Marcellus Drilling News

Diversified Energy | Energy Companies | Industrywide Issues | M&A | Ohio | Statewide OH

Diversified Energy Buys Second Well-Plugging Co. – Based in OH
May 17, 2022May 27, 2022

Diversified Energy is growing again. In February Diversified bought out and merged in well-plugging company Next LVL Energy, headquartered in the Pittsburgh area (see Diversified Energy Buys Well-Plugging Co. NextLVL Energy). Yesterday Diversified announced it is buying a second well-plugging company, Nick’s Well Plugging LLC, based in Warren, Ohio, for an undisclosed price. Diversified will add the personnel and equipment from Nick’s to Next LVL, bumping up the existing six well-plugging crews to eight, with plans to add a ninth soon.
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Energy Services | ProFrac

ProFrac Goes Public and Scores $288M – 4th Largest IPO This Yr
May 17, 2022May 27, 2022

ProFrac Holding Corp. is an oilfield services company that provides hydraulic fracturing, completion services, and other complementary products and services to drillers in the Marcellus/Utica, the Haynesville, the Midcontinent, and the Permian. The company is owned and backed by billionaires Dan and Farris Wilks, the same guys who bought out CARBO Ceramics (proppant company) in April 2020 after that company filed for bankruptcy (see CARBO Ceramics Files Prepackaged Bankruptcy, Selling to Wilks). ProFrac launched an initial public offering (IPO) last week, selling 16 million shares for $18 per share–well short of the target range.
Read More “ProFrac Goes Public and Scores $288M – 4th Largest IPO This Yr”
Commodity Price | Industrywide Issues | Storage

High Prices for M-U NatGas Means Less Storage, Coming Shortage
May 17, 2022May 27, 2022

According to S&P Global Commodity Insights, the difference between prices paid for natural gas this summer and the price gas is expected to bring in the coming winter months, are pretty darned close, which is unusual. Typically less natgas gets used in the summer and so the price decreases. It’s the perfect time for utilities and other major buyers to pay less for the gas and sock it away in storage, keeping it for the upcoming winter. But because forward prices are so high now, this summer, that’s not happening. Which means we in the northeast may not have enough natgas stored away when the cold temps of winter hit. The storm clouds are gathering on the horizon.
Read More “High Prices for M-U NatGas Means Less Storage, Coming Shortage”
Anti-Drilling/Fossil Fuel | Hydrogen | Industrywide Issues | Pennsylvania | Statewide PA

Big Green Trash Talks Wolf’s Play for $2B Hydrogen Hub in PA
May 17, 2022May 27, 2022

Yesterday Pennsylvania Gov. Tom Wolf, one of the most left, radical governors in the country, endorsed an “aggressive push” to be THE state to grab one of four $2 billion regional hydrogen hubs financed under the so-called federal infrastructure bill (see PA Gov. Wolf Announces “Aggressive Push” to Get Hydrogen Hub). Wolf hasn’t yet read the memo from his pals in the Big Green movement, who are now turning against hydrogen energy. The latest example is the PA-based Breathe Project, which calls the proposed hydrogen hub and PA’s pursuit of it “a plan that will take us in the wrong direction.”
Read More “Big Green Trash Talks Wolf’s Play for $2B Hydrogen Hub in PA”
Economic Impact | Industrywide Issues | Pipelines | Regulation

Chemical Industry Investment Linked to Shale Gas Tops $200 Billion
May 17, 2022May 27, 2022

Yesterday the American Chemistry Council (ACC) declared its undying love for homegrown, American shale gas. The ACC announced that U.S. chemical industry investment linked to plentiful and affordable domestic supplies of natural gas and natural gas liquids (NGLs) has topped $200 billion. ACC recognized this historic milestone by reemphasizing the benefits of shale gas to the U.S. economy and the ways in which it supports the energy transition and a so-called lower-emissions future.
Read More “Chemical Industry Investment Linked to Shale Gas Tops $200 Billion”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Pipelines | Regulation

INGAA Says Biden’s Words and Actions re NatGas Don’t Match
May 17, 2022May 27, 2022

There are some who actually believed Joe Biden when he was a candidate running for president, when Biden talked a good game about natural gas (we were not among them). Some believe President Biden now when he calls for more natural gas production to help Europe (we are not among them). But when you look at what Biden has and is saying, and then look at his administration’s policies, you get two completely different pictures. That’s the conclusion INGAA (the Interstate Natural Gas Association of America) comes to in a recent column that appears in (strangely) the left-leaning Utility Dive.
Read More “INGAA Says Biden’s Words and Actions re NatGas Don’t Match”
Best of the Rest

Other Stories of Interest: Tue, May 17, 2022
May 17, 2022May 27, 2022

OTHER U.S. REGIONS: Tellurian hires former McDermott COO; Tennessee plans to boycott banks, financial institutions that divest from fossil fuels; NATIONAL: The US cannot make enough fuel; Shale pioneer Harold Hamm slams Biden’s “failed” energy policies; House Democrats’ gas price gouging bill panned as ‘socialism’; INTERNATIONAL: Oil rallies to March highs as fuel markets intensify.
Read More “Other Stories of Interest: Tue, May 17, 2022”
Hydrogen | Industrywide Issues | Pennsylvania | Statewide PA

PA Gov. Wolf Announces “Aggressive Push” to Get Hydrogen Hub
May 16, 2022May 27, 2022

