Industrywide Issues

Commodity Price | Industrywide Issues

NYMEX Gas Price Leaps 9.6% to Close at 2-Month High of $2.59
May 19, 2023May 25, 2023

Yesterday the NYMEX Henry Hub futures price of natural gas spiked nearly 10% (9.6%)–in a single day. It closed at $2.592/MMBtu, the highest closing number since March 13, over two months ago. The main reason for the price spike is a new weekly gas storage number issued by the U.S. Energy Information Administration (EIA). The new gas added to storage was slightly lower than estimates predicted. The recent decline in the rig count last week (see U.S. Natural Gas Drilling Rig Count Craters, Down 10% in One Week), combined with less gas going into storage, prompted traders to bid up the price.
Read More “NYMEX Gas Price Leaps 9.6% to Close at 2-Month High of $2.59”
Electrical Generation | Industrywide Issues | Regulation

EPA Power Plant Rule Destabilizes the Grid, Ends Reliable Electric
May 19, 2023May 25, 2023

Last week the Bidenistas at the Environmental Protection Agency (EPA) released a hellscape of new regulations aimed at forcing coal- and natural gas-fired power plants to close (see New Biden EPA Regs a “Death Sentence” for Fossil-Fuel Power Plants). The Wall Street Journal called the new regs a “death sentence for fossil-fuel power plants.” The WSJ is keeping the heat on the Biden EPA. In a new article, the WSJ says the “proposed power-plant emission rule would destabilize the energy grid and end reliable electricity.”
Read More “EPA Power Plant Rule Destabilizes the Grid, Ends Reliable Electric”
Anti-Drilling/Fossil Fuel | Energy Companies | ESG | Exxon Mobil | Industrywide Issues

Exxon Says World Hitting Mythical “Net-Zero” by 2050 is Nonsense
May 19, 2023May 25, 2023

Finally, at least one Big Oil company is willing to go on the record countering the mass insanity of the left. The left wants humanity to kill itself in order to achieve mythical “net zero” (no extra carbon emissions) by 2050. Leftist lunatics have tried to brainwash the world that if we don’t hit net zero (which is impossible), that’s it. Lights out. The world toasts, and we burn ourselves to a cinder. There is no hope for the future. Which is complete nonsense. Exxon said as much in an official statement to shareholders in an SEC filing.
Read More “Exxon Says World Hitting Mythical “Net-Zero” by 2050 is Nonsense”
Economic Impact | Industrywide Issues | Jobs | Ohio | Pennsylvania | Research | Statewide OH | Statewide PA | Statewide WV | West Virginia

O&G Contributed $143B, 847K Jobs in PA, OH, WV Economies in 2021
May 18, 2023May 25, 2023

Every so often, the lying left will poke its head up and make the wild claim that the shale industry hasn’t done a darned thing for the jobs or economy in various states–like Pennsylvania, Ohio, and West Virginia (see Heinz Endowments Launches Another Fake ‘Report’ Bashing the M-U). They say, “All those claims of jobs created and economic benefits are just smoke and mirrors.” We say the environmental left is full of (expletive deleted). And we can prove it. Earlier this week, the American Petroleum Institute (API) released a massive new report compiled by PricewaterhouseCoopers (PwC) on the growing economic contributions of America’s natural gas and oil industry in all 50 states, including PA, OH, and WV, in 2021. For those three states (PA, OH, WV) in 2021, the O&G industry (largely shale) collectively contributed over $143 billion to state economies and supported more than 847,000 jobs! Stick that in your bong and smoke it, Big Green.
Read More “O&G Contributed $143B, 847K Jobs in PA, OH, WV Economies in 2021”
Economic Impact | Industrywide Issues | Jobs | Research

PwC Study: U.S. O&G Provided Nearly $2 Trillion in Benefits in 2021
May 18, 2023May 25, 2023

The American Petroleum Institute (API) earlier this week released a new report on the growing economic contributions of America’s natural gas and oil industry in all 50 states, including investment in America ranging from taxes and workforce wages paid to indirect and induced jobs in retail, manufacturing, agriculture, and other sectors throughout the energy supply chain. The study, commissioned by API and prepared by PricewaterhouseCoopers (PwC), showed that the O&G industry supported 10.8 million jobs and contributed nearly $1.8 trillion to the U.S. economy in 2021. We love the fossil fuel industry! And you should, too.
Read More “PwC Study: U.S. O&G Provided Nearly $2 Trillion in Benefits in 2021”
Industrywide Issues | Regulation | Statewide VA | Virginia

Virginia Utility Cos. Tell State Officials Methane Regs Not Needed
May 18, 2023May 25, 2023

