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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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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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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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OH Gov. Signs Law for Utilities to Charge $1.50/Mo. for New Pipes

The left in Ohio is up in arms again. It’s always up in arms. Everything is a crisis. Everything is a climate tragedy. Everything is a conspiracy — so says the environmental left. Last Thursday, Ohio Gov. Mike DeWine signed House Bill (HB) 201 into law. A provision was tacked onto HB 201 late in the legislative process, several weeks before it was passed, that allows natural gas utility companies to charge customers a piddly $1.50 per month ($18 per year) to help fund new pipelines that will get built in rural areas to industrial sites — areas without existing natgas pipes. The aim is to attract new businesses to locate in the Buckeye State. Many companies won’t consider a potential site without cheap, easy access to natural gas already installed. HB 201 helps make it much more likely a business will consider a site in Ohio, given access to cheap Utica Shale gas. Cue the enviro left’s shrill response.
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Baker Hughes U.S. Rig Count Finishes Year @ 622, M-U @ 40

In what has become a repeating pattern, indicating we may have hit bottom, last week, the Baker Hughes U.S. rig count added two rigs, going from 620 two weeks ago to 622 last week. The pattern is to lose a few and then gain a few every couple of weeks. After Pennsylvania lost a rig two weeks ago (see Baker Hughes U.S. Rig Count Loses 3 @ 620, M-U Drops 1 @ 40), the rig count for the three combined Marcellus/Utica states remained the same last week at 40 active rigs. Disappointingly (for the M-U), the Haynesville, our main competitor (for drillers and money), remained at 44 active rigs last week.
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Ohio HB 201 Adds Fee to Utility Bills to Upgrade NatGas Pipes

Ohio House Bill (HB) 201 was recently passed by both the state House and Senate and now sits on the desk of Gov. Mike DeWine (a somewhat swampy Republican, although far superior to governors like Kathy Hochul and Josh Shapiro). HB 201 started life as a bill to block the Buckeye State from following California’s lead in adopting emissions that are stricter than national regulations and call for the phaseout of the internal combustible engine by 2035. Somewhere along the way, the bill added an additional measure allowing the state’s natural gas utilities to recover the costs of installing new pipelines by tacking a fee on utility bills. It is the pipeline amendment that has the radicals going nuts in the state.
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EIA Dec DPR: Another Big Production Drop Coming in M-U, Haynesville

The latest monthly U.S. Energy Information Administration (EIA) Drilling Productivity Report (DPR) for December, issued Monday (below), shows EIA believes shale gas production across the seven major plays tracked in the monthly DPR for January will *decrease* production from the prior month of December. This is the sixth month in a row that EIA has predicted shale gas production will decrease for the combined seven plays. EIA says combined natgas production will slide by 200 MMcf/d (million cubic feet per day). The Marcellus/Utica, called “Appalachia” in the report, is predicted to decrease by 135 MMcf/d in January compared with December, the biggest decrease in gas production for any of the seven plays.
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Dead Cat Bounce Over: U.S. Rig Count Loses 3 @ 623, M-U Even @ 41

The slight rise in the national rig count, with the count going up by one or two rigs a week over the past five weeks (what we call a “dead cat bounce”), is over. The Baker Hughes U.S. rig count lost ground again last week. The count went from 626 active rigs two weeks ago down to 623 last week. The Marcellus/Utica stayed even at 41 active rigs last week.
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Silver Point Capital Completes Sale of 550,000 Shares of Gulfport

Earlier this week MDN told you that two of Gulfport Energy’s major investors were conducting a sale of what amounts to 3.5% of the company’s stock (see 2 Gulfport Energy Shareholders Selling 3.5% of Company Stock). One of the investors selling is Silver Point Capital L.P., which owns some 10% of Gulfport’s stock (and has a seat on the board of directors). We now have more details about the stock sale. Silver Point sold 550,000 of the 653,464 shares on offer. Does the Silver Point sale have significance? Does it signal anything?
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Oil & Gas Jobs Continue To Grow – Latest Numbers for PA, OH, WV

The Energy Workforce & Technology Council, based in Houston, TX, is the national trade association for the global energy technology and services sector. The Council reports jobs in the O&G sector increased in November, adding 1,286 jobs. The O&G industry employs 652,398 jobs across the country, just 54,130 jobs away from returning to pre-pandemic levels. And how much do those jobs pay? The average hourly earnings for frontline oil-and-gas workers rose 1.3% in October from the previous month to $44.11, according to a Labor Department report released last week.
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DUG Appalachia: Encino Looks to Grow Oil Production in OH Utica

Hart Energy keeps the hits rolling, publishing interviews and articles from the recent DUG Appalachia event held in Pittsburgh in November. The latest is a transcript of an interview between Hart Energy’s editorial director and Encino Energy’s CTO. According to the CTO, the company uses “machine learning” to perfect its oil drilling in the northern Ohio Utica, and it’s paying off. Encino is looking to expand in the Ohio Utica — looking to lease more and drill more.
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Ohio Utica Shale Production 3Q23 – Top Wells, Drillers & Counties

The Ohio Dept. of Natural Resources (ODNR) released production numbers for the third quarter of 2023 late last week, and nobody noticed…except MDN (thanks to a tip from a good friend). ODNR no longer issues a press release to summarize the results as they once did. We’ve got the full spreadsheet with oil and gas production details for all 3,281 active shale wells in the Buckeye State. We’ve sliced and diced the numbers and have our usual Top 25 lists for natural gas and oil wells. We’ve included a couple of charts summarizing the data, showing the total production by driller (gas and oil) and the total production for the quarter by county. You’re gonna love it!
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Big Green Sues to Block Drilling Under (Not On) Ohio 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. Several weeks ago, 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 last Thursday appealing the OGLMC’s action.
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