Longer Laterals Means Range Resources Drilling Fewer Wells in 2023
Range Resources Corporation, the very first company to drill a shale well targeting the Marcellus Shale layer in Pennsylvania (in 2004), issued its third quarter update yesterday. In prior guidance from earlier this year, Range said it would drill between 60-65 wells in 2023. However, with this latest update, that number was revised down to 51 new wells in this latest update. The reason for drilling fewer wells, according to the Range officials, is that the company is drilling longer wells, achieving the same amount of lateral feet with fewer holes in the ground. Even though fewer new wells are coming, the ones that are drilled produce more.
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Yesterday, CNX Resources issued its third quarter 2023 update. Even with a crash in the price of natural gas this year, CNX generated $21 million in net profit during 3Q23 versus losing $427 million in 3Q22. The company also managed to generate $19 million in free cash flow in 3Q23. Of particular interest for us is that of the 13 new wells brought online during the quarter, four of them were drilled under runways at Pittsburgh International Airport. CNX has a public-private partnership with the airport to drill wells on airport property. The original plan called for 45 wells, but as of last year, only 14 wells had been drilled (see 
Shrill antis have their answer from the U.S. Court of Appeals for the District of Columbia (D.C. Circuit) in a request to (once again) shut down construction on the Mountain Valley Pipeline (MVP): NO! A small group of uppity Virginia landowners don’t want MVP crossing their horse pastures, leaving a mark. So they conspired with Big Green lawyers in a lawsuit challenging the right of the Federal Energy Regulatory Commission (FERC) to use eminent domain to build pipelines across private land.
The Baker Hughes rig count has crashed this year compared to last year’s numbers. A few months ago, we began to chronicle the weekly rig count to keep track of this alarming situation (which we post about every Monday). U.S. Energy Information Administration (EIA) analysts have taken notice of the crashing rig count and asked themselves: Why? It may seem obvious, but EIA points out in a new post on its Today in Energy website that the crash in the natural gas rig count directly correlates to the crash in the price of natural gas.
On Sept. 1, the Pipeline and Hazardous Materials Safety Administration (PHMSA), part of the Biden Dept. of Transportation, issued a federal rule suspending a 2020 authorization of LNG transportation in rail tank cars granted under the Trump administration (see 
OTHER U.S. REGIONS: Build-out of Permian gas processing capacity isn’t over; ConocoPhillips weighs CrownRock bid to challenge rivals; NATIONAL: Lenders will take keys to Charif Souki’s bankrupt Aspen ranch; Growing bipartisan support for natural gas in D.C.; INTERNATIONAL: Montreal to ban use of propane, natural gas, heating oil in new buildings.