Michigan Town Signs with BP to Supply Natgas to Power Plant

Any time a new natural gas-fired power plant is announced in the northeast, southeast, or Midwest, we’re interested. Why? Because they are gas-hungry beasts, using huge quantities of natural gas. And chances are plants in those regions could (likely do) use Marcellus/Utica Shale gas to power them–at least in part. They are an important new source of demand for our gas. Often overlooked are existing gas-fired power plants, especially those that don’t run 24/7/365. They’re an important market for our gas too. We spotted a story about one such plant, in Marquette County, Michigan. Tuesday afternoon the Marquette Board of Light and Power board approved a new natural gas wholesale price agreement for the Marquette Energy Center–a small 54 megawatt generator that runs from 7am to 10pm each day. Plants typically don’t cut deals with drillers directly. Instead, they buy gas on contract from a broker, a “gas marketer” that buys and sells natural gas. Three of the four companies bidding on the Marquette Energy Center contract are on a list of the Top 25 North American Gas Marketers, a list tabulated and published quarterly by our friends at NGI (Natural Gas Intelligence). In fact, the top gas marketer in the country (has been for years) is the company that won the Marquette contract–BP…
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BP’s 67th Statistical Review – Fossil Fuels Still Going Strong

Oil and gas giant BP recently released its annual Statistical Review of World Energy–the 67th edition! (Full copy below.) A number of big energy companies, like Exxon Mobil, as well as government agencies, publish similar reports that characterize current and future world energy trends. However, one analyst we read says BP’s report is the best: “I have relied upon the BP World Energy report for years. It is not a report to be viewed with a partisan eye, but as merely one of the best, if not the best, energy trend device available anywhere. In comparison to government agencies like the U.S. Energy Information Administration (EIA) the global International Energy Association (IEA) or OPEC’s own World Oil Outlook, the BP report has proven itself to be far more valuable in finding investable trends. I would never recommend any oil sector without having the statistical evidence of the BP World Energy Report behind me.” This year’s report finds that oil and natural gas consumption increased significantly in 2017. It also finds the U.S. best-positioned to meet that increasing demand, thanks to the shale miracle. Below we have some of the key highlights from the report, followed by a full copy…
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Who *Sells* the Most NatGas in the U.S.?

Who are the biggest natural gas sellers in the U.S.? You might be surprised to learn that the biggest sellers are not necessarily the biggest producers of natural gas. Oh, you might recognize some of the names of the top sellers (BP, Shell, ConocoPhillips). But others might be more of a mystery (Macquarie, Tenaska, Direct Energy). Would it surprise you to learn that BP (i.e. British Petroleum) is the #1 seller of natgas in the U.S., and has been for years? Last quarter BP sold 22.10 billion cubic feet per day of natural gas here in the colonies. That represents 18% of all natural gas bought and sold. Each quarter NGI (Natural Gas Intelligence) runs the numbers and publishes the list of 25 top natural gas marketers in the U.S. They recently published the first quarter 2018 list, which shows that for a second quarter in a row, overall volumes are up from the same quarter a year ago. Here’s the cool thing: NGI publishes the list absolutely free on their website! As we scan down the list of who sells (i.e. markets) the most natgas in the U.S., we can’t help but notice that many of them have operations in the Marcellus/Utica region…
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Pin Oak Zigs to North Utica as Everyone Else Zags to South Utica

Pin Oak Energy Partners is an interesting company. As we reported in early February, the company recently closed on several deals to acquire 70,000 Utica acres in both Ohio and Pennsylvania, adding to its portfolio (see Pin Oak Energy Buys 70K Utica Acres in OH & PA + Pipeline Assets). The new acreage (and producing well assets) is located in Mahoning and Trumbull counties in Ohio, and Mercer County in Pennsylvania. The amount of the transaction was not disclosed. Neither were the names of the sellers. However, we now have a pretty good idea of who did the selling: Halcon Resources and BP. We have some new insights into the thinking and strategy of Pin Oak by zigging (concentrating on the northern Utica) when it seems everyone else is zagging–abandoning the northern tier for the better-yielding southern Utica…
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RINOsaurs Enlist Help from Big Oil to Push Insane Carbon Tax

