Marcellus Drilling News

Antero Resources | Chesapeake Energy | CNX Resources | Coterra Energy (Cabot O&G) | Energy Companies | EQT Corp | Gulfport Energy | Range Resources Corp | Seneca Resources | Southwestern Energy

M-U Driller Profits Bounce Back into the Black for 3Q23
November 27, 2023November 27, 2023

It’s been a financial roller coaster for oil and gas drillers over the past 15 years. Investors in shale oil and gas companies suffered for years with little or no returns for their invested money. Five of eight large Marcellus/Utica drillers saw their share prices decrease by an astonishing 85% or more from 2008 to 2019 (see Former EQT CEO: Shale Revolution a “Disaster” for Investors). Just before the COVID pandemic hit, shale companies began to change and focus on less drilling and more profitability. That change paid off in a big way. Shale companies saw record profits in 2022 (see How Did M-U Gas Drillers Spend Their 2022 Record Haul of Cash?). But beginning in late 2022, the roller coaster took another turn down and profits crashed (see M-U Drilling Profits Hit Two-Year Low, Better Days Ahead?). But what’s this? Profits for drillers in the M-U (and other shale plays) recovered and began to climb again in the third quarter of 2023 following a five-quarter slide.
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Electrical Generation | Industrywide Issues | Litigation | Pennsylvania | Statewide PA | Taxation

Energy Groups Gear Up to Oppose Shapiro’s Appeal of Carbon Tax
November 27, 2023November 27, 2023

Last Wednesday, before heading out the door for the Thanksgiving holiday, MDN brought you the sad (but not unsurprising) news that Pennsylvania Gov. Josh Shapiro had decided to appeal a Commonwealth Court decision striking down his predecessor’s attempt to force the state to implement a multi-billion-dollar carbon tax, called the Regional Greenhouse Gas Initiative (see PA Gov. Shapiro Proves He’s Radical Left – Appeals RGGI Decision). As we told you in that post, several Big Green groups immediately posted love letters of support. The case now goes to the PA Supreme Court, which is packed with leftist Democrats. However, the PA Senate, controlled by Republicans and a growing list of energy groups, will make the case before the Supremes that the RGGI carbon tax should be dead once and for all.
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Allegheny County | Anti-Drilling/Fossil Fuel | Electrical Generation | Industrywide Issues | Pennsylvania

SWPA Unions Split with Dem Left re Loss of Gas-Fired Power Plant
November 27, 2023November 27, 2023

In January 2016, Invenergy announced its intention to build a natural gas-powered electric plant in rural Elizabeth Township, in Allegheny County, PA (see Invenergy Eyes SWPA for Second Marcellus-Powered Electric Plant). It took a few years, a lawsuit, and a new location, but eventually, Elizabeth commissioners approved Invenergy’s plan in December 2018 (see Elizabeth Twp in Allegheny Co. OKs Invenergy Gas-Fired Plant). In June 2021, the Allegheny County Health Department’s permitting section held a hearing to discuss potential emissions from the plant. The Health Department subsequently issued an installation (but not an operating) air permit. A mishmash of Big Green groups promptly challenged the installation permit (see Anti Groups Challenge Permit for Invenergy Gas-Fired Plant in SWPA). Sadly, Invenergy threw in the towel a few weeks ago, canceling the project (see Invenergy Caves to Pressure and Cancels Allegheny Gas-Fired Plant). Labor unions in Southwestern PA are not happy about the project being canceled.
Read More “SWPA Unions Split with Dem Left re Loss of Gas-Fired Power Plant”
Centre County | Industrywide Issues | Litigation | Pennsylvania | Statewide PA | Supply Chain

PA Construction Co. Glenn O. Hawbaker Loses PennDOT Contracts
November 27, 2023November 27, 2023

