Tennesse Gas Pipe Explodes in McKean County – 125 MMcf/d Offline
A portion of Kinder Morgan’s Tennessee Gas Pipeline (TGP) running through Clermont, PA (in McKean County) exploded and caused a fire in a remote part of the town (wooded area) Tuesday evening. Fortunately, nobody was injured. Thanks to the speedy actions of first responders, the fire was contained and only burned about five acres of woods. The cause has not yet been determined. TGP declared a “force majeure” shutting down the pipeline (actually two pipelines) in the area, knocking some 330 million cubic feet per day (MMcf/d) of gas offline. Yesterday TGP posted a new notice to say Line 2 was OK and returning to full service. Roughly 125 MMcf/d will remain offline from Line 1 (the pipeline that exploded) in that area until further notice.
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Wow! What a difference two years can make. At the dawn of the pandemic, the share price for publicly traded oil and gas stocks (in particular Marcellus/Utica drillers) was in the basement. With the pandemic now in the rearview mirror (we hope), and demand increasing for both oil and natural gas, the price of oil and gas has skyrocketed, and along with it, O&G companies are raking in the cash. How are M-U drillers using their newfound piles of cash to compensate investors?
We’ve been keeping an eye on articles that appear with increasing regularity from the D.C. swamp hinting that West Virginia Senator Joe Manchin is talking with New York Senator Chuck “the schmuck” Schumer about Biden’s harebrained New Green Deal bill that would shut down even more fossil energy and soar inflation above the currently unbelievable level of 9.1%. The Washington Post, in particular, is pressuring Manchin to go along and pass a bill hoping it will help the Democrats win in November. Since appealing to Manchin’s loyalty to the Democrat Party is going nowhere, the Dems have decided to bribe Manchin by promising him the moon–including a fast track to finish the 94% completed Mountain Valley Pipeline (MVP) project. Will Joe Manchin cave and trade away the country’s future in return for completing an important M-U pipeline? Will Washington Dems torpedo MVP if Manchin doesn’t play along? He’s on the horns of a dilemma.
Each month the U.S. Energy Information Administration (EIA) issues a monthly Short-Term Energy Outlook (STEO). In May, the STEO made the startling prediction that the average Henry Hub price for natural gas (the national benchmark) would average $8.59 for the entire second half of this year (see 
Although we understand self-interest and wanting to protect one’s profit margin, we continue to be distressed that some of the biggest chemical companies in the world (meaning in the U.S.) are actively trying to block LNG exports. Why? They want the natural gas they buy (in very large quantities) to be as cheap as possible. In 2017, Big Chemical–companies like Dow Corning, BASF, Eastman Chemical, and others–via their trade association Industrial Energy Consumers of America (IECA), launched an effort to try and persuade Energy Secretary Rick Perry and the Trump Administration to create barriers to exports of natural gas (see 
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NATIONAL: Biden calls inflation report out of date due to declining gas prices; Energy producers put cash to work in M&A; Local governments ban natural gas; What is keeping America from realizing its LNG potential?; INTERNATIONAL: Germany in talks with Shell for LNG to replace Russian supplies; Russia seizes control of Sakhalin gas project, raises stakes with West; Wood Mackenzie and Ball introduce new LNG tracking tool; Europe scoops up LNG, choking off power in poorer nations.