Expand CEO Says NatGas Producers Should Brace for Volatile Prices
Expand Energy CEO Nick Dell’Osso says the natural gas industry is entering a period of price volatility as rising global demand runs into bottlenecks on pipeline and export infrastructure. Volatility describes how much a commodity’s price swings up and down over a given period. High volatility means the price changes are big and rapid, indicating a riskier and less predictable investment. Dell’Osso says the coming period of high volatility creates risks—but it also creates new opportunities for making money via arbitrage. He’s ready for that opportunity. Read More “Expand CEO Says NatGas Producers Should Brace for Volatile Prices”
Last November, Williams officially filed with the Federal Energy Regulatory Commission (FERC) to build an expansion of its mighty Transco pipeline system in the southeastern U.S., a project called the Southeast Supply Enhancement Project (see 
EQT Corporation, at one time the largest natural gas producer in the U.S. (now #2 behind Expand Energy), keeps the LNG hits rolling in. Two weeks ago, the company announced that it had signed a binding contract to buy 2 million tonnes per annum (MTPA) of LNG from Phase 2 of Sempra’s Port Arthur LNG project (see 
We have a second “producer does a deal to buy (not sell) LNG” story today. ConocoPhillips, a huge oil-focused driller, announced a deal to buy 1.0 million tonnes per annum (MTPA) of liquefied natural gas (LNG) from the Rio Grande LNG project. How does this news tie into the Marcellus/Utica? It doesn’t do so directly, but it does so indirectly. First, this deal shows that EQT is not the only driller to move into the role of LNG trader. Others are now doing it, too. A trend? Second, EQT signed its own deal with Rio Grande for 1.0 MTPA of LNG just last week (see 
Diversified Energy, which owns significant assets in the Marcellus/Utica region (and other regions, too), is…diversified! The company owns approximately 8 million acres of leases with close to 70,000 oil and gas wells, mostly conventional wells (by number of wells). However, the company now produces over 40% of its production from shale wells. The company’s business model is to buy already-drilled, lower-producing wells on the cheap and find ways to make them more productive. They do a great job at it. Diversified also owns midstream (pipeline) assets in addition to a well-plugging subsidiary called Next LVL. Earlier this morning, the company announced a deal to acquire Canvas Energy (the entire company) for $550 million. 
A growing coalition representing America’s energy and manufacturing sectors is urging Congress to act swiftly to (finally) modernize the permitting system and unlock new energy investment. With Congress’s return to the swamp, a diverse group of business and energy organizations sent letters to House and Senate leaders calling for bipartisan permitting reform. In a letter to Congress signed by the Independent Petroleum Association of America (IPAA), the U.S. Chamber of Commerce, National Association of Manufacturers (NAM), Data Center Coalition, American Council on Renewable Energy, National Ocean Industries Association, and more, the business and energy groups wrote: “The time has come to modernize our nation’s permitting systems so that our communities can build the infrastructure necessary to grow our economy, create good-paying jobs, and meet the challenges of today and tomorrow.” It seems the message was received. Congress has scheduled hearings on permitting reform beginning today. 
Boston Consulting Group (BCG) published a study yesterday that is intriguing (and useful). The study is called “Strategies to Ride the Surge in US Natural Gas” (copy below). It begins with understanding three trends that have driven the growth of natural gas production over the past 10 years: (1) the change from coal- to gas-fired power; (2) the rise of LNG exports; (3) commercial demand in the U.S. for natural gas soared by 28% from 2010 to 2024. Operating from those three trends/facts, BCG postulates that the natural gas industry could face any one of five futures, which they outline along with strategies for adapting to those scenarios. 
MARCELLUS/UTICA REGION: WV leads coalition urging Supreme Court to keep pipeline case in fed court; OTHER U.S. REGIONS: Gas production in Permian reached new highs; NATIONAL: U.S. natural gas futures settle higher; Gas roars back into the power mix; Wright dismisses global climate efforts as “silly”; INTERNATIONAL: Oil steadies after OPEC+ output hike.