Glenn O. Hawbaker, Inc., long known for providing stone quarries and asphalt plants in Pennsylvania and Ohio, also provides civil construction services for shale well sites. In August 2021, Pennsylvania’s then-Attorney General, Josh Shapiro, announced a plea deal with Hawbaker to pay back $20 million in alleged “stolen wages” from over 1,000 Hawbaker employees (see PA Construction Co. Glenn Hawbaker Pays $20M for “Stolen Wages”). After the plea deal, the Pennsylvania Dept. of Transportation (PennDOT) moved to deny any new construction contracts to Hawbaker for three years — contracts worth hundreds of millions of dollars. Hawbaker sued to block the PennDOT order barring them from pursuing state contracts.
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Industrywide Issues | Ohio | Pennsylvania | Research | Statewide OH | Statewide PA | Statewide WV | West Virginia

U.S. Rig Count Sees Small Increase – Adds 4 @ 622, M-U Adds 1 @ 40
November 27, 2023November 27, 2023

The dead cat bounce bounced a little higher last week (i.e., the slight bounce a dead cat makes when it hits the ground). The rig count hit a new low for 2023 three weeks ago (see U.S. Rig Count Hits New 2023 Low – Loses 2 @ 616, M-U Even @ 40). Two weeks ago, the count increased by a measly two rigs from 616 to 618 (see U.S. Rig Count Small Increase – Adds 2 @ 618, M-U Loses 1 @ 39). Last week (as of last Wednesday), the count added another four rigs and now stands at 622. The Marcellus/Utica gained back one rig (in Pennsylvania) that it had lost the prior week (from Ohio) to hit 40 active rigs in the combined M-U.
Read More “U.S. Rig Count Sees Small Increase – Adds 4 @ 622, M-U Adds 1 @ 40”
CNG/LNG | Exporting | Industrywide Issues | Regulation

Freeport LNG Second Loading Dock Gets Final FERC OK to Restart Ops
November 27, 2023November 27, 2023

Freeport LNG’s export terminal with three liquefaction “trains” shut down in June 2022 after an explosion and fire (see Explosion Rocks Freeport LNG Export Plant – Offline for 3 Weeks). What was initially thought to be a three-week outage lasted for ten months! The plant finally returned online in March of this year (see Freeport LNG Plant Back to Full Capacity Using 2.1 Bcf/d of NatGas). However, the plant has not been back to 100% operational status. A second loading dock is still offline. In October, Freeport asked the Federal Energy Regulatory Commission (FERC) for permission to return Dock 2 to operational status, which would goose output from the current 2.1 Bcf/d to 2.38 Bcf/d (see Freeport LNG Still Not at 100%, Asks FERC to Approve Full Restart). Last Wednesday, FERC finally granted full permission to restart the final pieces that are not online.
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Anti-Drilling/Fossil Fuel | Industrywide Issues | Regulation

Bidentistas Attack O&G with Wave of New Methane Rules Next 6 Mos.
November 27, 2023November 27, 2023

The irrational leftists who inhabit the Biden administration can’t help themselves. They HATE fossil fuels and are doing everything they can to destroy the fossil energy industry using the regulatory power of the Executive Branch. Biden may or may not be aware of the situation (he’s so clueless). Regardless, the Bidenistas have their sites set on damaging fossil fuels with “a battery of rules in the coming months” — at least six significant new regulatory actions to “control” methane emissions.
Read More “Bidentistas Attack O&G with Wave of New Methane Rules Next 6 Mos.”
Best of the Rest

Other Stories of Interest: Mon, Nov 27, 2023
November 27, 2023November 27, 2023

MARCELLUS/UTICA REGION: At the New York Krazy Klimate Konference; OTHER U.S. REGIONS: Landowner near Sulphur refuses to grant pipeline right-of-way; NATIONAL: Former EQT CEO Murry Gerber to retire from BlackRock board; INTERNATIONAL: Panama logjam could benefit Europe as USA LNG cargoes avoid Asia.
Read More “Other Stories of Interest: Mon, Nov 27, 2023”