PA Gov Shapiro’s Secret Energy Group Endorses RGGI Carbon Tax
Newly-elected Pennsylvania Gov. Josh Shapiro appointed a working group in April to help guide him on what he should do concerning the Regional Greenhouse Gas Initiative (RGGI) carbon tax and the broader issue of global warming (see PA Gov Appoints Secretive Group to Work on Global Warming Plan). The panel was super-secret, with only a few names for some of the participants leaking to the press (see New Details Revealed re Gov. Shapiro’s Secret Global Warming Group). The super-secret group’s work is done, and unsurprisingly, they love the idea of an RGGI-like carbon tax that would destroy gas-fired power plants in the Commonwealth.
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In March, Chesapeake Energy announced a 15-year deal to provide natural gas for LNG exports to Gunvor Singapore Pte (see 
Two weeks ago, the U.S. rig count erased a couple of weeks of anemic gains by dropping 11 rigs from the total, sinking to 630 active rigs, the lowest count since February of 2022 (see 
Diversified Energy (formerly Diversified Gas & Oil), with major assets in the Marcellus/Utica region (and other regions, too), owns approximately 8 million acres of leases with 67,000 (mostly) conventional oil and gas wells. The company’s business model is to buy lower-producing wells on the cheap and find ways to make them more productive. For years, we have highlighted Diversified’s “contrarian” business model (
Not content to kill off your natural gas stove, the Bidenistas at the U.S. Dept. of Energy are now coming for your gas furnace. On Friday, the Biden Dept. of Energy (DOE) published a new rule that cracks down on gas furnaces in homes, essentially phasing out many existing models and requiring new ones to meet onerous new standards. The DOE now requires a 95% annual fuel efficiency standard, up from the 80% that was on the books before the new rule was published Friday. New models will be mandatory by 2028–and you’ll pay an average $4,700 for your new gas furnace. But that’s not the only cost…
MARCELLUS/UTICA REGION: Progressive PACs heavily outspend free-market advocates in Pa.; OTHER U.S. REGIONS: Largest EV charging station in world powered by diesel generators; TXOGA analysis finds Texas output hits record highs; NATIONAL: DOE targets key energy challenges with $264MM funding; US power grids must adapt to rapid electrification, operators say; BP’s US boss to leave company weeks after CEO Looney; White House prohibiting official travel to fossil fuel conferences; INTERNATIONAL: French say you should only be able to fly 4 times in your life.
According to a recent analysis by Enverus Intelligence Research, the cost of supply for North American shale producers is expected to continue rising. The remaining top-tier shale drilling inventory across North America *could be* in shorter supply than previously estimated, says Enverus. Rampant cost inflation from the Bidenistas and declining well productivity across the U.S. shale patch are making drilling wells much more expensive. What about the situation here in the Marcellus/Utica?
In an administration full of destructive regulatory actions and legislation targeting fossil energy for extinction, the so-called Inflation Reduction Act (IRA) stands out as one of the worst. The IRA was made possible by a traitorous vote by West Virginia Democrat U.S. Senator Joe Manchin (see 
Reporters like to portray themselves as truth-tellers who hold the powerful accountable. In reality, many of them are hired guns who publish propaganda under the guise of doing journalism. For example, did you know that the Associated Press takes in millions of dollars from philanthropies — the Hewlett Foundation, Walton Family Foundation, and others — to fund “reporting” (i.e., propaganda) on climate change, such as stories that this summer’s heat wave is due to man-made global warming? The good news is that a growing number of Americans are abandoning legacy media like the AP for better sources of information.
New shale permits issued for Sep 18 – 24 in the Marcellus/Utica were roughly the same as the prior week. There were 21 new permits issued last week, down 1 from permits issued two weeks ago. Last week’s permit tally included 11 new permits in Pennsylvania, 4 new permits in Ohio, and 6 new permits in West Virginia. Three companies tied for top permittee last week: PennEnergy Resources with 5 permits in Butler County, PA; CNX Resources with 5 permits in Washington County, PA; and Southwestern Energy with 5 permits spread between Wetzel and Ohio counties in WV.
According to an analysis by S&P Global Commodity Insights, large U.S. shale gas drillers (namely Marcellus/Utica drillers) have hedged (pre-sold at a specific price) an average of 50% of anticipated shale gas production for the second half of 2023. The average price of the hedges is $3.35/Mcf, far above the average NYMEX Henry Hub price that has been bumping along between $2.25 and $2.75. CNX Resources is the top hedger, hedging 80% of its production in 2H23 at $3.04/Mcf.
Natural gas development is fundamental to the health and strength of Pennsylvania’s economy, supporting well over 100,000 family-sustaining careers, boosting state tax revenues, and generating billions in economic benefits, according to a new economic impact analysis (full copy below) commissioned by the Marcellus Shale Coalition (MSC). The analysis, released at the kickoff of the