MARCELLUS/UTICA REGION: An export terminal for natural gas is essential in southeast PA; OTHER U.S. REGIONS: Disney heiress arrested for chaining herself in front of Hamptons airport; NATIONAL: Natural gas post largest one-day gain in a month; It’s supply, stupid.
Read More “Other Stories of Interest: Wed, Jul 19, 2023”
The latest monthly U.S. Energy Information Administration (EIA) Drilling Productivity Report (DPR) for July issued yesterday (below) shows the EIA believes shale gas production across the seven major plays tracked in the monthly DPR for August will *decrease* production from the prior month of July. This is the first month-over-month decrease prediction for the combined seven plays since December. EIA says combined natgas production will slide by 100 MMcf/d (million cubic feet per day). The Marcellus/Utica, called “Appalachia” in the report, is predicted to slump by 16 MMcf/d in August from July.
Read More “EIA July DPR: Shale Gas Production Predicted to Drop in August”
Last summer, MDN brought you the news about a lawsuit against Diversified Energy and EQT over the issue of old and “abandoned” wells in West Virginia (see Big Green Uses WV Landowners to Sue EQT, Diversified re Old Wells). In April, a West Virginia federal judge allowed that lawsuit to continue as a class action (see Fed Court Rules EQT, Diversified Must Face WV Class Action). However, it appears to us (untrained in the ways of the law) that perhaps the lawsuit is in trouble. The plaintiffs keep amending their complaint, dropping bits and pieces, hoping to keep it alive. The fourth complaint (the third time amending it) was filed in June. Diversified and EQT have just filed a strong motion to dismiss the latest complaint (i.e. dismiss the lawsuit).
Read More “EQT, Diversified Ask WV Fed Court to Toss Abandoned Well Lawsuit”
Two years ago, Chesapeake Energy announced that it would seek responsible gas certification from two organizations–Equitable Origin (EO) and MiQ–to certify the production of its natural gas produced in both its Marcellus and Haynesville operations (see Chesapeake Goes Whole Hog on ESG, Certifying Gas Across 2 Basins). Yesterday Chessy announced it had received recertification from both EO and MiQ for all of its Marcellus Shale operations (located in Pennsylvania), which currently produces a staggering 4.4 billion cubic feet per day (Bcf/d).
Read More “Chesapeake Gets Responsible Gas Recertification for All Marcellus”
Even with much of the nation in an extreme heat event making record demands on gas-fired power plants, demand for natural gas appears to be nominal at best, and consequently, the price of natural gas, at least the Henry Hub NYMEX futures price, remains mired in the mid-$2 range. The NYMEX price was down again yesterday, closing at $2.51/MMBtu. That’s the fourth day in a row the price has decreased, hitting the lowest closing price in almost a month–since June 20th.
Read More “NYMEX NatGas Price Slides 4th Day in a Row, Hits 4-Week Low”
One of the factors in the price of natural gas is supply. Gas is about as pure a commodity market as you will find worldwide. Higher demand with the same or less supply will drive prices higher. And the reverse is true. Higher supplies with the same or less demand lead to lower prices. Last summer, the world was still coming to terms with the unprovoked invasion of Ukraine by Russia. Europe and many countries worldwide pledged to stop buying Russian natural gas, putting an extreme demand on other sources for gas, including here in the U.S. The situation led to a deficit in available natgas and lower storage. This summer the situation is far different.
Read More “Summer NatGas Storage Injections Exceed 5-Yr Avg by 66 Bcf”
The New York Independent System Operator (NYISO) is warning of a shortfall in electric generating capacity for New York City in 2025 when peaker plants–on-demand electric-generating plants that use fossil energy–are due to retire. Each quarter NYISO issues a short-term assessment of reliability. In April, the NYISO quarterly report warned about coming blackouts in 2025 (see NY Grid Operator Warns NYC Heading for Blackouts in 2025). Last Friday, NYISO issued its latest quarterly report and reiterated there WILL be a shortfall in electricity on the hottest days in 2025.
Read More “NYC to Experience Blackouts in 2025 Due to Democrat Climate Law”
MARCELLUS/UTICA REGION: Local students get inside look into careers in O&G; NATIONAL: U.S. LNG boosts energy security; So you want to stop oil and gas production?; House OKs defense bill blocking Biden climate action; INTERNATIONAL: IEA looks to extend purview to natural gas; With no replacement for oil, countries are ramping up alternatives to renewables.
