Drought Along Panama Canal Causing Delays in Propane, LNG Exports
In early October, we brought you the news that propane (C3H8) was the most-exported U.S. petroleum product in the first half of 2023, averaging 1.5 million barrels per day (b/d), continuing a trend that began in 2020 (see Propane #1 Most Exported U.S. Petroleum Product First Half 2023). U.S. propane exports have been driving increased U.S. petroleum product exports for the past four years. Part of the propane export success story is right here in the Marcellus/Utica (see Marcus Hook Propane Exports Heat Up). However, there is a problem with propane (and even LNG) exports. The Panama Canal, a key link between the U.S. and Japan where much of our propane is shipped, is facing the worst drought in the Canal’s 120-year history.
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Venture Global’s Calcasieu Pass LNG export facility received Federal Energy Regulatory Committee (FERC) authorization on October 26 to place the final three liquefaction blocks (7-9) into service. The other trains, 1-6, have been online but not officially in commercial service, even though it has shipped over 200 (!) cargoes, claiming it’s still working out the kinks. Venture’s contracted customers are frustrated that they aren’t getting any shipments and have sued (see 
MARCELLUS/UTICA REGION: NY needs unprecedented increase in wind, solar to hit 2030 target; INTERNATIONAL: Russia uses new arctic LNG to dodge energy sanctions; Spain, Belgium increased Russian natgas imports up to 50%.
Last week, MDN brought you a list of the 15 proposed projects that are part of the West Virginia-led Appalachian Regional Clean Hydrogen Hub (ARCH2) initiative (see 
Mama says, “Stupid is as stupid does.” The phrase from the modern classic Forrest Gump perfectly describes a proposal floating in the Pennsylvania legislature called House Bill (HB) 170, which would increase setback distances for shale wells from 500 feet to 2,500 feet — effectively killing any new shale well drilling anywhere in the state. In June, Democrat Party bosses shut down action on HB 170, telling the House to cancel a vote (see 
The so-called 
The Argonne National Laboratory, a U.S. Dept. of Energy lab, has tested the efficacy of blending hydrogen with natural gas in existing pipelines. Argonne found blending hydrogen with natgas lowers emissions due to hydrogen production and end-use combustion. However, injecting hydrogen into pipelines leads to higher transmission and distribution emissions and greater energy demand in compressor stations, wiping out the upstream and downstream benefits. In Argonne’s modeling, blending 30% hydrogen (by volume) into gas pipelines yielded a modest 6% decrease in lifecycle greenhouse gas emissions — but hydrogen blending at that level doubles leakage from transmission lines.
U.S. Department of Energy reviews for liquefied natural gas (LNG) export permits have lengthened under President Joe Biden’s administration to 11 months or more, from seven weeks, according to government data. The reason? According to one LNG analyst in the know, the DOE is “sitting on decisions because of politics.” Intentional political foot-dragging. The Bidenistas are feeling the heat from two groups: Big Chemical claims exporting more LNG will raise prices domestically for their feedstock. And shrill environmentalist wackos are being loud and obnoxious (what’s new?).
Antero Resources, which is 100% focused on the Marcellus/Utica with over 500,000 net acres under lease (and the largest M-U driller in West Virginia), issued its third quarter 2023 update last week. The company reports net production averaged 3.5 billion cubic feet equivalent per day (Bcfe/d) during 3Q23, an increase of 9% year-over-year. Of that production, liquids (NGLs) averaged 202 thousand barrels per day (MBbl/d), an increase of 18% from the year-ago period. Natural gas production averaged 2.3 Bcf/d, up 4% from the same period last year. The company made $560 million in 3Q23 versus a profit of $18 million in 3Q22 — a huge lift from last year.
TransCanada Corporation, which renamed itself TC Energy in 2019, bought out and merged in U.S.-based Columbia Pipeline Group (now Columbia Gas Transmission) in 2016 (see 
The U.S. rig count rose last week for the third week in a row, albeit by just a single rig. The national rig count added one for 625 active rigs. We remain near the lowest point of active rigs running since February 2022. As we said last week when two rig were added, it feels like a dead cat bounce to us. We’ve reached the bottom, and the count may go up a tiny bit here and there, but overall, we’re at the bottom. The count in the Marcellus/Utica, after gaining one rig three weeks ago (in Pennsylvania), remained steady at 39 active rigs last week. However, the mix changed. PA picked up another rig last week, but WV lost one, so net-net, it stayed even at 39 rigs.
The mental gymnastics leftists go through to justify their anti-freedom, anti-capitalist views is truly a marvel to behold. Take the so-called Regional Greenhouse Gas Initiative (RGGI), a carbon tax scheme aimed at shutting down coal- and natural gas-fired power plants. Pennsylvania Gov. Tom Wolf could not get the Republican legislature to agree to enroll the state in RGGI, so he seized dictatorial powers and tried to do it himself. Which hasn’t worked out (Republicans sued to block it, still tied up in court). Joseph Otis Minott, President of the Clean Air Action Fund (far-left Big Green group in Philadelphia), is trying to justify RGGI with a new argument: It reduces racism (otherwise called “environmental justice”).
Freeport LNG’s export terminal with three liquefaction “trains” shut down in June 2022 after an explosion and fire (see 