A group of creaking, tottering old RINO (Republican in Name Only) dinosaurs (i.e. RINOsaurs) left the golf course long enough to lobby President Trump on the insane idea of a so-called “carbon tax” back in February (see RINOsaurs Lobby Trump to Enact Socialist “Carbon Tax”). Two of them were from the Ronald Reagan Administration–George Shultz and James Baker III, both former Secretaries of State. A carbon tax is nothing more than a way to slap a regressive tax on every citizen of the country–as if we aren’t already taxed enough. If you live in the great middle class of this country, you already pay close to 50% of your income in various federal, state, local, property, sales and other taxes. Add it up sometime, you’ll see we’re not exaggerating. A group of Republican “elder statesmen” (as fake news source CNN calls them) met with Team Trump at the White House to push this disastrous plan, calling it (be careful not to vomit), “conservative.” There’s nothing conservative about it. We thought perhaps that was the end of it, and the the RINOsaurs lumbered back to the golf course. Unfortunately, that’s not the case. Somehow the old farts have now enlisted the help of some Big Oil companies, including Exxon Mobil and BP, to help push a carbon tax in the U.S. We have little doubt Trump will go for it (he’s not stupid, like establishment swamp dwellers around DC). However, we find it troubling that people in our industry are buying into the hype around man-made global warming, and see a tax as the potential fix…
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Top 10 Natural Gas Producers in the U.S., Post-EQT/Rice Merger

As we were reading about yesterday’s big news of EQT buying Rice Energy, we came across a couple of lists (same list, different sources) listing the top 10 natural gas-producing companies in the United States. The list was reworked to show that the combination of EQT and Rice will create the #1 largest natural gas-producing company in the country. An astonishing feat. But what caught our eye in looking over the “top 10” list was just how many of the companies in that list have operations in the Marcellus/Utica. At one time or another, all 10 of the top 10 owned leases and/or drilled in the Marcellus/Utica. By our count, 8 of the top 10 still do. You already know that EQT/Rice will become the #1 producer. But who is #2, and #3? And what about the rest of the list? We have it for you below…
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BP Energy Outlook 2017: Fossil Fuels Still Rule, US to Dominate LNG

UK oil and gas giant BP released the 2017 edition of their BP Energy Outlook on Tuesday. BP, being a European company, pays homage to renewables and pledges its undying love for the crappy Paris climate treaty. Whatever. There are a few facts from the Outlook that stand out: (1) By 2035, across the entire world, 78% of all energy will come from fossil fuels. So much for renewables riding in to the save us all “any day now.” (2) In 2015, natgas produced 24% of the world’s energy. BP says in 2035 that number will go up to 25%–just a single percentage point. We think that’s grossly underestimated, but who are we? (3) The U.S. will achieve overall energy self-sufficiency by 2023 (last year they estimated it would happen in 2021). (4) Carbon emissions were flat for a third year in a row, driven by “weak energy demand and a cleaner energy mix,” which includes the use of more natgas. Tell us again why we need the Paris climate treaty, when carbon output is going down without it? (5) The U.S. will be neck-in-neck with Australia, but we will likely be *the* dominate LNG supplier worldwide by 2035. Read the full BP report below…
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BP Report: LNG Sales to Grow 7x Faster than Pipeline Sales