Read More “Other Stories of Interest: Tue, Jul 18, 2023”
Mountain Valley Pipeline (MVP), in a move largely anticipated and expected, filed an “emergency application” on Friday with the U.S. Supreme Court, requesting the court block the recent “stay” on two key permits needed to complete the 94% completed MVP project recently imposed by the U.S. Court of Appeals for the Fourth Circuit (see All Construction of MVP Stopped as 4th Circuit Stays Second Permit). The request went to Supreme Court Chief Justice John Roberts, who handles emergency appeals for the 4th Circuit. The gazillion question now is, When will he rule on MVP’s request?
Read More “MVP Asks Supreme Court Chief Justice to Overturn 4th Circuit Stay”
Last September, MDN told you about a new 53-mile pipeline project in Western Kentucky–a 16-inch natural gas pipeline to feed natgas to the southern Pennyrile Region (see Kentucky Spending $30M on New NatGas Pipe to Expand Biz Growth). The $115 million project is partly being underwritten by a $30 million grant from the State of Kentucky. Half of the state money ($15 million) was distributed last year, and the other half is coming this year.
Read More “W. Kentucky 53-Mile NatGas Pipe Moving Forward with State Funding”
In early June, shale drillers could, for the first time, begin to apply for permits to drill under (not on top of) Ohio state lands and state parks under newly formulated rules established by the Ohio Oil & Gas Land Management (OGLM) Commission (see Ohio State Lands Now Open for O&G Leasing – Virtual Ribbon-Cutting). So far, at least 12 applications have been received by the OGLM to drill under state lands, including Ohio’s Salt Fork State Park (see Tiny Group Protests Fracking Under Ohio’s Salt Fork State Park). When will the OGLM decide whether (or not) to award contracts for drilling? We have an answer.
Read More “Decisions on Drilling Under OH State Parks Coming “Next Few Months””
The yo-yo behavior of the national rig count continues. Two weeks ago, the U.S. rig count broke a nine-week-straight decline by adding six rigs (see U.S. Rig Count Goes Up First Time in 10 Weeks – M-U Stays Even). The trend had been pretty dismal for the past several months. Then that ray of sunshine. However, the clouds appeared again last week when the count dropped five rigs–four of them in the oil-focused Permian Basin, and one in the gassy Haynesville Shale.
Read More “U.S. Rig Count Drops 5 Erasing Most Gains – M-U Stays Even 2nd Wk”
Last week we told you that the shale production situation in Pennsylvania has caught the eye of the number crunchers at the U.S. Energy Information Administration (see EIA Observes M-U Gas Production Flat, Key PA Counties in Decline). Production in PA, overall, is flat and possibly decreasing. Nationally, production is up in other plays and states. So why is PA’s production flatlining? In a phrase, lack of pipelines.
Read More “The Reason PA Shale Production has Flatlined? No Pipelines”
Here we go again. During the Trump administration, a group of 45 Republicans worked “across the isle” with 45 Democrats to launch the Climate Solutions Caucus, a group seeking to find bipartisan compromise on green energy and climate initiatives. You know how we feel about so-called climate change (i.e., man-caused global warming). It’s nonsense and a waste of time. Yet some Republicans feel the need to “address” this “global crisis.” Whatever. After the 2018 mid-term elections, when there was a bloodbath of Republicans losing, the group became defunct and has not operated since–until now. Last Friday, Congressman Andrew Garbarino (R-NY-02) and Congresswoman Chrissy Houlahan (D-PA-06), Co-Chairs of the House Climate Solutions Caucus, announced that the bipartisan caucus is composed of an equal number of Members from each party (29 each, a total of 58) for the first time since the end of the 115th Congress, and will relaunch and renew its efforts.
Read More “U.S. House Relaunches Bipartisan Climate Solutions Caucus”
OTHER U.S. REGIONS: Evergy slashes plans to expand renewables, proposes more natgas; Can anyone challenge Cheniere as the King of U.S. LNG?; NATIONAL: Chevron opted to buy vs build US LNG processing, gas executive says; INTERNATIONAL: Japan eyes creation of global gas stockpile; HSBC leads peers in advancing climate agenda among Big Oil.
Read More “Other Stories of Interest: Mon, Jul 17, 2023”
U.S. Senator Shelley Moore Capito, from West Virginia, spoke with reporters yesterday. She spared no words in describing her disgust with the three-judge panel from the U.S. Court of Appeals for the Fourth Circuit and their latest illegal maneuver to block the Mountain Valley Pipeline (MVP) project. She said she is “seriously, totally astounded” by “this politicized court” and its decision to block MVP construction after Congress “spoke loud and clear” in its support to finish MVP asap. She also said, “This activist court has got to be stopped.” We agree.
Read More “WV Sen. Capito Says MVP-Blocking 4th Circuit “Must be Stopped””