Exclusive: Interview with CNX CEO Nick DeIuliis – Part 1
Last week MDN editor Jim Willis had the privilege and honor of a (remote) sitdown interview with Nick DeIuliis, the CEO of CNX Resources, one of the major producers in the Marcellus/Utica. Nick is a fascinating guy. In many ways, he is MDN’s hero. He recently published a book titled Precipice: The Left’s Campaign to Destroy America. If you want to know Nick’s philosophy, his worldview, and what makes him tick, read the book. Jim’s interview with Nick covered many issues and took a full hour. Today’s post is the first of a multi-part series from our extended interview. Along the way, you will learn some new things about Nick and CNX, including information about some exciting technologies CNX is working on/patenting that could change the future of the natural gas industry. And no, that’s not hyperbole.
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Pennsylvania Attorney General Josh Shapiro, who is running for governor of the Keystone State, has once again targeted a shale energy company in his zeal to prove he despises the Marcellus even more than current Gov. Tom Wolf does (burnishing his credentials with the environmental left who makes up his base). Yesterday Shapiro’s office issued a press release announcing that the Big Man has bullied Southeast Directional Drilling, a subcontractor of National Fuel Gas Supply Corporation (i.e. Seneca Resources), into pleading guilty to spilling nontoxic drilling mud into a creek so small it doesn’t have a name. Southeast will have to pay a $15,000 fine.
Shale energy mergers and acquisitions (M&A) have been quite active for the first half of 2022. According to powerhouse energy data company Enverus, the first quarter saw $14.7 billion worth of M&As. The second quarter saw $12 billion in M&As. However, almost all of it happened outside of the Marcellus/Utica. There was $2.8 billion worth of M&A in the M-U during 1Q22, and $0 in 2Q22. One of the main reasons our play hasn’t seen more M&A? Lack of pipelines to move natural gas out of the northeast.
We were excited to see a Reuters article with the headline, “U.S. pipeline companies eye nat gas infrastructure for growth.” Cool. More pipelines means more opportunity to sell product. And maybe it means there’s a change in attitude coming to allow more pipelines, right? Wrong–at least for the Marcellus/Utica. The article (below) does talk about some of the largest pipeline companies in the U.S., including Kinder Morgan, refocusing on LNG and exports. However, as the article points out, anywhere outside of Texas and possibly Louisiana, *nobody* is planning new pipeline projects. Why? Due to extreme resistance from the left and the current administration in Washington, D.C.
Last year the U.S. remained the #3 exporter of LNG in the world, just behind Australia and Qatar. However, during the first half of 2022, the U.S. became the #1 exporter of LNG in the world. Capacity expanded since late last year by an extra 1.9 Bcf/d (billion cubic feet per day), to hit an average of 11.4 Bcf/d, with gusts up to 13.9 Bcf/d. But then there was an explosion and fire at Freeport LNG in Texas in early June, which immediately took 2 Bcf/d offline until further notice (see 
MARCELLUS/UTICA REGION: Volunteer fire companies receive Act 13 grants; NATIONAL: Elitists feeling the power: The revolution comes closer!; FERC must regulate small-scale LNG export projects, green groups say; INTERNATIONAL: Russian gas supply uncertainty sends Asia LNG prices surging; Russia’s Gazprom tightens squeeze on gas flow to Europe; LNG outages and Russian aggression send global gas prices soaring – again.