Diversified Picks Up Pace Plugging Old Wells – 174 So Far in 2023
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. The company issued its latest update, for the first half of 2023, last Friday. Paul Gough, from the Pittsburgh Business Times, listened to the conference call and combed through the update. He hit on a key piece of news: Diversified has accelerated its program to plug old wells (its own wells in addition to orphaned wells) this year. In fact, the company has already (as of June 30) plugged 174 wells for the first half of the year. That number includes 87 of Diversified’s own wells.
Read More “Diversified Picks Up Pace Plugging Old Wells – 174 So Far in 2023”
Hundreds of thousands of old conventional oil and gas wells across the U.S. have been abandoned over time by the companies and individuals who drilled them. In many cases, tracking down the original owner and who should be responsible for plugging the old wells is impossible. So, the government has stepped in to “fix” the problem by throwing your money at it. (Ronald Regan said the nine most terrifying words in the English language are: “I’m from the Government, and I’m here to help.”) Part of the misnamed Inflation Reduction Act (IRA) is a program called the Methane Emissions Reduction Program, which contains $1.55 billion in funding from 2022 to 2028 to help with (among other things) plugging orphaned wells. The Bidenistas have just released $350 million of that $1.55 billion (23%) to get the process going.
Quick history lesson. In 2004, Range Resources was the first company to drill and frack the first Marcellus Shale gas well, which happened in Mt. Pleasant Township (Washington County), PA. It was love at first sight. Over the past almost 20 years, Range has added a few other counties to the list of place where it drills, and the company remains headquartered in Fort Worth, Texas. However, Range considers Washington County, PA, “our core, our home, the DNA of our company.” The bond of love is still strong all these years later.
In July 2020, Dominion Energy announced it had decided to exit the natural gas pipeline business by selling it to Warren Buffett’s Berkshire Hathaway Energy (see 
When Russia illegally and immorally invaded Ukraine on February 24, 2022, the price of oil and natural gas worldwide soared to record highs. Western countries pledged to wean themselves off Putin’s oil and gas, and Putin threatened them in return with cutting them off without notice. There was a lot of scrambling, and Europe filled its storage with oil and gas, so prices began to drop when the winter of 2022/2023 rolled around. Prices have continued to drop (except for oil, recently). With prices in the doldrums, drillers are drilling less. Rigs are being released. Yet production is still rising! It’s confusing–what’s happening?
NATIONAL: U.S. LNG exports vitally grow domestic natural gas production; USA crude oil stocks drop over 10 million barrels; INTERNATIONAL: Market expert says $100 oil is in sight; Can AI predict the oil price?; Putin’s natural gas leverage over the EU is not entirely gone.
Yesterday morning at around 5 a.m., one or more persons used “homemade incendiary devices” (i.e., Molotov cocktails) to destroy two pieces of heavy equipment used for excavating a path for the Mountain Valley Pipeline. The crime happened in the Boones Mill section of Franklin County, Virginia. Virginia State Police, along with the FBI and BATF, are looking for the criminals, seeking the public’s help in tracking down these pieces of human debris.
New Jersey is a Communist state, controlled by Communists from the Governor on down to radical judges packing its courts. Yesterday, three Commie judges from the Superior Court of NJ ruled that the state Dept. of Environmental Protection (DEP) should not have issued an exemption to the Highlands Act to Tennessee Gas Pipeline (TGP) to build a new compressor station in West Milford. The compressor is part of the TGP East 300 expansion project, an upgrade of TGP to deliver an extra 115 MMcf/d of natural gas to Consolidated Edison and its customers in New York City and surrounding suburbs. East 300 is a FERC-approved project (see 
There are four primary certification standards now in use by Marcellus/Utica (and other shale play) producers that want to prove the gas they produce is responsible, with low methane emissions. The original three include (1) Project Canary’s TrustWell Certification, (2) Equitable Origin’s EO100, and (3) The MiQ Standard (see 
When a government agency says it will “study” something, that means you can kiss it goodbye. It’s lights out. Our country has a serious problem: insufficient pipelines to get natural gas where it needs to go. In June 2020, during the Trump administration, the U.S. Department of Transportation’s (DOT) Pipeline and Hazardous Materials Safety Administration (PHMSA), in coordination with the Federal Railroad Administration (FRA), published final rules to allow LNG to be safely transported by special rail cars (see 
Antero Resources and Antero Midstream have donated a massive $4 million to West Virginia University’s Benjamin M. Statler College of Engineering and Mineral Resources to help train the next generation of petroleum and natural gas engineers. Antero’s gift is the largest philanthropic donation to the school to date. It will support undergraduate and graduate students in the petroleum and natural gas engineering program.
Last Friday, MDN told you about a new Cambridge University study published in the journal Science exposing the sale of carbon credits as a scam (see 
New shale permits issued for Aug 21 – 27 in the Marcellus/Utica decreased once again. Up down, up down, up down. That’s what it feels like. There were 16 new permits issued last week, down nearly half from the 27 issued the prior week. Last week’s permit tally included 11 new permits in Pennsylvania, 5 new permits in Ohio, and no new permits in West Virginia (WV has issued no permits in four of the last five weeks). The top permittee for the week, for the third week in a row, was Chesapeake Energy, receiving 5 permits–1 in Bradford County and 4 in Sullivan County.
Two weeks ago, MDN editor Jim Willis offered the opinion that PTT Global Chemical is not going to build an ethane cracker plant in Belmont County (see 
Funny how a couple of miles can make all the difference. In West Deer, a township in Allegheny County, PA (near Pittsburgh), Olympus Energy faces organized opposition to every project it proposes. Some Olympus well pads get approved, and some don’t. Every Olympus pad is vigorously opposed by anti-fossil fuelers. Yet in the township immediately next door, Frazer (also Allegheny County), Range Resources appears to have no opposition. We hope we don’t jinx it for them! Range has just received a permit for the company’s fifth multi-well pad. No hew and cry from the crazy left–no nothing. Just business as usual.