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PA House Member Calls Shapiro DEP “Weaponized” and a “Jobs Killer”

During a Pennsylvania House Republican Policy Committee hearing on strengthening rural communities held on Wednesday, Rep. Bud Cook (R-Waynesburg) didn’t hold back when assigning blame for why the state’s rural communities are losing population and experiencing economic growth. Cook said, “The overriding impediment is Governor Shapiro’s DEP,” referring to the Dept. of Environmental Protection. One of Cook’s chief complaints is how long it takes to get a simple permit issued from the DEP.
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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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PA’s Natural Gas Star Beginning to Fade from Lack of Pipelines

It’s hard to underestimate the influence and role of Pennsylvania on the world’s energy sector, especially over the past 19 years with the rise of the Marcellus Shale. However, advocates for fossil energy (like the American Petroleum Institute) are expressing concerns that PA’s dominant role may change to one with far less influence. Why? Lack of pipelines to transport PA’s production to other regions (or to export plants). Their concerns are valid (see IFO: PA NatGas Production, Wells Spud Both Decreased in 3Q).Continue reading

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Interim PA DEP Sec. Updates Citizens Advisory Council on Priorities

In October, Pennsylvania Secretary of the Dept. of Environmental Protection (DEP) Rich Negrin suddenly resigned after being on the job for less than a year (see PA DEP Sec. Negrin Resigning Dec. 8 – On Medical Leave Until Then). In his place, Jessica Shirley, who was named Deputy Secretary of the DEP earlier last year, became the Acting Secretary until a permanent replacement is named. Shirley updated the DEP Citizens Advisory Council yesterday about a variety of initiatives started by DEP Sec. Negrin. She said her vision for the department, building on Negrin’s, is to “move us into a more modern era.”
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PA Coalition Prefers Energy Poverty Over Real Climate Solutions

Have you ever been around the kind of irritating person who says “No!” to everything? Someone who is perennially unhappy and loves to share that unhappiness with everyone around him or her? Someone who, when you offer valid solution after valid solution to a given “problem,” the person shoots each one down, unwilling to try anything? Such people are toxic. On an organizational level, we have a perfect example of such toxicness — the No False Solutions PA coalition.
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The Deep Divide on Pa. Environmental Policy – Senate vs. House

Republicans control the Senate in Pennsylvania. Until last year, Republicans also controlled the House. Now, leftist Democrats control the PA House by a single seat. As narrow as the numbers are, the philosophical divide between the two parties and the two chambers with respect to environmental issues is a chasm. Republicans like Sen. Gene Yaw, Chairman of the Senate Environmental Resources & Energy Committee, are focused on safe and responsible energy development and grid reliability in 2024. On the other hand, Democrats, like Greg Vitali, Chairman of the House Environmental Resources & Energy Committee, are focused on the mythology of man-made global warming and blocking anything remotely connected to fossil fuels. It means there is little to no room for compromise on environmental issues.
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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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The Pendulum is Beginning to Swing Against Climate Cultists

A new article by Gordon Tomb — a senior fellow with the Commonwealth Foundation, a Pennsylvania-based, free-market think tank, and senior advisor with the CO2 Coalition, Arlington, Virginia — has the intriguing title: “Are ‘green’ agendas carrying governors to political cliffs?” While the article focuses on recent actions by PA Gov. Josh Shapiro and Wyoming Gov. Mark Gordon in pandering to the radical environmental movement, much of the article reviews the evidence that a majority of people across multiple countries are beginning to reject radical environmentalism by electing conservatives. The radicals swung the pendulum way too far and too fast, and now the pendulum is swinging back to sanity.
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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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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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Baker Hughes U.S. Rig Count Loses 3 @ 620, M-U Drops 1 @ 40

The venerable Baker Hughes U.S. rig count turned in its totals a day early this week. Likely because workers were heading for the exits early (we can’t blame them). The overall rig count lost ground again last week, as it has for the past couple of weeks. The count went from 623 active rigs last week down to 620 this week. The Marcellus/Utica lost a rig (in Pennsylvania) to end up at 40 active rigs, while our main competitor, the Haynesville, added another rig and now stands at 44 active rigs. Bummer. Not that many weeks ago, the M-U was running more rigs than the Haynesville.
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Project InnerSpace Conducting PA Geothermal Study Aimed at O&G

In September, MDN told you about a non-profit organization called Project InnerSpace, which has been reaching out to public officials, academics, and oil and gas interests in Pennsylvania, pitching a transition from fossil fuel extraction to geothermal energy using the same workers and potentially, the same infrastructure (see Siren Song of Geothermal Calls to PA Conventional & Shale Drillers). In January, Project InnerSpace published a “first-of-its-kind, landmark study” titled “The Future of Geothermal in Texas.” The organization has now turned its sights on two more O&G states: Pennsylvania and Oklahoma. Project Innerspace announced yesterday it will research and publish reports for PA & OK in the summer of 2024.
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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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SRBC Approves Water Withdrawals for 7 PA Shale-Related Projects

The highly functional and responsible Susquehanna River Basin Commission (SRBC), unlike its completely dysfunctional and irresponsible cousin, the Delaware River Basin Commission (DRBC), continues to support the shale energy industry by approving water withdrawals for responsible and safe shale drilling. Last Thursday, the SRBC approved 19 new water withdrawal requests within the basin, six of them for water used in drilling and fracking shale wells in Pennsylvania (and one for a gas-fired power plant). The Marcellus/Utica shale drillers receiving a green light from SRBC included EQT, Pennsylvania General Energy, Repsol (two requests), and Seneca Resources (two requests).
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CNX Delivers on Promise to Shapiro re Chemicals List, Air Results

In early November, CNX Resources CEO Nick DeIuliis signed a voluntary deal with Pennsylvania Gov. Josh Shapiro to expand drilling setbacks and several other regulatory steps not mandated for shale drillers under PA law (see CNX Signs Deal with PA Gov. to Increase Setbacks, Other Changes). Gov. Shapiro’s office yesterday blew the trumpet to announce that CNX has begun to deliver by providing a list of the chemicals used in fracking and by posting air monitoring results in real-time for two of its well pads, with plans to expand the program across its operations statewide.
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