Zefiro Chases Fed $$ to WV to Plug Orphan Wells, Issue Offsets
One year ago, MDN told you about Zefiro Methane Corp., a private “methane offsets originator” headquartered in Vancouver, British Columbia, acquiring a majority ownership stake in Plants & Goodwin (P&G), an OFS and oil well-plugging company located in Bradford (McKean County), Pennsylvania, for an undisclosed sum (see Canadian Methane Offsets Co. Buys Northwest Pa. Well Plugging Co.). Zefiro and its P&G subsidiary announced yesterday they are establishing a second P&G facility in the Marcellus/Utica, this one in Buckhannon (Upshur County), West Virginia. Why? To chase $29 million of federal money now flowing to WV to plug orphan wells. Follow the money…
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In 2015, greedy lawyers, using a group of 21 Oregonian children, filed a lawsuit against the United States (President Obama at the time) for not doing enough about mythical man-made global warming. They were hoping for a quick “sue-and-settle” payday. Didn’t happen. The lawsuit eventually made its way to the U.S. Court of Appeals for the Ninth Circuit in 2019 (see 
The very short answer to the question posed in the title is, Very good things! Current polls have Trump winning over Biden. But it’s still way too early to believe the polls. Still, it gets one wondering what will happen in the energy sector if DJT wins reelection in November. The staff of Rigzone posed that question to the top brass at the Heritage Foundation and the American Enterprise Institute (two reliable, rational organizations) to get their take on the situation and the potential effects on the industry.
MARCELLUS/UTICA REGION: Fetterman: ‘Of course, fracking is important’; NATIONAL: Kimmeridge plans to invest more in US LNG despite Biden; Maintenance disrupts U.S. LNG; Biden administration ever more delusional on energy; How will AI be applied to oil and gas?; Nearly 75 Democratic lawmakers support Biden’s LNG pause; INTERNATIONAL: Self-drilling oil wells to beat self-driving cars to market, SLB says; Lower oil volumes dent Aramco earnings.
Last year in March and then again in May, New Fortress Energy (NFE) confirmed to the Securities and Exchange Commission (SEC) that it plans to apply for updated permits to build an LNG export plant in landlocked northeastern Pennsylvania (see 
EOG Resources, one of the largest oil and gas drillers in the U.S. (with international operations in Trinidad and China), owns a huge 430,000+ acres of leases in the Ohio Utica. EOG calls its position the “Ohio Utica combo play” and now considers it one of the company’s “premium plays.” EOG concentrates on oil drilling in the Utica. As part of the company’s first quarter 2024 update, Keith Trasko, Senior VP for Exploration and Production at EOG, said Utica wells “compete with the best plays in America, very comparable to the Permian on a production per foot basis.” Wow! High praise indeed. The Utica is the new Permian…we like the sound of that!
Southwestern Energy, with major assets in the Marcellus/Utica and Louisiana Haynesville, issued its first quarter update last week. You may recall that Southwestern agreed earlier this year to a deal to be acquired by and merged into Chesapeake Energy (see 
Two more tracts of Ohio public lands designated as “wildlife areas” have been nominated by shale companies to be drilled and fracked under (not on), which has the anti-fossil fuel group Save Ohio Parks up in arms. The tagline for Save Ohio Parks is “No fracking on public lands.” The thing is, there isn’t any fracking on public lands in Ohio. It’s UNDER, not ON. Well pads and equipment would be erected on PRIVATE land adjacent to the public land. There is no disturbance of any kind on top of Ohio’s public lands. The new parcels nominated include 84 acres in the Keen Wildlife Area in Washington Township (Harrison County). A second parcel of 30 acres has also been nominated for the Egypt Valley Wildlife Area in Flushing Township (Belmont County).
According to a new article by the Pittsburgh Post-Gazette, abandoned oil and gas wells can be found “everywhere” in Pennsylvania. An influx of new federal funding gives the state Dept. of Environmental Protection (DEP) new urgency in finding and plugging them. However, it is the thorny issue of who pays or should pay when the owner is known that caught our attention. In some cases, producers (and speculators) buy leases and land, knowing that new drilling (in particular shale drilling) may one day happen on the property, but the new owners didn’t sign up for the financial responsibility to plug old/existing wells on the property. Should they (instead of taxpayers) be on the hook to pay?
Have you noticed? The NYMEX price of natural gas has been on an upward trend over the past week or so. We’ve actually broken the $2 barrier, and it continues to climb. Which begs the question, why? There are typically a number of factors combined to drive the price. This time around, we think we can boil it down to a classic economics principle — there’s more demand and less supply. The demand is coming from the problem-plagued Freeport LNG facility, which is rockin’ and rollin’ once again. Lower supply is coming from fewer natgas drilling rigs in operation.
We have to admit we’re disappointed. A section of the 303-mile Mountain Valley Pipeline (MVP) ruptured during pressure testing last Wednesday in Roanoke County, Virginia, according to a report from the state’s environmental agency. A landowner observed sediment-laden water in her pasture on Wednesday morning and reported it to the Virginia Department of Environmental Quality (DEQ). “The origin of the sediment-laden water reported in the complaint was from the rupture of a section of pipe during hydrostatic testing the morning of 5/1/2024,” wrote the DEQ expert, John McCutcheon.
Coterra Energy, formed by the merger of Cabot Oil & Gas (drills for natural gas in the Marcellus) and Cimarex Energy (drills for oil in the Permian and Anadarko basins), issued its first quarter 2024 update on Friday. The company turned in respectable financial numbers, making a profit of $352 million in 1Q24, albeit down 48% from the $677 million it made in 1Q23. The company produced 2.31 Bcf/d (billion cubic feet per day) in the PA Marcellus during 1Q24, up 8% from 2.13 Bcf/d in 1Q23. However, the money it received for its natgas production dropped like a rock. The average sale price for its gas in 1Q24 was $2.20/Mcf, down 41% from $3.71/Mcf in 1Q23. No wonder the company has pivoted to spend more time and money on oil drilling rather than gas drilling.
Last Thursday, MDN brought you the news that Ohio Attorney General Dave Yost asked a Belmont County judge to find Austin Master Services (AMS) and Brad D. Domitrovitsch, who is in control of the company (both CEO and CFO), in contempt for “failing to meet the court’s deadline to clean up the illegal levels of fracking waste stored at its recycling facility in Martins Ferry” (see