Many of the large integrated oil and gas companies produce an annual report that looks out over the next 20 years. Their best researchers peer into their crystal balls and make predictions about what will happen–and why. BP is one such company. Earlier this week BP released their annual “Energy Outlook – 2017 edition” (full copy below). The big news in the outlook, for us, is finding out that BP predicts LNG (liquefied natural gas) sales will grow seven times faster over the next 20 years than gas sold via pipelines. Making LNG a VERY important part of our future…
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World’s Top 10 Natural Gas Producers

top-10.jpgWe sometimes run Top 10 lists for the Marcellus/Utica, or even the U.S., but what about a Top 10 list of natural gas producers in the entire world? We spotted an article on the Forbes magazine website that lists the Top 10 natgas producers for the entire world. By our count, eight of the ten have major or minor operations in the Marcellus/Utica. Cool! Here’s the list…
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BP’s 65th Statistical Review – Fossil Fuels Going Strong

simply the bestLast week BP released its annual Statistical Review of World Energy–the 65th edition! (We have a full copy embedded below.) A number of big energy companies, like Exxon Mobil, as well as government agencies, publish similar reports that characterize current and future world energy trends. However, one analyst we read says BP’s report is the best: “I have relied upon the BP World Energy report for years. It is not a report to be viewed with a partisan eye, but as merely one of the best, if not the best, energy trend device available anywhere. In comparison to government agencies like the U.S. Energy Information Administration (EIA) the global International Energy Association (IEA) or OPEC’s own World Oil Outlook, the BP report has proven itself to be far more valuable in finding investable trends. I would never recommend any oil sector without having the statistical evidence of the BP World Energy Report behind me.” In scanning a summary of this year’s report, one statistic stands out for us. Environmental radicals constantly prattle on that renewable energy sources could replace fossil fuels, if we only had the will to change. What utter rubbish, as proven by this stat: In 2015 renewable energy, mostly used to generate power, reached 2.8% of global energy consumption, up 2% in the last ten years. Did you get that? Only 2.8% of the energy used in the world is generated by wind, solar, etc. Fossil fuels are here to stay through not only our own lifetimes, but the lifetimes of our children and grandchildren. Someday maybe we’ll be famous for having been prescient in penning these words (we’ll be long dead and gone)–but mark our words, fossil fuels are not going away any time soon…
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BP Energy Outlook 2016: NatGas Surpasses Coal by 2035

UK oil and gas giant BP released the 2016 edition of their BP Energy Outlook on Wednesday. BP, being a European company, lards the Outlook up with flowery talk of renewable this and sustainable that. But there are a few facts from the Outlook that slap you in the face: (1) By 2035, across the entire world, 80% of all energy will come from fossil fuels. So much for renewables riding in to the save us all “any day now.” (2) Natural gas is the largest-growing fossil fuel and by 2035 it will have replaced coal as the #2 source of energy in the world. (3) The U.S. will achieve overall energy self-sufficiency by 2021, and oil self-sufficiency by 2030. Another fun fact from the BP Energy Outlook: shale gas will account for 20% of total global gas output by 2035. Read the full report below…
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New BP Technology Report Predicts O&G Supplies will Double by 2050

researchPeak Oil theorists like Art Berman won’t be happy with the latest report just published by oil giant BP. BP and other large energy companies publish annual energy outlook studies that we’ve highlighted in the past (see BP’s Annual Energy Report: Smallest Demand Increase since 1990s). For the first ever, BP has just published a report called the BP Technology Outlook (full copy below) that reveals much of their internal research on new technologies that will keep energy supplies plentiful and affordable, “enough to meet projected demand many times over” according to the study’s authors. While BP pays much lip service to so-called renewable sources of energy in this new study, here’s the part that will give Berman and other Peak Oil fanatics heartburn: “applying today’s best technologies to discover oil and gas resources could significantly increase ‘proved reserves’ from 2.9 trillion barrels of oil equivalent to 4.8 trillion barrels – nearly double the 2.5 trillion barrels required to meet projected cumulative global demand through to 2050.” Did you catch that? New tech available today can and will double the amount of recoverable oil and gas. So much for Peak Oil and Gas! We’re awash in it and will remain so for generations…
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10 Sell-Out Big Oil Companies Support Paris Global Warming Treaty

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Eight CEOs from the Gang of 10

