EIA DPR: Marc/Utica Sees Biggest Drop in Production for All Plays

Yesterday our favorite government agency, the U.S. Energy Information Administration (EIA), issued our favorite monthly report, the Drilling Productivity Report (DPR). The DPR estimates how much oil and natural gas each of the country’s seven largest shale plays produced in the previous (i.e. current) month, and how much each will produce in the coming (i.e. next) month. The August report, which predicts production for the coming month of September, estimates natural gas production in the Marcellus/Utica will decrease by 203 million cubic feet per day (MMcf/d)–the biggest (by far) decrease in any of the seven shale plays tracked.
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Construction Co. Sues MVP for $104M, Demands Sale of Pipe

Last December MDN brought you news that Equitrans had canceled a contract with Trinity Energy Services to build a portion of the 303-mile Mountain Valley Pipeline project (see Equitrans Cancels Trinity Energy Contract re Mountain Valley Pipe). Since that time talks have broken down between the two sides over compensation for change orders and other items, and now Trinity is suing Equitrans, demanding MVP sell the pipe in the ground to pay Trinity $103.8 million to satisfy the money Trinity says it is owed.
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Mountain Valley Pipe (MVP) Buys Favor with Appalachian Trail Groups

The Appalachian Trail Conservancy, The Conservation Fund, and Mountain Valley Pipeline (MVP) yesterday issued a joint announcement that MVP is paying $19.5 million to the Conservancy to “conserve land along the Trail corridor and support outdoor recreation-based economies in Virginia and West Virginia.” It is the largest “funding package” in the Conservancy’s history to advance conservation efforts in a single geography.
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TC Energy Asks FERC to Approve Louisiana XPress, M-U Gas to Gulf

“Hurry it up, will ya?” That was the upshot of a message sent by TC Energy to the Federal Energy Regulatory Commission (FERC) with respect to giving final approval for its Louisiana XPress project. FERC granted the project a favorable environmental assessment (EA) on February 6 (see FERC Favorable EA for Columbia Louisiana XPress, M-U Gas to Gulf). TC Energy asked FERC to deliver a final approval/certificate no later than July 1–five months is more than enough time to finish up the approval process. Yet here it is the middle of August and FERC is still dithering.
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Southwestern Hits “Grand Slam” with Purchase of Montage Resources

Last week, in one of the biggest news stories (for us) so far this year, Southwestern Energy announced it is buying out and merging in Montage Resources (see Stop Press! Southwestern Energy Buying Montage Resources for $857M). The combined companies will create the third-largest (by acreage) Marcellus/Utica driller. Yet investors have pretty much yawned. The company’s stock went down after the announcement. According to one analyst, Southwestern’s purchase is a “grand slam” home run and investors should sit up and take notice.
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Shale Energy Stories of Interest: Tue, Aug 18, 2020

MARCELLUS/UTICA REGION: PA DEP local climate action program helps community leaders address climate change in 139 municipalities; OTHER U.S. REGIONS: Trump administration readies Alaska’s ANWR for oil, gas drilling; California’s shift from natural gas to solar is playing a role in rolling blackouts; NATIONAL: New lyrics, same tune for US shale producers; Most U.S. shale companies to restore production by end of 3rd quarter; Texas Democrat: US natural gas vital in transition to renewables; Let’s be serious, more CO2 isn’t making the earth ‘uninhabitable’; Democrats say California is model for climate action but its blackouts say otherwise; INTERNATIONAL: Is Japan the next major market for Russian LNG?; Mexican discrimination against US energy firms underscores importance of USMCA.
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