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Weekly Shale Drilling Permits for PA, OH, WV: May 31-Jun 6
Two of three Marcellus/Utica states received permits to drill new shale wells last week. Pennsylvania issued 13 new permits, almost all of them in the dry gas northeastern part of the state. Ohio issued 11 new permits, in the center of the Utica play. West Virginia’s shale industry got skunked last week–no new permits. It’s been quite a while since that’s happened in WV.
Read More “Weekly Shale Drilling Permits for PA, OH, WV: May 31-Jun 6”
RBN Energy is a fountain of great information about the oil and gas sector. Headed by industry icon Rusty Braziel, RBN tracks and reports on a number of O&G companies. One of the best features of their information service is tracking the performance of three groups of publicly-traded O&G companies: Oil-Weighted E&Ps, Diversified E&Ps, and Gas-Weighted E&Ps. That last group, the gas-focused companies, is a list of 10 E&Ps. Only two of the ten don’t have any operations in the Marcellus/Utica–all the rest do. RBN has just published a post about the financial performance in 1Q21 for all three groups. The numbers are very encouraging.
The Pennsylvania Dept. of Environmental Protection (DEP) has done a little more fundraising to underwrite the salaries of overpaid management. The DEP fined Olympus Energy (formerly Huntley & Huntley) for $175,000 in a “civil penalty.” What did Olympus do that was so egregious? After a hard rain some of the rainwater got muddy on an Olympus well pad and washed down an unnamed creek in Allegheny County. Oh, and the language on a sign posted at the pad site didn’t contain some of the exact “Simon Says” language on it, including permit numbers. The shame! The horror!
Can we get an amen! We have an evangelist in the house. Toby Rice, CEO of EQT (the largest natural gas producing company in the U.S.) is preaching the gospel of natural gas. No surprise there. But what may surprise you (it did us) is just how much Rice is pushing natgas as the alternative to coal in power generation. In an interview with Barron’s, Rice declared we need “every tool” to end energy poverty around the world, and “natural gas is the most evolved tool” to do it. Amen!
Last week we shared the bombshell news that Cabot Oil & Gas, one of the premier drillers in the Marcellus, is merging with (being acquired by) Permian driller Cimarex Energy (see 
Diversified Gas & Oil recently changed its name to Diversified Energy. Along with the name change came a strategy change. Until last month Diversified had concentrated on building the company by buying older (mature) oil and gas wells in the Appalachian Basin. In April the company announced it is branching out beyond Appalachia for the first time with a purchase of ~780 net operated wells and leases in the Cotton Valley/Haynesville region of Lousiana for $135 million (see 
Yesterday we shared the devastating (for us) news that Cabot Oil & Gas, one of the premier drillers in the Marcellus, is merging with (being acquired by) Permian driller Cimarex (see 
The judge in a lawsuit initiated by Cabot Oil & Gas against a Susquehanna County, PA landowner and his lawyers has had it up to here with the ongoing stonewalling and delay tactics by the landowner’s lawyers. “Four years we’ve been spinning our wheels on this nonsense,” the judge said. “The court is extremely frustrated, to put it politely.” The judge bordered on being impolite at a hearing last Thursday…
As we reported a month ago, a group of West Virginia landowners/rights owners filed a claim against EQT alleging the company had allowed leases to lapse, then at a later date reentered their property and drilled new wells (see 
We’re devastated. We know you’re not supposed to have favorites, but we do. Our favorite Marcellus/Utica driller for years has been Cabot Oil & Gas. We know some great folks who work for Cabot. It has been a peerless operator in the northeast Marcellus–making money when nobody else could. Cabot treats its landowners well, cares about the environment, gives big money to local nonprofit causes, and in general is the best kind of corporate citizen anybody could wish for. We suppose it was only a matter of time before Cabot became a target in this merger mania we’re currently going through. This morning Cabot announced a “merger of equals” with Cimarex, a big driller in the Permian and Midcontinent. The truth is Cimarex is buying out Cabot.
NGL (natural gas liquid) revenues for U.S. drillers soared in the first quarter of 2021–up 100% (i.e. doubled) over the same quarter in 2020, which was the quarter when COVID-19 began to seep into the public consciousness. In particular international demand for U.S. liquefied petroleum gas (LPG, or propane) helped propel NGL revenues higher in 1Q21. Guess which company posted the highest year-over-year increases for both NGL prices and revenues?