Anti Groups Challenge Permit for Invenergy Gas-Fired Plant in SWPA
In January 2016, Invenergy announced its intention to build a natgas-powered electric plant in Elizabeth Township, in Allegheny County (see Invenergy Eyes SWPA for Second Marcellus-Powered Electric Plant). It took a few years, a lawsuit, and a new location, but eventually Elizabeth commissioners approved Invenergy’s plan in December 2018 (see Elizabeth Twp in Allegheny Co. OKs Invenergy Gas-Fired Plant). In June of this year the Allegheny County Health Department’s permitting section held a hearing to discuss potential emissions from the plant (see Proposed Gas-Fired Plant Near Pittsburgh has Neighbors “Fired Up”). The Health Department subsequently issued the necessary air permit. A mish-mash of Big Green groups has just sued to block that air permit.
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In September a cabal of virulent anti-fossil fuel groups, including the Sierra Club, Clean Air Council, PennFuture, Earthworks, and Mountain Watershed Association (all of which hate oil and natural gas), launched their latest attack against the Pennsylvania oil and gas industry. The groups sent a request to the PA Dept. of Environmental Protection (DEP) lobbying for a dramatic increase in the amount of money drillers must post as a bond when drilling a new well. Unfortunately, the DEP listened and is acting on that request.
Two out-of-state Members of Congress, Rep. Dan Newhouse (Washington-04) and Rep. Yvette Herrell (New Mexico-02), both members of the Congressional Western Caucus, recently took a field trip to northeastern Pennsylvania to get a firsthand look at how Marcellus drillers and midstream companies get the job done. They came away thoroughly impressed, to the point they penned an editorial for a local newspaper that begins with this sentence: “Pennsylvania’s natural gas producers are providing safe, reliable, and affordable energy for the United States and setting an example for states across the country.”
Chesapeake Energy released its third quarter update yesterday. The company has newfound energy (pun intended) since emerging from bankruptcy earlier this year and ejecting most (but not all) of its top management along with an entire refresh of the board. The company reports a net loss of $345 million during 3Q21, which is better than the $745 million net loss in 3Q20. There’s no one big reason for the loss. Revenues were down a bit ($890 million in 3Q21 vs. $960 million the year before), marketing costs were up a bit ($625 million vs. $450 million), etc. The financial loss didn’t phase investors as the stock price popped up by 3.3% from the day before.
Coterra Energy, the new name for the two merged companies that were Cabot Oil & Gas and Cimarex Energy (a Permian driller), issued its third quarter update yesterday. Cabot has been and remains one of our favorite Marcellus/Utica drillers. According to Tom Jorden, CEO of Cimarex and now CEO of the combined company, the integration of the two companies is “well underway” and has been “a full court press” since May. In the aggregate, Coterra brought 61 wells online during 3Q and plans to operate seven rigs and four completion crews during 4Q. Five of the rigs are in the Delaware Basin (in the Texas Permian), and two of the rigs are in Susquehanna County in northeast Pennsylvania. What about details for Marcellus operations during 3Q?
It was a pretty paltry week for new shale drilling permits in the Marcellus/Utica. Two weeks ago Pennsylvania issued 21 permits to drill new shale wells. They must have shot their wad because last week PA issued just two new permits–the lowest number in PA we’ve seen in…we can’t remember how long. Ohio issued no new permits for Utica drilling last week…zero…goose egg. Only West Virginia held out some promise, issuing seven new permits for shale drilling last week.
Once again the virulent anti-fossil fuel nuts that compose the federal Delaware River Basin Commission (DRBC) are targeting the shale industry. Earlier this year the lefties that run the DRBC voted to permanently ban fracking (and therefore all oil and gas drilling) anywhere in the DRBC’s jurisdiction (see 
Are labor unions so in-the-tank for *any* Democrat candidate that they can be lied to, to their faces, again and again, year after year, and still vote for the Democrat? Apparently yes. Pennsylvania’s Attorney General, the very corrupt Josh Shapiro, someone who has demonstrated a hatred for the Marcellus Shale industry (he’s prosecuting multiple Marcellus companies for “crimes” that are in fact accidents), is using the same tired playbook politicians always use–an outright lie-to-the-face. This time the lie is about his position on whether or not he supports Tom Wolf’s efforts to force the state to join the so-called Regional Greenhouse Gas Initiative (RGGI), a tax on carbon dioxide that’s meant to force coal and gas-fired power plants out of business.
Last week MDN told you about a clever play by Republicans in the Pennsylvania House and Senate to box in Democrat Attorney General Josh Shapiro, who is running for governor next year, on the issue of whether or not it is legal for current Dem Gov. Tom Wolf to force the state to join the Regional Greenhouse Gas Initiative (RGGI), an obscene carbon tax meant to kill coal and gas-fired power plants in the state (see 
Last week Pennsylvania issued 21 permits to drill new shale wells. Most of the permits went to two well pads, one in Butler County drilled by PennEnergy Resources and the other in Tioga County drilled by Repsol. Ohio issued six new permits, three to Encino Energy, two to Utica Resource Operating, and one to Ascent Resources. West Virginia, for the second week in a row, issued just one new permit. Last week’s WV permit went to Tug Hill Operating in Marshall County.
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.
A leftist anti-fossil group calling itself Protect PT, in Penn Township (Westmoreland County), PA, backed with big money from Big Green groups, has for years challenged Penn Township ordinances that allow Apex Energy and Huntley & Huntley (now Olympus Energy) to drill and operate shale wells. Protect PT finally struck out legally at the Pennsylvania Supreme Court in May 2020 (see 
Last week America’s Rural Energy Coalition (AREC), a national organization created by rural community stakeholders and industry representatives from across the country to build sustainable rural communities by maximizing the opportunities and minimizing the challenges presented to them as a result of the development of their regional energy resources, held a regional meeting in Bradford County, PA. While AREC advocates for safe development of all forms of energy in rural America, front and center at last week’s meeting was the mighty Marcellus Shale and the critical role of oil and natural gas in the lives of every citizen on planet earth (and to the people of PA).