Consolation Prize? PA DCNR Gets $1M from Biden DOE for CCUS Work
Did the Democrats running the Pennsylvania Dept. of Conservation and Natural Resources (DCNR) just receive a consolation prize from the Democrats who run the federal Dept. of Energy (DOE)? That’s the question swirling in our heads as we read about the PA DCNR receiving a $1 million grant from the DOE’s Office of Fossil Energy and Carbon Management (FECM) to do some CCUS (carbon capture, utilization, and sequestration) work. Is the DOE about to bypass PA and award a $1 BILLION grand prize to West Virginia for a hydrogen hub (that includes CCUS), and is this $1 million grant the Biden way of preempting sore feelings in PA by throwing them a bone?
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According to analysts writing for S&P Global Commodity Insights, the long-range forecast from the U.S. National Weather Service calls for milder temperatures in the U.S. Mid-Atlantic region this winter. Warm temps equal less natural gas usage. Williams’ Transco Regional Energy Access Expansion (REAE) project will partially come online in October, flowing an initial 450 MMcf/d (out of 829 MMcf/d) of Marcellus gas to PA, NJ, and Maryland. More supply with less demand is a classic economic prescription for lower prices in New York, New Jersey, and the Mid-Atlantic region. So says the S&P analysts.
Folks new to the Marcellus/Utica may not know this, but Chesapeake Energy’s then-CEO Aubrey McClendon first “discovered” the Ohio Utica about 15 years ago. Under McClendon, Chesapeake spent over $2 billion acquiring rights to drill 1.3 million acres in Ohio — or roughly 5% of the state’s land area. McClendon pegged the value of the Utica for Ohio at half a trillion dollars. He famously said the Ohio Utica is “the biggest thing economically to hit Ohio, since maybe the plow.” While McClendon rightly deserves credit for launching the development of the Utica, he guessed wrong on the best places to drill in the Utica.
As far back as July 2021, MDN began to cover the issue of geothermal energy, which uses the same technology (drilling rigs, horizontal drilling) to drill holes in the ground to circulate and warm (or cool) water underground as a “green” energy source. Geothermal is an area of interest for Marcellus/Utica shale drillers as a potential new source of revenue (
In May, the Bidenistas at the EPA released a hellscape of new regulations (681 pages) aimed at forcing coal- and natural gas-fired power plants to close (see
NATIONAL: The air’s gone out of the climate-crisis balloon; Oil headed for $150 without US support for more drilling; Big Green law firm getting probed by U.S. Senate; INTERNATIONAL: Winter gas price rally unlikely despite recent volatility; Uniper secures LNG until late 2030s to feed European demand; India seeks more natural gas amid emergency measures to end blackouts.