Marcellus Drilling News

Air Quality | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

PA DEP Changing, Resubmitting Onerous VOC/Methane Regulations
May 19, 2022May 27, 2022

In March the Pennsylvania Environmental Quality Board (EQB), a sub-agency of the Dept. of Environmental Protection (DEP), approved a final version of onerous new regulations that supposedly will capture every last molecule of stray methane that leaks from shale and conventional drilling operations (see PA EQB Approves Final Onerous Methane Regs Harming Conv Drillers). These regs have been developed and tweaked since 2016. In late April several oil and gas associations that represent conventional drillers sued to block the new regs. Subsequently, the DEP withdrew the proposed new regs saying it would rework them. The DEP is about to resubmit a tweaked version of the regs for consideration, hoping to diffuse opposition from conventional drillers. Will it work?
Read More “PA DEP Changing, Resubmitting Onerous VOC/Methane Regulations”
Anti-Drilling/Fossil Fuel | CNG/LNG | Industrywide Issues | Regulation

Antis Lie About Safety of LNG-by-Rail, Seek Permanent Ban for PA
May 19, 2022May 27, 2022

Irrational anti-fossil fuelers, including THE Delaware Riverkeeper and the League of [Liberal Democrat] Women Voters, have set their sites on assassinating LNG-by-rail shipments in Pennsylvania and beyond. If even one shipment of LNG using rail cars should happen, it would expose the lie that LNG-by-rail is a “rolling bomb.” Antis, poisoned with hatred against fossil energy, are making fantastical and 100% false claims about LNG by rail. Substances FAR more flammable and combustible than liquified natural gas, including crude oil, roll down the rail tracks each and every day through major population centers across the country. That fact doesn’t seem to bother antis.
Read More “Antis Lie About Safety of LNG-by-Rail, Seek Permanent Ban for PA”
Air Quality | Industrywide Issues | Supply Chain

Flaring Tech Co. with Ops in M-U Expands Manuf. Facility in Okla.
May 19, 2022May 27, 2022

Once upon a time when drillers sunk an oil or gas well and it began to flow, the initial rush of natural gas coming from the hole would either be vented or flared. Venting is just releasing methane molecules into the atmosphere, a practice that gives environuts the creepy crawlies. Flaring is not much better in their book–the practice of burning methane coming from the hole (converting it to carbon dioxide). But hey, we don’t want to vent or flare for a different reason–because those molecules are worth money! Better to capture and sell them. Enter technologies that do just that. One such company that manufactures tech to capture and sell fugitive methane at drilling sites is Flogistix (think of the word flow mashed with the word logistics…Flogistix). The company has field offices in many locations, including an office in Washington, PA.
Read More “Flaring Tech Co. with Ops in M-U Expands Manuf. Facility in Okla.”
Industrywide Issues | Jobs | Research

O&G Jobs Recovering in 2022, Won’t Reach Pre-Pandemic Until 2027
May 19, 2022May 27, 2022

Rystad Energy, a Norwegian-based energy research and business intelligence company, issued its latest research yesterday that predicts employment in the U.S. oil and gas industry is set to rebound in the coming years and eventually surpass pre-COVID levels. Rystad says the industry will add roughly 108,000 new jobs this year. However, we won’t hit pre-pandemic levels of employment, says Rystad, until 2027–five years from now.
Read More “O&G Jobs Recovering in 2022, Won’t Reach Pre-Pandemic Until 2027”
Industrywide Issues | Research | Wastewater

Study Says Shale Wastewater a ‘Substantial Source of Lithium’
May 19, 2022May 27, 2022

Eureka Resources, which currently operates three frack wastewater treatment facilities in the Marcellus Shale (building a fourth facility in Dimock, PA), is doing really cool stuff. In October 2019 the company began extracting lithium from Marcellus wastewater at one of its plants in Bradford County, PA (see Marcellus Wastewater Plant in PA Extracts 1st Batch of Lithium). In 2020 the company announced it had received its fourth patent for its lithium extraction process. The company also said its plants can theoretically supply up to 25% of the country’s annual lithium demand–solely with lithium recovered from Marcellus wastewater (see Eureka Can Supply 25% of US Lithium Demand from Marc. Wastewater). Now there’s independently published research confirming what Eureka has been saying for years–lithium from brine (wastewater) is the answer to a lithium supply shortage here in the U.S.
Read More “Study Says Shale Wastewater a ‘Substantial Source of Lithium’”
Industrywide Issues | Regulation

U.S. Chamber Makes Suggestions for Revised Climate/Energy Bill
May 19, 2022May 27, 2022

