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Baker Hughes U.S. Rig Count Adds 1 @ 621, M-U Even @ 42

The Baker Hughes rig count gained another rig last week. The count went from 620 active rigs two weeks ago to 621 last week — up a single rig. It went up a single rig the week prior, too. And that’s about where we are. We have floated between 620 and 625 for all of December and January — dipping to 619 for one week during that period. It appears we’ve hit the bottom and are stable. The Marcellus/Utica remained constant last week with 42 active rigs, after PA added two rigs the week before.
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20 New Shale Well Permits Issued for PA-OH-WV Jan 15 – 21

There were 20 new permits issued to drill in the Marcellus/Utica during the week of Jan. 15 – 21, versus 24 permits issued during the prior week. Pennsylvania issued 11 new permits last week. Ohio issued 9 new permits. West Virginia had a big, fat zero new permits last week. Ascent Resources scored the most new permits issued, with 5 permits across two counties, Jefferson and Harrison, in Ohio. Encino Energy (EAP in the list) had the second most new permits issued with 4 permits in Harrison County, OH.
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Antis Have No Right to Appeal Decision to Drill Under State Parks

Anti-fossil fuel fanatics in Ohio (and beyond) still can’t accept that they lost a battle to block drilling under (not on) Ohio state-owned land, including some Ohio state parks. In November, the Ohio Oil & Gas Land Management Commission (OGLMC) met in a public forum and voted to allow shale drilling under three state-owned tracts of land: (1) all 20,000 acres of Salt Fork State Park in Guernsey County, (2) more than 300 acres of Valley Run Wildlife Area in Carroll County, and (3) 66 acres of the Zepernick Wildlife Area in Columbiana County (see OGLMC Votes to Allow Fracking Under Ohio’s Salt Fork State Park). The vote precipitated a panic attack among the environment left. Earthjustice and the Ohio Environmental Council (disgusting leftwing green groups) filed a lawsuit in Franklin County Common Pleas Court appealing the OGLMC’s action (see Big Green Sues to Block Drilling Under (Not On) Ohio State Parks). One teeny, tiny problem for the wackos: The new law that empowers the OGLMC to do the leasing does not contain a provision to appeal their decisions to a court.
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OH Supremes Revive Lawsuit Against ODNR for Closing Injection Well

Here’s a story we haven’t written about in over three years. American Water Management Services (AWMS) owns a wastewater injection well in Trumbull County that supposedly caused a low-level earthquake (that nobody could feel) in 2014. Actually, there are two injection wells located at the site, both operated by AWMS. They were both “temporarily” shut down by the Ohio Dept. of Natural Resources following the quake nobody could feel (see ODNR Temporarily Shuts Down Injection Wells After Low-Level Quake). ODNR allowed AWMS to reopen one of the injection wells but denied it the right to reopen the second well. AWMS appealed the closure of the second well all the way to the Ohio Supreme Court in 2018.
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Black Gold: Ascent & Encino Drill Oil Gushers in Ohio Utica

Yesterday we brought you the latest update on EOG Resources’ oil drilling program in the Utica Shale (see Black Gold: EOG Resources Drills Gushers in Ohio Utica). Today we have details about two more companies and their Utica oil drilling programs: Ascent Resources and Encino Energy. Last summer, we told you that Encino, which picked up Chesapeake Energy’s Ohio O&G assets, including 933,000 Ohio acres with 320,000 net Utica acres and 920 operated and non-operated Ohio Utica wells for $2 billion in 2018 (see Stop Press: Chesapeake Sells ALL of its Ohio Utica Assets for $2B), had finally cracked the code on coaxing oil from the Utica Shale (see Oil Prod. in Northern Utica Comes Alive – Encino Cracks Oil Code). Encino is now Ohio’s top oil producer.
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Black Gold: EOG Resources Drills Gushers in Ohio Utica

Perhaps our headline is slightly misleading. EOG is not the modern equivalent of Jed Clampett walking along and seeing crude bubbling up out of the ground (as in the fictional The Beverly Hillbillies show of the 1960s with the “Ballad of Jed Clampett” that says, “Oil that is, black gold, Texas tea.”). What EOG and other Ohio drillers (like Encino Energy and Ascent Resources) have done is more like rocket science than winning a lottery. The oil has been locked away in the Utica/Point Pleasant shale layer for millennia. Aubrey McClendon, co-founder and former CEO of Chesapeake Energy, was the first to see the vision of freeing oil from the Utica.
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Dominion Tests Hydrogen in Appliances in Ohio Mini-Village

Behind the Dominion Energy building in Hudson, Ohio, sits what’s being dubbed Hydrogen Heights. It’s a mini-village. The sign at the entrance says, “Welcome to Hydrogen Heights.” Dominion is testing the blending of hydrogen and methane on gas appliances there. We have nothing against using hydrogen as an energy source, other than it will never be able to power your home (see Why 100% Hydrogen Will Never Power Your Home; Why Antis Hate H2). But that’s not stopping utility companies like Dominion from experimenting to see how much of a blend they can get away with using in existing pipelines and appliances.
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23 New Shale Well Permits Issued for PA-OH-WV Jan 8 – 14

