KeyState NatGas/CCUS Project in Clinton, PA Now $2B, Extra 2 Yrs
The KeyState Natural Gas Synthesis project in Clinton County, PA, is developing the first carbon capture project in Pennsylvania, which will locally produce hydrogen, ammonia, and urea (see Innovative Clinton County, PA Petchem Plant Gets More Investors). The project includes a closed natural gas extraction and manufacturing system that produces zero emissions and emission-reduced products. The last time we checked, the estimated cost to build the project was $400-$500 million, and it would be up and running by the end of 2026. Strike that! In an update, the project (which is under construction) will take upward of $2 billion (!) to build and won’t be ready until “2027 or 2028.” However, the extra money and extra time are a good sign.
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New shale permits issued for Jul 31 – Aug 6 in the Marcellus/Utica were down a lot from the previous week. There were 14 new permits issued last week, down more than half from the 29 issued the previous week. Last week’s permit tally included just 4 new permits in Pennsylvania (very low), 14 new permits in Ohio, and no new permits in West Virginia (for the second week in a row). The top permittee for the week was Encino Energy, receiving 8 permits spread evenly between Harrison and Tuscarawas counties in Ohio.
In December 2020, then-Gov. Tom Wolf announced a $2.5 million contract had been awarded to the University of Pittsburgh (Pitt) Graduate School of Public Health to “conduct research on the potential health effects of hydraulic fracturing in Pennsylvania” (see 
Coterra Energy, formed in 2021 by the merger of Permian oil driller Cimarex Energy and Marcellus gas driller Cabot Oil & Gas, issued its second quarter 2023 update yesterday. The company made far less profit in 2Q23 than it did one year ago, in line with other big Marcellus/Utica drillers. Coterra made $209 million in profit for 2Q23, versus $1.2 billion in 2Q22. Why the drop in profit? The crashing price of natural gas over the past eight months or so. Coterra received an average of $5.54/Mcf (before hedges) for its Marcellus gas in 2Q22, and $1.78/Mcf in 2Q23, a drop of 68%. Ouch. During a conference call with analysts, company management floated a potential plan to free up around $200 million from Marcellus operations in 2024 and reallocate it to other plays (the Permian or the Anadarko) by continuing to run just two rigs and one frac crew in the Marcellus.
Earlier this year, Roulette Oil & Gas LLC received approval from the federal EPA to build a shale wastewater injection well in Clara Township in Potter County, PA (see 
On July 11, the federal EPA held an online hearing to accept comments on a draft permit it intended to issue allowing G2 STEM to drill a proposed new wastewater injection well in Fayette County, PA (see 
The League of [Liberal Democrat] Women Voters of Pennsylvania is “teaming up” with the leftist fanatics at Food & Water Watch to launch a zombie (i.e., form) letter-writing campaign, hoping to convince the U.S. Department of Energy (DOE) NOT to award a $1 billion hydrogen hub contract for any application that includes the Keystone State (there are three such applications). Cause, you know, it would involve building more fossil fuel infrastructure in the state, and *everybody* knows that fossil fuels are Satanic. The Lib Dem groups are hoping if they can’t dazzle the DOE with brilliance, they can baffle them with mountains of Barbara Streisand form letters.
The so-called Center for Climate Integrity (CCI) is behind most of the lawsuits filed by municipalities around the country (cities, counties, states) against Big Oil & Gas companies, claiming fossil energy companies know and have known for years that using their products is toasting Mom Earth into oblivion. It is the most outrageous abuse of the justice system we know of. The lawsuits are instigated (and funded) by CCI and a litany of colluding nonprofits. Get ready in the Keystone State. CCI has partnered up with the Philadelphia-based Clean Air Council (CAC) and, by all appearances, is trying to convince government officials in PA to sue PA energy companies.
For the fourth week in a row and the 13th time in the last 14 weeks, the U.S. active rig count lost rigs. It’s grueling. Last week the number decreased by five rigs after falling five rigs the week before–now down to 659 active rigs across both oil and gas. The Marcellus dropped one rig (in Pennsylvania) for a combined M-U rig count of 45–the lowest this year. Some 14 weeks ago, the M-U lost four rigs (going from 53 down to 49). Seven weeks ago, we lost another rig, down to 48. Last week we lost two more down to 46, and this week another. The trend is not our friend.
Equitrans Midstream owns two natural gas storage wells in the Swarts Complex and Hunters Cave Storage Fields area of Greene County, PA–in Center, Franklin, Morris, and Washington Townships. CONSOL Energy, which used to be part of CNX Resources but is now a standalone company focusing on the coal industry, plans to mine coal above and around the Equitrans Hunters Cave and Swarts Natural Gas Storage Fields over the next several decades. So Equitrans is proposing to abandon its two existing storage wells (near where CONSOL needs to work) and drill two new wells in the same vicinity–just not near CONSOL’s coal mining activities.
National Fuel Gas Company (NFG), headquartered in Buffalo, NY, is the parent company for Marcellus/Utica driller Seneca Resources and the parent of midstream company Empire Pipeline. Yesterday, NFG issued its latest quarterly update. NFG operates on a weird fiscal year system. This latest update is for the company’s third quarter, which would be everybody else’s second quarter update. NFG said it plans to “further moderate” its Seneca drilling activity as it shifts to slower production growth in the “low single-digit” range.
Newly-elected Gov. Josh Shapiro, who appears to be completely ineffective since taking office (which is not necessarily a bad thing), appointed a working group in April to help guide him on what he should do concerning the Regional Greenhouse Gas Initiative (RGGI) carbon tax and the broader issue of global warming (see 
In February 2022, Equitrans Midstream announced it had filed a new pipeline expansion project with the Federal Energy Regulatory Commission (see