play-off spot, so the Eagles are re-powering for a Super Bowl. Yesterday, the Eagles announced that they had formed a new partnership with NRG that would install a 3 megawatt solar system and 14 micro wind turbines at Lincoln Financial Field.http://mobile.philly.com/sports/eagles/?wss=philly/sports/eagles&id=141085513. The Eagles remain the leading sports franchise dedicated to reducing environmental impacts through recycling, composting, and clean energy practices.
The wind and solar systems are scheduled to be operating by December 2012, when the Eagles should have clinched a playoff spot and be Super Bowl bound. Skeptical? Hope springs eternal for NFL fans in March of every year.
The wind and solar systems are scheduled to be operating by December 2012, when the Eagles should have clinched a playoff spot and be Super Bowl bound. Skeptical? Hope springs eternal for NFL fans in March of every year.
Booming US Car Sales, CAFE Standards, & Detroit At Half-time
Historically skyrocketing gas prices meant a loss of market share for the Big Three Detroit automakers to Japanese and other companies. Why? The Big Three simply did not make attractive, competitive fuel efficient cars so they lost market share when consumer preferences shifted to gas sippers and away from gas guzzlers.
In another sign that US carmakers are more competitive, despite the current jump of gas prices to a national average of $3.74, Detroit sold more cars in February than anytime since the collapse of the car market, following the 2008 economic meltdown.
Chrysler issued a statement: "Our product portfolio now contains some of the most fuel efficient vehicles in our company's history. A few years ago, higher fuel prices were a major threat to our total vehicle sales, whereas today, those higher prices have become far less of an issue."
Chrysler's February 2012 sales were 40% greater than in February 2011. While the companies themselves are responsible for building attractive cars that are selling well, raising the fuel efficiency standard for cars in 2009 helped to change how Detroit looked at the fuel efficient car segment of the
market and to prepare them for the era of high cost gasoline.
The February 2012 sales reached an annual rate of 15 million vehicles if sustained over a full year. After the US auto market collapsed from 16 million vehicles to an annual sales rate of 9 million vehicles after the economic collapse of 2008, it may be even past half-time in Detroit.
In another sign that US carmakers are more competitive, despite the current jump of gas prices to a national average of $3.74, Detroit sold more cars in February than anytime since the collapse of the car market, following the 2008 economic meltdown.
Chrysler issued a statement: "Our product portfolio now contains some of the most fuel efficient vehicles in our company's history. A few years ago, higher fuel prices were a major threat to our total vehicle sales, whereas today, those higher prices have become far less of an issue."
Chrysler's February 2012 sales were 40% greater than in February 2011. While the companies themselves are responsible for building attractive cars that are selling well, raising the fuel efficiency standard for cars in 2009 helped to change how Detroit looked at the fuel efficient car segment of the
market and to prepare them for the era of high cost gasoline.
The February 2012 sales reached an annual rate of 15 million vehicles if sustained over a full year. After the US auto market collapsed from 16 million vehicles to an annual sales rate of 9 million vehicles after the economic collapse of 2008, it may be even past half-time in Detroit.
Thursday, March 8, 2012
DOW 6547 On March 9, 2009: Lest We Forget
Three years ago tomorrow, on March 9, 2009, the Dow Jones Index hit bottom at a sickeningly low 6547 or 57% below its October 2007 high. From that high, as the recession began in the 4th quarter of 2007, stocks moved lower.
Then shear fear and panic ruled the markets after September 15, 2008, following the Lehmann Brothers bankruptcy. Read the CNN report after the market close on March 9, 2009.
http://money.cnn.com/2009/03/09/markets/markets_newyork/index.htm.
After March 9, 2009, stocks began their historic bull run, as the markets judged the federal government's actions had stopped another Great Depression.
I am harshly critical of what led to the Lehmann Brother's bankruptcy--allowing too-big-to-fail financial institutions to form, compounding that error by the failure to regulate debt leveraging and high risk practices at too-big-to-fail institutions so that Lehmann was leveraged more than 30 to 1 when it failed, the failure to regulate sub-prime lending, the failure to regulate the credit rating agencies, reckless deficits when the economy was growing from 2001 to 2007, and the list goes on.
But once Lehmann Brothers went bankrupt on September 15, 2008, and a financial meltdown began, as surely as an operating nuclear reactor melts without cooling water, both the out-going Bush Administration and the incoming-Obama Administration got more right than wrong. Mistakes were made after Lehmann, but more tough calls made at that time look good rather than bad with the passage of time.
And so yesterday the Dow closed at 12,837 or up about 96% since March 9, 2009, an historic bull run. Lest we forget.
Then shear fear and panic ruled the markets after September 15, 2008, following the Lehmann Brothers bankruptcy. Read the CNN report after the market close on March 9, 2009.
http://money.cnn.com/2009/03/09/markets/markets_newyork/index.htm.
After March 9, 2009, stocks began their historic bull run, as the markets judged the federal government's actions had stopped another Great Depression.
