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BH U.S. Rig Count Down 11th Week in a Row @ 537; M-U Even @ 35
The Baker Hughes U.S. rig count has been hemorrhaging for 11 consecutive weeks. Last week, the U.S. rig count declined by another two rigs to its lowest level since October 2021, ending the week at 537 active rigs. You have to go back to the dark days of the pandemic, July 2020, for the previous 11+ consecutive weeks of decline in the rig count. The Marcellus/Utica stayed even (after falling by one two weeks ago) at a combined 35 active rigs. There were 23 rigs targeting the Marcellus and 12 rigs targeting the Utica last week. Read More “BH U.S. Rig Count Down 11th Week in a Row @ 537; M-U Even @ 35”
For the week of June 30 – July 6, the number of permits issued to drill new wells in the Marcellus/Utica decreased from the previous week, likely due to the July 4th holiday. There were 21 new permits issued across the three M-U states last week, down six from 27 issued two weeks ago. The Keystone State (PA) issued 13 new permits. EQT and its recently acquired Olympus Energy received a combined five permits scattered across three counties: Allegheny, Greene, and Washington. Snyder Brothers received four permits in Armstrong County. BKV scored three permits in Wyoming County. Range Resources received a single permit in Washington County. 
It took eight years and untold legal fees (on both sides) before a tiny 3.4-mile, 8-inch natural gas pipeline under the Potomac River was finally built and went online. In April 2017, MDN brought you the news that Columbia Pipeline (owned by TransCanada) had applied with the Federal Energy Regulatory Commission (FERC) to build a pipeline under the Potomac to connect natural gas from Pennsylvania to the Mountaineer Gas system in the Eastern Panhandle of West Virginia (see 
The number crunchers at the U.S. Energy Information Administration (EIA) analyzed proved reserves data for 2023 (the most recent year available) and determined that proved reserves of U.S. natural gas decreased 12.6% year over year, from 691.0 trillion cubic feet (Tcf) to 603.6 Tcf. This was the first annual decrease in U.S. natural gas reserves since 2020. Looking at the numbers for Pennsylvania, Ohio, and West Virginia, natural gas proved reserves decreased by 4% (PA), 13% (OH), and 6% (WV) from 2022 to 2023. The report shows that Marcellus gas reserves dropped 5.9% in 2023. 
It’s bloody. It’s brutal. Last week, for the ninth consecutive week, the Baker Hughes U.S. rig count declined (by seven rigs) to its lowest level since October 2021, ending the week at 547 active rigs. The national rig count continues in a free fall. For the fifth week in a row, the Marcellus/Utica count remained the same, at a combined 36 active rigs. The Pennsylvania Marcellus operated 18 rigs. The Ohio Utica operated 11 rigs. And West Virginia operated seven rigs. So, at least there’s some good news with respect to the M-U. 
U.S. Energy Secretary Chris Wright visited the National Energy Technology Laboratory facility in Morgantown, WV, on Wednesday. While touring the facility, Wright promoted President Trump’s One Big Beautiful Bill Act, which he said contains provisions intended to bolster and support WV’s oil, natural gas, and coal industries. In his comments, Wright called natural gas “the big dog,” but he also emphasized the importance of coal energy. He talked up the importance of WV to the nation’s energy supply. 
The West Virginia Supreme Court recently issued two 3-2 decisions reinforcing that oil and gas producers generally cannot deduct post-production costs from royalty payments to mineral owners unless lease agreements explicitly permit such deductions. We previously reported on both decisions. On June 6, the Supremes ruled in Kaess v. BB Land LLC on “in-kind” royalty leases (see 
A situation that’s been playing out for nearly two years is just now becoming public. In late 2023, a welding inspector working on the 303-mile Mountain Valley Pipeline (MVP) said he had discovered three sections of the pipeline were corroded and violated construction standards and federal guidelines. He reported it to his superiors at MVP, who allegedly ignored his objections. So he filed a report with the federal Pipeline and Hazardous Materials Safety Administration (PHMSA). The pipeline sections got replaced, and the inspector got fired. In April of this year, the inspector filed a lawsuit against MVP (and Equitrans Midstream, and EQT) for wrongful termination.