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MVP Essentially Done, Builder Asks FERC for OK to Start Up May 23

We never thought this day would arrive! We hoped. We prayed. But finally, it’s (almost) here. The 303-mile, 2 Bcf/d Mountain Valley Pipeline (MVP) is almost ready to begin operation. On Monday, Equitrans Midstream filed a letter (below) with the Federal Energy Regulatory Commission (FERC) requesting a May 23 startup date for the pipeline. MVP (Equitrans) says the pipeline will be in the ground, buried, and ready to begin on May 22 (called “mechanically complete”). Get the champagne on ice and ready…
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MVP Will Boost WV Gas Producers – Coming Online in “7 to 8 Weeks”

West Virginia natural gas drillers are excited at the prospect of the soon-opening Mountain Valley Pipeline (MVP), which will carry WV gas 303 miles from Wetzel County, WV, to Pittsylvania County, VA. During a recent meeting of the West Virginia Legislature’s Joint Standing Committee on Energy and Manufacturing, the CFO of Pillar Energy said it’s only a month or two until MVP will be online and flowing. Hallelujah! We [the O&G industry] were finally able to get this one done.
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Baker Hughes U.S. Rig Count Adds 2 @ 619, M-U Drops 1 @ 41

Last week, the Baker Hughes rig count regained a couple of rigs; for the first time in five weeks, the count has gone up instead of down. The count went from 617 active rigs two weeks ago up to 619 last week. Since last October, the national count has gone as low as 616 and as high as 629. And that’s it. No higher and no lower. The Marcellus/Utica lost one rig last week and now runs 41 rigs. Pennsylvania remained constant with 22 rigs; Ohio lost a rig and now operates 11 rigs; and West Virginia remained the same with 8 rigs.
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GO-WV President Charlie Burd Talks M-U, Pipelines, Power Gen

West Virginia Public Broadcasting recently sat down with Charlie Burd, president of the West Virginia Gas and Oil Association (GO-WV), to ask him about the Mountain State’s role in supplying natural gas to the global market. The discussion covered a number of topics, including who are the biggest gas producers in WV, pipelines, including the Mountain Valley Pipeline (MVP), and why WV still has not added any new natural gas-fired power plants to its electric generating fleet.
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EIA Apr DPR: M-U & Haynesville Slash Gas Production, Permian Soars

U.S. Major Shale Plays (click for larger version)

The latest monthly U.S. Energy Information Administration (EIA) Drilling Productivity Report (DPR) for April, issued yesterday (below), shows EIA believes shale gas production across the seven major plays tracked in the monthly DPR for May will decrease production from the prior month of April. This is the tenth month in a row that EIA has predicted shale gas production will decrease for the combined seven plays. However, it won’t decrease everywhere. Gas-focused plays like the Marcellus/Utica and the Haynesville will see the most significant drop in production (a combined loss of 359 MMcf/d). In contrast, the oily Permian play will see a massive boost in the production of “associated” natural gas — the gas that comes out of the ground along with oil. The Permian is also adding another 12,000 barrels per day of oil production in May.
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Baker Hughes U.S. Rig Count Drops 3 @ 617, M-U Even @ 42

Last week, the Baker Hughes rig count dropped three more rigs. It is the fourth week in a row the count has dropped. The count went from 620 active rigs two weeks ago down to 617 last week. Since last October, the national count has gone as low as 616 and as high as 629. And that’s it. No higher and no lower. The national count is 18% lower than this time last year (down 131 rigs). The Marcellus/Utica remained the same last week at 42 active rigs — the fourth week in a row for that count. Pennsylvania operates 22 rigs; Ohio operates 12 rigs; and West Virginia operates 8 rigs.
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WV Adds Citigroup, HSBC, TD Bank, Northern Trust to ESG Banned List

In February, West Virginia State Treasurer Riley Moore sent notices to six financial institutions warning them of potential inclusion on the state’s Restricted Financial Institution List (can’t do business with the state) after his office made an initial determination that the institutions appear to be engaged in boycotts of fossil fuel companies as defined under state law (see WV Warns 6 More Banks They are in Danger of Blacklist re ESG). Four of the six, including the Chinese-owned HSBC, were just added to the list. It’s lights out for these four companies as far as doing business with the State of West Virginia.
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Baker Hughes U.S. Rig Count Drops 1 @ 620, M-U Even @ 42

Last week, the Baker Hughes rig count dropped another rig. The count went from 621 active rigs two weeks ago down to 620 last week. This is the third week in a row the national count has lost rigs. Since last October, the national count has gone as low as 616 and as high as 629. And that’s it. No higher and no lower. The Marcellus/Utica remained the same last week at 42 active rigs. However, there were some musical chairs. Pennsylvania gained one rig and now operates 22 rigs. West Virginia lost a rig and now operates 8 rigs. Ohio remained steady with 12 active rigs.
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Federal Court Tosses Challenge to WV’s 2022 Forced Pooling Law