Last year the Virginia legislature passed House Bill (HB) 558 (Senate Bill 565), which expands the definition of energy efficiency and conservation programs in Virginia. Among the provisions in the bill are enhanced leak detection and repair programs for natural gas utilities. Utilities can, among other things, build new infrastructure to capture methane from animal poop and landfills, with the right to pass along the cost to ratepayers (a provision that really rubbed the left wrong). However, it is the following provision in the bill that is now being hotly debated in the state: “The bill directs the Department of Environmental Quality to convene a stakeholder work group to determine the feasibility of setting a statewide methane reduction goal and plan.” In other words, craft new state regulations to control methane.
Read More “Virginia Utility Cos. Tell State Officials Methane Regs Not Needed”
Industrywide Issues | Pipelines | Regulation | Statewide WV | West Virginia

Say NO to ‘Permitting Reform’ that Does Not Include O&G Projects
May 18, 2023May 25, 2023

Ever notice how the left loves to stack the deck? Change the rules. Rig the game. Play unfair. That’s what’s happening with so-called “permitting reform” bouncing around the D.C. swamp right now. Sen. Joe Manchin (liberal Democrat from West Virginia) wants permitting reform that benefits both fossil energy projects (including the Mountain Valley Pipeline), and so-called renewable energy projects. But here’s what’s happening. The Bidenistas are nodding their heads, slapping Joe on the back, and voicing their support for his latest bill (see Joe Manchin Floats New “Save MVP” Permitting Bill, Biden Supports). But their strategy is to gut Manchin’s bill, or any proposed bill on permitting reform, purging the sections that would benefit fossil fuel projects. The Bidenistas want permitting reform that benefits renewables ONLY–not fossil energy. And they’re willing to lie, cheat, and do whatever it takes to pass a version of the bill they want, to rig the game in their favor.
Read More “Say NO to ‘Permitting Reform’ that Does Not Include O&G Projects”
Industrywide Issues | Research | Statewide WV | West Virginia

WVU Energy Institute Renames Itself – Going Woke?
May 18, 2023May 25, 2023

We have some disappointing news to share. It appears that one of the preeminent energy research organizations in the country, the West Virginia University Energy Institute, is going woke–steering into the quicksand of focusing on unreliable, “renewable” energy. Yesterday WVU announced that the WVU Energy Institute is changing its name to WVU Institute for Sustainability and Energy Research, effective July 1st. It’s also getting a new director–Sam Taylor–whose research expertise is “geothermal, hydrogen storage and carbon dioxide storage, transportation energy utilization, renewable and nonrenewable energy research, clean energy and advanced energy technologies.” There isn’t a single mention of shale or fossil energy in the entire WVU press release.
Read More “WVU Energy Institute Renames Itself – Going Woke?”
Electrical Generation | Industrywide Issues | Michigan

Michigan Gas-Fired Plant Shuts Down Due to Noise, Vibration
May 18, 2023May 25, 2023

Over 20 years ago, Indeck Energy floated a plan to build an electric generating plant (powered by natural gas) in Niles, Michigan, near Chicago. In 2016, those plans got serious (see $1B Electric Plant Planned Near Chicago, M-U Connection?). Indeck held an official groundbreaking ceremony in September 2019 (see Delayed Michigan Gas-Fired Plant Finally Begins Construction), and in September 2021, the plant began to generate electricity (see Michigan Gas-Fired Plant Finally Begins Producing Electricity). This week, the plant shut down, temporarily.
Read More “Michigan Gas-Fired Plant Shuts Down Due to Noise, Vibration”
Industrywide Issues | NGLs | Research

US Propane Consumption for Winter 2022-23 Lowest Since 2010
May 18, 2023May 25, 2023

As we explained a few weeks ago, balancing supply and demand in the propane market is challenging (see Crude & NatGas Drilling Slowing, Which Affects Propane Supplies). The problem/issue with propane (or ethane, or butane, really any NGL) is that propane and other NGLs are derivatives of oil and gas drilling. Nobody sinks a hole in the ground explicitly trying to extract propane. It comes out of the ground along with oil and natural gas. To accurately guess the coming supply of propane, one has to monitor whether oil and gas drilling is going up or down. And then there’s the demand side…
Read More “US Propane Consumption for Winter 2022-23 Lowest Since 2010”
Industrywide Issues | Litigation | Pipelines | Regulation

DC Circuit Guts PHMSA Reg re Shut-off Valves on Gathering Pipes
May 17, 2023May 17, 2023

