• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 7 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 8 days Does Toyota Know Something That We Don’t?
  • 1 day America should go after China but it should be done in a wise way.
  • 7 days World could get rid of Putin and Russia but nobody is bold enough
  • 9 days China is using Chinese Names of Cities on their Border with Russia.
  • 11 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 11 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 11 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 9 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 1 day How Far Have We Really Gotten With Alternative Energy
  • 10 days Putin and Xi Bet on the Global South
  • 10 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
Charles Kennedy

Charles Kennedy

Charles is a writer for Oilprice.com

More Info

Premium Content

How Much Gas Will Flow Out Of The Marcellus Shale?

A relatively high-profile natural gas pipeline cleared a key legal hurdle just as another saw increasing opposition from affected landowners.

The shale gas revolution has brought a wave of natural gas online in the United States, to be used in electricity generation, manufacturing, and petrochemical processing. But one of the major constraints in fully capitalizing off of the bounty has been the dearth of pipeline infrastructure. Much of the production occurs in Appalachia, but major consumers are on the East Coast, for example. Related: Natural Gas Prices To Crash Unless Rig Count Falls Fast

Following the prolific drilling has been a corresponding construction boom in natural gas pipelines. Still, more pipelines are needed to move gas around. Two key projects promise to connect both the northeast and the southeast to Appalachian gas fields.

First, is the Constitution pipeline, a 124-mile project that is expected to run from northeastern Pennsylvania to upstate New York and ultimately connect to a network servicing New England. Backed by Cabot Oil and Gas and Williams Partners LP, the pipeline promises to unlock Marcellus Shale gas for Boston and the rest of New England, which has historically suffered under high energy prices. Related: U.S. Shale A Marginal, Not Swing Producer

But as with any major construction project that has a large footprint, the Constitution pipeline faced legal obstacles from landowners along its path. On March 17, a U.S. District Court judge ruled that the pipeline had received the necessary permits from the Federal Energy Regulatory Commission (FERC), and since it serves the public interest, the court shot down legal attempts to block its construction from landowners. With the most difficult hurdles cleared, construction could soon begin.

A separate pipeline seeking to send shale gas from the Marcellus is facing similar legal challenges. The Mountain Valley Pipeline is a proposed 300-mile pipeline that will run from West Virginia to southern Virginia, connecting shale gas to a network of pipelines servicing Virginia and North Carolina. But locals in West Virginia that live in the proposed construction path are filing a lawsuit to halt surveying for the project. Related: Can Big Oil Keep Paying High Dividends?

Lawsuits against pipelines are a common occurrence, and are a major reason why oil and natural gas pipelines take years to build and often face delays. For this reason, oil drillers have increasingly resorted to the railways to move crude around the country. But that doesn’t work for natural gas. Just as the Constitution pipeline succeeded in doing, the Mountain Valley Pipeline will have to demonstrate to a court that exporting natural gas out of West Virginia serves the “public interest” and thus should be allowed to use eminent domain laws to acquire land. While tedious and seemingly arcane, these legal issues ultimately determine how much natural gas will flow out of the prolific Marcellus Shale.

By Charles Kennedy for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News