Hopefully, we’re now at the conclusion of an effort to overturn a bill passed in early 2022 by the West Virginia legislature, Senate Bill (SB) 694, which finally brought forced pooling for shale wells to the Mountain State after eight years of trying (see WV House Passes Forced Pooling Bill, Done Deal When Gov Signs). A lawsuit brought by two West Virginia landowners seeking to overturn the state’s forced pooling (i.e., unitization) law was put on pause by a federal judge in December 2022 (see WV Landowner Lawsuit to Block Forced Pooling Law Dealt Another Blow). The federal judge said the lawsuit belongs in state court and that he did not have jurisdiction over the case. West Virginia officials disagreed and appealed the ruling to the next rung up the federal court ladder (see WV Appeals Lawsuit re Forced Pooling Law to Higher Fed Court).
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U.S. NatGas Production Grew by 4% in 2023; M-U Grew 3% – 1.2 Bcf/d

According to the data geeks at the U.S. Energy Information Administration (EIA), U.S. natural gas production grew by 4% in 2023, which was similar to the growth in 2022. U.S. gas production in 2023 averaged a whopping 125.0 Bcf/d (billion cubic feet per day). In 2023, more natural gas was produced in the Appalachia (Marcellus/Utica) region of the Northeast than in any other U.S. region, accounting for 29%, or 37.7 Bcf/d, of gross natural gas production. However, production growth in Appalachia slowed because our region doesn’t have enough pipeline takeaway capacity to transport more natural gas out of the region to the markets that would buy it.
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16 States Sue Biden Admin Over Pause in LNG Export Approvals

Finally, a little legal action to push back against Joe Biden’s “pause” on approving new LNG export applications. In January, Joementia announced he would “pause” any approvals for new LNG export plants (currently 17 requests in the pipeline) for at least one year while his people fart around pretending to figure out how to measure global warming as a new consideration for whether or not to approve projects (see White House Makes it Official – Biden Declares War on LNG Exports). It was a purely political move aimed at currying favor with the radical left. Yesterday, 16 state Attorneys General filed a lawsuit asking a federal judge to end the pause.
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New Resource for WV Landowners on Leasing for Pore Space

In February, MDN brought readers the news that Tenaska, one of the largest privately operated companies in the U.S., is building a carbon capture and sequestration (CCS) hub spanning tens of thousands of acres in Pennsylvania, Ohio, and West Virginia (see Landmen Knocking Doors in PA, OH, WV to Sign for CCS, Pore Rights). Landmen are “knocking on doors again” in all three states, looking to sign up landowners to store carbon dioxide deep underground. The West Virginia Surface Owners’ Rights Association (WVSORA) has done some research and is offering its advice to landowners about leasing pore space.
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Baker Hughes U.S. Rig Count Loses 7 @ 622, M-U Even @ 44

Last week, the Baker Hughes rig count lost seven rigs after gaining three rigs the week before. The count went from 629 active rigs two weeks ago to 622 last week. The national count has consistently stayed between 620 and 625 (or one or two above or below that range) since last October until recently, when it went higher for a few weeks. But now it’s back in the same long-term range. The Marcellus/Utica remained the same last week with Pennsylvania at 24 rigs (the most since last June), Ohio with 12 rigs, and West Virginia with 8 rigs. The M-U combined is running 44 rigs, which it has run in four of the last five weeks.
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Baker Hughes U.S. Rig Count Adds 3 @ 629, M-U Adds 1 @ 44

Last week, the Baker Hughes rig count gained three rigs after losing two rigs the week before. The count went from 626 active rigs two weeks ago to 629 last week. It is the highest total rig count in the U.S. since September 22, 2023! The national count had consistently stayed between 620 and 625 (or one or two above or below that range) since last October, but now appears to be breaking out of that pattern and moving higher. The Marcellus/Utica regained the one rig it had lost two weeks ago. Pennsylvania remained at 24 rigs (the most since last June). Ohio stayed at 12 rigs. West Virginia regained a rig it had lost in the prior week and now operates 8 rigs. The M-U combined is running 44 rigs.
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WV Warns 6 More Banks They are in Danger of Blacklist re ESG

West Virginia State Treasurer Riley Moore has sent notices to six additional financial institutions warning them of potential inclusion on the state’s Restricted Financial Institution List (can’t do business with the state) after his office made an initial determination that the institutions appear to be engaged in boycotts of fossil fuel companies as defined under state law. This is not the first time Moore has put Big Banks on the blacklist (see WV Ends Business with 5 Banks Guilty of Boycotting Fossil Fuels). We have the list of companies Moore contacted…
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WV Legislature Votes to Keep Flawed O&G Valuation Formula in Perpetuity

Members of the Wet Virginia State Senate voted on Friday to permanently retain a flawed oil and gas well valuation formula. The Senate vote comes after the House had previously voted to do the same thing (see WV’s Botched NatGas Property Tax Gets Messier with House Vote). The formula used has been the cause of unending confusion and problems in the state for two years (see WV NatGas Property Tax Rule Still a Mess, 303 Cases Appealed). Also, due to an error in calculating the confusing formula, shale counties in the state have lost out on millions in tax revenues (see NatGas WV Property Tax Mistake a Hot Mess – Counties Out Millions). Yet legislators, promising to “fix” the formula next year, voted to keep the current formula in place (that would have been sunsetted in 2025).
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