Energy Companies | Industrywide Issues | M&A | Pennsylvania | Potter County | Rockdale | S.T.L. Resources | Tilden Bradford | Tioga County (PA)
STL Resources Buys Tilden PA Marcellus Assets from Bankruptcy Sale
S.T.L. Resources, LLC, an independent oil and gas company with headquarters outside of Pittsburgh, announced yesterday that the company has purchased the remaining assets of Tilden Marcellus for an undisclosed sum. Tilden filed for Chapter 11 bankruptcy protection in February (see Tilden Marcellus Files for Voluntary Chapter 11 Bankruptcy). Although STL doesn’t mention how much it paid, when Tilden filed in February, the company reported its value at the time was “$10 million to $50 million in both assets and liabilities.”
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Equitrans and its Mountain Valley Pipeline (MVP) project, attacked by Big Green groups including the Sierra Club (rumored to be backed by Russian money), finally got some good news yesterday. As soon as the Federal Energy Regulatory Commission (FERC) issued a certificate approving the MVP Southgate project, the FERC certificate was challenged by the Clubbers in federal court. Yesterday the court turned back the challenge by the Clubbers and said Southgate has a right to life.
The oil and gas industry historically has been subject to wide swings in profits and losses. Some years are up, others are down. Ours is a “boom and bust” industry–let’s just be honest about it. Oil and gas are both commodities and are driven, largely, by market conditions. When the government interferes by threatening banks to avoid investing in O&G, when there’s a big increase in demand due to political events (avoiding Russian O&G because of the unprovoked Ukraine war), and when there’s not enough supply to meet the demand, prices skyrocket, as they have done over the past six months. The recent up-cycle has been good for Marcellus/Utica drillers and the bottom line.
More than half of the refining capacity in the U.S. is located on the Gulf Coast, where more gasoline and distillate fuel is produced than used. On the other hand, the U.S. East Coast has very little refining capacity but is often the location where the most gasoline is consumed. Consequently, the East Coast receives fuel from other regions, predominantly the Gulf Coast, and imports fuel from other countries. It seems to us that there is a big opportunity to build new refineries along the East Coast.
The Group of Seven (G-7) is an inter-governmental political forum consisting of Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States. G-7 countries are the world’s largest democratic (freely elected) economies, representing roughly half of the world’s wealth (but only 10% of the world’s population). President Biden and the leaders of the other G-7 countries had a confab yesterday in Germany and issued a joint communique (copy below) that says, in part, it’s OK to invest in natural gas and LNG infrastructure.
There’s no way for the Bidenistas to put lipstick on this pig–but they tried anyway. The Biden administration’s Dept. of Energy published its annual U.S. Energy and Employment Report (USEER) yesterday. The report shows HUGE fossil fuel industry job losses in 2021. The report finds the fuels technology sector experienced job losses totaling 29,271 jobs in 2021, down 3.1% from 2020, with the majority of losses coming from the fossil fuel industry.
MARCELLUS/UTICA REGION: Pennsylvanians are reaping millions of dollars in benefits from taxing natural gas; Diversified Energy donates building to Pennsylvania Game Commission; NATIONAL: LNG explosion shines light on 42-year-old gas rules; Hyliion and Cummins collaborate on natural gas Hypertruck ERX powertrain; July Nymex contract loses momentum, still expires nickel higher; INTERNATIONAL: Soaring global coal use is obliterating emission reductions.