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5 New Shale Well Permits Issued for PA-OH-WV Mar 18 – 24
There was a pretty dismal showing for new permits issued to drill in the Marcellus/Utica during the week of Mar. 18 – 24, with a drop of 11 permits from the prior week to just 5 new permits issued. Pennsylvania issued all 5 of the new permits. Ohio and West Virginia both issued no new permits during that week. EQT (Rice Drilling) was issued 2 new permits in Greene County. Blackhill Energy and Chesapeake Energy each received 1 new permit to drill in Bradford County. And Range Resources was issued 1 new permit to drill in Washington County.
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Pennsylvania Gov. Josh Shapiro traveled to Scranton, PA, in mid-March to announce a proposal to “immediately pull Pennsylvania out of a multi-state carbon cap-and-trade program” (the so-called Regional Greenhouse Gas Initiative, or RGGI) and instead enroll PA in its very own RGGI-like carbon tax program (see 
An article appears today in the Pittsburgh Post-Gazette detailing how some people already are (or are planning to) make money from plugging orphaned and abandoned oil and gas wells in Pennsylvania (and elsewhere). It involves the same old cockamamie scam of carbon tax credits. The rough outline is this: Companies measure how much methane is currently leaking from a well. Then they fix it (presumably using government money to at least help pay for plugging), and once it’s fixed, they issue/create a carbon tax credit (or token) that someone else can buy on a public marketplace. Why buy it? So that person or company or entity can keep right on “polluting” — the carbon credit will “offset” their pollution. What a scam!
According to the data geeks at the U.S. Energy Information Administration (EIA), U.S. natural gas production grew by 4% in 2023, which was similar to the growth in 2022. U.S. gas production in 2023 averaged a whopping 125.0 Bcf/d (billion cubic feet per day). In 2023, more natural gas was produced in the Appalachia (Marcellus/Utica) region of the Northeast than in any other U.S. region, accounting for 29%, or 37.7 Bcf/d, of gross natural gas production. However, production growth in Appalachia slowed because our region doesn’t have enough pipeline takeaway capacity to transport more natural gas out of the region to the markets that would buy it.
Pennsylvania’s Pipeline Investment Program (PIPE) grants cover part of the cost of building new natural gas pipelines to connect homes and businesses, typically in rural parts of the state, to homegrown Marcellus Shale gas supplies. We’ve written about many of the dozens of PIPE grant projects awarded over the years (
In 2004, Pennsylvania implemented one of the most aggressive mandates to adopt wind and solar energy. At the time, less than 1% of net energy generation came from wind and solar in the Keystone State. In 2023, after the state had spent nearly $1.5 billion in subsidies, wind and solar generated less than 2%. And yet current Gov. Josh Shapiro (liberal Democrat) wants to double down by requiring 35% of electricity to come from politically favored sources, such as wind and solar, by 2035. The one energy source that has PROVEN to reduce carbon dioxide emissions? That would be natural gas, which is not on the politically favored sources list.
The two Democrats and one anti-drilling RINO who run Bucks County government (a Philadelphia suburb) fell for the bait by Big Green and filed a lawsuit against Big Oil companies for supposedly, knowingly, causing the Earth to toast to a cinder (even though 
Last week, MDN brought you a story about the rampant cost inflation for plugging old conventional abandoned and orphaned oil and gas wells in the Keystone State (see 
The Pennsylvania Dept. of Environmental Protection (DEP) sent a letter to the Shell ethane cracker plant on Feb. 22 essentially saying, “You’re time is up.” The cracker plant facility has 120 days from Feb. 22 (until Jun. 21) to file for a federal Title V Operating Permit for air emissions. If the facility doesn’t at least file for the permit, it’s lights out until it does.
It’s full speed ahead for the radical anti-Marcellus Democrats in the Pennsylvania State Legislature. Last week, PA Gov. Josh Shapiro traveled to Scranton, PA, to do a dog-and-pony show announcing his personalized version of the Regional Greenhouse Gas Initiative (RGGI) carbon tax that would apply only to PA (see 
Honestly, we can’t heap enough praise on the excellent work done by Pennsylvania shale drillers. It is unreasonable to expect there will be absolutely zero problems when engaging in something as complex as drilling a mile straight down and then one to four miles horizontally underground. Nothing in life is error-free. NOTHING. There’s always a problem. There’s always a slight error somewhere. Yet in PA drilling, only 54 shale wells out of 14,412 drilled since 2004 have resulted in the shale well “communicating with” (interfering with or leaking methane to) nearby water wells, conventional wells, abandoned wells, or other shale wells. That’s 0.0037 of the time, or 3.7 wells for every 1,000 drilled. Converting that number to a percentage, it’s 0.37% (about one-third of a single percentage point). Rounding further, it’s 0% of the time.
Water use restrictions have finally been lifted at the Beaver Run Reservoir in Westmoreland County, PA (near Pittsburgh). The Municipal Authority of Westmoreland County (MAWC), which manages Beaver Run Reservoir, has issued a contract to CNX Resources allowing the company to buy up to 51 million gallons of water to use in fracking at nearby gas wells. CNX will pay $12,855 for every 1.5 million gallons of water it buys. If the company ends up buying the full 51 million gallons, it will pay the MAWC $437,000.
Range Resources was the very first company to sink a Marcellus shale well back in 2004. The company went all-in on the Marcellus and has remained a pure-play driller ever since (to their credit). The company initially set up a regional headquarters in Southpointe (Washington County, PA) with a 60,000-square-foot office. It later upgraded to an office with 182,000 square feet — an entire building all to itself. Although the company has two years left on its lease, Range is, according to sources, looking to downgrade again. The company wants an office space of around 80,000 square feet.
Plugging old abandoned (which means no longer producing) and orphaned (meaning the owner is not known) wells is not a simple thing to do. It’s estimated that Pennsylvania has perhaps 350,000 old abandoned and orphaned wells, many of them leftover from the early days of conventional oil drilling. The problem is finding them. Many are in out-of-the-way places. Plugging them cheaply is no simple matter. PA, OH, and WV have received millions from the federal government to help with their well plugging programs in an effort to control so-called fugitive methane. Over the past year, PA has plugged over 200 old wells (see