Keystone pipeline and Marcellus/Utica

I'm confused. How does the Keystone Pipeline affect us here in the Marcellus/Utica region? Will it interfere with the drilling here?

Thanks!

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Permalink Reply by Joseph-Ohio on November 21, 2015 at 6:59pm
I think there are many ways to cut the balony.
Permalink Reply by jett on November 22, 2015 at 8:04pm

My question concerned the landowners/lessors of Marcellus/Utica gas & oil. What impact would this have on the people here in the Marcellus/Utica who actually will benefit directly from our properties & wanting our area to produce. The Marcellus/Utica mineral owner who receive the royalties or will receive the royalties into their bank accounts from development here. The talk of diluents possibly used from our oil/gas - does that have a real worthwhile impact on what happens to drilling here that will make a difference in the lives of the people and their families who are leased in the Marcellus/Utica region?  Some others may have the advantage to look at this on a macro level or from an investor's standpoint but my question was not about that. I think I got my answer from James. Thanks!

Permalink Reply by Joseph-Ohio on November 22, 2015 at 8:39pm
jett,

How do you interpret James' answer (of 'No') as to Keystone 'interfering' with 'drilling here' ?

I don't know how to take it myself.

No it won't interfere but rather assist in developing more wells ?

Or :

No it won't interfere but that it won't assist either ?

The answer of simply 'No' is pretty ambiguous.

Thinking things are more complex and deserving of more than one word to answer myself.

Thinking also TMP is shedding quite a lot of light on things affecting us.

I'm reading along and think I'm learning quite a bit myself.

However, I'm also still trying to understand how direct of an impact it may / will have on our geography in northeast OH.
Permalink Reply by jett on November 22, 2015 at 8:41pm

Actually, education from the answers did come from everyone. It is evident that some benefit differently from the pipeline continuance or not and from other oil/gas production/investments. So their thoughts clarified why some were concerned about it's development. But his answer let me know that the decision made will not affect the drilling in the Marcellus/Utica. One way or the other. Which is what I wanted to know when I asked. Not a play of words.

Permalink Reply by Joseph-Ohio on November 22, 2015 at 8:49pm
His answer didn't make that point clear to me jett - but that's me.

Maybe you and others are satisfied with it - me not so much.

Good luck to all of us - still thinking we need all we can get.
Permalink Reply by Barry D on November 28, 2015 at 8:01pm

How does the Keystone Pipeline affect us here?

It's called supply and demand; basic economics. If the pipeline was approved the oil from Canada would have moved through the pipeline.

But, in order for that oil to move through a pipeline it needed to be diluted, thinned. One of the products produce from the Utica is a perfect answer to that issue.

Producers in the Utica are struggling to make a profit. Selling the diluent to thin the oil from Canada would have provided another market and profit source for the producers in the Utica.

WE have the supply, the President cut off the demand.

Less ability to sell products by the producers, less royalty for land owners.Simple economics. 

Permalink Reply by Joseph-Ohio on November 28, 2015 at 8:15pm

I think you got it right, except, I wouldn't call it economics.

Instead, I'd call it locking away a market opportunity.

To me, that's anti-economy / anti-economics / market rigging (and by executive action which I can't  believe / understand).

We've Natural Gas Condensate to sell.

Our refineries in LA and TX want the heavy (but diluted) oil.

Canada is a trusted ally and wants to do business with us.

What's the problem ?

What am I missing here ?

Permalink Reply by Barry D on November 28, 2015 at 8:57pm

Joseph,

What you are missing is the politics.

The President is beholding to his environmental left donors.

He is also beholding to the people who own the railroads that currently transport the oil from Canada to the U.S.

That's right, the President did not stop the flow of oil from Canada. He just made sure it comes to the U.S. via rail. He lied to his environmental supporters. Warren Buffet's money is way more important to him.

Warren Buffet owns the rail companies that currently transport the Canadian oil.

The XL pipeline would have cut him out of the business.

Politics pure an simple.

The President is a political animal and he knows that the mother's milk of politics is money.

Warren Buffet feeds that need.

My opinion.

Permalink Reply by Joseph-Ohio on November 28, 2015 at 9:14pm

Haven't missed it (politics) just didn't mention it this time.

The part about any 'Buffet connection' is an unknown to me, but, have read about such several times (earlier) on these pages.

Other than that, I'm thinking we see things the same way.

Good luck to all of us, we need it.

Would like to see things break for us for a change.

Maybe after the next election things will change.

JMHOs too.

J-O

Permalink Reply by RAY RATELL on November 29, 2015 at 9:59am

I AM GOING TO OHIO GOVERNOR AND ASKING FOR THEM TO TAX THE OIL COMPANIES TO REMOVE PORPERTY TAXES ON OHIO LAND OWNERS. THE STATE IS LOOKING AT TAXING THE LAND OWNERS FOR MORE TAXES ON OIL AND GAS. IF I WERE YOU I WOULD WRITE OR SEND EMAILS TO STOP THE GOVERNMENT FROM TAXING US MORE, THE OIL COMPANIES ARE STEALING OUR OIL AND GAS AS IT IS NOW. NORE LAWS NEED MADE TO PROTECT THE LAND OWNERS FROM OIL THIEVES. IT IS TIME FOR THE GOVERNMENT TO STEP IN AND STOP THE OIL THIEVES OF AMERICA AND THE WORLD. OIL AND GAS SHOULD BE TAXED SO WE CITIZENS DO NOT HAVE TO PAY EVERY TAX THERE IS. ABOUT TIME YOU LAND OWNERS SET UP AND TELL CONGRESS AND THE STATES TO TAX THE OIL COMPANIES TO REDUCE PROPERTY TAXES THAT WOULD IN TURN MAKE THE USA 4 TRILLION OR MORE IN SPENDING IN THE ECONOMY. STEP UP AND BE COUNTED. PENN STATE ALLMOST HAD ZERO PROPERTY TAXES BUT GOT VOTED DOWN BY 1 VOTE. THEY WERE GOING TO INCREASE SALES TAX 1% I THINK NOT SURE, TO REMOVE PROPERTY TAXES. HELP OUT AMERICA AND REMOVE PROPERTY TAXES

Permalink Reply by Barry D on November 29, 2015 at 7:38pm

Ray,

The Governor is on your side.

It's the Legislature that won't pass the tax.

Permalink Reply by Joseph-Ohio on December 3, 2015 at 5:58am

RAY RATELL,

I've been under the impression that historically, there was a Clause in the Lease that assignred the burden of increases in Real Estate Taxes due to Development of a Natural Gas  / Oil Well to the E & P and / or the Lessee.

These days reading that many here write how they feel that their E & P / Lessee is cheating them.

So - law placing increases in Real Estate Taxes due to Development of a Natural Gas / Oil Well on the E & P isn't at all far fetched from my perspective.

I wrote earlier on another post that I thought a Standardized Long Horizontal Bore Lease Agreement ought to be written into Ohio Code to protect land / mineral owners / lessors from abusive leasing / selling practices.

These and a good number of other things are in order seems to me.

I'll link the other post a little later.

Check it out when I do.

http://gomarcellusshale.com/forum/topics/when-leases-term-things-pi...

Take the above link and tell me what you think.

Regards,

J-O

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