NATIONAL: Will CO2 stay in the ground when injected?; EIA increases oil price forecast following OPEC+ production cut extension; Fossil-fuel chiefs unite in slamming Biden LNG ban; ‘Climate protestors’ are the dangerous know-nothings of our time; INTERNATIONAL: Lower LNG prices trigger surge in Asian spot market purchases; Is the global LNG market headed for oversupply and lower prices?
Read More “Other Stories of Interest: Fri, Mar 22, 2024”
It’s full speed ahead for the radical anti-Marcellus Democrats in the Pennsylvania State Legislature. Last week, PA Gov. Josh Shapiro traveled to Scranton, PA, to do a dog-and-pony show announcing his personalized version of the Regional Greenhouse Gas Initiative (RGGI) carbon tax that would apply only to PA (see PA Gov. Shapiro Proposes Own Version of Marcellus-Killing Carbon Tax). Shapiro calls it PACER, the Pennsylvania Climate Emissions Reduction Act. PACER would do what RGGI does — slap a huge tax on gas-fired power plants because they burn methane that gets converted into carbon dioxide. His far-left allies in the legislature — Sen. Carolyn Comitta (D-Chester), Sen. Steve Santarsiero (D-Bucks), Rep. Danielle Friel Otten (D-Chester), and Rep. Aerion Abney (D-Allegheny) — are about to introduce a bill in both chambers to make PACER a reality. Good luck with that in the GOP-controlled Senate!
Read More “Dems Intro Bill to Create PA-Only Marcellus-Killing Carbon Tax”
Honestly, we can’t heap enough praise on the excellent work done by Pennsylvania shale drillers. It is unreasonable to expect there will be absolutely zero problems when engaging in something as complex as drilling a mile straight down and then one to four miles horizontally underground. Nothing in life is error-free. NOTHING. There’s always a problem. There’s always a slight error somewhere. Yet in PA drilling, only 54 shale wells out of 14,412 drilled since 2004 have resulted in the shale well “communicating with” (interfering with or leaking methane to) nearby water wells, conventional wells, abandoned wells, or other shale wells. That’s 0.0037 of the time, or 3.7 wells for every 1,000 drilled. Converting that number to a percentage, it’s 0.37% (about one-third of a single percentage point). Rounding further, it’s 0% of the time.
Read More “0% of New PA Shale Wells have “Interfered” with Water, Other Wells”
Where do business dreams go to die? New York State, of course. Yesterday, the New York State Senate passed a bill to ban the use of carbon dioxide (CO2) in any process to extract natural gas or oil in the so-called Empire State. The NY Assembly (our state’s lower chamber) voted to approve the same bill a week ago (see NY Assembly Passes Bill to Ban Using CO2 to “Frack” Wells). It is a metaphysical certitude that our radicalized Governor, Kathy Hochul (who has somehow become even worse than Andrew Cuomo), will sign it into law, thereby destroying what could have been a billion-dollar private business that would have benefited landowners, area businesses, and local municipalities with heaps of extra tax revenues. Have a great idea for a business? Don’t come to New York, where we are closed for business.
Read More “Radicals Win in NY – Senate Passes Permanent Ban on CO2 Fracking”
Water use restrictions have finally been lifted at the Beaver Run Reservoir in Westmoreland County, PA (near Pittsburgh). The Municipal Authority of Westmoreland County (MAWC), which manages Beaver Run Reservoir, has issued a contract to CNX Resources allowing the company to buy up to 51 million gallons of water to use in fracking at nearby gas wells. CNX will pay $12,855 for every 1.5 million gallons of water it buys. If the company ends up buying the full 51 million gallons, it will pay the MAWC $437,000.
Read More “CNX Buying 51M Gal. of Water from Beaver Run Reservoir for Fracking”
Here’s a strange one we don’t quite understand. Yet. Two weeks ago we brought you the news that a jury in a federal court had decided a group of Utica shale drillers, including Rice Drilling (now EQT), Ascent Resources, XTO, and Gulfport Energy, were not guilty of “unjust enrichment” by drilling into the Point Pleasant shale layer that sits immediately below the Utica (see OH Drillers Win Case Against Landowners re Drilling Deeper). The very same federal court with the very same federal judge has just denied a request by some of the same drillers to throw out a similar case. In this new case (Honey Crest Acres v. Rice Drilling & Gulfport Energy), the judge is allowing the plaintiffs to proceed to make their case for unjust enrichment against Rice and Gulfport.
Read More “OH Federal Judge Allows “Drilled Too Deep” Case to Proceed”
Range Resources was the very first company to sink a Marcellus shale well back in 2004. The company went all-in on the Marcellus and has remained a pure-play driller ever since (to their credit). The company initially set up a regional headquarters in Southpointe (Washington County, PA) with a 60,000-square-foot office. It later upgraded to an office with 182,000 square feet — an entire building all to itself. Although the company has two years left on its lease, Range is, according to sources, looking to downgrade again. The company wants an office space of around 80,000 square feet.
Read More “Range Resources Begins Search for New (Smaller) Regional HQ in PA”
Plugging old abandoned (which means no longer producing) and orphaned (meaning the owner is not known) wells is not a simple thing to do. It’s estimated that Pennsylvania has perhaps 350,000 old abandoned and orphaned wells, many of them leftover from the early days of conventional oil drilling. The problem is finding them. Many are in out-of-the-way places. Plugging them cheaply is no simple matter. PA, OH, and WV have received millions from the federal government to help with their well plugging programs in an effort to control so-called fugitive methane. Over the past year, PA has plugged over 200 old wells (see PA Gov Shapiro Puffs His Chest to Announce Plugging 200 Old Wells). How much does it cost per well?
