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Expand Energy is the 800-Pound Gorilla in the Pipeline Sector
We stumbled across an article by East Daley Analytics that is a real eye-opener for us. East Daley analyzed 13 major public G&P (gathering and processing) operators (i.e., pipeline companies). They found that Expand Energy (created by the merger of Chesapeake Energy with Southwestern Energy), with major assets in the Marcellus/Utica and the Louisiana Haynesville, accounts for 52% of DT Midstream’s gathering volumes, 32% of Williams’, and 21% of Energy Transfer’s throughput. Yikes! Just one company. [Article amended below. See our note at the end.] Read More “Expand Energy is the 800-Pound Gorilla in the Pipeline Sector”
Despite rising Northeast gas demand from retiring coal plants and new data centers, plus added Appalachian pipeline capacity, production growth isn’t guaranteed—operators prioritize capital discipline, debt reduction, and shareholder returns over volume. Appalachia has held flat at roughly 33-36 Bcf/d since 2020. Can anything tempt Marcellus/Utica drillers to drill and produce more than they are now? According to RBN Energy, sustained Henry Hub prices above $4/MMBtu (versus the current $3.50-$3.60 long-dated curve) and better takeaway infrastructure could be enough of a temptation. 
Thanks to the work of David Hess at the PA Environment Digest Blog, which tracks Department of Environmental Protection (DEP) notices published in the Pennsylvania Bulletin, we know of two water pipeline projects (for EQT and Expand Energy) approved by the DEP related to drilling new shale wells in two different northeastern PA counties: Lycoming and Bradford. Water is used for fracking. New water pipelines mean new fracking is on the way in those locations. 
The Marcellus/Utica region received a piddly 7 new drilling permits last week, July 6 – 12, down 21 from two weeks ago. Last week, Pennsylvania issued just 1 new permit. Ohio issued 5 new permits. And, West Virginia issued 1 new permit. The drillers who received new permits included: Antero Resources (1), Expand Energy (3), and Gulfport Energy (3). 
In February, Expand Energy fired its CEO, Nick Dell’Osso, the guy who grew the company into the largest natural gas producer in the U.S. (see 
The highly functional and responsible Susquehanna River Basin Commission (SRBC), unlike its dysfunctional and irresponsible counterpart, the Delaware River Basin Commission (DRBC), continues to support the shale energy industry by approving water withdrawals and consumptive use requests for responsible, safe shale drilling. The SRBC published a notice in the June 27th Pennsylvania Bulletin that the SRBC approved and/or renewed 34 general water use permits in May for individual shale gas well drilling pads in Bradford, Clinton, Lycoming, McKean, Sullivan, Susquehanna, Tioga, and Wyoming counties. 
Here’s a West Virginia court case we were not previously aware of, one that affects the entire state regarding local zoning for shale gas drilling. The West Virginia Supreme Court of Appeals ruled Wednesday that municipal zoning laws are not entirely preempted by state environmental regulations, reversing an intermediate court decision and siding with the City of Weirton against SWN Production Company (Southwestern Energy, now part of Expand Energy). The 4-1 decision found no conflict between the state Department of Environmental Protection’s authority over drilling processes and municipalities’ power to regulate land use under the Land Use Planning Act.