Industrywide Issues

Coterra Energy (Cabot O&G) | Economic Impact | Energy Companies | Industrywide Issues | Southwestern Energy

15-20% Inflation Hits M-U Gas Drillers, Profits Remain High So Far
May 18, 2022May 27, 2022

According to a survey of both oil and natural gas drillers, inflation began to drive up production costs during the first quarter of 2022. According to Coterra Energy Inc. President and CEO Thomas Jorden, “We are seeing significant inflation in the oilfield.” Coterra is the former Cabot Oil & Gas which drills for natural gas in northeastern PA, in addition to drilling for oil in the Permian and Midcontinent. Southwestern Energy drills for natgas in both the Marcellus/Utica and in the Haynesville. Southwestern COO Clayton Carrell says he is seeing higher prices for labor and materials in both the M-U and the Haynesville. However, high inflation also benefits drillers. How?
Read More “15-20% Inflation Hits M-U Gas Drillers, Profits Remain High So Far”
Ascent Resources | Energy Companies | ESG | Industrywide Issues | PennEnergy Resources | Seneca Resources | Southwestern Energy

Project Canary Intros Freshwater Usage Metric in NatGas Cert
May 18, 2022May 27, 2022

Project Canary is one of three major “responsible gas” certification schemes. Project Canary has its TrustWell Certification program, Equitable Origin has its EO100 certification, and MiQ has its own self-named standard too. The TrustWell Certification assesses data points in 24 operational categories, ranging from water management to well integrity. Project Canary announced earlier this month that one its metrics for measuring and mitigating the effects of operations on local water resources has been peer-reviewed and published (as a study) by a third-party assessor in a leading industry journal. Several Marcellus/Utica drillers have achieved Project Canary’s Freshwater Verified Attribute as part of their TrustWell certification.
Read More “Project Canary Intros Freshwater Usage Metric in NatGas Cert”
Hydrogen | Industrywide Issues | Pipelines

Blending Hydrogen into NatGas Pipelines – Hurdles & Potential
May 18, 2022May 27, 2022

Hydrogen is a topic we return to from time to time because not only are (some) leftists promoting it as a replacement for natural gas and fossil energy, many in the oil and gas space are taking an interest too. One reason why hydrogen is of interest is the opportunity to turn methane into hydrogen, capturing carbon dioxide as you do so (called “blue” hydrogen). It has the potential to be a large, new customer for M-U molecules. But lefties push the use of electricity from windmills and solar farms to produce hydrogen by passing an electric current through water–so-called “green” hydrogen. There’s still a huge problem for the left to solve even with green hydrogen: How to get that hydrogen from point A to point B without breaking the bank. Enter the latest/greatest idea…blend hydrogen with natural gas and send it down existing natgas pipelines. Maybe even take over some existing natgas pipes and repurpose them to be hydrogen-only pipes.
Read More “Blending Hydrogen into NatGas Pipelines – Hurdles & Potential”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Regulation

Death by Regulation – EPA Plans to Use Locals to Monitor Methane
May 18, 2022May 27, 2022

Last November the federal Environmental Protection Agency (EPA) launched what we consider a full-on attack against the oil and gas industry when it floated a plan for new methane regulations (see EPA Launches Massive Power Grab, Targets O&G Methane Emissions). The Biden EPA claims by wresting control of oil and gas regulations from the states and concentrating power in the federal government, the feds will be able to save the planet from man-made global warming. The EPA will force a one-size-fits-all regulation on so-called fugitive methane emissions that all states must comply with. The problem is, EPA doesn’t have the money to monitor and enforce their lunatic plan, so they intend to farm it out to Big Green groups and the communities that border O&G activities. Big Green and the locals don’t like the sound of that because it means THEY will have to pay for it.
Read More “Death by Regulation – EPA Plans to Use Locals to Monitor Methane”
Industrywide Issues | Research

EIA DPR: Big Increase Coming for June U.S. NatGas Production
May 17, 2022May 27, 2022

Once again the number crunchers at the U.S. Energy Information Administration overestimated natural gas production in the Marcellus/Utica in the agency’s monthly Drilling Productivity Report (DPR), but not by much. Yesterday the EIA issued its latest DPR, for May, with estimates of how much production we will see in the seven largest shale plays in the U.S. for both May and the upcoming month of June. Last month for April’s report, the EIA predicted the M-U would produce 35.64 billion cubic feet per day (Bcf/d) of natural gas in May (see EIA DPR: Big Revision DOWN for April Natural Gas Production). Yesterday’s report revises the May number down to 35.48 Bcf/d. Fairly close. What about June? And what about Haynesville and Permian production?
Read More “EIA DPR: Big Increase Coming for June U.S. NatGas Production”
Diversified Energy | Energy Companies | Industrywide Issues | M&A | Ohio | Statewide OH

