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26 New Shale Well Permits Issued for PA-OH-WV Oct 23 – 29
New shale permits issued for Oct 23 – 29 in the Marcellus/Utica increased again. There were 26 new permits issued last week, versus 22 the week before. Last week’s permit tally included 18 new permits in Pennsylvania, 7 new permits in Ohio, and 1 new permit in West Virginia. Coterra Energy was the top permittee for the week, drawing 7 permits in Susquehanna County, PA. Chesapeake Energy was #2 with 5 permits issued in Sullivan County, PA.
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Range Resources Corporation, the very first company to drill a shale well targeting the Marcellus Shale layer in Pennsylvania (in 2004), issued its third quarter update yesterday. In prior guidance from earlier this year, Range said it would drill between 60-65 wells in 2023. However, with this latest update, that number was revised down to 51 new wells in this latest update. The reason for drilling fewer wells, according to the Range officials, is that the company is drilling longer wells, achieving the same amount of lateral feet with fewer holes in the ground. Even though fewer new wells are coming, the ones that are drilled produce more.
On Friday, Range Resources Corporation, the very first driller to sink a Marcellus Shale well (in Pennsylvania) back in 2004, announced it had appointed a new member to its Board of Directors — Charles G. Griffie. Mr. Griffie has an extensive background in the oil and gas industry with expertise in managing midstream assets. Among his previous positions, Griffie did a 2.5-year stint as Senior Vice President of Midstream and Marketing for Huntley & Huntley Energy Exploration (now called Olympus Energy).
According to an analysis by S&P Global Commodity Insights, large U.S. shale gas drillers (namely Marcellus/Utica drillers) have hedged (pre-sold at a specific price) an average of 50% of anticipated shale gas production for the second half of 2023. The average price of the hedges is $3.35/Mcf, far above the average NYMEX Henry Hub price that has been bumping along between $2.25 and $2.75. CNX Resources is the top hedger, hedging 80% of its production in 2H23 at $3.04/Mcf.
In August, the Executive Director of the Susquehanna River Basin Commission (SRBC) approved 34 water-use permits for individual shale gas well drilling pads in Bradford, Lycoming, Sullivan, Susquehanna, and Tioga counties. We’re just learning of the action via an official notice published in the Sept. 23 edition of the Pennsylvania Bulletin. The approvals, which are NOT subject to public review according to SRBC regulations, are general water permits. Each site will be required to receive a specific water withdrawal approval at a later date.
Investors in shale oil and gas companies suffered for years with little or no returns for the money they invested. Five of eight large Marcellus/Utica drillers saw their share prices decrease by an astonishing 85% or more from 2008 to 2019 (see 
Last week, MDN told you about Gulfport Energy drilling three Utica Shale wells in Ohio (with a fourth underway) that are massive 4-mile wells (see 
Quick history lesson. In 2004, Range Resources was the first company to drill and frack the first Marcellus Shale gas well, which happened in Mt. Pleasant Township (Washington County), PA. It was love at first sight. Over the past almost 20 years, Range has added a few other counties to the list of place where it drills, and the company remains headquartered in Fort Worth, Texas. However, Range considers Washington County, PA, “our core, our home, the DNA of our company.” The bond of love is still strong all these years later.
Funny how a couple of miles can make all the difference. In West Deer, a township in Allegheny County, PA (near Pittsburgh), Olympus Energy faces organized opposition to every project it proposes. Some Olympus well pads get approved, and some don’t. Every Olympus pad is vigorously opposed by anti-fossil fuelers. Yet in the township immediately next door, Frazer (also Allegheny County), Range Resources appears to have no opposition. We hope we don’t jinx it for them! Range has just received a permit for the company’s fifth multi-well pad. No hew and cry from the crazy left–no nothing. Just business as usual.
Range Resources’ new CEO, Dennis Degner, told analysts yesterday during a quarterly update that he doesn’t think the commodity price of natural gas and the overall demand for natgas will increase for the rest of this year and most of next year. So Degner will keep the company’s drilling program active enough to keep production at the current level of 2.1 Bcf/d. Range must drill 60-65 new wells yearly to maintain production.