Marcellus Drilling News

Economic Impact | Energy Services | Industrywide Issues | Jobs | Luzerne County | Nacero | Pennsylvania | Processing Plants

NEPA Huge Deal – $6B Plant to Convert Marcellus Gas to Gasoline
November 1, 2021November 1, 2021

This rendering, provided by Nacero Inc., shows one of the company’s gas manufacturing facilities that is under construction in Odessa, Texas. It is similar to one the company has proposed for Luzerne County.

Some super-exciting news to share about a massive, $6 billion petrochemical plant coming to northeastern Pennsylvania. On Friday, PA State Sen. John Yudichak, who wisely left the Democrat Party and became an Independent, announced Nacero Inc. will build a $6 billion manufacturing facility on the site of a former coal mine in Newport Township and Nanticoke in Luzerne County, PA. The plant will convert Marcellus natural gas into zero-sulfur gasoline for use in their existing cars and trucks without modification.
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Industrywide Issues | Litigation | Regulation

U.S. Supreme Court to Hear Case Limiting EPA Regulation of CO2
November 1, 2021November 1, 2021

One of the main strategies of the Bidenistas to control every aspect of your life is to control exactly which kind of energy you can and can’t use. Part of their plan is to eliminate the use of fossil fuels by using the federal Environmental Protection Agency (EPA) and their misinterpretation of the so-called Clean Air Act in order to regulate carbon dioxide (CO2) emissions. CO2 is the stuff you breathe out with every breath you take. The left claims CO2 is “pollution” (causes global warming, dontchaknow) and can be controlled at the federal level by the EPA. If the EPA gets away with declaring CO2 as pollution, it can regulate and even ban the use of substances like natural gas and oil that produce CO2 when burned–or better yet, slap a big tax on it.
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CNX Resources | Energy Companies

CNX Loses $1.5B on Hedges – CFO Unapologetic for Strategy
November 1, 2021November 1, 2021

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Late last week CNX Resources issued its third quarter update. As it has done over the past few years, CNX did not issue a full update, opting to let its official SEC filing do the talking for it. What does the quarterly update show? CNX lost $1.5 billion on derivatives (hedging) during 3Q, resulting in an $873 million loss for shareholders. CFO Don Rush defended the company’s strategy by stating shareholders saw consistent returns on their investments in the company during 3Q. CNX did very little drilling–just six new southwest PA Marcellus wells during 3Q. The company completed eight wells and turned to sales eight wells.
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Antero Resources | Energy Companies

Antero “Sticks to Its Knitting” and Reduces Debt – No Extra Drilling
November 1, 2021November 1, 2021

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Antero Resources, one of the biggest Marcellus/Utica drillers with 3.25 Bcfe/d (billion cubic feet equivalent per day) of production, issued its third quarter update late last week. Antero’s stock price has had an incredible run over the past year, up 462% in a single year! The company lost $834 million on derivatives/hedges during 3Q resulting in a net loss to shareholders of $549 million. The company, which drills mainly in West Virginia, has hedged 636 Bcf of natural gas at a weighted average index price of $2.58 per MMBtu through 2023 with fixed price swap positions. Beyond that, Antero officials say they will remain unhedged going forward to take advantage of higher prices.
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Energy Companies | Energy Services | EQT Corp | Equitrans/EQT Midstream | Industrywide Issues | Pipelines | Tallgrass Energy

More on EQT’s Deal to Sell Capacity on MVP, Increase REX
November 1, 2021November 1, 2021

Last week MDN told you the news that EQT Corporation has sold part of its reserve capacity along the Mountain Valley Pipeline (MVP) to “an undisclosed investment-grade entity for six years” (see Divorce: EQT Sells 1/2 Bcf/d of Capacity on Mountain Valley Pipe). EQT also announced an increase in its capacity along the Rockies Express (REX) pipeline to carry more of its gas to Midwestern markets. The news about MVP is not quite as simple as it seems. EQT did NOT give up sending 1/2 a Bcf of its gas along MVP as it may first appear. We need to go deeper…
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Commodity Price | Industrywide Issues | Pipelines

Although NatGas Prices are High, New Pipes Won’t Get Built – Why?
November 1, 2021November 1, 2021

In a normal world where freedom rings throughout the land and free enterprise and capitalism rule, if the price of a commodity like natural gas soars, new drilling would happen and new pipelines (midstream infrastructure) would get built. In a warped world where wokey leftists demand divestment from “fossil fuels” those things don’t happen. Right now we desperately need more pipelines and more drilling. Neither is happening. RBN Energy explains how lack of new pipeline capacity is holding back new drilling–and why it’s happening, particularly in the Marcellus/Utica…
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Best of the Rest

Other Stories of Interest: Mon, Nov 1, 2021
November 1, 2021November 1, 2021

MARCELLUS/UTICA REGION: Sen. Manchin is right to support natural gas efforts; NATIONAL: Williston, DJ basins see higher drilling activity as Baker tally inches higher; U.S. drillers add oil and gas rigs for 15th month in a row; America reduced emissions more than any country despite leaving the Paris accords; Conflicting messages from Democrats leave oil CEOs wondering which way to jump; Biden’s 85-vehicle motorcade a textbook example of hypocrisy from ‘limousine liberals’.
Read More “Other Stories of Interest: Mon, Nov 1, 2021”