OTHER U.S. REGIONS: For top U.S. oil producers, Permian shale output is losing steam; NATIONAL: Deflation is on the way; US shale growth could be lower for longer; U.S. natural gas pops 12% with colder weather coming; Did Biden break the Strategic Petroleum Reserve?; Trick follows treat for Big Oil as Biden pushes new tax on windfall profits; An energy education for Democrats.
Read More “Other Stories of Interest: Tue, Nov 1, 2022”
CNX Resources released its third quarter 2022 update late last week. The company lost $427 million in profit for the quarter versus losing $873 million in 3Q21. It generated $135 million in free cash flow. Total 3Q revenues of $476 million improved slightly year over year from the previous year’s $455 million. CNX sold its gas for an average of $3.25 per thousand cubic feet equivalent (Mcfe), up 10% from the year-ago figure of $2.96/Mcfe. Production costs were $1.64/Mcfe, up 6% from one year ago–due to inflation.
Read More “CNX 3Q – Revenue Up, but Profits, New Wells, Production Down”
Southwestern Energy, which along with EQT and Chesapeake Energy, is one of the three leading producers of natural gas in the U.S., issued its third quarter update last Friday. The company reported total net production of 443 Bcfe (billion cubic feet equivalent), or 4.8 Bcfe/d, including 4.2 Bcf/d of natural gas and 97,000 barrels per day (Bbls/d) of liquids. Southwestern invested $543 million of capital during 3Q and placed 31 wells online to sales, including 14 in the Marcellus/Utica and 17 in Haynesville. The company made $450 million in profit during 3Q22, versus losing $1.86 billion in the same quarter a year ago.
Read More “Southwestern 3Q – Production Up, Revenue Way Up, Added 31 Wells”
The Pennsylvania Dept. of Environmental Protection (DEP) has, for a second time, served a notice of violation (NOV) of the PA Clean Streams Law to Pennsylvania General Energy (PGE) for causing sediment pollution in the Loyalsock Creek north of Montoursville (Lycoming County). PGE is constructing a natural gas pipeline, a freshwater pipeline, and it withdraws fresh water for Marcellus Shale-related activities at the site.
Read More “PA DEP Dings PGE (Again) for Causing Muddy Water in Loyalsock Creek”
We’ve been warning about it for years because various government and private companies have been warning about it–that Boston and New England were just one extended cold snap away from rolling blackouts. More than half of all electricity generated and provided to New England comes from natural gas-fired power plants. During cold periods when there is high demand for home heating, power plants are threatened with shortages. Somehow New England has dodged a bullet and has not had to resort to rolling blackouts. Until (likely) this year. Eversource, the region’s largest utility company, sent a letter last Thursday to President Biden urging him to assemble a panel and figure out how to ensure natgas flows to New England (via LNG) this winter–because if it doesn’t, this IS the year rolling blackouts become reality.
Read More “Eversource Tells Biden w/o More NatGas New England Gets Blackouts”
Typically when you read about a “hydrogen hub” like those that will be financed with taxpayer money in the coming years ($7 billion allocated to fund 6-10 hubs coming from the so-called infrastructure bill), you also see the term CCS or CCUS, which stands for carbon capture and sequestration (the U meaning utilization). The two are linked, hydrogen and CCS. Some 95% of all hydrogen comes from steam-cracking natural gas. Environuts insist we must capture and store the carbon dioxide that is released via the cracking process to save the planet. That’s why CCS is paired with hydrogen so often. But how, exactly, does CCS work?
Read More “What the Heck is a Carbon Capture/Hydrogen Hub Anyway?”
We began to see the latest fake news attacks against natural gas nearly two weeks ago. The extreme, leftwing activist group Physicians, Scientists and Engineers for Healthy Energy (PSEHE) produced a junk science report that claims the natural gas in your cooking stove is leaking gas that contains chemicals that cause cancer. Mainstream outlets, like NBC News, dutifully (without verifying it) reported this nonsense like it was legitimate science news. It is not. It’s quackery. But then NBC (and others like it) have VERY low standards. NBC is more into propaganda and advocacy than it is reporting objective, unbiased news. No worries. We will debunk it for you below.
Read More “Antis Use Junk Science to Claim Gas Stoves Leak Cancer Chemicals”
For some time, we’ve been sounding the alarm about a coming change at the Securities and Exchange Commission (SEC) that will force publicly traded companies to disclose mythical greenhouse gas emissions data (see SEC Votes to Force Public Companies to Disclose Mythical GHG Risks). The end result of the Biden SEC’s proposed new ESG (environmental, social, governance) regulations would be to “kneecap” oil and gas companies (see SEC Reg Requiring Disclosure of Climate Change Risk “Kneecaps” O&G). Apparently, it is the Bidenista head of the SEC (Gary Gensler) pushing this change and not the rank and file at the agency. In fact, the rank and file are quitting in droves, leaving the agency, because they want nothing to do with the coming catastrophe of the ESG reg being forced on it by Biden.
