Why Does NatGas Production Keep Rising with Lower Prices?
The NYMEX futures price for natural gas recently hit a 30-month low (see NYMEX Henry Hub Crashing and Burning – Lowest Close in 30 Months). There’s an old economics bromide that goes, “The cure for low prices is low prices.” Meaning when prices get low enough, manufacturers (or producers, in the case of oil and natural gas) stop or greatly scale back their activity, taking inventory off the market, which ultimately drives prices higher to the point it is once again profitable to make the widget (or produce more O&G). But that doesn’t seem to be happening with natural gas. U.S. gas production will hit a new all-time high this year. Why is the market not responding to low natgas prices rationally?
Read More “Why Does NatGas Production Keep Rising with Lower Prices?”
We really have seen it all now. A news story appearing in the Washington Free Beacon discusses how a large Democrat Political Action Committee (PAC) is trashing Gov. Ron DeSantis for his support of natural gas. American Bridge 21st Century launched a website on Monday that hits DeSantis over his support for natural gas, the use of fracking, and projects like the Keystone XL pipeline. The PAC, which told DeSantis in its launch post that “we’re coming for you,” suggested DeSantis’s position has harmed the environment and contributed to climate change. Yet a lobbying firm closely connected to the PAC, ABI Associates, has gotten $240,000 from the Interstate Natural Gas Association of America (INGAA)! Words escape us…
OTHER U.S. REGIONS: Societe Generale explains why it pulled out of Rio Grande LNG; NATIONAL: Biden has limited options to respond to OPEC+ cut; U.S. natgas slides again, oil-to-gas price ratio highest in 11 years; OPEC surprise oil cut and Biden’s missed opportunity to refill reserves; The debt ceiling debate creates an opening for permitting reform; Biden’s Inflation Reduction Act to cost taxpayers triple gov’t estimate; INTERNATIONAL: Oil soars after unexpected production cut; Europe launches new LNG benchmark to help contain price spikes; Old refineries incapable of manufacturing enough light hydrocarbons.
The ARCH2 (Appalachian Regional Clean Hydrogen Hub) project, the West Virginia-led effort to attract government funding for one of 6-10 regional hydrogen hubs, took a leap forward today with the announcement by Adams Fork Energy, Haldor Topsoe, and CNX Resources Corp. of a plan to build a “multi-billion-dollar” clean ammonia manufacturing facility in southern West Virginia. CNX will provide natural gas to the plant, tentatively scheduled to begin construction in 2024 in Mingo County, WV. The ammonia plant will be an “anchor project” in the ARCH2 Hydrogen Hub application currently under consideration by the U.S. Dept. of Energy.
The Pennsylvania Public Utility Commission (PUC) published notice in the April 1 Pennsylvania Bulletin that it has denied a request by the Pennsylvania Independent Oil & Gas Association (PIOGA) to reconsider the agency’s plan to regulate small, completely safe natural gas gathering pipelines. We have the news of the PUC’s rejection, and what it means, along with an exclusive–the official response from PIOGA.
The West Virginia Public Energy Authority (PEA) is a seven-member board that aims to make the best use of WV’s abundant natural energy resources. State code gives the board power to buy, lease, and issue bonds to build electric power plants and natural gas transmission projects. Gov. Jim Justice reactivated the board in the summer of 2021 after it had been dormant for most of a decade. The first meeting of the new board was held in February 2022 (see 
We have new evidence that so-called environmental groups, including a long list of anti-fracking groups in Pennsylvania, don’t really care about the environmental at all. They only care about the power to dictate to you what energy sources you can and cannot use–as a way of controlling you. Great strides have been made in capturing and sequestering (storing underground) carbon dioxide (CO2). These so-called environmental groups all say that CO2 is killing Mom Earth. Yet when real science is employed to control CO2 (to sequester it), they attempt to block it. Why is that?
Three weeks ago, Chesapeake Energy announced a 15-year deal to provide natural gas for LNG exports to Gunvor Singapore Pte (see 
The Net Zero Asset Owner Alliance (NZAOA) is a group formed under the umbrella of the United Nations. It is a “member-led initiative” of institutional investors committed to transitioning their investment portfolios to mythical net-zero greenhouse gas emissions by 2050. The group’s members (some of the biggest banks and investment firms in the world) have some $11 TRILLION of assets under management. It’s mind-bogglingly huge. NZAOA issued an edict last week to its members: No new direct investments in upstream oil and gas infrastructure projects for new fields. Period.
We have watched, with some distress, the crashing and burning of the price for natural gas in recent weeks and months (see 
In October 2021, Nacero announced a $6 billion gas-to-liquids (GTL) refinery to be built on the site of a former coal mine in Newport Township and Nanticoke in Luzerne County, PA (see 
We have been closely tracking the restart of the shuttered Freeport LNG export terminal following its emergency shutdown in June 2022 after an explosion and fire. Earlier this week, we told you about the plant’s rocky restart road, with feedgas flowing to the plant averaging around 50% of total capacity (see 
In our daily perusal of press releases, we spotted an announcement from Yara and Enbridge about a joint venture to build a “world scale” low-carbon blue ammonia project along the Gulf Coast near Corpus Christi, Texas. We thought, “Hmmm, that’s interesting.” But as we read the announcement, our eyes got wide when they landed on this statement: “Enbridge’s Texas Eastern Transmission Pipeline is expected to provide the transportation service for feed gas that will be used for the production process.” Whoa! Now that’s REALLY interesting! We’ll tell you why…