Diversified Energy Buys Second Well-Plugging Co. – Based in OH
May 17, 2022May 27, 2022

Diversified Energy is growing again. In February Diversified bought out and merged in well-plugging company Next LVL Energy, headquartered in the Pittsburgh area (see Diversified Energy Buys Well-Plugging Co. NextLVL Energy). Yesterday Diversified announced it is buying a second well-plugging company, Nick’s Well Plugging LLC, based in Warren, Ohio, for an undisclosed price. Diversified will add the personnel and equipment from Nick’s to Next LVL, bumping up the existing six well-plugging crews to eight, with plans to add a ninth soon.
Read More “Diversified Energy Buys Second Well-Plugging Co. – Based in OH”
Commodity Price | Industrywide Issues | Storage

High Prices for M-U NatGas Means Less Storage, Coming Shortage
May 17, 2022May 27, 2022

According to S&P Global Commodity Insights, the difference between prices paid for natural gas this summer and the price gas is expected to bring in the coming winter months, are pretty darned close, which is unusual. Typically less natgas gets used in the summer and so the price decreases. It’s the perfect time for utilities and other major buyers to pay less for the gas and sock it away in storage, keeping it for the upcoming winter. But because forward prices are so high now, this summer, that’s not happening. Which means we in the northeast may not have enough natgas stored away when the cold temps of winter hit. The storm clouds are gathering on the horizon.
Read More “High Prices for M-U NatGas Means Less Storage, Coming Shortage”
Anti-Drilling/Fossil Fuel | Hydrogen | Industrywide Issues | Pennsylvania | Statewide PA

Big Green Trash Talks Wolf’s Play for $2B Hydrogen Hub in PA
May 17, 2022May 27, 2022

Yesterday Pennsylvania Gov. Tom Wolf, one of the most left, radical governors in the country, endorsed an “aggressive push” to be THE state to grab one of four $2 billion regional hydrogen hubs financed under the so-called federal infrastructure bill (see PA Gov. Wolf Announces “Aggressive Push” to Get Hydrogen Hub). Wolf hasn’t yet read the memo from his pals in the Big Green movement, who are now turning against hydrogen energy. The latest example is the PA-based Breathe Project, which calls the proposed hydrogen hub and PA’s pursuit of it “a plan that will take us in the wrong direction.”
Read More “Big Green Trash Talks Wolf’s Play for $2B Hydrogen Hub in PA”
Economic Impact | Industrywide Issues | Pipelines | Regulation

Chemical Industry Investment Linked to Shale Gas Tops $200 Billion
May 17, 2022May 27, 2022

Yesterday the American Chemistry Council (ACC) declared its undying love for homegrown, American shale gas. The ACC announced that U.S. chemical industry investment linked to plentiful and affordable domestic supplies of natural gas and natural gas liquids (NGLs) has topped $200 billion. ACC recognized this historic milestone by reemphasizing the benefits of shale gas to the U.S. economy and the ways in which it supports the energy transition and a so-called lower-emissions future.
Read More “Chemical Industry Investment Linked to Shale Gas Tops $200 Billion”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Pipelines | Regulation

INGAA Says Biden’s Words and Actions re NatGas Don’t Match
May 17, 2022May 27, 2022

There are some who actually believed Joe Biden when he was a candidate running for president, when Biden talked a good game about natural gas (we were not among them). Some believe President Biden now when he calls for more natural gas production to help Europe (we are not among them). But when you look at what Biden has and is saying, and then look at his administration’s policies, you get two completely different pictures. That’s the conclusion INGAA (the Interstate Natural Gas Association of America) comes to in a recent column that appears in (strangely) the left-leaning Utility Dive.
Read More “INGAA Says Biden’s Words and Actions re NatGas Don’t Match”
Hydrogen | Industrywide Issues | Pennsylvania | Statewide PA

PA Gov. Wolf Announces “Aggressive Push” to Get Hydrogen Hub
May 16, 2022May 27, 2022

Pennsylvania, Ohio, and West Virginia are all scrambling to form working groups or other alliances in an attempt to be THE state chosen for one of four regional hydrogen hubs funded by the recently passed so-called Biden infrastructure bill (see WV, OH, PA Compete Against Each Other to Attract $2B Hydrogen Hub). The new law provides $8 billion for four regional hydrogen hubs. It’s a safe bet one of those hubs will be located in either PA, OH, or WV. Unfortunately, the three states that should be cooperating to attract the hub are instead going their own way, attempting to do it without cooperation. The latest example is an announcement this morning by Gov. Wolf.
Read More “PA Gov. Wolf Announces “Aggressive Push” to Get Hydrogen Hub”
Anti-Drilling/Fossil Fuel | Industrywide Issues | New York | Pipelines | Regulation | Statewide NY