Read More “Employees Quitting SEC at Record Rate Over Proposed ESG Regs”
MARCELLUS/UTICA REGION: LNG exports critical in preventing emissions backslide; Fetterman slams Big Oil for surging profits and failure to invest in new supply; OTHER U.S. REGIONS: JAX LNG refuels Sakura Leader with LNG; NATIONAL: Biden knows his policies increase energy costs for Americans; Why the U.S. has a diesel shortage; INTERNATIONAL: Growing LNG flotilla has big implications for European gas market.
Read More “Other Stories of Interest: Mon, Oct 31, 2022”
EQT faced some strong headwinds during the third quarter of 2022, but the company still came out on top. The headwinds included third-party (mainly pipeline) outages beyond EQT’s control, as well as droughts that decreased the volume of water the company could lay hands on for fracking. As a result, the company brought online to sales just 16 new wells instead of the 22 to 32 forecasted. Production slipped too, to 488 Bcfe (billion cubic feet equivalent), down 7% from last year’s 3Q. That 488 Bcfe calculates out to be 5.30 Bcfe/d. On the plus side, the company generated net income of $684 million in 3Q22 vs. losing $1.98 billion in 3Q21, and it generated free cash flow of $591 million.
Read More “EQT 3Q Completed Wells & Production Drops, but Profits Rise”
Antero Resources is one of the largest drillers in the Marcellus/Utica (with major assets in West Virginia). The company is the fifth largest natgas producer in the country and the second largest LNG exporter. Antero provided its third quarter 2022 update yesterday. Like other major M-U drillers, Antero had a great quarter financially. Antero’s 3Q22 net income was $560 million (adjusted net Income was $531 million), versus losing $549 million in 3Q21. Free cash flow was a whopping $797 million in 3Q. Antero produced an average of 3.2 billion cubic feet equivalent per day (Bcfe/d), including 171,000 barrels per day (Bbl/d) of liquids. That’s down just a hair from 3.247 Bcfe/d produced in 3Q21.
Read More “Antero 3Q Production Even, Profits Thru the Roof, Adding More Wells”
As we mentioned yesterday, House Bill (HB) 1059, legislation to provide $142 million annually in state tax credits for several purposes, including clean hydrogen hubs, use of natural gas, semiconductor manufacturing, and milk processors, was approved by a Senate committee and is on a fast track to becoming signed into law (see PA Senate Ctte Approves Tax Credit for Hydrogen, Natural Gas). Not long after a Senate committee approved it, the full Senate voted to pass it with a large bipartisan majority (41-8), followed by the House voting to concur with the Senate’s changes (139 to 59). The bill is now on Gov. Tom Wolf’s desk for his signature, which is expected (maybe even today).
Read More “PA $2.1B Tax Credit Bill for H2, Natural Gas Passes & Goes to Gov”
Yesterday, the Ohio Chamber of Commerce held its “Energy Supply Chain: Present & Future” conference at the Ohio Statehouse Atrium in Columbus. Participants and speakers included oil and natural gas producers, pipeline operators, policymakers, renewable companies, and more. Questions largely centered on the energy transition and how various resources fit into a so-called sustainable future. The upshot was that Ohio’s natural gas (mostly Utica, some Marcellus) is front and center as a driving force for Ohio energy, and the Ohio economy.
Read More “Ohio Drillers Say They are Ready to “Unleash American Energy””
In 2021, the use of coal in the U.S. to fire power plants actually rose by 16% after it had declined steadily, year after year, from 2014 to 2020. The U.S. Energy Information Administration (EIA) expects coal used to fire power plants in the U.S. to decline again this year, even though the price of natural gas has doubled and tripled. Coal and natgas are typically interchangeable, and power generators use whichever costs less. But not, it seems, anymore.
Read More “NatGas Continues to Replace Coal for Powergen, Even w/High Prices”
Norwegian company DNV operates as a quality assurance and risk management company. It offers supply chain, data management, technical assurance, software, and advisory services. DNV recently published its annual Energy Transition Outlook 2022. DNV’s predictions are somewhat shocking. The company is a global warming Kool-Aid drinker, believing we’ll all toast if we don’t “transition” away from burning fossil energy by 2050. Yet DNV’s report shows it thinks by 2050, the U.S. and Canada will still be 66% powered by fossil energy, primarily natural gas.
Read More “DNV Report Says 66% of U.S. Energy by 2050 Comes from Fossil Fuels”
U.S. Senator Joe Manchin, Democrat from West Virginia, ended his political future when he sold out the country by voting in favor of the misnamed Inflation Reduction Act (IRA), which is actually a mini-Green New Deal bill (see Joe Manchin Cuts MVP “Deal” in Return for Selling Out Country). Manchin’s sellout caused him to become a pariah with WV voters–justifiably so (see WV Sen. Joe Manchin 3rd Most Unpopular U.S. Senator in the Country). It won’t erase the huge damage that’s been done, and it won’t salvage his obliterated political career, but if Joe Manchin wants to at least make an effort to right the wrongs he has done, he can make a good start by blocking the reappointment of Richard “Dick” Glick as a FERC commissioner.
Read More “Joe Manchin Can Partially Atone for His IRA Sin by Blocking Glick”