EIA Apr Drilling Report: M-U Production Slows, Haynesville Slows Too
Sticking with statistics, natural gas production in the Marcellus/Utica actually gained a little ground in April versus March for natural gas production, according to the latest estimates released by the U.S. Energy Information Administration (EIA) in its monthly Drilling Productivity Report (DPR). The latest revised numbers from EIA, released yesterday, show that the agency expects the M-U to produce 35.23 Bcf/d (billion cubic feet per day) of natural gas in April. EIA said in March, the M-U produced 34.88 Bcf/d (see our proprietary chart of EIA data below). EIA predicts the M-U region will add another 48 MMcf/d (million cubic feet per day) of production in May over April–but EIA almost always revises its numbers up or down by quite a margin–so we take that prediction with a grain of salt.
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A rare victory for the forces of good. Berkeley, California, a bastion for liberal nuts (there’s a reason the city’s nickname is Berserkely), thought it was all cutesy when, in 2019, it passed the “first-in-the-nation” municipal ban blocking new construction (homes and businesses) from hooking up to natural gas pipelines. Berkeley said it wants to do its part to combat global warming. A few months later, the California Restaurant Association (CRA) filed a federal lawsuit challenging the city’s ability to pass a law banning new natural gas hookups. After a lower court ruled in favor of the city, the CRA appealed it to the U.S. Court of Appeals for the Ninth Circuit. Yesterday the judges of the 9th Circuit ruled in favor of the CRA, telling the city it’s trying to regulate gas stoves by denying pipeline hookups–something that only the federal government can do.
New York State’s chickens are finally coming home to roost. The extreme leftist politicians who run the state have assaulted the fossil energy industry for half a dozen years, maybe longer. The assault on fossil energy began under Andrew Cuomo and has continued under his successor, Kathy Hochul. Their actions are leading to electricity blackouts in New York City. Last Friday, the New York Independent System Operator (NYISO) released its quarterly assessment of the reliability of the bulk electric system. While the state as a whole is not (yet) in trouble, NYISO says beginning in 2025, NYC “could become deficient” in electric power. Translation: The Big (Rotten) Apple is heading for blackouts.
New research released by The Buckeye Institute models the impact that a new Clean Power Plan–which the Biden Administration is attempting to revive through the regulatory process–would have on jobs, the economy, and customers. In “The Economic Impact of a Potential New Clean Power Plan on Ohio and California” (full copy below), researchers with Buckeye’s Economic Research Center (ERC), using power usage data from government agencies in Ohio and California, found that customers in Ohio would see an increase of $810 on their electric bills per year and that customers in California would see an increase of $665 annually.
OTHER U.S. REGIONS: California utilities propose charging customers based on income; California’s cautionary clean energy; NATIONAL: A new slew of EPA air rules add to Biden’s contradictory policies; INTERNATIONAL: IEA still predicts record oil demand in 2023.
The same three radicalized environmental groups that have repeatedly attacked the $1.1 billion Renovo Energy Center (REC), a Marcellus gas-fired power plant planned for Clinton County, PA, have finally won. The Clean Air Council, PennFuture, and the Center for Biological Diversity (all completely radicalized fossil fuel bigots) have repeatedly challenged permits for REC. Last week the builder of the project, Bechtel Corp., announced it is pulling out of the project which has been in the planning stages for eight years. The reason for canceling the project is because of “the ongoing appeals from environmental groups.” What a tragedy.
Last November, one of the ten natural gas storage wells at the Equitrans Rager Mountain Gas Storage Area in Jackson Township, Cambria County (in Pennsylvania) began to leak. The well ended up leaking roughly 100 million cubic feet per day (MMcf/d) of gas into the atmosphere (see 
Newly-elected Gov. Josh Shapiro, who (we must say) has appeared to be completely ineffective since taking office (which is not necessarily a bad thing), appointed a working group to help guide him on what he should do with respect to the Regional Greenhouse Gas Initiative (RGGI) carbon tax and the broader issue of global warming. The panel is super-secret. Only two people who belong to the working group have been named, the two co-chairs: one from the radicalized National Resources Defense Council and one from a PA state labor union.
Plastics come from oil and natural gas. You knew that, right? Without plastics, modern life would be 
Diversified Energy (formerly Diversified Gas & Oil), with major assets in the Marcellus/Utica region (other regions too), owns approximately 8 million acres of leases with 65,000 (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. Last week the company issued its fourth annual ESG report, titled “Decarbonizing While Delivering” (full copy below). Across its 10-state operations, Diversified added more than $1 billion in GDP to various state economies, supported more than 8,600 direct and indirect jobs, and generated $500 million in federal, state, and local revenues. On the environmental front, Diversified Energy reduced methane intensity by 20% overall and by more than 30% in the Marcellus/Utica.
Natural gas pipelines use both gas- and electric-powered compressor units. In fact, around 10% of pipeline compressor stations are powered by electricity. Electrically-powered compressor stations on natural gas transmission pipelines have been identified as a possible contributor to gas shortages because they are vulnerable to electric outages during severe weather events. It turns into a vicious cycle. Lack of electricity to the compressor means flows along the pipeline slow or stop, starving power plants of the gas they need to produce electricity. Researchers at Carnegie Mellon University (CMU) recently published an article (study) suggesting possible solutions to fix the issue.