Understanding “Primacy” Issue for Class VI (CO2) Injection Wells
With the rapid increase in carbon capture and sequestration (CCS) projects around the country, including right here in the Marcellus/Utica region, a key issue has arisen. Where does one store (sequester) all that carbon dioxide (CO2)? The answer is underground in a Class VI injection well. Class VI wells are a relatively new classification for injection wells, created by the federal EPA in 2010. Who regulates Class VI wells is a current flashpoint of controversy. Right now, the EPA is the primary regulator (has “primacy”) in regulating Class VI wells in all but two states (neither of which is a Marcellus/Utica state).
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Diversified Energy (formerly Diversified Gas & Oil), with major assets in the Marcellus/Utica region (and other regions too), owns approximately 8 million acres of leases with close to 70,000 (mostly) conventional oil and gas wells. The company’s business model is to buy lower-producing wells on the cheap and find ways to make them more productive. One of the new ways Diversified is looking to make money with old wells is by mining cryptocurrency at wells in remote locations not hooked to a pipeline network. Diversified wants to try it with a well in northwestern Pennsylvania. Unsurprisingly, it’s generating some controversy…
Once again, the NYMEX futures price, based on the physical Henry Hub price for natural gas, appears to be in a freefall. Yesterday, the NYMEX’s front month contract price (for April) lost 18 cents per million British thermal units (MMBtu), or 8%, dropping to $2.17/MMBtu. It sure feels like the bad old days when we couldn’t keep the price above $3/MMBtu. This is the second-lowest price this year so far. Yesterday’s price was 77% lower than the 52-week high of $9.68 hit Monday, Aug. 22, 2022. Why so low? Warm weather and high production.
For more than a year, we have covered the topic of the Bidenistas’ Hunger Games contest to award $7 billion to some 6-10 “hydrogen hubs” across the country. Each winning hub will receive $500 million to $1 billion of government largesse to help build a hub in a particular region. The money for the hub projects was allocated as part of the so-called Infrastructure bill, passed in November 2021. Some 79 “concept papers,” which is a pre-application, were received by the Dept. of Energy. Of the 79, only 33 were given “encouragement” (i.e. permission) by the DOE to advance to the next stage of the Hydrogen Hunger Games (see 
Newly-elected Pennsylvania Gov. Josh Shapiro nominated Rich Negrin, a former top official (and Deputy Mayor) of Philadelphia, to become the next Secretary of the Dept. of Environmental Protection (see 
According to data from the U.S. Energy Information Administration (EIA), U.S. exports of liquefied natural gas (LNG) averaged 10.6 billion cubic feet per day (Bcf/d) in 2022, increasing by 9% (0.8 Bcf/d) compared with 2021. The increase in U.S. LNG exports was driven by strong LNG demand in Europe, high international natural gas prices, and expanded U.S. liquefaction capacity. U.S. LNG exports to Europe increased 141%, or 4.0 Bcf/d, compared with 2021.
If you work for an oil & gas company (driller or pipeline company), you might think the skills you would need are along the lines of handling heavy equipment or using a shovel, chainsaw, and other hand tools. But many O&G workers sit in offices. What kind of “soft” (non-industry specific) skills do they need? According to Hazeltine Executive Search Partners, O&G workers need three primary soft skills: effective communication, problem-solving, and adaptability. Let us explain…
NATIONAL: USA shale drilling set for 20 percent drop at current prices; Biden blocks mineral mining his clean-energy goals require; INTERNATIONAL: Italy moves to cut Russian gas with new floating LNG terminal.