Report Claims Associated Gas Cheaper to Produce than M-U Dry Gas
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.”
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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 
MARCELLUS/UTICA REGION: SWN hosts Leadership Wheeling Energy Day; A rescue plan for American energy and the environment; OTHER U.S. REGIONS: TC Energy announces layoffs, primarily in Calgary and Houston; Natural gas facility begins operating in Ixonia; NATIONAL: Compass changes name to Compass Energy Systems (USA) Inc.; Oil industry criticized from within over climate efforts; EIA’s latest approach to weather modeling promises forecast improvements; INTERNATIONAL: China barred from buying US oil reserves in funding bill; Analysts reveal latest oil price outlook following OPEC+ cut extension.
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 
In early January, Chesapeake Energy and Southwestern Energy, two companies with major assets in the country’s two leading gas plays — the Marcellus/Utica and the Haynesville — announced an agreement to merge into one company (see 
Some residents living in Cecil Township (Washington County), PA, are frustrated and concerned over drilling activities by Range Resources near their homes — things like flaring, loud noises, and smells. They took their concerns and complaints to the March 4 meeting of the Cecil Township Board of Supervisors. The Board voted to give Range one week to respond with a plan to address the issues, or else the Board promised to file a lawsuit against Range in county court.
A group of so-called environmental advocates (old hippies) gathered in Albany at the Capitol yesterday to continue their call to ban all “fracking,” including CO2 (carbon dioxide) used to extract natural gas. We wonder if they know that a total ban on “all” fracking includes a ban on fracking geothermal wells being pushed by the governor.
The Pennsylvania Supreme Court yesterday debated whether the federal National Gas Act empowers the state to review permits for a pipeline project or bars it from doing so — a question that hinges on whether appeals to a state board are preempted civil actions or administrative proceedings that would fall under the state’s purview. It’s an important distinction. The case can potentially set a precedent that could influence future infrastructure projects and “state-federal power dynamics.”
U.S. Senators Sherrod Brown (D-OH) and Jeff Merkley (D-OR) introduced the Protecting American Households From Rising Energy Costs Act, legislation that would ban the export of crude oil or liquefied natural gas (LNG) to the U.S.’s biggest adversaries: China, Russia, Iran, and North Korea. “We should not allow American liquid natural gas to fuel China’s state-sponsored industries. The Chinese Communist Party uses that energy to cheat and undermine Ohio production and Ohio jobs,” said Brown. “Blocking China and other adversaries from obtaining our LNG will protect our national security.”
Yesterday, the American Gas Association (AGA) unveiled a new study, “Advancing America’s Pharmaceuticals: The Value of Natural Gas to U.S. Pharmaceutical Manufacturing” (full copy below). Natural gas and other petrochemicals are irreplaceable for manufacturing medicines, with 99% of pharmaceutical feedstocks and reagents derived from natural gas and other petrochemicals. Face masks, disposable gloves, and syringes are also manufactured from petrochemical feedstocks like natural gas and are critical to combatting the spread of disease. Without natural gas, we would all live short, brutish lives. Billions would die.
In a new low, anti-fossil fuelers who have tried and failed to stop the Mountain Valley Pipeline in Virginia (now 99% done) are now attacking the reputation and character of the Director of the Virginia Dept. of Environmental Quality (DEQ), trying to slow things down with an ad hominem (“to the man” or “personal”) attack against the guy who oversees the environmental agency that has a partial role in watching over MVP. It’s shameful. DEQ Director Michael Rolband was appointed to his job by newly-elected Gov. Glenn Youngkin in 2022, back when MVP was already 95% done but stalled due to repeated lawfare by Big Green and cooperative (corrupt) 4th Circuit judges. Even though MVP was already mostly done in Virginia, antis say because Rolband — who did some work for MVP in his prior career before heading DEQ — is somehow compromised or unethical and not doing his oversight job correctly now. Complete hogwash!
Once again, Big Green is attempting to illegally block the final bits of construction of the 303-mile Mountain Valley Pipeline as it travels through Roanoke County, VA. Yesterday, two “protesters” chained or otherwise attached themselves to an old (junk) car, a car made entirely from and with fossil fuels, blocking a road that leads to an MVP construction site. We grow tired of reporting these incidents and debated on whether or not to report this one. However, MDN readers deserve to know how the lawless left behaves. Plus, one of the so-called protesters looks like he (or she) is…well, you can fill in the blank.
Chesapeake Energy is embarking on a unique strategy to remain ready to ramp up production at a moment’s notice. It may be a strategy that others have used, but this is the first time we’ve read or heard about it. You’ve read here on MDN that a number of large Marcellus/Utica drillers are scaling back (curtailing) production and spending on new drilling in 2024 until the price of natural gas goes higher. Just yesterday, EQT announced it is scaling back production by a full billion cubic feet per day (see 
A new poll released by Axis Research and Pennsylvania Energy Infrastructure Alliance (PEIA) shows 58% of Pennsylvania voters disagree with Joe Biden’s infamous “pause” on approving new LNG export permits. Here’s the astounding part: 57% of poll respondents were Democrat and Independent voters! Yes, a majority of Democrats and Independents in PA disagree with old Joe. But that’s not all. After learning more about Biden’s LNG pause, 41% of those surveyed said they were less likely to vote for Biden because of his LNG pause. Joementia is in trouble in PA.