Latest Monthly STEO Predicts HH Spot Price to Avg $8.59 in 2H22
In its latest monthly Short-Term Energy Outlook (STEO), the U.S. Energy Information Administration (EIA) makes a startling prediction. EIA now says it expects the Henry Hub (HH) spot price to average $7.83/MMBtu in 2Q22 and then (gasp) it will average $8.59/MMBtu during the second half of 2022. Yesterday’s HH price jumped $.036 to close at $7.39. As we told you yesterday, we are on a very volatile roller coaster (see NYMEX Gas Price Drops $1.76/MMBtu in 2 Days to $7.03). Expect to see big swings both up and down–but mostly up. The latest STEO also predicts we will break the all-time high production record for natgas this year too.
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ECA Marcellus Trust I, the royalty interest holder in and another name for Greylock Energy, has just moved the goalposts. After issuing a payout (the equivalent of a dividend) to unitholders of 13.6 cents for 4Q21, the company has pulled back and will only issue a payout of 9.4 cents per unit for 1Q22. Why? The company announced it is building a bigger emergency fund than previously announced.
National Grid is desperately trying not to run out of natural gas for its customers in Brooklyn and Queens (on Long Island). For several years the company has fought a battle to run a tiny pipeline to its Greenpoint, Brooklyn facility, to provide extra natural gas. That project is being investigated by the Biden administration on charges of racism (see 
We’re holding on by a thread folks, with respect to PA’s onerous new carbon tax. Back in April, we told you about a lawsuit filed by Big Coal against the Pennsylvania Gov. Tom Wolf administration to block Wolf’s attempt to force the state to join the Regional Greenhouse Gas Initiative (RGGI), a carbon tax on coal- and gas-fired power plants (see 
Yesterday Joe Biden delivered an address from the White House to talk about inflation. He blamed the high price of gasoline (and diesel fuel) on: (1) Vladimir Putin, (2) oil companies price gouging, and (3) Republicans who refuse to sign on to so-called renewables. He’s wrong on all three counts, but that’s another post for another time. Our point is that Biden continues to say he wants more oil production here at home to address the problem of high gasoline prices. Yet his actions disprove the words coming from his mouth (i.e. he’s lying). Biden and his administration continue to aggressively try to cut, reduce, and even block new permits and drilling on publicly-owned land. Some 25% of the oil production in the U.S. comes from wells on publicly-owned land. And yes, there is a tie-in with the Marcellus/Utica on this issue.
Last week Pennsylvania issued 11 new shale well permits, down from 16 the week before. For the second week in a row, EQT led the way, issuing five permits. Ohio got skunked–issuing no new permits for Utica drilling. West Virginia issued just one new permit–to Antero Resources. Overall a pretty paltry showing for new permits in the M-U.
NATIONAL: USA OFS jobs on the rise; USA gasoline price hits new record; U.S. ammonia prices rise in response to higher intl natgas prices; The Biden administration’s aimless energy policy is gambling with America’s economy; Republicans blast SEC climate rule, demand hearing; INTERNATIONAL: LNG supply crisis to hit hard this winter.