U.S. Rig Count Drops Another 5 Rigs, M-U Loses 2 More Rigs
For the third week in a row and the 12th time in the last 13 weeks, the U.S. active rig count lost rigs. Last week the number decreased by five rigs after falling six rigs the week before (see U.S. Rig Count Drops Another 6 Rigs, Now Lowest Level in 16 Mos.). Both the Marcellus and the Utica dropped one rig each for a combined M-U rig count of 46. Some 13 weeks ago, the M-U lost four rigs (going from 53 down to 49). Six weeks ago, we lost another rig, down to 48. And now, we’ve lost two more. The trend is not our friend.
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This is a cautionary tale of choosing your joint venture partner carefully. The Pennsylvania Superior Court threw out a $2.4 million arbitration award against Marcellus driller PennEnergy in a business dispute in a precedential ruling last week. The Superior Court judges overruled an award by an arbitrator. PennEnergy maintained the case should never have been in arbitration in the first place. The intended recipient of the award, MDS Energy, says the Superiors weren’t so superior after all and got it wrong. The case is complicated…
A group of Pennsylvania State Senators are (once again) trying to expand the swampy bureaucracy of the state Dept. of Environmental Protection (DEP). A group of six Democrat state senators issued a co-sponsorship memorandum last Thursday to say they want to expand the DEP’s power to reject “facilities such as incinerators, landfills, and sewage plants” based on the premise that such facilities are typically built in communities where there are minorities or poor people–and they are just too poor (or too dumb) to “fight back” against such projects. That is, the DEP can reject anything it wants for “environmental justice” reasons. The very premise of the bill is, itself, racist!
Researchers with the University of Pittsburgh (Pitt) recently published a study in the journal Ecological Indicators. The study’s intent was to measure whether or not frack waste dumped in local landfills has radiation that is leaking out in groundwater (leachate) from those facilities. Research like this, if legitimate (and accurate), is a good thing. We need to know if the waste we’re dumping is causing a problem. But a funny thing happened during the study. The researchers found a big problem with recordkeeping.
In a process that began in December 2021, Olympus Energy (formerly Huntley & Huntley) announced it had contracted with Project Canary to monitor methane emissions from both the company’s drilling operations and the company’s pipeline operations (see 
The analysts at the U.S. Energy Information Administration (EIA) have been looking at natural gas production in the Marcellus/Utica (i.e., Appalachia) for 2022. The M-U is the largest-producing natural gas shale play in the world. Pennsylvania is the second-largest producer of natural gas in the U.S. after Texas. The EIA looked at PA’s production, specifically production from the four largest-producing counties, for 2022. They found what we told you about back in March: Production in PA has fallen (see 
For years we’ve railed against what we consider the theft of royalties and bonus payments by the state of Pennsylvania from landowners with creeks and rivers running through their leased (for shale drilling) property. The Pennsylvania Dept. of Conservation and Natural Resources (DCNR) claims that under a centuries-old law, the state of PA “owns” the property under “navigable” waterways–including rivers and streams (see 
What a disappointment Rich Negrin has turned out to be as Secretary of the Pennsylvania Dept. of Environmental Protection. During a DEP Citizens Advisory Council meeting held yesterday in Harrisburg (and remotely, via teleconference), several virulent anti-fossil fuelers addressed the council, making wild claims against the DEP. Negrin simply accepted their babbling and told them he agreed with them and would investigate any perceived problems. It was a shameful performance.
In the fall of 2021, President Biden signed into law the so-called Infrastructure bill, some $1.2 trillion in pork barrel spending, passed with the help of turncoat Republicans (see 
The political situation in Pennsylvania is quite fascinating to watch. The PA House has a one-seat Democrat majority, which means all of the committees in the House are now (for the first time in years) run by Democrats. One of them, Rep. Greg Vitali from Delaware County (near Philadelphia), chairs the powerful House Environmental Resources and Energy Committee. Immediately upon seizing power, Vitali tried to ram through a number of radical bills that would greatly harm (or even end) the Marcellus industry in the state. We previously told you members of his own party slapped him down, making him pull back and abandon two bills he really really wanted (see 
The weekly rig count for the U.S. finally, after nine straight weeks in a row, turned around–just a bit. With its venerable rig count, Baker Hughes reported last Friday that overall, the U.S. rig count added six rigs, reversing a downward trend. There were 680 active rigs for the week ending July 7. Both the Marcellus and the Utica maintained the same rig levels for the past four weeks in a row with a cumulative 48 rigs. That number is down from an average of 52 it had been running for the first five months this year. The good news is that we haven’t lost any more rigs.
Pennsylvania’s Democrat Party is hellbent on driving the Marcellus Shale industry out of the state. They have been for years. That’s just a truthful observation and beyond dispute. The latest evidence is the party’s insistence on adding a severance tax on top of the existing impact fee, PA’s version of a severance tax. The Dems in the PA House passed a resolution on Friday by a single vote that directs the Legislative Budget and Finance Committee to “study” Pennsylvania’s revenue from the oil and gas industry, comparing it with the top five states in natural gas production in the U.S.