Enverus Rig Count @ 700 (+12); Marcellus @ 36 (+0), Utica @ 12 (+0)
The latest weekly Enverus U.S. rig count shows total rigs in use hitting another new post-pandemic high. For the week ending December 9, the rig count stood at an even 700, up 12 rigs from the previous week. That’s a new high since the beginning of the pandemic in April 2020. The Marcellus maintained its count with 36 active rigs. The Utica also stayed even from the previous week with 12 active rigs. Collectively the M-U currently operates 48 rigs.
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Underinvestment in oil and gas development extended into a second year in 2021 even as global energy demand rebounded, raising the prospect of price shocks, scarcity, and growing energy poverty, according to a new report by the International Energy Forum (IEF) and IHS Markit. Oil and gas investment will need to return to pre-COVID levels and stay there through 2030 to restore market balance, the report states. If more investment doesn’t happen quickly, the world will experience more price gyrations and it will lead to “adverse economic consequences,” such as wider energy poverty, more frequent scarcity, and fuel switching to more polluting energy sources such as wood and coal.
Here’s a startling statistic: A survey of nearly 17,000 global energy industry companies, recruiters, and workers conducted by Brunel and 
Something strange is happening–has been happening for years now. When we first started to cover the Marcellus/Utica on the MDN site in January 2009, the received wisdom was “the more active rigs, the more production,” and conversely, “fewer active rigs will lead to less production.” But a funny thing happened on the way to the forum. Drillers got better at drilling. More efficient. And more production could be had from fewer wells and less drilling of wells. Even though rig counts go down and stay down, production stays the same or goes up. That’s the situation we find ourselves in currently.
The Beech Hollow Power Plant in Robinson Township (Washington County), PA broke ground on construction for a 1,000-megawatt Marcellus-fired project last fall when they began to pour concrete. However, construction stopped. The builder, Robinson Power Company LLC, wanted to resume construction but got caught up in a controversy over issued and withdrawn permit applications. The leftwing radicals at the Clean Air Council (located on the other side of the state, in Philadelphia) challenged a permit by the DEP to allow Robinson Power to resume construction. A few weeks later Robinson, tired of repeated lawsuits, threw in the towel and canceled the project (see 
Democrats, who are truly desperate and hoping that massive theft of some people’s money to use in bribing other people to vote for them, finally passed a $1.2 trillion so-called infrastructure bill last Friday. It’s a “Hail, Mary” move aimed at trying to retain some of their power, which they will certainly lose in the 2022 election. Here’s what to know about the bill, which tries (but ultimately fails) to reduce the use of fossil fuels: Of the $1.2 trillion allocated over the next five-plus years, only $110 billion (or 9%) of it will actually be used for infrastructure–roads, bridges, etc.
GM, Ford, and other Big Auto companies might want to rethink their ill-advised plans to manufacture only electric vehicles beginning a few years from now based on dementia Joe’s big plans to electrify everything, including transportation. Biden’s own U.S. Energy Information Administration (EIA) predicts the number of “light duty vehicles” or LDVs (cars and trucks) worldwide will nearly double in the next 30 years, from 1.31 billion LDVs on the planet in 2020 to 2.21 billion in 2050. But the big news is that only 31% of all those 2.21 billion LDVs in 2050 will be electric-powered vehicles. The rest will be powered by gasoline, diesel fuel, and natural gas. Tell us again (so we can have a good laugh) about the end of fossil fuels in the next 10-15 years. 🙂
Everyone is scratching their heads trying to figure out why, given the price natural gas is fetching in both the futures and physical spot price market, natural gas drillers don’t drill more wells. The excuse given is that budgets are cast, plans made, and by gosh companies are finally showing fiscal discipline and sticking to their plans because if they don’t, investors will scream bloody murder. The last time we checked investors don’t mind spending a little more money to drill new wells if it puts more money in their pockets! That message finally seems to be getting through. Yesterday U.S. natural gas production surged to its highest level since late August (when Hurricane Ida struck, shutting down natgas production in the Gulf). Most of the gains came from more production in the Marcellus/Utica.
This is an avoidable tragedy and very angering. Once again it looks as though Boston and the New England region will be hit with extremely high natural gas prices and will be forced to import LNG, most likely from Russia, to meet the region’s demand for natural gas. So says the Democrat-controlled Federal Energy Regulatory Commission (FERC). Meanwhile, the Marcellus Shale in Pennsylvania sits a couple of hundred miles away with more than enough gas to meet New England’s natgas demand, but we can’t get the gas there because pipelines have been blocked (by the Democrats who control New York and New England) and because rail shipments of LNG are blocked by executive orders from Joe Biden. We can’t even ship it there via LNG tankers because of the idiotic Jones Act.
Earlier this week the Potential Gas Committee (PGC) released the results of its latest biennial assessment of the nation’s natural gas resources. The report shows the U.S. possesses a total mean “technically recoverable resource base” of 3,368 trillion cubic feet (Tcf) as of year-end 2020. That number is 6 Tcf (or 0.2%) less than the amount of gas assessed in the previous period (from year-end 2018). The slight decrease breaks a trend of seven consecutive record-high resource evaluations. However, the report also shows we have more than enough gas to provide not only our own country’s needs, but also the gas needs for much of the world too.