NY PSC Adopts Rules to Phase Out Use of NatGas Statewide
May 16, 2022May 27, 2022

On May 12, the New York State Public Service Commission (PSC) voted to adopt two orders aimed at eventually phasing out the use of natural gas in homes and businesses across the state. At least that’s our take on the complex, gobbledegook orders issued (we have copies of both orders below). The PSC issued one order to LDCs (local distribution companies, otherwise known as local natural gas utilities) requiring them to file complicated reports outlining their natural gas infrastructure (pipelines) and efforts they deploy to encourage customers to use less natural gas, in line with the law passed two years ago by Cuomo to phase out the use of all fossil fuels. The second order issued by the PSC controls how utilities can and can’t enforce moratoria on new gas customer hookups.
Read More “NY PSC Adopts Rules to Phase Out Use of NatGas Statewide”
ESG | Industrywide Issues | Regulation

SEC’s Climate Disclosure Rule a Cost Burden that “Misses the Mark”
May 16, 2022May 27, 2022

In March the U.S. Securities and Exchange Commission (SEC), corrupted by the Bidenistas, said it will begin to force all publicly traded companies to disclose their so-called greenhouse gas (GHG) emissions and the imaginary climate risks their businesses face (see SEC Votes to Force Public Companies to Disclose Mythical GHG Risks). Companies will have to pretend they care about supposed man-caused global warming and cook up hokey methods for evaluating how much carbon dioxide not just their own company, but their customers “emit” into the air when using a company’s products (so-called Scope 3 emissions). It’s an attempt to totally control businesses without actually owning them (Communism, or owning the means of production, without actually calling it that). A column in RealClearEnergy outlines how the SEC’s regulation “misses the mark” and “represents a cost burden as opposed to a solution that would reduce global emissions to the benefit of society.”
Read More “SEC’s Climate Disclosure Rule a Cost Burden that “Misses the Mark””
Economic Impact | Industrywide Issues | NGLs

Without Fossil Fuels, Half the World’s Population Will Starve
May 16, 2022May 27, 2022

Vaclav Smil is a Distinguished Professor Emeritus at the University of Manitoba. Smil is the author of over forty books on topics including energy, environmental and population change, food production and nutrition, technical innovation, risk assessment, and public policy. His newest book, titled How the World Really Works, contains some startling information. Modern societies would be impossible without mass-scale production of many man-made materials. Four materials rank highest on the scale of necessity, forming what Smil calls the four pillars of modern civilization: cement, steel, plastics, and ammonia. All four require fossil fuels or the don’t exist.
Read More “Without Fossil Fuels, Half the World’s Population Will Starve”
Crime | Industrywide Issues | Lease & Royalty Payments

How O&G Royalties/Mineral Rights Co. Committed $40M Fraud
May 13, 2022May 13, 2022

We don’t normally recommend books to read–especially those we haven’t read yet ourselves. Today we’re making an exception. Last week we received an email about a new book published on Amazon by Chris Bentley, the former President and CEO of Bellatorum Resources, an investment management firm that formerly specialized in Texas oil and gas royalties and mineral rights. Bentley recently published a book called Burning Bellatorum: The Story of a Forty Million Dollar Fraud and its Priceless Lessons for Investors and Entrepreneurs, detailing the $40 million fraud he committed while running his company. Since there are a number of companies that buy royalties and mineral rights in our region, we thought this information might be of interest to MDN readers.
Read More “How O&G Royalties/Mineral Rights Co. Committed $40M Fraud”
Anti-Drilling/Fossil Fuel | Energy Services | Equitrans/EQT Midstream | Industrywide Issues | Litigation | Pipelines

Climate Cultists Running Out the Clock on Mountain Valley Pipeline
May 13, 2022May 13, 2022

Every “game” comes to an end when play must stop and a winner, and a loser, are declared. If you watch basketball you know that the final couple of minutes can last what seems like a lifetime. One team, up by 2 or 3 points, gains possession of the ball and they are in the lead. What do they do? Play keep-away. Run the clock down so the opponent can’t score to tie or pull ahead. What does the opponent do? Try to foul the person with the ball, or call for a time-out, in order to stop the clock and (hopefully) when the ball is thrown in and play resumes, regain possession and score. In a sense, that’s what is happening with the 94% complete Mountain Valley Pipeline (MVP) project, a 303-mile pipeline from West Virginia to southern Virginia. Right now anti-American Big Green groups have possession of the ball (having co-opted leftist judges) and they are ahead by one point, hoping to end the game by running out the clock. Will they succeed?
Read More “Climate Cultists Running Out the Clock on Mountain Valley Pipeline”