In November 2021, the Bidenistas initiated a massive power grab to transfer the right of individual states to regulate local natural gas gathering pipelines to the federal government’s Pipeline and Hazardous Materials Safety Administration (see Massive Power Grab Proposed by Biden DOT: Regulate Gathering Lines). The oil and gas industry asked Biden to pause the power grab by 3-5 years. In April 2022, the Bidenistas rejected that request, so the GPA Midstream Association (later joined by the American Petroleum Institute) sued the Dept. of Transportation and its PHMSA division to block the new regulations. PHMSA agreed to pause enforcement until May 2024 (see PHMSA Backs Down, Pauses New Gathering Pipe Reg After Getting Sued). However, the pause in enforcement didn’t stop the PHMSA from floating onerous new one-size-fits-all regulations on gathering pipelines. Yesterday, the U.S. Court of Appeals for the District of Columbia (DC Circuit) gutted the new PHMSA reg for gathering pipelines.
Read More “DC Circuit Guts PHMSA Reg re Shut-off Valves on Gathering Pipes”
ESG | Industrywide Issues | M&A | McKean County | Pennsylvania

Canadian Methane Offsets Co. Buys Northwest Pa. Well Plugging Co.
May 17, 2023May 17, 2023

Zefiro Methane Corp., a private “methane offsets originator” (we will explain) headquartered in Vancouver, British Columbia, has acquired a majority ownership stake in Plants & Goodwin (P&G), an OFS and oil well-plugging company located in Bradford (McKean County), Pennsylvania, for an undisclosed sum. It appears P&G will continue as its own standalone company, but its services of plugging abandoned and orphan wells will be joined with the services Zefiro offers in methane emission offsets–also known as carbon offset credits.
Read More “Canadian Methane Offsets Co. Buys Northwest Pa. Well Plugging Co.”
Allegheny County | Berkshire Hathaway | Energy Services | Industrywide Issues | Pennsylvania | Pipelines

Upgrades to Eastern Gas Metering Station in Plum Done by Summer
May 17, 2023May 17, 2023

Eastern Gas Transmission and Storage (EGTS), a subsidiary of Warren Buffett’s Berkshire Hathaway Energy company, provides natural gas transportation and storage services with one of the largest underground natural gas storage systems in the United States. Essentially EGTS is a pipeline network that connects to other pipelines to flow and store natural gas in six states: Maryland, New York, Ohio, Pennsylvania, Virginia, and West Virginia. An upgrade of an EGTS metering station in Plum (Allegheny County, PA, near Pittsburgh) is currently under construction and due to be complete “by summer.”
Read More “Upgrades to Eastern Gas Metering Station in Plum Done by Summer”
Electrical Generation | Industrywide Issues

TVA Proposes NatGas Power Plant, 122-Mile Pipeline for East Tenn.
May 17, 2023May 17, 2023

The Tennessee Valley Authority (TVA) is a federally-owned electric utility corporation in the U.S. TVA’s service area covers all of Tennessee, portions of Alabama, Mississippi, and Kentucky, and small areas of Georgia, North Carolina, and Virginia. TVA is the sixth-largest power supplier and the largest public utility in the country. In July 2021, MDN told you that TVA is spending over $1 billion to replace six coal-fired plants with natgas-fired turbines (see TVA Investing $1B to Build New Natgas-Fired Electric Plants). Good news! TVA announced earlier this week that it would convert a second coal-fired plant, this one in East Tennessee, to a natural gas-fired plant capable of generating 1.5 gigawatts of electricity. The project also includes contracting with Enbridge to build a new 122-mile pipeline.
Read More “TVA Proposes NatGas Power Plant, 122-Mile Pipeline for East Tenn.”
Economic Impact | Industrywide Issues | Ohio | Statewide OH

Cleveland U Study: Ohio Utica Shale Investment Tops $100 Billion
May 17, 2023May 17, 2023

JobsOhio, a private, nonprofit corporation that works on behalf of the state to drive job creation and new capital investment in Ohio by attracting business, contracts out economic research to Cleveland State University (CSU) to keep tabs on the Utica Shale industry. JobsOhio released the latest CSU updated report yesterday (full copy below), showing that more than $100 billion has been invested in Ohio across natural gas, natural gas liquids, and petrochemical supply chain industries in just over ten years. Massive!
Read More “Cleveland U Study: Ohio Utica Shale Investment Tops $100 Billion”
Commodity Price | Industrywide Issues

EIA Predicts Henry Hub Price to Hit Average $3.71 in December 2023
May 17, 2023May 17, 2023

Lately, we’ve been closely monitoring the price of natural gas, looking for indicators as to when the price will quit bumping around near $2/MMBtu and go higher once again. Two days ago, we told you experts are predicting we’ve now hit bottom, and the price of natgas will begin to rise (see Big NatGas Investor Says Commodity Price has Bottomed, Going Higher). Yesterday, the U.S. Energy Information Administration (EIA) outlined its case for why it believes the average price of the NYMEX Henry Hub will hit $3.71/MMBtu by December of this year.
Read More “EIA Predicts Henry Hub Price to Hit Average $3.71 in December 2023”