There were 23 new permits issued to drill in the Marcellus/Utica during the week of Jan. 8-14, versus 18 permits issued for the prior week. Pennsylvania issued 13 new permits last week. Ohio issued just 2 new permits. West Virginia issued 8 new permits — for the second week in a row. EQT scored the top slot for new permits, receiving 7 permits to drill in Lycoming and Greene counties in PA.
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Battleground State Energy Survey Shows Americans Reject Carbon Tax

The American Energy Alliance and the Committee to Unleash Prosperity recently sponsored a survey of 1,600 likely voters equally divided among eight “battleground” states (Georgia, Pennsylvania, Wisconsin, Arizona, Nevada, Michigan, Missouri, and Ohio) conducted by MWR Strategies in December 2023. The total sample margin of error is 2.45%. The survey results confirm that there has been little change in sentiment and attitudes on energy and climate change. Many of the responses in the survey are either consistent with or more emphatic than what they found in previous surveys.
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Baker Hughes U.S. Rig Count Loses 2 @ 619, M-U Even @ 40

The Baker Hughes rig count lost ground again last week, as it has in four of the last five weeks. The count went from 621 active rigs two weeks ago to 619 last week. The Marcellus/Utica count was steady at 40 active rigs; however, the mix changed. Pennsylvania kept 19 active rigs as in previous weeks, but Ohio picked up one rig for 13 active rigs, while West Virginia lost one rig for 8 active rigs.
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18 New Shale Well Permits Issued for PA-OH-WV Jan 1-7

There were 18 new permits issued to drill in the Marcellus/Utica during the first full week of 2024 (Jan. 1-7), versus 24 permits issued for the final two weeks of last year (Dec. 18-31). Pennsylvania issued 9 new permits last week. Ohio issued just 1 — which was to drill a Marcellus (not a Utica) well! West Virginia issued 8 permits. Antero Resources took the top spot last week with 7 new permits, all of them issued for drilling in Wetzel County, WV.
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Ohio Natural Energy Foundation Accepting Scholarship Applications

If you’re a high school senior in Ohio looking for help paying for advanced education or training — whether it’s college, university, technical or trade school — listen up! The Ohio Natural Energy Institute (formerly called the Ohio Oil and Gas Energy Education Program, or OOGEEP) is now accepting applications for its 2024 scholarship program. Students can receive a $1,000 annual scholarship for up to four years ($4,000 total). Applications are being accepted through March 1 for the 2024 round.
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U.S. O&G Jobs Slight Decline in December, but Up Overall in 2023

The Energy Workforce & Technology Council, located in Houston, TX, is a national trade association for the global energy technology and services sector, representing more than 650,000 U.S. jobs in the technology-driven energy value chain. The Energy Workforce Council works to advance member policy priorities and empower the energy workforce of the future. The Council closely tracks job numbers from the Bureau of Labor Statistics (BLS). Yesterday, the Council issued an update on O&G job numbers for December and for all of 2023. Interesting factoid: In December, the M-U industry employed 44,192 people.
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24 New Shale Well Permits Issued for PA-OH-WV Dec 18 – 31

We are catching up on permits issued…for the last two weeks of December. Normally we cover permits issued for a single week. This report covers permits issued for the two weeks covering Dec. 18 – 31. Perhaps it’s a good thing we’re reporting on two weeks as Ohio’s ODNR seems to have taken the last two weeks of the year off, issuing just a single permit. There were 24 new permits issued for the final two weeks of the year, cumulatively, versus 35 permits issued for Dec. 11 – 17. Pennsylvania issued 19 new permits for the final two weeks of last year. Ohio issued just 1. And West Virginia issued 4 permits. Range Resources took the top spot with 9 permits issued in Washington County, PA.
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Diversified Sells Major Stake in Select Appalachian Wells for $200M

Diversified Energy Company, with major assets in the Appalachian region (including the Marcellus/Utica), announced yesterday the company had sold a majority stake in an unspecified number of Appalachian conventional oil and gas wells to an investment company called DP Lion Equity Holdco, for $200 million. We could not find who owns DP Lion. The company was registered as an LLC in the State of Delaware on Oct. 19, 2023. That’s about all we know about the buyer. The deal includes Diversified retaining a 20% ownership in the wells (80% goes to DP Lion). Diversified will also continue to operate the wells.

1/4/24 UPDATE: A sharp MDN reader sent us a link to a previous Diversified SEC filing that shows DP Lion Equity Holdco, LLC, is, in fact, a subsidiary of Diversified. So Diversified raised new money by selling some of its assets to itself! Or, more likely, to a slightly different set of investors, but the assets are still controlled (essentially owned) by Diversified.
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One M-U State Made the Top 11 Oil-Producing States for 2023

U.S. oil production increased by 21% over the past five years. According to data from the Energy Information Administration (EIA), in 2023, U.S. oil producers set a new annual all-time high production record. The increase in U.S. oil production is driven by a surge of production in a handful of states. We have a list of the Top 11 oil-producing states over the past year. One of the states on the list is a Marcellus/Utica state. Can you guess which one? Hint: It’s NOT Pennsylvania…
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