I am harshly critical of what led to the Lehmann Brother's bankruptcy--allowing too-big-to-fail financial institutions to form, compounding that error by the failure to regulate debt leveraging and high risk practices at too-big-to-fail institutions so that Lehmann was leveraged more than 30 to 1 when it failed, the failure to regulate sub-prime lending, the failure to regulate the credit rating agencies, reckless deficits when the economy was growing from 2001 to 2007, and the list goes on.
But once Lehmann Brothers went bankrupt on September 15, 2008, and a financial meltdown began, as surely as an operating nuclear reactor melts without cooling water, both the out-going Bush Administration and the incoming-Obama Administration got more right than wrong. Mistakes were made after Lehmann, but more tough calls made at that time look good rather than bad with the passage of time.
And so yesterday the Dow closed at 12,837 or up about 96% since March 9, 2009, an historic bull run. Lest we forget.
Wednesday, March 7, 2012
Stunning Fact: Local Ordinances Ban Fracking In 27% of New York Marcellus Play
While the New York State government continues its process of promulgating rules to allow shale gas development, local ordinances in New York may have banned fracking in 27% of the New York area in the Marcellus. I heard that number today at an International Energy Agency conference that I am attending and will be looking to confirm it.
Feds MOVE To Accelerate CNG Vehicle Adoption
Last week the Advanced Research Projects Agency-Energy (ARPA-E) held a massive conference in Oxton Hill, Maryland to which President Clinton, Secretary Chu and even I spoke. More than 2500 people attended this premier event that marshals thought and action for energy technology breakthroughs.
My pick for the most important highlight of the conference was the new Methane Opportunities for Vehicular Energy, a $30 million initiative, designed to hasten commercialization high energy density tanks for CNG and low-cost home refueling stations. http://www.ngvglobal.com/ and see the February 24th postings.
With gasoline at $3.74, while natural gas fueling is at $1.50, and war with Iran a real possibility, accelerating the move from oil to gas and other substitutes for transportation should be the nation's most important energy task. The MOVE initiative seeks to do exactly that by finding energy storgage and fueling technology breakthroughs that lower the cost of CNG vehicles.
As of 2010, the US had just 112,000 CNG vehicles on the road. Using federal research dollars to tackle two of the biggest technology weaknesses in the CNG market is a smart use of funds that can play a role in putting millions of natural gas powered vehicles on our roads. MOVE plus passing the Natural Gas Act that is dying a long, slow death in the United States House of Representatives would really make the US serious about gas transportation.
My pick for the most important highlight of the conference was the new Methane Opportunities for Vehicular Energy, a $30 million initiative, designed to hasten commercialization high energy density tanks for CNG and low-cost home refueling stations. http://www.ngvglobal.com/ and see the February 24th postings.
With gasoline at $3.74, while natural gas fueling is at $1.50, and war with Iran a real possibility, accelerating the move from oil to gas and other substitutes for transportation should be the nation's most important energy task. The MOVE initiative seeks to do exactly that by finding energy storgage and fueling technology breakthroughs that lower the cost of CNG vehicles.
As of 2010, the US had just 112,000 CNG vehicles on the road. Using federal research dollars to tackle two of the biggest technology weaknesses in the CNG market is a smart use of funds that can play a role in putting millions of natural gas powered vehicles on our roads. MOVE plus passing the Natural Gas Act that is dying a long, slow death in the United States House of Representatives would really make the US serious about gas transportation.
More PA Gas To Stay Local & Less For NY
Most PA gas leaves Pennsylvania and goes to New York City and other Northeast markets, meaning that the impact of gas drilling stays local, while the gas itself goes to the region. A new $1 billion pipeline, proposed by UGI and its partners, could keep more gas local, by delivering another approximately 300 billion cubic feet per year or 25% of Pennsylvania's 2011 gas production to Pennsylvania"s homes and businesses. http://articles.philly.com/2012-03-02/news/31117210_1_pipeline-route-natural-gas-ugi
New York has been doing two things: buy shale gas drilled in Pennsylvania to save money and to stay warm, while stopping shale gas drilling in New York.
Of course, Pennsylvania has had the lease income, the royalty checks that have changed lives, the direct jobs, the indirect jobs, the much lower gas and electricity bills--lots of benefits from drilling that plenty of New Yorkers want as well. But dealing with the impacts caused by industrial gas drilling and then sending the gas to NY has left a bad taste in the mouths of more than a few Pennsylvanians.
Gas drilled in Pennsylvania should stay in Pennsylvania if possible.
New York has been doing two things: buy shale gas drilled in Pennsylvania to save money and to stay warm, while stopping shale gas drilling in New York.
Of course, Pennsylvania has had the lease income, the royalty checks that have changed lives, the direct jobs, the indirect jobs, the much lower gas and electricity bills--lots of benefits from drilling that plenty of New Yorkers want as well. But dealing with the impacts caused by industrial gas drilling and then sending the gas to NY has left a bad taste in the mouths of more than a few Pennsylvanians.
Gas drilled in Pennsylvania should stay in Pennsylvania if possible.
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