More Frack Crews Now Active in the Marcellus than the Permian!

This has to be a first in the modern shale era. There are now more active fracking crews working in the Marcellus Shale than in any other shale play, including the oily Permian. There are 450 fracking fleets available in the U.S., but only 70 of them are active right now. The Marcellus is using 31% of those active fleets, while the Permian is using 30%. We never thought we’d live to see the day!
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PA Marcellus Gas Production Declines First Time in 3+ Years

It had to happen sooner or later. Pennsylvania’s Independent Fiscal Office (IFO) released its latest quarterly Natural Gas Production Report for January through March 2020 (full copy below). It shows natgas production in PA rose 6.8% compared to the same period last year. However, overall production fell compared to 4Q19’s record high, breaking a streak that went back 3.5 years.
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Enverus: Drop in Rig Count Slows Again, Marcellus Picks Up 1 Rig

For the past month or so MDN has brought you rig count data from Enverus (formerly Drillinginfo) each Friday. Last Friday we reported the count had hit a new modern-day low, and that the Marcellus had lost another couple of rigs, making it a total of seven lost rigs in the Marcellus over a three week period (see US Land Rig Count Falls to 369 – Marcellus Loses Another 2 Rigs). While today’s update shows rigs hitting another new modern-day low, the Marcellus gained back 1 rig. Whew.
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New Pointe LNG Facility in La. Would Export Marcellus Gas

Pointe concept (click for larger version)

It looks like another new market may open up for Marcellus molecules along the Gulf Coast. Louisiana LNG, which has been renamed Pointe LNG, began life in 2014. The project didn’t initially “gain traction” but is now rekindled. The co-founders of the project have hired Whitehall & Co as their financial advisor to help them locate $4 billion to get it built. What’s that? How does a Gulf Coast LNG plant tie into the Marcellus?
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Why Does NatGas Price Stay So Low with Falling Production?

It’s kind of a mystery. The supply of natural gas produced in the U.S. has been declining over the past few months. Oil drillers are laying down rigs (historic lows for rigs in the oil patch), and companies are shutting in oil wells–all of which means there’s less associated natural gas being produced. M-U drillers like EQT (the largest natgas producer in the U.S.) are curtailing huge quantities of their production (see EQT Shuts in 33% of NatGas Production in Pennsylvania, Ohio). And yet, with all of this gas being removed from the market, the price of natgas is still stubbornly low. Why?
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Shale Energy Stories of Interest: Fri, May 22, 2020

MARCELLUS/UTICA REGION: DRBC case judge told to reconsider standing of senators; New Fortress LNG adjudicatory hearing concludes; GlobalData: natural gas outlook remains bleak through 2020; Cuomo’s shifting gas policy; NATIONAL: Falling global LNG prices keeping U.S. natural gas prices capped; U.S. oil producers to halt 1.75 million barrels per day of production; INTERNATIONAL: Phase one U.S.-China trade deal fails in energy and beyond.
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