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ET Revolution Cryogenic Processing Plant Explodes in PA on Xmas
Residents living in the vicinity of Energy Transfer’s Revolution Pipeline cryogenic plant in Bulger (Washington County), PA, got a nasty “present” on Christmas morning. Around 7:30 am, residents report hearing an explosion, followed by a fire, at the plant used to separate NGLs (natural gas liquids, including ethane, propane, and butane) from the raw gas stream that flows through the Revolution gathering pipeline. The explosion and ensuing fire drove at least one family out of their house for hours while firefighters stood by, waiting for the gas feeding the blaze to burn itself out.
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Last July, Pennsylvania Gov. Tom Wolf, controlled by the extreme left in the Democrat Party, allowed PA House Bill (HB) 2644 to become law without his signature (see 
The Marcellus/Utica is THE number one natural gas-producing region in the country–by far. Much of the country, including the M-U, was affected by the bomb cyclone called Winter Storm Elliott over the Christmas break. The bitter cold froze off wells and caused the M-U region collectively to experience a temporary drop in production of roughly 27%. Pennsylvania’s production dropped around 20%, while Ohio’s production dropped 50%.
We came “this close” to a major electricity blackout in New England over the Christmas break, during the bomb cyclone cold snap called Winter Storm Elliott. The ONLY thing that prevented a major blackout (with people freezing to death) was…oil. Fuel oil, specifically. So-called renewable energy–solar and wind–bombed out during the bomb cyclone. Natural gas did what it could, but there wasn’t enough natgas to keep the power generators turning because people like newly-elected Gov. Maura Healey (Massachusetts wacko leftist) blocked new natgas pipelines during her tenure as the state’s Attorney General. What was left was to burn to keep the lights on and to keep people from freezing to death was fuel oil (much dirtier than natural gas). Welcome to the leftist utopia of New England. During the next bomb cyclone, New England may not be so lucky.
Last Thursday, the Pennsylvania Department of Environmental Protection (DEP) published its 2021 Oil and Gas Annual Report (about five months late). This is the sixth year in a row the DEP has published the report in an interactive, electronic (i.e. online only) format. Don’t worry, we’ve turned the report into a convenient PDF for MDN readers. What does the 2021 report show? Permits issued went down, but the number of new wells drilled went up. Natural gas production has gone up (again)–to another new all-time record high.
What a difference three years can make! Three years ago, Henry Hub prices were hovering around $2 per thousand cubic feet (Mcf). Stock valuations for Marcellus/Utica drillers were majorly depressed (down 80-90% from previous highs), and gas producers were struggling. Fast forward to today. Balance sheets and earnings statements are through the roof. Most experts believe $4-$5/Mcf gas is sustainable–at least for the next X years. What does the future look like for M-U drillers? What are the risks? And can we keep the current bright outlook going?
OTHER U.S. REGIONS: Report notes major Permian Basin methane emissions drop; NATIONAL: 3 Energy Macro Themes For 2023; Dallas Fed energy survey shows growing pessimism; Biden effort to cap gas flaring hangs on 15 little words; Shale bosses worried about US labor shortages going into 2023; Oil and gas stocks shine in miserable year for U.S. equities; Shale oil wraps up an underwhelming year, girds for lower growth; 2022 the year the U.S. became the world’s largest LNG exporter; INTERNATIONAL: Canada drops 100+ rigs; Germany returns to coal as energy security trumps climate goals; European LNG import capacity to expand by one-third by end of 2024; German finance minister calls for reverse of fracking ban.