Anti-Drilling/Fossil Fuel | Industrywide Issues | Pennsylvania | Regulation | Statewide PA | Taxation
PA Bill Denies Impact Fees to Shale-Hostile Municipalities
In May, MDN told you that several Republican Pennsylvania State Senators were planning to introduce a bill to cut off millions of dollars in impact fee revenues to municipalities that set protective standards on the development of natural gas that “imposes a standard or condition on well development that conflicts with or exceeds those contained” in state law (see PA Bill Cuts Off Impact Tax Revenue to Municipalities that Sue O&G). The bill was officially introduced last week. Read More “PA Bill Denies Impact Fees to Shale-Hostile Municipalities”
OTHER U.S. REGIONS: California levels up rules to reduce fuel carbon intensity; Voters in blue Washington vote to block bans on gas stoves; NATIONAL: Analysts explain why USA natural gas price is rising; Oil players eagerly anticipating what lies ahead after Trump win; Let’s get to energy independence with fracking; Trump expected to roll back environmental protections, boost oil and gas; INTERNATIONAL: WTI and Brent drop on soft China demand; Climate talks begin with focus on shaking down “rich countries”; British energy majors may lean more on oil and gas to boost profits; EU’s now wants to buy more American gas. 
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For the week of Oct 27 – Nov 3, there were 13 permits issued to drill Marcellus/Utica wells, down from 17 permits issued the prior week. The Keystone State (PA) had just three new permits, one each for EQT, Range Resources, and Snyder Brothers (three different counties). The Buckeye State (OH) issued no new permits last week. The Mountain State (WV) did most of the heavy lifting by issuing 10 new permits, with most of those (seven) going to Antero Resources in Tyler County. One permit each was issued to Southwestern Energy (now Expand Energy), HG Energy, and Marion Natural Energy. 
Yesterday, Hart Energy held its DUG Appalachia Conference and Expo in Pittsburgh. DUG stands for Developing Unconventional Gas. According to press accounts, folks were smiling, and the atmosphere was a lot more optimistic following Donald Trump’s crushing victory over The Cackler. A number of Marcellus/Utica luminaries attended, including EQT Corp. CEO Toby Rice. In a keynote speech to attendees, Rice had one of (perhaps THE) most memorable lines of the day. He said, “We’re in a different world, and it’s not about drilling, it’s about ‘build baby, build,’ and we need more pipelines.” 
We have a second post about yesterday’s Hart Energy DUG Appalachia event held in Pittsburgh. One of the sessions was an interview with Dennis Degner, CEO of Range Resources, the very first company to drill a Marcellus well back in 2004. Range is a “pure play” company focusing 100% on the Marcellus/Utica. Over the past couple of years, we’ve seen a flurry of mergers and acquisitions, not only here in the M-U but across other plays as well (particularly in the Permian). During the Q&A discussion with Degner, the topic of M&A came up. Degner explained why he and his company have, and will continue, to sit on the sidelines of the M&A craze. 
Two days ago, Energy Transfer (ET), a major midstream (pipeline) company with assets in the Marcellus/Utica, issued its third quarter update. ET has assets in many areas of the country, so there was plenty of discussion about pipelines in other areas. However, the centerpiece of the update and the conference call with analysts was the incredible (and we mean incredible) demand ET is seeing from both gas-fired power plants (new and existing) and data center projects. In his opening remarks, Tom Long, co-CEO of ET, said the company has received requests to connect to approximately 45 power plants the company does not currently serve in 11 states. The demand from those 45 plants would be 6 Bcf per day. In addition, ET has requests from over 40 prospective data centers in 10 states that would use another 10 Bcf/d. A combined 16 Bcf/d of new demand for one company. Incredible! 
In January, Joe Biden announced he would “pause” any approvals for new LNG export plants, with over a dozen 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 
How, exactly, did the Marcellus Shale come to be? What spurred early interest to spend millions of dollars to sink a well in the Marcellus with the hope (gamble) that natural gas would flow from it? We all know that Range Resources sunk that first well in 2004, but there was a LOT that happened before to tee up the Marcellus as a potential target. The Marcellus Shale layer has been known about since the late 1800s. However, it wasn’t until the 1970s and the Yom Kippur War that serious interest in the Marcellus as a source of natural gas began in earnest. 
The privately-held Deep Well Services (DWS), headquartered in Butler County, PA, is one of our favorite oilfield services companies. DWS was born right here in the Marcellus/Utica in 2008. DWS specializes in “snubbing” work—completing those super-long laterals you read about. Although the company rarely brags publicly about the work it does on behalf of drillers, we happen to know that it has drilled the longest onshore wells in the 
Gulfport Energy, the third-largest driller in the Ohio Utica Shale (by the number of wells drilled), reported its third quarter 2024 numbers yesterday. The company drills Utica and Marcellus wells in Ohio. It also has an active drilling program in the Oklahoma SCOOP shale play. Gulfport’s net daily production for 3Q24 averaged 1,057.2 MMcfe/d (1.06 Bcfe/d), up slightly from 3Q23’s average of 1,056.9 MMcfe/d. Production in 3Q consisted of 861.6 MMcfe/d in the Utica/Marcellus (81%) and 195.6 MMcfe/d in the SCOOP (19%). The production mix comprised approximately 91% natural gas, 6% natural gas liquids (NGLs), and 3% oil and condensate. The company has spent $52 million on maintenance leasehold and land investment so far this year, pointing out that leasing still happens. 
Earlier this week, three of five supervisors in Cecil Township (Washington County), PA, voted to ban all new fracking via a new setback (distance from well to nearest structure) requirement of 2,500 feet (see