Slowdown in Marcellus/Utica Drilling Hurts Western PA Economy
Anecdotally it seems as though there has been less drilling activity in the Marcellus/Utica over the past year. Some say it’s due to the coronavirus pandemic. Others say there’s more to it than that. If you’ve tracked public announcements by drilling companies, they claim to have pulled back on drilling and won’t increase current levels of drilling even when/if the price of natural gas increases. Why? They must turn a profit, or investors leaving for greener pastures (pun intended). But is there really less drilling happening in the M-U today than say one year ago?
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Olympus Energy, the renamed Huntley & Huntley Energy Exploration (HHEX), concentrates its drilling in the Pittsburgh suburbs, including Upper Burrell and Allegheny Townships in Westmoreland County, PA. Olympus has just cut a $1.2 million deal with the Municipal Authority of the City of New Kensington to extend three miles of waterlines near three Marcellus well sites in Upper Burrell and Allegheny Townships.
The Westmoreland Sanitary Landfill in Westmoreland County, PA (southwestern corner of the state, near Pittsburgh) was fined $24,000 earlier this year (see
CNX Resources has applied for permits to drill up to seven new Utica shale gas wells on a single pad in Washington Township on the grounds of the Municipal Authority of Westmoreland County. The reason it’s raising a few eyebrows is that the new pad is in the general vicinity of the company’s faulty Shaw 1G well.