Read More “Federal Regs Push Well Plugging Costs in PA Over $100,000 per Well”
MARCELLUS/UTICA REGION: DRBC tool helps communities understand impacts of extreme precipitation; NATIONAL: Deep flaws in research claiming gas stoves cause childhood asthma; Natgas intrastate pipeline capacity additions outpaced interstate in 2023; House passes bills, pushing to block Biden’s energy regulations; FERC nominees can avoid pipeline politics by following the law; SEC’s climate disclosure rule is material risk to investors; Should we all be ‘sick of the energy transition?’; INTERNATIONAL: Venture Global to acquire 9 new LNG ships; Saudi Aramco to expand natural gas output capacity by 60%.
Read More “Other Stories of Interest: Thu, Mar 21, 2024”
In January 2023, three Marcellus/Utica companies — Chesapeake Energy, EQT, and Equitrans Midstream — launched the Appalachian Methane Initiative (AMI), a coalition committed to further enhancing methane monitoring throughout the Appalachia Basin and reducing methane emissions throughout the region (see EQT, Chessy, Equitrans Form M-U Methane Monitoring Club). The initial pilot campaign from 2023 is done, and the results are in (below). In addition, four more M-U companies are joining the original three for the 2024 campaign.
Read More “Appalachian Methane Initiative Concludes 2023 Test, Expands in 2024”
The State of Texas just dropped a major bombshell on investment manager BlackRock and the entire so-called ESG (environment, social, governance) space. The Texas Permanent School Fund (PSF), created in the 19th century to support the state’s public schools, has pulled $8.5 billion of its investments away from BlackRock over the state’s determination that BlackRock is engaged in a boycott of energy companies by pressuring companies to avoid the fossil fuel sector. The Texas PSF has $53 billion in invested assets. Investing $8.5 billion of it with BlackRock represents 16% of the entire fund.
Read More “Texas Yanks $8.5 BILLION Out of BlackRock re ESG”
The annual CERAWeek by S&P Global conference is happening now in Houston. Everybody who’s anybody is there. (Yes, we’re nobodies; we’re not there!) Oil and gas CEOs, politicians, regulatory agencies — they all convene in Houston to talk about energy at what is billed as “the world’s premier energy conference.” Toby Rice, CEO of EQT Corporation (the largest natural gas producer in the U.S.), was there yesterday. He had some VERY interesting things to say during a panel discussion and on the sidelines. Rice touted the need for more pipeline infrastructure, predicting wild swings in the price of natural gas absent new pipelines. He also said there’s an even bigger market than LNG for U.S. natural gas. What could it be?
Read More “Toby Rice Sounds Off at CERAWeek on Better Market for Gas Than LNG”
Last week, Pennsylvania Gov. Josh Shapiro traveled to Scranton, PA, to do a dog-and-pony show announcing his personalized version of the Regional Greenhouse Gas Initiative (RGGI) carbon tax that would apply only to PA (see PA Gov. Shapiro Proposes Own Version of Marcellus-Killing Carbon Tax). Shapiro calls it PACER, the Pennsylvania Climate Emissions Reduction Act. PACER would do what RGGI does — slap a huge tax on gas-fired power plants because they burn methane that gets converted into carbon dioxide (the stuff you breathe out with every breath). Republican legislators are saying Shapiro’s carbon tax is “dead on arrival.”
Read More “PA GOP Lawmakers Say Governor’s Carbon Tax Scheme “Dead on Arrival””
Thanks to abundant, clean Marcellus shale gas, Pennsylvania remained the country’s top electricity exporter in 2023 while simultaneously reaching a new low for carbon dioxide (CO2) emissions from electricity generation, according to the Pennsylvania Independent Fiscal Office’s (IFO) latest analysis. Yes, you read that right. PA is producing more electricity than ever, yet CO2 emissions from electric generation are lower than ever. How can that be?
Read More “Study: PA’s Emissions Decrease as Marcellus-Fired Power Increases”
MiQ is one of two major gas certification authorities and is used by nearly every Marcellus/Utica driller. Last October, MDN brought you information about the two major gas certification authorities, MiQ and Project Canary, and the effort by drillers to get their gas officially certified as responsibly sourced (see Former “Responsible Gas” Becoming “Certified” or “Differentiated”). At this week’s CERAWeek confab in Houston, Texas, MiQ unveiled a new Supply Chain Protocol aimed at providing in-depth methane emissions intensity data for the entire natural gas supply chain for LNG exporters and importers.
Read More “MiQ Launches “Supply Chain Protocol” for LNG Exporters & Buyers”
The Independent System Operator-New England (ISO-NE) is warning “blue states” in the northeast (states controlled by Democrats with an iron fist) that their strategy of pushing 100% renewables and eliminating fossil fuel energy has a fatal flaw. At the federal and state levels, elected Democrats are pushing hard to phase out fossil fuel-fired power infrastructure and replace it with sources of so-called “green” energy like wind and solar. Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont — the states that are served by ISO-NE — all have green energy mandates. And they are all in imminent danger of blackouts.
Read More “New England Electric Grid Operator IDs Fatal Flaw in Renewables”