In a repugnant and self-serving public relations stunt, the CEOs for 10 of the world’s largest oil and gas companies are pushing for “an effective climate change agreement to be reached at next month’s 21st session of the United Nations (UN) Conference of Parties to the UN Framework on Climate Change (COP21)” at the meeting being held in Paris in early December. That is, they’re pretending they believe in the total hoax that mankind is causing global warming and therefore all of the nations of the earth, including the United States, should give up their sovereignty to achieve something they have no control over–whether or not global average temps go up more than 2 degrees Celsius by the end of this century. Conveniently, most of us won’t be alive to see whether or not that ever happens. Fortunately none of the big oil companies signing this asinine statement are U.S.-based companies, although they all have serious (and large) operations in the U.S. Who are the Gang of 10?…
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BP Makes Offer to Buy Penn Virginia, Other Majors Interested Too

George Soros smilingAlthough headquartered in Radnor, Pennsylvania (near Philadelphia), Penn Virginia Corporation is an oil and gas driller (i.e. “producer”, i.e., E&P company) with only a small presence in the Marcellus Shale: 21,700 net acres with no drilled wells. They concentrate on oil drilling the Texas Eagle Ford Shale play. MDN told you in March that Democrat billionaire corporate raider George Soros, one of the most vile big money investors in the world who has repeatedly damaged not only corporations but entire country’s economies, had taken a 9.1% ownership position in Penn Virginia in order to force it to sell and was doing exactly that (see George Soros Finally Bullies Penn Virginia into Selling Itself). Since March all has been quiet, until yesterday when somebody leaked the rumor that oil and gas giant BP has made an offer to buy Penn Virginia, driving the stock price up over 20% at one point. However, another rumor says Penn Virginia rejected BP’s offer as too low and is holding out for more. In addition to BP, Exxon Mobil and Chevron are also said to be interested in buying Penn Virginia. All of this buyout talk is driving Penn Virginia’s stock price up, putting a big smile on George Soros’ face…
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BP’s Annual Energy Report: Smallest Demand Increase since 1990s

BP (what used to be known as British Petroleum) is, and has been for years, North America’s top natural gas marketer. Although first quarter 2015 marketer rankings aren’t out just yet, if you look at fourth quarter 2014, BP sold (i.e. marketed) twice as much natural gas on a daily basis as the next nearest company, which happens to be Shell (see NGI’s 4Q14 NatGas Marketer Rankings). Like other oil “majors,” BP issues a yearly outlook on worldwide energy consumption and trends. BP calls their version of this report the BP Statistical Review of World Energy. The company released the 64th edition of that review today (full copy below). BP themselves say this edition, “highlights the continuing importance of the US shale revolution, with the US overtaking Saudi Arabia as the world’s biggest oil producer and surpassing Russia as the world’s largest producer of oil and gas.” Readers of MDN already know those two facts: that the US years ago dethroned Russia as the #1 natural gas producer, and that more recently we’ve dethroned Saudi Arabia as the world’s #1 oil producer. What else do we learn from this year’s report?…
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Big European Oil Companies Want UN to Slap Carbon Tax on U.S.

The Europeans are sometimes, well, stupid. How else can you explain six large oil companies–BG Group, BP, Eni, Royal Dutch Shell, Statoil and Total–buying into the tax scheme called carbon credits? The six sent a letter (copy below) to the United Nations Framework Convention on Climate Change (UNFCCC) begging the UN to introduce carbon pricing systems and “create clear, stable, ambitious policy frameworks that could eventually connect national systems” that would “reduce uncertainty and encourage the most cost effective ways of reducing carbon emissions widely.” This is madness. Create laws that supersede each country’s sovereignty and impose a worldwide tax on carbon–the stuff you breathe out with every breath–as some sort of solution for the imaginary problem of man-made global warming? If the UN does such a thing, it will spell the end of the companies sending the letter! What do you call a company trying to commit economic suicide? Do the investors of these six companies know the heads of those companies are trying to destroy the company and their investments along with it? No wonder Europe is in decline…
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