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9 New Shale Well Permits Issued for PA-OH-WV Jul 22 – 28

For the week of July 22 – 28, a total of nine permits were issued to drill new shale wells in Marcellus/Utica. Pennsylvania had the fewest with just two new permits, one each for Seneca Resources and Rice Drilling (i.e., EQT). Ohio had the most with four new permits, all of them for EOG Resources for a single pad in Noble County. West Virginia came in between with three new permits, all three for Antero Resources in Tyler County.

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FERC OKs Request to Place Balance of Transco REAE Online Early

On July 12, Williams asked the Federal Energy Regulatory Commission (FERC) for permission to bring the final pieces of the Regional Energy Access Expansion (REAE) project online by the end of July (see Williams Asks FERC to Place Balance of Transco REAE Online Early). Then, on July 30, three extremely liberal judges from the U.S. Court of Appeals for the District of Columbia (D.C. Circuit) overturned the Federal Energy Regulatory Commission’s (FERC) approval of the $1 billion REAE project (see DC Circuit Libs Reverse FERC Approval of Transco Northeast Expansion). Mainstream media has focused nonstop on the court ruling. Missed in all of the kerfuffle over the D.C. Circuit’s ruling is the news that FERC granted Williams’ request to start up the rest of REAE.
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EQT & Others Enter “Phase 1” of Hydrogen Hub; DOE Cuts $30M Check

An important milestone was reached on Wednesday regarding the Appalachian Regional Clean Hydrogen Hub (ARCH2). You may recall that ARCH2 was one of seven projects to win the Bidenista Hunger Games competition to receive a chunk of $7 billion to build a regional hydrogen hub (see Hydrogen Hub Winners Announced – WV Takes Prize in M-U Region). ARCH2 is getting $925 million of the $7 billion pot. It was selected specifically because it will use Marcellus/Utica shale gas as the feedstock to create hydrogen (a fact that frosts the left, see Antis Mad They Can’t Protest Specific ARCH2 Hydrogen Projects). At any rate, on Wednesday, the first $30 million check for ARCH2 was cut by the Bidenistas, and work will now begin.
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WV Marcellus Production Up 9.5% in One Month Thanks to MVP

On Friday, June 14, the 303-mile Mountain Valley Pipeline (MVP) that runs from Wetzel County, WV, to Pittsylvania County, VA, announced the pipeline had, after a decade of planning and building, finally begun to flow Marcellus/Utica molecules (see Confirmed: M-U Gas Now Flowing Through Mountain Valley Pipeline). The effect of the molecules flowing through MVP has been profound and immediate, raising prices for M-U gas at the source and lowering the gas price at the destination (see MVP Lowers Gas Prices in Southeast, Raises Prices in Northeast). Now comes word from S&P that during its first month in operation, MVP averaged a flow of 1 Bcf/d (out of a 2 Bcf/d capacity). However, that 1 Bcf/d has had a dramatic effect on the amount of gas production in the Mountain State.
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The Story of Utica Oil Part 1: Encino Becomes Most Active Driller

We’ve written a number of times about the Ohio Utica Shale and its beginnings with gas legend Aubrey McClendon, who, as CEO of Chesapeake Energy, was one of (if not THE) first to recognize the Utica as an oil play. However, it was a successor company, Encino Energy, that figured out how to coax large quantities of oil out of the Utica shale. Encino is one of the big success stories of drilling for oil in the Ohio Utica Shale. Roughly six years ago, Encino, in partnership with the Canada Pension Plan Investment Board (CPP Investments), closed on buying Chesapeake Energy’s Ohio Utica assets for $2 billion (see Encino Takes Over from Chesapeake in Ohio Utica; Big Plans). What Encino and a former Range Resources executive who now works for Encino have done is nothing short of magical (see Oil Prod. in Northern Utica Comes Alive – Encino Cracks Oil Code).
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Lefties Try to Convince PA Supreme Court RGGI Carbon Tax is a Fee

One thing we admire about the left is that they never give up. Yes, they cheat. Yes, they lie. Yes, they use foreign money. But the environmental left never, ever, gives up. An example: The Chesapeake Bay Foundation (CBF) has filed an amicus (“friend of the court”) brief asking the Pennsylvania Supreme Court to reverse a Commonwealth Court decision that led to its voiding the state’s participation in the Regional Greenhouse Gas Initiative (RGGI). RGGI is an obscene carbon tax that will (a) raise the price of electricity for residents in PA and neighboring states that use PA’s electricity and (b) stop any new natural gas-fired power plants from being built in the state. In time, RGGI will also kill off existing PA gas-fired power plants. That’s precisely what the left wants to see happen, and it is using its resources (money and lawyers) to try and make it happen.
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New LNG Bunker Barge Comes to Port of Savannah, Georgia

Crowley accepts delivery of its LNG bunker barge, Progress.

Some exciting news to share related to the Marcellus/Utica. Shipping company Crowley announced it had accepted delivery of the LNG bunker barge Progress, the largest U.S. Jones Act-compliant vessel of its kind, after construction was completed at Fincantieri Bay Shipbuilding in Sturgeon Bay, Wisconsin. The Progress will expand access to cleaner energy for ship operators at the Port of Savannah, Georgia, upon final commissioning there this month. Shell signed a long-term agreement with Crowley to operate the barge, providing another fueling location to ships using liquefied natural gas. You may recall that Kinder Morgan owns and operates the Elba Island LNG liquefaction facility in Savannah and contracts all of Elba Island’s LNG production to Shell. Are you beginning to see the dots connect?
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Other Stories of Interest: Fri, Aug 2, 2024

MARCELLUS/UTICA REGION: Cenovus Energy shuts down unit at Ohio refinery; Teachers provided with lessons and materials on the natgas and oil industry; OTHER U.S. REGIONS: Chevron, Hess merger delayed further as arbitration hearing set for 2025; NATIONAL: Dems are ‘starting to recognize’ green energy push ‘all a fallacy’; Major CCS pipelines inch closer to reality; Kamalaflage: Dems race to expunge the evidence of Harris’ leftist history.
Read More “Other Stories of Interest: Fri, Aug 2, 2024”