Maine Debates Democrat Bill to Limit New Natural Gas Customers
In May 2023, MDN brought readers the sad news that New York State has fallen and is now under a Communist dictatorship, with the freedom to choose energy sources now gone (see NY State has Fallen – Gas Stoves & Peaker Plants Banned in Budget). Gov. Kathy Hochul and the Democrat legislature unilaterally voted to ban new homes and businesses from connecting to natural gas lines. It took five months, but eventually, a coalition of businesses and labor unions filed a lawsuit against the state to block this blatantly illegal power grab (see Biz & Labor File Lawsuit to Stop NY Statewide Gas Ban in New Bldgs). The State of Maine is now considering a similar law.
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One week ago, the Interstate Natural Gas Association of America (INGAA) Foundation published a report called “Impact of Electrifying Natural Gas Transmission Compression” (full copy below). The Foundation commissioned global consulting and technology services provider ICF to assess and write a report on the potential impacts of electrifying natural gas transmission compression as one tool to address greenhouse gas (GHG) emissions along the natural gas supply chain. What did the researchers find?
Analysts for S&P Global Commodity Insights have been pouring over the forward prices for natural gas contracts in 2024 and the news is not good. Traders actively bidding on forward contracts in 2024 have priced natural gas below $4/MMBtu. In the forwards market, the summer 2024 strip was $2.45/MMBtu as of Jan. 22, after spending most of 2023 solidly above $4/MMBtu. December 2024 Henry Hub forwards settlements have averaged $3.69 year to date, according to data from S&P. The reason for prices remaining low for all of 2024? A delay in several new LNG export operations from coming online.
Perhaps our headline is slightly misleading. EOG is not the modern equivalent of Jed Clampett walking along and seeing crude bubbling up out of the ground (as in the fictional 
Whenever the government mandates which energy sources residents can and cannot use, residents lose. The government’s micromanaging of energy is a prescription for high prices and supply chain failures (i.e., blackouts). Yet leftists like Pennsylvania Rep. Danielle Friel Otten (a radical Democrat from the Philadelphia area) never seem to learn. She introduced a bill, House Bill (HB) 1467, that requires 30% of all electricity used in the state to come from unreliable renewables like wind and solar by the year 2030 — six short years from now. It is a prescription for massive failures in the power grid in the Keystone State.
Here’s the reality. People are moving out of states like New York due to high taxes and the stripping away of freedoms. Those of us living in NY now live in virtually a Communist state (and we’re not exaggerating). We can’t choose our energy sources. We can’t even use single-use plastic bags at the grocery store! NY has fallen. But NY’s mass exodus is the gain of states in the Southeastern U.S. Florida is the number one destination. Also high on the list are North Carolina and Georgia. With the increase in population, and the rapid influx of new business, and the push to convert automobiles to use electricity instead of gasoline, utility companies in the Southeast are asking (more like begging) for permission to build new natural gas power plants to meet all of the new demand for electricity. Of course, the extra gas somehow has to get to the plants.
Behind the Dominion Energy building in Hudson, Ohio, sits what’s being dubbed Hydrogen Heights. It’s a mini-village. The sign at the entrance says, “Welcome to Hydrogen Heights.” Dominion is testing the blending of hydrogen and methane on gas appliances there. We have nothing against using hydrogen as an energy source, other than it will never be able to power your home (see 
Dominion Energy wants to build a liquified natural gas (LNG) storage facility in Person County, North Carolina, to enhance natural gas service reliability for residential and business customers in the growing region (see 
The Gas Exporting Countries Forum (GECF) is a group of natural gas exporting countries, including Qatar, Russia, Iran, and Venezuela — terrorist-supporting countries led by thugs and dictators. Whoops! A little too much honesty there? We don’t normally track the actions and statements of the GECF. However, the group holds more than two-thirds of the world’s gas supplies (so they say). So you can’t totally ignore them. The GECF is predicting a “tight” LNG market worldwide until at least 2026.
One of the most important “fathers of fracking” you’ve likely never heard of before, Claude Cooke, passed away on Jan. 17 at the ripe old age of 94. Cooke is best known as the guy who invented ceramic proppant (beads) used in fracking. He invented it while working for Exxon in the seventies. The innovation allowed for drilling wells that are deeper and hotter than previously possible. It helped revolutionize fracking, especially when fracking was later married to horizontal drilling by George Mitchell, who also died at the age of 94 (see 
The Tennessee Valley Authority (TVA) is the sixth-largest power supplier and the largest public utility in the country. In 2021, MDN told you that TVA is spending over $1 billion to replace six coal-fired plants with natgas-fired turbines (see 
XTO Energy began to drill four shale wells in Prospect Borough, Butler County, PA, in 2019. At least one of the wells was drilled down to a depth of nearly 2,000 feet. At some point since that time, XTO decided not to finish the wells and filed a request to plug the wells. A Pennsylvania Dept. of Environmental Protection (DEP) inspector visited the well pad, the Coretsky well pad, in September of last year and issued a “failure to plug” notice of violation for the four wells (called the Patton wells). Although it took a few months, XTO said the equipment would be delivered last week and that, as of today (Monday), the process would begin to cap and plug the four abandoned wells.
Just one week ago, the price of natural gas, both the futures price and spot (physical) price, jumped — in some cases by four times in the space of just a couple of days (see 
Spire Inc. is the owner and operator of the Spire STL Pipeline, a 65-mile pipeline that connects to and flows Marcellus/Utica gas from the Rockies Express (REX) pipeline in Scott County, IL, to residents and businesses in the St. Louis, MO area. Spire STL has been up and running since 2019 (see 
The Baker Hughes rig count gained rigs for the first time in three weeks last week. The count went from 619 active rigs two weeks ago to 620 last week — up a single rig. Better than nothing! The Marcellus/Utica count gained two (both in Pennsylvania) to land at 42 active rigs overall. PA had 21 rigs, up from 19, while OH maintained 13 rigs, and WV maintained eight rigs.
Shippers, including drillers, utility companies, and others that buy and sell natural gas, are now free to buy and sell producer-certified gas (PCG) or responsibly sourced gas (RSG) at all pooling points across the Tennessee Gas Pipeline (TGP) system following a decision by the U.S. Court of Appeals for the District of Columbia (DC Circuit). The judges of the DC Circuit dismissed a case brought by Antero Resources and EQT Corporation attempting to block TGP’s plan. We will explain.