Wild Swings in NatGas Price “Here to Stay for Foreseeable Future”
The past 18 months have been a wild ride for natural gas prices. We’ve gone from years of low prices to spiking near $10/MMBtu. In just the past few months, prices have dropped like a rock. The price dropped to a fresh 30-month low yesterday (see today’s lead story). The NYMEX price now threatens to dip below $2/MMBtu. Crazy! According to analysts speaking with Argus Media, we can expect continued wild gyrations in the price of natural gas “for the foreseeable future.” Some analysts say that volatility (sudden spikes up and down) in the price of natgas “could be here to stay.” As in permanently.
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In a case initially filed last summer in Ohio, a Belmont County mineral rights owner alleges that Rice Drilling (now owned by EQT) drained natural gas from a rock layer it did not have the right to access according to the signed lease. Golden Eagle Resources says the lease allowed Rice to drill down only as far as the Utica Shale layer, which Rice did. However, Golden Eagle says fractures from Rice’s fracking of the Utica layer reached down into the adjacent Point Pleasant layer and drained some of the gas from the Point Pleasant too–and that’s a no-no according to the lease.
As we reported yesterday, New York legislators are pushing back against a truly crazy plan by NY Gov. Kathy Hochul to ban natural gas (and fuel oil) in all homes and businesses across the Empire State (see 
For over 10 years, MDN has tracked a Canadian LNG export project in Nova Scotia planned by Pieridae Energy. The project is called Goldboro LNG. In May 2021, the company said a final investment decision (FID) would happen no later than June 30, 2021. It never happened. One year ago, we told you of Pieridae’s plan to resuscitate the project and move it forward (see 
MARCELLUS/UTICA REGION: Probe of Pa. chocolate factory blast focuses on gas pipeline; NATIONAL: The green energy agenda increases poverty – it must stop; INTERNATIONAL: What will happen at the next OPEC+ meeting?
There is a revolving door in Harrisburg, Pennsylvania, between PennFuture and Democrat governors. Pat McDonnell, the former Secretary of the PA Dept. of Environmental Protection (DEP), charged with overseeing shale drilling in the state, was a closet radical working against the shale industry in the Gov. Tom Wolf administration. How do we know? As soon as he left the DEP last year, McDonnell became president of the uber-left, anti-shale PennFuture organization (see 
Epsilon Energy concentrates most of its effort on developing Marcellus Shale wells in Susquehanna County, PA. Epsilon typically does not do its own drilling. The company joint venture partners with (gives money to) other companies, like Chesapeake Energy, and the other company typically does the drilling. Epsilon issued its fourth quarter and full-year 2022 update last week. The company’s net gas production was 2.49 Bcf (billion cubic feet) in total, not per day, during 4Q22. That number is down 3% from 2.58 Bcf in 3Q21. Epsilon generated revenues of $15.2 million for 4Q22, compared to $13.8 million in 4Q21–up 10%.
The 303-mile Mountain Valley Pipeline (MVP) that runs from Wetzel County, WV, to Pittsylvania County, VA is 94% complete (has been for two years) but sits idle, waiting for the other 6% to be completed so it can start up and begin to flow Marcellus/Utica molecules to the southeastern U.S. Lawsuits funded by Big Green groups (with foreign connections) have blocked the completion of the project…for YEARS. It would be fair to say the project is currently in a stalemate with Big Green radicals, who somehow have coopted the help of three Democrat judges who sit on the U.S. Court of Appeals for the Fourth Circuit. Stalemates don’t go on forever. One way or the other, this situation will get resolved–likely this year. There are four potential outcomes for the stalled MVP project, a project critical to the future of the Marcellus/Utica.
An environmental group purporting to be run by political conservatives, calling itself Conservatives For Responsible Stewardship (CRS), is pushing for Pennsylvania to adopt the Regional Greenhouse Gas Initiative (RGGI)–an obscene carbon tax that will kill the Marcellus shale industry in the state. In what has to be the ultimate example of chutzpah, the president of CRS, Dave Jenkins, argues in a column appearing in the Erie Times-News, that RGGI is (don’t laugh) a “market-based program” and the type of thing old Ron Reagan would have liked. HOGWASH!
We live and work in Upstate New York State (sad to say). It is our birthplace, and our families live here. However, New York has fallen. We are overwhelmed with Democrat socialists who don’t care about traditional American values like freedom. The best illustration of this is our newly-elected Governor, Kathy Hochul. She not only wants to ban natural gas hookups for new homes and businesses across the entire state, she wants to force all EXISTING homes and businesses to give up using natural gas (and fuel oil, and coal, and wood) as well. It’s certifiably insane. Yet that’s how the Democrat socialist mind works. Fortunately, there are at least a few Dems left willing to push back on some of this insanity. Where do plans stand to ban natgas in the Empire State?
Last year MDN told you about an interesting development for an LNG export project in Canada we’ve tracked for years. Bear Head LNG in Nova Scotia was sold to Houston-based Buckeye Partners for an undisclosed sum (see 