17 New Shale Well Permits Issued for PA-OH-WV Feb 26 – Mar 3
There were 17 new permits issued to drill in the Marcellus/Utica during the week of Feb. 26 – Mar. 3, down 1 from 18 permits issued the prior week. Pennsylvania issued 8 new permits last week. Ohio issued 4 new permits. And West Virginia issued 5 new permits last week. Four companies tied for the top slot of receiving 3 permits each: Chesapeake Energy (Susquehanna County, PA), Seneca Resources (Tioga County, PA), Gulfport Energy (Harrison County, OH), and Antero Resources (Ritchie County, WV). Arsenal Resources received 2 permits (Taylor County, WV). Three companies received a single new permit: Laurel Mountain Energy (Butler County, PA), Campbell Oil & Gas (Westmoreland County, PA), and EOG Resources (Noble County, OH).
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Ascent Resources, founded as American Energy Partners by gas legend Aubrey McClendon, is a privately held company focusing 100% on the Ohio Utica Shale. Ascent, headquartered in Oklahoma City, OK, is Ohio’s largest natural gas producer and the 8th largest natural gas producer in the U.S. The company issued its fourth quarter and full-year 2023 update yesterday. The update contains a statement by CEO Jeff Fisher that says we should look for a shift in the company’s strategy in 2024 for less gas production and more liquids production.
Last September, Dominion Energy and Enbridge co-announced that Dominion had agreed to sell the company’s remaining natural gas local distribution companies (LDCs) that Dominion owns to Enbridge for $14.0 billion, which includes $9.4 billion in cash plus the assumption of debt (see 
In 2019, the Rhode Island Energy Facility Siting Board waived a licensing requirement for a “temporary” LNG storage facility in Portsmouth to prevent another gas outage episode from happening again (see 
In January, we told you the State of Maine was actively considering a new law, L.D. 2077, that would prohibit natural gas companies from charging ratepayers for the construction and expansion of gas service mains and gas service lines beginning Feb. 1, 2025 (see 
Permitting in Pennsylvania, especially permits overseen by the Dept. of Environmental Protection (DEP), has been broken for years. A Chapter 102 Erosion and Sedimentation permit sometimes takes two, three, or even six to eight months for approval — instead of the law-mandated 14 days. It got so bad that in the fall of 2019, PA State Sen. Gene Yaw introduced a bill to allow third-party reviews of these permits in an attempt to speed it up (see 
MARCELLUS/UTICA REGION: Dominion Energy Charitable Foundation spring grant cycle now open; NATIONAL: John Kerry mocked as ‘climate clown’ for comments on Russia, Ukraine, and climate; U.S. natural gas futures fall on growing storage surplus; Industry groups pitch plenty of alterations to hydrogen’s ‘three pillars’; Saudi Aramco, UAE’s ADNOC in talks to invest in US LNG projects, sources say; U.S. oil, gas producers say President Biden ignores energy leadership; INTERNATIONAL: A series of uncommon events threatens Chevron buyout of Hess.
Here’s something you don’t read about every day. An oilfield services company, Heavy Iron Oilfield Services, recently moved from its birthplace (founded in 2011) in Washington (Washington County), PA, across the border to a new location in Chester (Hancock County), WV. Washington County is a hotbed of drilling activity in Southwestern PA. But then again, Hancock County sees a lot of drilling, too. The reason for the move? Easier access to multiple job sites in the tri-state area and a pool of qualified workers to expand the business.
Every major (and most minor) drillers in the Marcellus/Utica have, over the past couple of years, signed on to one or more of the responsible gas certification authorities. Responsible or “certified” or “differentiated” gas is gas that is produced with lower methane emissions as certified by an outside organization like Project Canary, MiQ, or Equitable Origin. Given certification reviews cost big money, you would think (hope) there are actually customers on the other end who *want* to buy the certified natgas, and may be willing to pay a premium to get it. Utility companies are some of those customers who want to buy certified gas in order to comply with various mandates to lower emissions. But certified gas comes at a price — a price that gets passed on to end-user customers. How do they feel about paying more for certified gas?
Earlier this week, MDN told you that EQT, the country’s largest natural gas producer, had implemented an immediate cutback on natural gas production of 1 billion cubic feet per day (see 
Bayou City Energy (BCE), an E&P-focused private equity firm, yesterday published a VERY INTERESTING white paper titled “Natural Gas Producers: Why Don’t You Stay?” (full copy below). The thesis of the white paper (or report) is that drillers in gas-focused plays can’t produce natural gas as cheaply as oil producers who produce gas as a side benefit (called associated gas). Therefore, gas-focused drillers need to drastically, immediately change their capital allocation strategies (spend less on new drilling, for now). The author also makes the case that gas-focused drillers should look for opportunities to merge with a “liquids-rich producer.”
On Tuesday, we reported on yet another illegal protest that happened Monday, blocking work for a time on the last bits of the Mountain Valley Pipeline (see 
In March 2022, the U.S. Securities and Exchange Commission (SEC), corrupted by the Bidenistas, said it would begin to force all publicly traded companies to disclose their so-called greenhouse gas (GHG) emissions and the imaginary climate risks their businesses face (see 
Back in the summer of 2020, MDN told you about a lawsuit brought by an Ohio rights owner called TERA, an organization that owns the royalty rights for a number of leases with wells in Belmont County, OH, drilled by different producers, suing the producers for drilling into the Point Pleasant shale layer when the lease only mentions the Utica layer (see