National Drilling Rig Count Climbs by 8, Marcellus +5, Utica -4
While we don’t track rig counts each week, given the volatile up-and-down nature of rig counts, the count from last week warrants comment. Oil rigs fell by one last week to 589, while gas rigs rose by nine to 162. Total rig count is up 13.7% over the same time last year–a good indicator that more drilling is happening. In our region, the Marcellus play gained five rigs from the previous week, while the Utica lost four rigs from the previous week.
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Environmental radical Pat McDonnell of PennFuture, the former Pennsylvania Secretary of the Dept. of Environmental Protection (DEP), along with his best friend THE Delaware Riverkeeper, Maya van Rossum, have just sued McDonnell’s former agency over permits the DEP issued to Williams to build the Regional Energy Access Expansion (REAE) project (see 
Once again, the Biden administration is attacking the fossil fuel industry. This time it is via one of its favorite blunt force instruments: the federal Environmental Protection Agency (EPA). Yesterday the EPA released what it calls its final “Good Neighbor Plan” that forces gas- (and coal-) fired power plants to further reduce nitrogen oxide (NOx) emissions. It’s either reduce NOx by installing really expensive new equipment, shut the plant down, or option #3…pay an indulgence (tax) to keep sinning (polluting) by purchasing an “offset.” Liberals are so predictable.
Yesterday at a Pennsylvania Oil and Gas Technical Advisory Board meeting, Kurt Klapkowski, Acting Deputy for Oil and Gas Management (part of the Dept. of Environmental Protection), told board members the DEP is about to file a letter of intent as early as this week to apply for “primacy” to regulate underground injection wells in the state. Currently, the U.S. Environmental Protection Agency (EPA) is the primary regulator of PA injection wells–including oil and gas injection wells. In some states with the necessary structure in place, the EPA delegates its authority to oversee and regulate such wells. PA wants to be one of those states. Me before you.
The Pennsylvania Dept. of Environmental Protection (DEP), in collaboration with Carbon Mapper, Inc. and the U.S. Climate Alliance, conducted a research study in May 2021. The study looked at four different areas across Pennsylvania to measure leaking methane using a specially-outfitted airplane. The study wasn’t so much about who was leaking methane as it was about whether the airborne detection technology was accurate. However, the results (the who) was interesting. The study (see an overview below) chronicles the discovery of 153 total methane plumes detected from 91 individual sources, including oil and gas facilities (63 sources), coal mines (18 sources), and landfills (9 facilities).
As we mentioned in passing in our post yesterday about Pennsylvania Gov. Josh Shapiro’s first budget, one of the items in his budget (and in his speech) was support for a $1 billion hydrogen hub project in the Keystone State (see 
Newly-elected Pennsylvania Governor Josh Shapiro unveiled his first-ever budget yesterday, and it was a whopper, coming in at $44.4 BILLION. We were keeping an eye on his budget for two primary things: (1) Does it include a severance tax? (2) Does Shapiro plan to get revenue from the Regional Greenhouse Gas Initiative (RGGI) carbon tax scheme? For the first, the answer is no. Thankfully, Shapiro did not lobby nor request a Marcellus-killing severance tax. Which is sure to tick off the left. However, it was a mixed bag because the budget DOES assume RGGI will kick in and provide the state with $663 million in proceeds for 2023-24. Wait, you thought Shapiro was against RGGI following his comments slamming it? Surely you’re not that dumb?
Some 18 pro-business groups in Pennsylvania joined forces to send a letter to newly-elected Gov. Josh Shapiro and every member of the PA legislature. The letter, spearheaded by the PA Chamber of Business and Industry (also the Marcellus Shale Coalition and the American Petroleum Institute of PA), congratulates Shapiro and all those winning election or reelection. It was a verbal slap on the back. But the letter goes on to request all of these newly elected officials to work together to promote domestic energy production in the Keystone State. In other words, Why can’t we be friends?
Could air pollution related to drilling shale wells affect those who live nearby? In particular, does shale drilling negatively affect the health of older folks (over age 65)? How would we know if it is affecting their health? Researchers set out to answer that question by analyzing Medicare data for older folks who live near Marcellus drilling in Pennsylvania, comparing the data with older folks who live in nearby New York, where there is no Marcellus drilling. The researchers conclude that living near shale drilling increases the likelihood of old folks having a heart attack, stroke, and other cardiovascular issues.
Isn’t it typical for Democrats to try and use a crisis that has nothing whatsoever to do with shale and natural gas to block shale and natural gas? Seven members of Pennsylvania’s Congressional delegation, every single one of them a Democrat, sent a letter (copy below) to another Democrat, Secretary of Transportation Pete Buttigieg (an incompetent nincompoop), asking him to permanently delete a rule adopted during the Trump administration that allows LNG to be safely transported by special rail cars. The reason cited for banning LNG by rail? The train derailment in East Palestine, Ohio–an event that has nothing whatsoever to do with shale energy.
On February 15, 2023, the Supreme Court of Pennsylvania agreed to hear the case Dressler Family, LP v. PennEnergy Resources, LLC, a case addressing the question of whether Pennsylvania is an “at-the-well” jurisdiction, or a “first-marketable product” jurisdiction. The case may have profound implications for Pennsylvania landowners and drillers. The issue in this case revolves around whether or not a driller is allowed to deduct expenses from royalty payments for transporting and cleaning up natural gas between the well and the point of sale. Can a driller claim post-production deductions even if there are clauses that prohibit them?