EIA Nov ’19 Drilling Report: Permian Gas Grows More than M-U

It looks like we may be almost at a peak–the day we knew would come (but secretly hoped never would) where not only the Marcellus/Utica, but all of the major shale plays in the country stop producing more natural gas each month than they did the month before. Yesterday the EIA (U.S. Energy Information Administration, our favorite government agency) issued its monthly Drilling Productivity Report. It shows the M-U will end up producing 33,674 million cubic feet per day (MMcf/d) of natural gas in November, and their forecast is the M-U will produce 33,720 MMcf/d in December, a gain of 46 MMcf/d (one-tenth of one percent). In other words, statistically we’re at a standstill (not growing) and in the near future we expect to see *less* monthly production. We’re just about cresting the top the hill.
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State Seismic Network: Only 1 Fracking-Induced “Earthquake” in PA

A map of the stations used by PASEIS to collect seismic data (click for larger version)

Do you know how many Marcellus (or Utica) shale wells have been drilled in Pennsylvania since shale drilling began? We’re talking drilled, fracked and now online. That number is now over 9,000. You know how many times fracking has caused an earthquake (or “seismic event” as it’s called in the biz)? Precisely once. Which is statistically zero. The Pennsylvania State Seismic Network (PASEIS) keeps track of these things, and that’s what they say. One fracking-induced “event” that happened back in April 2016.
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National Grid Struggles to Respond to Cuomo’s Petulant Demands

Acting like a petulant baby whose binky was taken out of his mouth, New York Gov. Andrew Cuomo is threatening to put giant natural gas utility National Grid out of business in New York State by canceling their franchise, their right to operate, and giving it to another company (see Psychotic Cuomo to Cancel National Grid Gas Franchise in 2 Weeks). Why? Because Cuomo himself denied National Grid new supplies of natural gas via pipelines, causing National Grid to ban new customers from connecting from fear there won’t be enough gas (their downstate territory covers all of Long Island and parts of New York City). The political fallout from the ban has been swift and harsh–against Cuomo. So he blames the victim (National Grid) instead of himself. How is National Grid handling the crisis?
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KY Regulators Side with Enviro Wackos in Blocking Tiny Pipeline

In September MDN told you about environmentalist wackos at the Bernheim Arboretum (about 25 miles from Louisville, Kentucky) who refuse to grant an easement for 4,000 feet of land they bought *after* the Louisville Gas and Electric Company (LG&E) already had a state-approved plan to build a new pipeline over that land as part of tiny 12-inch, 12-mile pipeline (see KY Utility Hints at Defunding Local Arboretum Blocking New Pipe). The Arboretum’s refusal, along with a few other property owners, means 62 homes and businesses have been denied the right to connect to LG&E’s local natgas utility system. Unfortunately the Kentucky Energy and Environment Cabinet (state agency) has just sided with the wackos.
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U.S. Sen. Pat Toomey Floats Resolution to Block Dem Frack Ban

U.S. Sen. Pat Toomey

U.S. Senator Pat Toomey, from Pennsylvania, introduced a resolution two weeks ago that he (and other sane individuals) want to adopt to prevent people like “Crazy” Bernie Sanders and Elizabeth “Pocahontas” Warren from banning fracking, should they ever get elected president. (Sanders or Warren as president is a truly nightmarish prospect, meaning the country has officially gone to Hades.) Best put some protections in place now before frothing-at-the-mouth socialist/communists like Sanders or Warren get elected.
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Supply Chain Cos. Getting Whacked by Shale Drilling Slowdown

Yesterday MDN brought you an article about the supply chain in Ohio–companies that sell goods and services to upstream (drilling), midstream (pipeline) and downstream (petrochemical) companies (see Ohio’s Non-Drilling Counties Look to Profit from Utica Shale Too). That article talked about businesses located in counties just west of the Utica shale in Ohio and whether or not they can get in on some of the economic action. We spotted another story, this one in the Wall Street Journal, about supply chain companies serving the oil and gas industry. If yesterday’s article was the positive/up side of supply chain, the WSJ article is the flip side–the down side of depending too much on our cyclical industry.
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U.S. Record in 2018 for NatGas Production, Consumption, Exports

The U.S. Energy Information Administration (EIA) recently released its “Natural Gas Annual 2018” report which shows the U.S. set new records in natural gas production, consumption, and exports in 2018. In 2018, dry natural gas production increased by 12%, reaching a record-high average of 83.8 billion cubic feet per day (Bcf/d). That’s the largest percentage increase since 1951, and the largest volumetric increase in the history of the series, dating back to 1930! Behold the miracle of shale.
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Shale Energy Stories of Interest: Tue, Nov 19, 2019

MARCELLUS/UTICA REGION: Encino Acquisition Partners appoints Alexandra Pruner to Board of Directors; David Porges to step down from Equitrans Midstream board of directors; Falcon Pipeline drilling briefly shut down over instrumentation; OTHER U.S. REGIONS: New construction natural gas ban trend appears on East Coast; NATIONAL: U.S. rig count crashes again: loses nearly 100 rigs in 3 months; INTERNATIONAL: Spain top destination for U.S. LNG exports in September; Gazprom’s production up, European deliveries slip; Trinidad gas gap will claim more industries: regulator.
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