Seneca Resources Deploying Aurion to Track & Report GHG Emissions
Seneca Resources Company, the Marcellus/Utica drilling arm of utility giant National Fuel Gas Company (headquartered in Williamsville, NY), has contracted with a company called Tachyus (headquartered in Houston, TX) to use its cloud-based greenhouse gas tracking and reporting service called Aurion. The purpose is, of course, to lower Seneca’s carbon and fugitive methane footprint–and to prove that is has lowered it.
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The weather has been fantastic for those of us living in the northeastern U.S. over the past few weeks. Clear blue skies (when they aren’t clouded with wildfire smoke from Canada), really warm temperatures, and absolutely no rain to spoil outdoor activities. Here in the Binghamton, NY area, we went from a surplus of rain and swollen rivers and lakes just a month ago to a rain deficit today. Lawns and fields and beginning to turn brown. Hey, we’re not complaining! But we do need some rain. The lack of rain in the Susquehanna River Basin has triggered water withdrawal restrictions for 42 oil and gas drillers and four other large water users (46 in all) by the Susquehanna River Basin Commission (SRBC). In many cases, the SRBC order is to “cease withdrawal.”
It’s been a wild ride for shale energy companies from the beginning of the shale revolution around 20 years ago. Here in the Marcellus/Utica, the very first Marcellus well was sunk by Range Resources in 2004. Until a few years ago, most shale drillers were not profitable, eating through investors’ money like candy. Just before the beginning of the pandemic, shale drillers got the “free cash flow” religion and began to pull back on new drilling in favor of profitability for shareholders. The pandemic, followed by Russia’s war against Ukraine, added new market gyrations. Bottom line: Last year, shale oil and gas drillers saw historic revenues and profitability. This year, the bottom is dropping out once again…
Olympus Energy wants to drill six wells on a single pad in rural Elizabeth Township, a borough in Allegheny County on the east bank of the Monongahela River. The pad would sit about 2,400 feet (nearly half a mile) away from Elizabeth Forward High School. Some of the parents of students, and some of the administration, pushed back against Olympus’ drilling plan, using the kiddies as an excuse (see
New shale permits issued for May 15-21 in the Marcellus/Utica took a substantial hit. There were only 12 new permits issued, down by more than half from the 26 new permits issued the previous week. Last week’s tally included 10 new permits for Pennsylvania, 2 new permits for Ohio, and no new permits in West Virginia. Last week the top receiver of new permits was a tie–Coterra Energy and Chesapeake Energy each received 3 new permits, with Coterra’s permits issued in Susquehanna County, PA, and Chessy’s permits in Bradford County, PA. Range Resources and Olympus Energy each received 2 new permits, and Southwestern Energy and EOG Resources each received 1 new permit.
In March, Shell said its Pennsylvania ethane cracker facility had not–using new, more accurate methods of measuring emissions–violated emissions limits at any point during the facility’s somewhat troubled startup (see
The Shell ethane cracker plant in Beaver County, PA (near Pittsburgh) has experienced a number of problems over the past six months during startup, including flaring and foul odors (see
Last December, Rice Acquisition Corp II, a special purpose acquisition company (SPAC) started by the Rice brothers (Danny, Toby, and Derek), announced a deal to acquire NET Power–an electric power developer with revolutionary new technology to capture every last molecule of carbon dioxide from natural gas-fired power plants (see
The PA Environment Digest Blog has been reviewing the reports filed by Dept. of Environmental Protection (DEP) workers again and noticed a situation at a well pad in Delmar Township, Tioga County. According to DEP reports filed, a Notice of Violation (NOV) was issued to Seneca Resources for a well pad located on DCNR State Forest land last September. Surface water samples from puddles indicate wastewater (brine) from one or more wells spilled onto the ground.
Yesterday two radicalized Big Green groups–the Environmental Integrity Project (based in D.C.) and the Clean Air Council (based in Philadelphia)–filed a lawsuit against the Shell Polymers Monaca Plant (ethane cracker plant in Beaver County, PA), claiming the plant has repeatedly violated federal air pollution limits. The lawsuit requests the court assess huge fines and force it close down unless it can operate without any further violations of the federal Clean Air Act (CAA) and the federal Air Pollution Control Act (APCA). In other words, the radicals seek to shut down the $10 billion plant and keep it shut down–throwing 600 permanent employees out of work. Nice people at the Environmental Integrity Project and Clean Air Council, eh?
Ascent Resources, originally founded as American Energy Partners by gas legend Aubrey McClendon, is a privately-held company that focuses 100% on the Ohio Utica Shale. Ascent, headquartered in Oklahoma City, OK, is Ohio’s largest natural gas producer (352,000 leased acres) and the 8th largest natural gas producer in the U.S. The company issued its first quarter 2023 update yesterday. Ascent net production averaged 2.2 Bcfe/d (billion cubic feet equivalent per day) during 1Q23, up 12% over 1Q22. The company made $1.1 billion in profit during 1Q23, a massive +$2.7 billion swing from losing $1.6 billion in 1Q22.
ECA Marcellus Trust I, the royalty interest holder in some of the wells drilled and maintained by Greylock Energy in Greene County, PA, announced it would issue a payout (the equivalent of a dividend) to unitholders of 4.3 cents per unit for 1Q23. That is down from 4Q22 when the Trust paid out 12.4 cents per unit, and down from 3Q22 when the Trust paid out 18 cents per unit. The company continues to hold back some profits ($90,000 in 1Q23) in order to build a cash reserve.