In a bit of swamp-related cheerleading, the U.S. Chamber of Commerce published a treatise with its 2 cents on what should be included in a revamped “bipartisan” Build Back Worse deal that is being hatched on Capitol Hill between U.S. Senator Joe Manchin (Democrat from West Virginia) and U.S. Senator Lisa Murkowski (Republican from Alaska). We can tolerate Manchin, but we can’t tolerate Murkowski, who is a traitor to conservative values and the Republican Party. The U.S. Chamber senses a deal is getting close and wants to influence its shape as much as possible, floating “seven core elements” that should be part of such a deal.
Read More “U.S. Chamber Makes Suggestions for Revised Climate/Energy Bill”
Industrywide Issues | Regulation

“What the FERC!” – New Ad Campaign Targets Biden FERC, Dems
May 19, 2022May 27, 2022

Ha ha ha ha ha. A new ad campaign is running in D.C., Nevada, and New Hampshire targeting the Federal Energy Regulatory Commission (FERC) and Democrats in swing states. The tag line used is “What the FERC!” We love it! The ad has leftists fit to be tied because it draws attention to policies from Biden’s FERC and his administration that have contributed to high energy costs. If Trump were still in the White House and ads with a naughty-sounding tagline like this were running, national media would be all over it. Since it’s Biden, it’s crickets from every single national media outlet–a total blackout and refusal to cover the news (otherwise known as censorship).
Read More ““What the FERC!” – New Ad Campaign Targets Biden FERC, Dems”
Best of the Rest

Other Stories of Interest: Thu, May 19, 2022
May 19, 2022May 27, 2022

NATIONAL: US Hybrid debuts near-zero-emission natural gas powertrain; Gas prices soaring because Biden trying to bankrupt American oil and gas; Record-high Texas, Midcontinent heat to elevate power demand, gas prices; The ESG community lacks an understanding of what crude oil is used for; INTERNATIONAL: LNG may not join oil as global commodity, but markets seem just fine with that; LNG demand is soaring as Europe races to replace Russian gas.
Read More “Other Stories of Interest: Thu, May 19, 2022”
CNX Resources | Energy Companies

CNX Issues 2021 Corporate Responsibility, Vision for Future
May 18, 2022May 27, 2022

CNX Resources, an independent natural gas driller (and midstream company) based in Pittsburgh, released its annual corporate social responsibility (CSR) report for 2021 yesterday. CNX continues to walk the talk when it comes to ESG (environmental, social, governance)–one of the few (only?) companies to do so. Get this: CNX has been net carbon *negative* (pulling CO2 out of the atmosphere) for its Scope 1 and 2 operations since 2016! It is the only E&P we’re aware of that can make that claim. Everyone else is still trying to get to net carbon zero, let alone net carbon negative as CNX has done. One of the guiding tenants of the company is its “why” or purpose for existing, which is stated this way in the report: “CNX produces a product that is essential to life; without us today or tomorrow, the human condition frays and society ceases to function. What we do matters, enormously.” No shilly-shallying about the company’s commitment to natural gas and fossil fuels. We admire the company tremendously.
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Allegheny County | Beaver County | Energy Companies | Ethane | Industrywide Issues | Litigation | Pennsylvania | Processing Plants | Shell

Shell PA Cracker Welders Sue for Bus-Ride Overtime, Class Action
May 18, 2022May 27, 2022

As the mighty Shell ethane cracker plant complex nears 100% completion and startup, which will happen this year, there is a lingering legal issue for some of the workers who helped build the plant. Back in 2017, we alerted you that one of the biggest challenges in constructing the facility was something rather mundane, but key: finding enough parking for the thousands of workers needed to do the construction of the plant (see Shell Cracker Makes Progress; Biggest Problem So Far? Parking). Shell purchased and leased nearby land, mall parking lots, and even built a new road to get workers in and out of the site. But it still was not an easy nor quick process going to and from the site.
Read More “Shell PA Cracker Welders Sue for Bus-Ride Overtime, Class Action”
Coterra Energy (Cabot O&G) | Economic Impact | Energy Companies | Industrywide Issues | Southwestern Energy

15-20% Inflation Hits M-U Gas Drillers, Profits Remain High So Far
May 18, 2022May 27, 2022

According to a survey of both oil and natural gas drillers, inflation began to drive up production costs during the first quarter of 2022. According to Coterra Energy Inc. President and CEO Thomas Jorden, “We are seeing significant inflation in the oilfield.” Coterra is the former Cabot Oil & Gas which drills for natural gas in northeastern PA, in addition to drilling for oil in the Permian and Midcontinent. Southwestern Energy drills for natgas in both the Marcellus/Utica and in the Haynesville. Southwestern COO Clayton Carrell says he is seeing higher prices for labor and materials in both the M-U and the Haynesville. However, high inflation also benefits drillers. How?
Read More “15-20% Inflation Hits M-U Gas Drillers, Profits Remain High So Far”
Ascent Resources | Energy Companies | ESG | Industrywide Issues | PennEnergy Resources | Seneca Resources | Southwestern Energy

