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Hit Bottom? U.S. Rig Count Up 9 at 641, M-U Stays Even at 39
Have we finally turned a corner? Hit rock bottom and have begun a rebound? We are referring to the Baker Hughes U.S. rig count. Last Monday, we reported the weekly rig count had finally gained a rig–the first time since June (see U.S. Rig Count Adds One Rig, M-U Drops Another Rig). However, the Marcellus/Utica dropped another rig in that report from two weeks ago. Today’s report (from Friday) shows the national rig count added a whopping nine rigs last week–now up to 641 active rigs. Although the M-U did not add any rigs last week, neither did we lose any, which prompts the observation that maybe, just maybe, we are seeing a turnaround in the rig count.
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New shale permits issued for Sep 4 – 10 in the Marcellus/Utica continued to be in the crapper. There were 14 new permits issued last week, up 1 from 13 issued two weeks ago, and down from the 16 issued three weeks ago. Not so long ago we routinely saw 30+ issued each week. Last week’s permit tally included 8 new permits in Pennsylvania, no new permits in Ohio, and 6 new permits in West Virginia. The top permittee for the week was Antero Resources, which received six permits in WV.
For the first time since June, the national active U.S. rig count added rigs–a single rig–last week. The new active U.S. rig count is 632, up from 631 the previous week. Unfortunately, the Marcellus/Utica lost yet another rig, sinking to 39 active rigs. Once again, West Virginia was the unlucky state that lost a rig, now running just 8 shale rigs. The rig counts for both Pennsylvania and Ohio stayed the same last week.
The old Energy Harbor coal-fired power plant in Pleasants County, WV, which had been offline since June 1 and was scheduled to be demolished, recently roared back to life under new ownership (see 
The swamp gets swampier. U.S. Senator Joe Manchin, from West Virginia, Chairman of the powerful Senate Energy and Natural Resources Committee, is rumored to be pushing a staff member to fill the open Federal Energy Regulatory Commission (FERC) Commissioner slot. There is an open seat for a Democrat after Manchin blocked Richard “Dick” Glick from continuing beyond the end of his second term (see 
In August, MDN told you about a new $2 billion hydrogen project coming to West Virginia (see 
Quick! Apply pressure to the wound before the patient (in this case, the Marcellus/Utica) bleeds out. Another week, another lost rig in the Marcellus. We can’t seem to stem the flow of rigs leaving. The national rig count also lost one rig overall. For the eighth week in a row and the 17th of the last 18 weeks, the U.S. active rig count lost rigs. The total is now down to 631 active rigs across both oil and gas (down from 632 last week). At least the loss is slowing. West Virginia dropped one rig after adding one last week. The rig counts for both Pennsylvania and Ohio stayed the same last week.
Antero Resources and Antero Midstream have donated a massive $4 million to West Virginia University’s Benjamin M. Statler College of Engineering and Mineral Resources to help train the next generation of petroleum and natural gas engineers. Antero’s gift is the largest philanthropic donation to the school to date. It will support undergraduate and graduate students in the petroleum and natural gas engineering program.
The old Energy Harbor coal-fired power plant in Pleasants County, WV, which had been offline since June 1 and was scheduled to be demolished, has roared back to life under new ownership. Omnis Fuel Technologies invested $800 million to restart operations at the plant, which is now back online and producing electricity. Omnis’ plan is to transition the plant, renamed to Quantum Pleasants, to use hydrogen instead of coal.
Last week, MDN brought you information about what happens next when (not if) the mighty 303-mile Mountain Valley Pipeline gets completed (see 
Last week, MDN told you about the great news coming from the Gas and Oil Association of West Virginia, Inc. (GO-WV) and its newest annual Gas Facts report covering the impact in WV from the shale energy industry in 2022 (see 
West Virginia University (WVU), the Mountain State’s public research university, is located in Morgantown, WV. Enrollment at all of WVU’s campuses at one point almost touched 30,000 students. Big university–important university. WVU has a major Petroleum and Natural Gas Engineering program as part of the school’s Benjamin M. Statler College of Engineering and Mineral Resources. However, WVU has a budget problem. Enrollment has been down some 5,000 students from 2014. That’s 5,000 fewer students paying tuition, resulting in a $45 million budget shortfall. So the school is cutting faculty and staff, and in some cases, eliminating programs like creative writing and foreign language studies.
The rig count carnage continues. For the seventh week in a row and the 16th of the last 17 weeks, the U.S. active rig count lost rigs. A lot of rigs. Last week, the number decreased by 10 rigs after falling by 12 for the prior week. The total is now down to 632 active rigs across both oil and gas. Oil rigs have now fallen for a ninth straight month, while the combined oil and gas count has fallen for four straight months. After losing three rigs two weeks ago, the Marcellus/Utica count added one rig last week–in West Virginia.
East Daley Analytics, based in Colorado, is a consulting firm that specializes in identifying, understanding, and monitoring operational risk throughout the oil and gas value chain. A “Daley Note” published yesterday by the company focused on the Mountain Valley Pipeline (MVP), providing a status update and a couple of intriguing (some might say controversial) comments. East Daley says while Equitrans, the builder of MVP, says it will finish the project by the end of this year, East Daley’s analysts don’t think so. East Daley also says when (not if) the pipeline gets done and comes online, the newly available capacity won’t translate into new/more shale drilling in the Marcellus/Utica–at least not initially.