NYMEX and Spot Price Averages Collapse Below $5/MMBtu
What the heck is going on with natural gas prices? Last Friday, the NYMEX futures price (based on the Henry Hub spot price) lost another $0.40 to close at $4.96/MMBtu. NGI’s Weekly Spot Gas National Average dropped $0.54 to $4.99/MMBtu. The NYMEX lost $1.49 last week, representing a 23% drop in price–in one week! Last week marked the longest losing streak for natural gas prices (9 straight weeks) since the week ending Feb. 8, 1991, when the market fell for 11 straight weeks. Yuck.
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As part of its third quarter 2022 update, Kinder Morgan (KM) CEO Richard Kinder said his company is bullish on U.S. LNG exports. Kinder said he expects (predicts) U.S. LNG exports will more than double, from the current 11 billion cubic feet per day (Bcf/d) to 28 Bcf/d by 2030–less than eight years away. KM flows around 50% of all the molecules that get exported as LNG from this country, so Kinder should know a thing or two about the LNG market.
Last week we told you about a group of brainwashed children at the University of Pennsylvania (UPenn), who were behaving like spoiled rotten brats, demanding UPenn divest from any company with a whiff of oil or natural gas about it (see 
Last Thursday, representatives from manufacturing and the energy sectors delivered their thoughts on the future of the national and local economies at the 2022 Economic Outlook Conference sponsored by the Wheeling Area Chamber of Commerce. Front and center at the event was talk about the role of shale energy in revitalizing West Virginia and making it THE go-to place to set up new manufacturing operations. One speaker pointed out: “(West Virginia) is the only place in the world where you can build your manufacturing facility on top of your natural resources, your energy, and your raw materials in the middle of the biggest market in the world.”
In June, seemingly out of nowhere, a plan to build an LNG export facility on the banks of the Delaware River south of Philadelphia made big headlines in Philly (see 
Last year the State of Rhode Island, a small Communist stronghold in the United States, voted to phase out the use of all fossil energy by everyone in the state by 2050–the so-called Act on Climate. It’s more like the Shoot Yourself in the Head Act. Of course, passing a law and then trying to accomplish what the law stipulates are two completely different things, as the Commies in Rhode Island are discovering. They are beginning to flail about looking for solutions to how they can force their citizens to dump fossil energy without completely destroying the state’s economy. (Spoiler alert: They won’t find such a solution.)
INTERNATIONAL: Deutsche Bank cutting emissions from loans to oil and gas; Even green zealots fear the cold more than the evils of natural gas; Putin’s energy war and America’s obligation to remain a reliable supplier; Potential of peak shale puts oil market on edge; Germany leaves its natural gas in the ground.
According to law firm Houston Harbaugh, P.C., deducting fuel costs from landowner royalties continues to be an ongoing and widespread practice. Some leases allow the use of a portion of the raw gas recovered at a well to “fuel” well-pad operations (processing of the gas). Not only are landowners denied a royalty on the fuel gas volume, they also have that same “cost” deducted from their production royalty! According to Houston Harbaugh, this practice of deducting fuel costs must be closely monitored by all landowners.
Republicans in the Pennsylvania Senate have, since April 2021, refused to appoint new members to the five-member Public Utility Commission (PUC) in response to Democrat Gov. Tom Wolf’s unilateral push to force the state to join the Regional Greenhouse Gas Initiative (RGGI) carbon tax scheme (see 
Excuse our rather blunt headline that the Environmental Protection Agency (EPA) is about to get an anal exam, but that’s about the best way we can describe what is coming to this completely out-of-control federal agency. According to an article appearing on the left-leaning E&E News (owned by POLITICO), if Republicans regain control of the House and the Senate, what awaits the EPA is, “Senior political appointees facing multiple, hourslong hearings. Piles of letters demanding documents from every corner of the agency. And perhaps even subpoenas for text messages.” It’s not pleasant, but somebody needs to muck about in the sewer that is called Joe Biden’s EPA, and bring it to account for its shady actions.
Following his sellout of the country by voting for Joe Biden’s so-called Inflation Reduction Act (a new name for the Build Back Better/New Green Deal), U.S. Senator Joe Manchin’s popularity in his home of West Virginia state has sunk into the sewer. A majority of voters are not happy with the job Manchin is doing, and if the election for Manchin were held today, he would lose to any Republican running against him. Joe Manchin’s political career is over–deservedly so.
Permits issued for new shale wells last week got a bit better from their pathetically low numbers. From Oct. 10-16 there were eight new permits issued in Pennsylvania, and four each issued in Ohio and West Virginia. All of the PA permits were issued in northeastern PA, with four going to BKV Operating (i.e. Banpu) in Wyoming County, two to Chesapeake in Bradford County, and two to Beech Resources in Lycoming County. Encino Energy scored all four permits for Ohio, all of them in Harrison County. In WV, Tug Hill (soon to be EQT) received three permits, and Southwestern Energy received one permit, all four in Marshall County.