Project Canary Intros Freshwater Usage Metric in NatGas Cert
May 18, 2022May 27, 2022

Project Canary is one of three major “responsible gas” certification schemes. Project Canary has its TrustWell Certification program, Equitable Origin has its EO100 certification, and MiQ has its own self-named standard too. The TrustWell Certification assesses data points in 24 operational categories, ranging from water management to well integrity. Project Canary announced earlier this month that one its metrics for measuring and mitigating the effects of operations on local water resources has been peer-reviewed and published (as a study) by a third-party assessor in a leading industry journal. Several Marcellus/Utica drillers have achieved Project Canary’s Freshwater Verified Attribute as part of their TrustWell certification.
Read More “Project Canary Intros Freshwater Usage Metric in NatGas Cert”
Hydrogen | Industrywide Issues | Pipelines

Blending Hydrogen into NatGas Pipelines – Hurdles & Potential
May 18, 2022May 27, 2022

Hydrogen is a topic we return to from time to time because not only are (some) leftists promoting it as a replacement for natural gas and fossil energy, many in the oil and gas space are taking an interest too. One reason why hydrogen is of interest is the opportunity to turn methane into hydrogen, capturing carbon dioxide as you do so (called “blue” hydrogen). It has the potential to be a large, new customer for M-U molecules. But lefties push the use of electricity from windmills and solar farms to produce hydrogen by passing an electric current through water–so-called “green” hydrogen. There’s still a huge problem for the left to solve even with green hydrogen: How to get that hydrogen from point A to point B without breaking the bank. Enter the latest/greatest idea…blend hydrogen with natural gas and send it down existing natgas pipelines. Maybe even take over some existing natgas pipes and repurpose them to be hydrogen-only pipes.
Read More “Blending Hydrogen into NatGas Pipelines – Hurdles & Potential”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Regulation

Death by Regulation – EPA Plans to Use Locals to Monitor Methane
May 18, 2022May 27, 2022

Last November the federal Environmental Protection Agency (EPA) launched what we consider a full-on attack against the oil and gas industry when it floated a plan for new methane regulations (see EPA Launches Massive Power Grab, Targets O&G Methane Emissions). The Biden EPA claims by wresting control of oil and gas regulations from the states and concentrating power in the federal government, the feds will be able to save the planet from man-made global warming. The EPA will force a one-size-fits-all regulation on so-called fugitive methane emissions that all states must comply with. The problem is, EPA doesn’t have the money to monitor and enforce their lunatic plan, so they intend to farm it out to Big Green groups and the communities that border O&G activities. Big Green and the locals don’t like the sound of that because it means THEY will have to pay for it.
Read More “Death by Regulation – EPA Plans to Use Locals to Monitor Methane”
Best of the Rest

Other Stories of Interest: Wed, May 18, 2022
May 18, 2022May 27, 2022

NATIONAL: USA lease sale cancellation leaves industry in limbo; Stronger U.S. dollar contributes to higher crude oil prices; Paul Ryan-led SPAC in $1.3B deal to create lower 48 E&P; Billionaire John Arnold backing energy-focused credit fund; Hot summer could push doubled natural gas prices even higher; Democrat Big Oil ‘price-gouging’ bills advance in Congress; INTERNATIONAL: PGNiG pens agreement with Sempra for 3Mtpa of LNG; European storage filling quickly as natural gas floods continent.
Read More “Other Stories of Interest: Wed, May 18, 2022”
Industrywide Issues | Research

EIA DPR: Big Increase Coming for June U.S. NatGas Production
May 17, 2022May 27, 2022

Once again the number crunchers at the U.S. Energy Information Administration overestimated natural gas production in the Marcellus/Utica in the agency’s monthly Drilling Productivity Report (DPR), but not by much. Yesterday the EIA issued its latest DPR, for May, with estimates of how much production we will see in the seven largest shale plays in the U.S. for both May and the upcoming month of June. Last month for April’s report, the EIA predicted the M-U would produce 35.64 billion cubic feet per day (Bcf/d) of natural gas in May (see EIA DPR: Big Revision DOWN for April Natural Gas Production). Yesterday’s report revises the May number down to 35.48 Bcf/d. Fairly close. What about June? And what about Haynesville and Permian production?
Read More “EIA DPR: Big Increase Coming for June U.S. NatGas Production”