FERC, PJM Showdown re Co-Locating Data Centers at Power Plants
We’re still coming to grips with understanding how the power generation market works with respect to providing electricity for AI data centers. Data centers can potentially be huge and important new customers for natural gas—especially Marcellus/Utica molecules, as some 25% of all the data centers currently operating in the country are located in northern Virginia, where they use M-U molecules. In February, we brought you a post to help you better understand the various scenarios for how powergen gets provided to these data centers (see A Better Understanding of AI Data Centers & On-Site Powergen). We later added a new category/term to the list: co-location. Also in February, FERC fired off a directive to PJM Interconnection, the country’s largest electric grid operator (covering PA, WV, and OH, among other states), asking PJM to explain how it handles co-location (see FERC Launches Investigation of PJM Grid Co-Location of Data Centers). This increasingly popular AI data center electricity arrangement allows the computer warehouses to connect directly to power plants. FERC launched an investigation into how PJM is doing it. PJM just responded… Read More “FERC, PJM Showdown re Co-Locating Data Centers at Power Plants”
The State of West Virginia’s fiscal year begins on July 1 each year and runs through June 30 of the following year. Looking at the state’s most recent fiscal year of July 1, 2023, through June 30, 2024, the natural gas and oil industry in WV accounted for over $660 million in state revenue via severance and property taxes. That’s according to the Gas and Oil Association of West Virginia (GO-WV). In addition, the O&G sector employed over 15,000 direct jobs and an additional 73,000 indirect jobs, with an average annual salary of more than $97,000. Shale energy has been an economic miracle in the Mountain State! 
WhiteHawk Energy, headquartered in Philadelphia and owning mineral and royalty interests for over 1 million gross unit acres with over 3,400 producing horizontal shale wells between the Marcellus and the Haynesville, announced yesterday that it has doubled its ownership in Marcellus assets in Washington and Greene counties in southwest Pennsylvania. WhiteHawk paid $118 million to increase ownership across 475,000 gross acres in the Marcellus Shale. The drillers operating on those acres include EQT, Range Resources, and CNX Resources.
Last week, MDN told you about three (so far) proposed Utica/Marcellus gas-fired power plants proposed for the New Albany International Business Park in Licking County, Ohio (see 
MDN exclusively brought you the news, in June 2018, that Diversified Gas & Oil (now renamed to Diversified Energy) had purchased EQT’s Huron Shale assets in Kentucky, Virginia, and West Virginia for $575 million (see 
The experts at RBN Energy track 38 exploration and production (E&P) companies to monitor financial and operational performance. In a recent blog post, RBN found the 10 gas-weighted E&Ps (all but one with significant operations in the Marcellus/Utica) experienced a rebound in earnings during Q4 2024 after a rough first three quarters of the year. Earnings for the 10 gas-weighted E&Ps averaged $3.02/boe (barrels of oil equivalent) in Q4 2024 after losses in Q2 and Q3 2024. Cash flow averaged $10.18/boe, 52% higher than the $6.71/boe generated in Q3 2024. Realized prices averaged nearly $18/boe in Q4 2024, 24% higher than the $14.52/boe recorded in Q3 2024. Things are looking up for M-U drillers. 
The European Union’s idiotic methane regulations will be enforced beginning this year. Domestic (European) oil, gas, and coal companies must monitor, measure, and report their emissions. The same restrictions apply to energy imports from other countries, including the U.S. (see 
The Baker Hughes U.S. national rig count lost one rig last week (after gaining one the week before), now operating 592 active rigs. As for the Marcellus/Utica, the rig count was a combined 35 last week. However, there was a notable change in the totals. Rigs focused on the Marcellus were down by one to a combined 23 across the three M-U states of Pennsylvania, West Virginia, and Ohio. Rigs focused on the Utica picked up the lost Marcellus rig, now at a combined 12. PA had operated 15 rigs (or more) for 19 weeks straight. That streak was broken last week when PA lost a rig. OH had operated nine rigs for 16 weeks in a row but picked up one last week and now stands at ten active rigs. WV had operated 10 rigs for an astonishing 23 weeks in a row. Six weeks ago, WV added (and has kept) one additional rig and operates 11 active rigs. 
The highly functional and responsible Susquehanna River Basin Commission (SRBC), unlike its completely dysfunctional and irresponsible cousin, the Delaware River Basin Commission (DRBC), continues to support the shale energy industry by approving water withdrawals and consumptive use for responsible and safe shale drilling. The SRBC published a notice in the March 29 Pennsylvania Bulletin that the Executive Director of the SRBC gave his approval to or renewed 50 (!) general water use permits in February for individual shale gas well drilling pads in Bradford, Centre, Clearfield, Clinton, Lycoming, Potter, Susquehanna, and Tioga counties in Pennsylvania. 
Last week, Pennsylvania State Senator Gene Yaw (Lycoming County), chairman of the Senate Environmental Resources and Energy Committee, sounded the alarm for all Pennsylvanians. Yaw said, “We are going to have to suffer some hardships. Meaning, we probably are going to have some blackouts, brownouts.” Why would PA, an electricity exporter, experience blackouts? The plain, simple, and short answer is because of Governor Josh Shapiro’s idiotic energy policies. 
We think the headline of this post pretty much says it all with respect to why it costs five times more to plug orphaned wells in Pennsylvania than in other states (see 
The Appalachian Regional Clean Hydrogen Hub (ARCH2), led by West Virginia and Ohio, was one of seven projects to win the Bidenista Hunger Games competition to receive a chunk of $7 billion to build a regional hydrogen hub (see 
On March 27, the Susquehanna River Basin Commission (SRBC) online Hydrologic Conditions Monitor showed low stream flows have triggered restrictions on 18 shale gas water withdrawal points in Bradford, Potter, Susquehanna, Tioga, and Wyoming counties. Another 17 shale gas withdrawals are approaching restrictions. Of the water withdrawal points regulated by SRBC, only shale gas development water withdrawals currently have restrictions because they take water from smaller streams. 
Donald Trump has taken significant actions to eliminate “environmental justice” programs within the federal government during his second term, which began on January 20, 2025. What is so-called environmental justice (EJ)? EJ is the leftist theory that energy projects like pipelines and well pads target locations where there are black, brown, or poor people who can’t fight back legally. They don’t want the projects, but they have no way ($$) to fight them. And so their populations suffer the negative environmental consequences of living near polluting energy projects. Energy projects are presumed to be inherently racist. It is a disgusting, loathsome political theory peddled mainly by the far-left of the Democrat Party. Although Donald Trump has quashed EJ on the federal level, the Josh Shapiro Department of Environment Protection’s EJ program keeps chugging along, oblivious that nobody wants it, nobody respects it, and it’s a “dead man walking.” 
Toby Rice, CEO of EQT Corporation, took part in a presentation by natural gas industry leaders at the West Virginia Capitol on Wednesday. The group was briefly joined by Gov. Patrick Morrisey, who was there to promote an expansion of electric microgrids in the state to power data centers. Morrisey is pushing legislature, House Bill 2014, to do just that (see