EIA Dec. DPR – Marcellus/Utica Production Remains Capped at 35 Bcf
The Marcellus/Utica continues to produce about the same amount of natural gas that it has produced all year long–essentially capped at around 35.5 billion cubic feet per day (Bcf/d) of production. The U.S. Energy Information Administration (EIA) published its latest monthly Drilling Productivity Report (DPR) yesterday, and that report shows, once again, that M-U production (called “Appalachia” in the report) is still capped–at 35.4 Bcf/d in December. EIA predicts it will float up to 35.5 Bcf/d (adding 113 MMcf/d) in January 2023.
Read More “EIA Dec. DPR – Marcellus/Utica Production Remains Capped at 35 Bcf”
On Friday, the Federal Energy Regulatory Commission (FERC) will hold its last meeting of 2022. It appears it will be the very last meeting for FERC Chairman Richard “Dick” Glick, who has been blocked from receiving a reappointment hearing by WV Sen. Joe Manchin. Without a hearing, Glick will be forced to step down after this year. Blocking Glick is about the only thing Manchin has done right this year. At any rate, at Friday’s meeting, the five (soon to be four) FERC commissioners will vote on a variety of issues. Two of the issues (projects) are vital to the Marcellus/Utica: a new certificate for the Spire STL Pipeline to continue operating, and a certificate to allow the Williams Transco Regional Energy Access Expansion project to proceed.
We spotted a post by our favorite government agency, the U.S. Energy Information Administration (EIA), that says although natural gas use by the “industrial sector” leveled off over the past few years, industrial sector usage of natgas is growing again, at least for this year. EIA figures industrial sector usage will grow 2.4% in 2022. However, due to the high price of natgas and the sucky Biden economy, EIA believes industrial sector gas usage will decrease 3.4% in 2023.
S&P Global Commodity Insights issued its latest 2023 Energy Outlook yesterday. The analysis is quite interesting, with ten “key themes” that will most affect world energy (and oil/natgas prices) next year. The number one key theme may surprise you: “China’s COVID policy is the most important fundamental factor for energy markets.” If not for China shutting down entire regions in an effort to stamp out COVID spread, S&P says the price for commodities like oil and natural gas would have continued to be high this year. If China’s demand comes roaring back in 2023, watch out! Prices will be “well supported,” according to S&P. More like “through the roof.” If COVID continues and China’s demand stays low, look for prices to remain lower too.
Each year oil and gas supermajor BP (formerly British Petroleum), one of the largest oil companies in the world, publishes an annual Statistical Review of World Energy. We typically bring you a copy with analysis, as we did for the 71st annual edition published in July of this year, covering 2021 (see 
Late last week, the Pennsylvania Dept. of Environmental Protection (DEP) slapped Equitrans with three orders related to the Rager Mountain Gas Storage Reservoir in Cambria County, PA. The George L Reade 1 storage well located in the Rager Storage Reservoir vented natural gas uncontrolled into the atmosphere from Sunday, November 6, 2022, until the evening of Saturday, November 19, 2022, when it was plugged. The DEP has been onsite during the entire event (and since). An investigation by the DEP has found all but one of the 12 storage wells at the Rager field are leaking methane to one degree or another. The DEP has closed down all injections into the field, although withdrawals from the field (in order to prevent customers from going without) have continued.
According to the U.S. Energy Information Administration (EIA), U.S. dry natural gas production increased during 2022 and averaged more than 100 billion cubic feet per day (Bcf/d) in both October and November–exceeding pre-pandemic monthly production records from 2019. EIA forecasts that U.S. production of dry natural gas will average about 100.0 Bcf/d from December through March, down slightly (about 0.5 Bcf/d) from November, but still at record-high levels.
What can we say? Once again, the Democrat Party is trying to demonize fossil fuels and is going after “Big Oil,” proposing insanely high new taxes on a handful of oil companies because, for a single year (2022), they have actually made some money. All money and profits belong to the government in the left’s twisted worldview. A cabal of seven Senators led by Sen. Robert Menendez from New Jersey has launched this latest attack against our industry.
We’ve heard the peak oil theory peddled countless times since we began publishing Marcellus Drilling News in January 2009. Every single time predictions that the world (or the U.S.) has reached its limit and will now begin using less oil have been astoundingly wrong. Yet every few months, you’ll read another “expert” or guru announce this it…we’ve finally reached peak oil. Have we? NO. Not even close. When will we? We’ve got an answer.
Since the so-called Biden infrastructure bill became law late last year with $8 billion earmarked for so-called clean hydrogen hubs to be funded around the country, we’ve made the strong and loud point that unless the Marcellus/Utica states of Pennsylvania, Ohio, and West Virginia join forces and submit a joint proposal to site one of the 6-10 regional hubs here, we risk losing out to other regional coalitions. It seems someone is finally listening. Until now, each M-U state has proffered its own plan/application for a hydrogen hub (see 
As we highlight in today’s lead story, Ohio has thrown its support behind the ARCH2 (Appalachian Regional Clean Hydrogen Hub) application to site a regional hydrogen hub in West Virginia (see Finally! Ohio Joins Effort to Locate Hydrogen Hub in West Virginia). We have taken various stabs at explaining hydrogen energy and how hydrogen hubs work. However, Pittsburgh Business Times ace reporter Paul Gough has done a masterful job of writing an “explainer” article (with graphics) that outlines the role hydrogen hubs will (if built) play in our energy future.
In March, MDN told you that the Deputy Chief Administrative Law Judge of the Pennsylvania Public Utility Commission (PUC) issued a ruling against the now completed Mariner East 2 pipeline project, assessing a $51,000 fine on the project for work done near an apartment complex (see 
Two days ago, MDN told you about Ohio House Bill (HB) 507, a “poultry” bill that (at the last minute) was amended by the Ohio Senate to redesignate natural gas as a “green” energy source and also a measure expanding drilling on and under state-owned land (see 
It appears that Williams (pipeline company) and Coterra Energy (driller), along with end-customer Dominion Energy (local gas utility) have developed their own “responsible gas” certification scheme apart from the three such schemes widely used by many Marcellus/Utica drillers currently. In an announcement yesterday, Williams said the deal struck with Coterra and Dominion establishes “the industry’s first next generation natural gas certification process across all segments of the value chain from production through gathering and transmission with deliveries through 2023.”