3/7/2013: Washington Rotating Control Heads Inc taps into shale market; Fracking approved in New York?

Washington Rotating Control Heads Inc. taps into the Marcellus Shale market – “Joyce Mayernik and her sister Denise Johnston are the first to admit they felt overwhelmed when they took over Washington Rotating Control Heads Inc. two years ago…By the time the sisters took over, Washington County had earned the nickname "mini-Odessa, Texas" thanks to the drilling boom in the Marcellus and Utica shales that lie thousands of feet below their shop near downtown Washington, Pa…Soon after taking over, Ms. Mayernik had to turn to YouTube to learn about the drilling process. Now, two years later, the business has brought on six new full-time employees, increasing its total workforce to 22 full-time employees, to handle the growing business…First, the company started the six-month process of becoming certified by the American Petroleum Institute. Certification from the industry group can be a dealbreaker for large companies who use the stamp of approval to weed out possible subcontractors…Second, they started an offshoot called Arch Rentals LLC, an equipment rental service that will launch on April 1 and service operations within a 200-mile radius of Washington County…Business has grown about 10 percent year-over-year since 2008, said Ms. Mayernik. The private company declined to release more specific revenue figures. Its parts have been used by drillers around the world -- one recently finished diverter costing about $50,000 sat in the shop this week ready for a client in Africa and operations manager Rick McGinney took a call from Oman on Monday.” (Post-Gazette)

Shell Sees Major Advance in China Shale Output Within Two Years – “SINGAPORE—Royal Dutch Shell RDSB.LN +0.57% said it may be less than two years away from a major advance in shale gas production in China, bringing the country closer to being the first outside of North America to cash in on technology that has transformed the U.S. energy industry. Unlocking the gas trapped inside China's shale rock reserves, the world's biggest, would provide much needed energy supplies to the energy-hungry economy and help cut down on expensive imports of gas. It would also provide a windfall for Western energy giants that provide the complex hydraulic fracturing technology. Shell is on track to have spent $2 billion by the end of this year exploring the central province of Sichuan, and has drilled nearly 30 wells in joint-venture projects with China National Petroleum Corp. "Mid-decade we will be able to decide" on the so-called final investment decision that will determine whether to go into full commercial production, said Maarten Wetselaar, head of Shell's integrated gas operations world-wide, excluding North America. The multinational energy company is already producing tiny amounts of shale gas as part of its exploration work, and it pumps this into Sichuan's natural-gas network. How quickly output can be ramped up after further investment is unclear. Beijing has set an ambitious target of producing 6.5 billion cubic meters of shale gas annually by 2015, and as much as 100 billion cubic meters by 2020, from nearly zero now. Getting the Shell project into operation will be critical in meeting those goals.” (Wall Street Journal)

PTI breaks ground for $3.5 million gas, oil technology center – “Eight shiny new shovels were wielded by eight VIPs wearing suits and white hard hats, each emblazoned with three black letters -- PTI -- during a groundbreaking ceremony Feb. 26 for Pittsburgh Technical Institute's $3.5 million energy technology center that will house courses in oil and gas electronics. Construction is part of the North Fayette schools' mission of "preparing students for high-paying, in-demand jobs," said Greg DeFeo, PTI president, adding that school officials attended conferences and "talked to people who hire" before starting construction and planning new courses and degrees…The two new programs "will support the energy industries with a pipeline of skilled individuals," Mr. DeFeo said. "Research suggests a high demand in Western Pennsylvania for electronics professionals at compressor stations, at energy facilities and on pipeline projects, who have the skills to monitor the extractions, storage and transmission of this natural resource." Jobs are being "created by the exponential growth surrounding the exploration and development of Marcellus Shale and, in the future, Utica Shale," says PTI brochures. Student interest and employer reactions" to the new programs "has been strong." About 200 students are expected to enroll in the new programs in 2013. (Post-Gazette)

Fracking moratorium approved by NY State Assembly – “The Democrat-dominated State Assembly on Wednesday approved a two-year moratorium on high-volume hydraulic fracturing from the Southern Tier to the Catskills until there is "conclusive scientific evidence" on possible health and environmental risks. The measure is largely symbolic at this point because the politically divided Senate hasn't shown signs of backing a moratorium. Gov.Andrew M. Cuomo 's administration has been weighing regulations for the natural gas drilling technique, but has missed several self-imposed deadlines for reaching a conclusion. Assembly Democrats said the state shouldn't rush a decision about fracking in the Marcellus and Utica shale. Conventional drilling, which uses shallower wells and far less water than high-volume fracking, has gone on for decades in New York and other states…Assembly Democrats cited concerns about drinking water and climate change, and the handling of chemically laced wastewater that is generated during drilling. The Assembly bill requires the State University of New York to conduct a public health study. Fracking supporters, including struggling upstate landowners who have been waiting five years for New York to finalize fracking rules, say the experience of other states shows environmental and health concerns are unfounded. They also note that President Barack Obama supports natural gas as a clean fuel. Senate co-leader Dean Skelos (R- Rockville Centre ) believes state environmental and health agencies "should be allowed to complete their study so the governor can make an informed and final decision as soon as possible," spokesman Scott Reif said.”” (Associated Press)