The Marcellus Utica Midstream (MUM) Conference was another success for Hart Energy. I wonder how much Hart Energy paid President Trump to make the Keystone Pipeline and Dakota Access Pipeline comments on the eve of MUM.
While attendance and exhibitors were less, I heard nothing, but good comments from the exhibitors. All the exhibitors told me the same comment, “Traffic is less, but the people that came are the decision-makers.” Exhibitors left MUM with good leads. Now all they have to do is follow up.
Not Enough Drilling in PA; Too Much Drilling in OH
- Williams’ made comments that if the rig count doubles in PA from 2016 to 2017 as projected and pipelines come online, there is a concern there is not enough production capacity to fill the pipelines. Lack of drilling over the last few years will cause capacity problems for the pipelines.
- Antero made the comment that unless new pipelines are built by 2020, there will be production constraints. The current ethane production projections will be adequate for the new pipelines, Rover and Nexus. This applies only to ethane. There is sufficient takeaway infrastructure for natural gas liquids.
- Interpreting Trump’s deregulation could mean just one agency could have jurisdiction over each process versus multi regulations for the same process which creates confusion on “how to lay the pipeline” as well as increases costs and delays the entire permitting process.
- Good times are definitely coming for the industry if the presence of investors is a barometer. I had not seen as many investors at an industry event since the gangbuster days of 2013 and 2014. A number stopped by our booth and all expressed an urgency to get deals done. Obviously, the “money guys” know the industry is positioned for major growth. They want to get in early which is now.
- Downstream construction was the buzz throughout the conference. From Marathon’s $2 billion dollar additive refinery to production capability to support five or six more world class cracker plants. It’s obvious to all in involved in the O&G industry in the Appalachian Basin the next 10-15 years could be very good years.