Pennsylvania, Ohio, and West Virginia are all scrambling to form working groups or other alliances in an attempt to be THE state chosen for one of four regional hydrogen hubs funded by the recently passed so-called Biden infrastructure bill (see WV, OH, PA Compete Against Each Other to Attract $2B Hydrogen Hub). The new law provides $8 billion for four regional hydrogen hubs. It’s a safe bet one of those hubs will be located in either PA, OH, or WV. Unfortunately, the three states that should be cooperating to attract the hub are instead going their own way, attempting to do it without cooperation. The latest example is an announcement this morning by Gov. Wolf.
Read More “PA Gov. Wolf Announces “Aggressive Push” to Get Hydrogen Hub”
Anti-Drilling/Fossil Fuel | Industrywide Issues | New York | Pipelines | Regulation | Statewide NY

NY PSC Adopts Rules to Phase Out Use of NatGas Statewide
May 16, 2022May 27, 2022

On May 12, the New York State Public Service Commission (PSC) voted to adopt two orders aimed at eventually phasing out the use of natural gas in homes and businesses across the state. At least that’s our take on the complex, gobbledegook orders issued (we have copies of both orders below). The PSC issued one order to LDCs (local distribution companies, otherwise known as local natural gas utilities) requiring them to file complicated reports outlining their natural gas infrastructure (pipelines) and efforts they deploy to encourage customers to use less natural gas, in line with the law passed two years ago by Cuomo to phase out the use of all fossil fuels. The second order issued by the PSC controls how utilities can and can’t enforce moratoria on new gas customer hookups.
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ESG | Industrywide Issues | Regulation

SEC’s Climate Disclosure Rule a Cost Burden that “Misses the Mark”
May 16, 2022May 27, 2022

In March the U.S. Securities and Exchange Commission (SEC), corrupted by the Bidenistas, said it will begin to force all publicly traded companies to disclose their so-called greenhouse gas (GHG) emissions and the imaginary climate risks their businesses face (see SEC Votes to Force Public Companies to Disclose Mythical GHG Risks). Companies will have to pretend they care about supposed man-caused global warming and cook up hokey methods for evaluating how much carbon dioxide not just their own company, but their customers “emit” into the air when using a company’s products (so-called Scope 3 emissions). It’s an attempt to totally control businesses without actually owning them (Communism, or owning the means of production, without actually calling it that). A column in RealClearEnergy outlines how the SEC’s regulation “misses the mark” and “represents a cost burden as opposed to a solution that would reduce global emissions to the benefit of society.”
Read More “SEC’s Climate Disclosure Rule a Cost Burden that “Misses the Mark””
Economic Impact | Industrywide Issues | NGLs

Without Fossil Fuels, Half the World’s Population Will Starve
May 16, 2022May 27, 2022

Vaclav Smil is a Distinguished Professor Emeritus at the University of Manitoba. Smil is the author of over forty books on topics including energy, environmental and population change, food production and nutrition, technical innovation, risk assessment, and public policy. His newest book, titled How the World Really Works, contains some startling information. Modern societies would be impossible without mass-scale production of many man-made materials. Four materials rank highest on the scale of necessity, forming what Smil calls the four pillars of modern civilization: cement, steel, plastics, and ammonia. All four require fossil fuels or the don’t exist.
Read More “Without Fossil Fuels, Half the World’s Population Will Starve”
Antero Resources | Ascent Resources | Columbiana County | Coterra Energy (Cabot O&G) | Encino Energy | Energy Companies | EQT Corp | Greene County (PA) | Guernsey County | Harrison County | Lycoming County | Ohio | Olympus/Huntley & Huntley | Pennsylvania | Seneca Resources | Susquehanna County | Tioga County (PA) | Washington County | Weekly Permits | West Virginia | Westmoreland County | Wetzel County

Corrected: 25 New Shale Well Permits Issued for PA-OH-WV May 2-8
May 16, 2022May 27, 2022

We always wait a few days into a new week before grabbing new shale well permits data to give the folks at the various state agencies time to update their systems for the previous week. Last Wednesday we told you that Pennsylvania had issued 11 new permits, Ohio issued none, and West Virginia issued just one (see 12 New Shale Well Permits Issued for PA-OH-WV May 2-8). In rechecking today, we discovered PA actually issued 13 new permits and OH issued 11 permits during that period (both states updated their data since last Wednesday). WV remained at one new permit. We include the revised and corrected reports below.
Read More “Corrected: 25 New Shale Well Permits Issued for PA-OH-WV May 2-8”
Calendar

Calendar of Events 2022 – Marcellus/Utica & Beyond
May 16, 2022May 27, 2022

Below is the list of events we are aware of that will be of interest to those with an interest in the Marcellus/Utica shale region for 2022. Some events are in the region (PA, OH, WV). Some are not (TX, OK, CO). Some are virtual/online, but most have returned to in-person. All of them are of potential interest to the MDN audience.
Read More “Calendar of Events 2022 – Marcellus/Utica & Beyond”
Best of the Rest

Other Stories of Interest: Mon, May 16, 2022
May 16, 2022May 27, 2022

MARCELLUS/UTICA REGION: Shale Academy shows off career options; OTHER U.S. REGIONS: Vermont becomes latest blue state to reject natural gas building restrictions; NATIONAL: Does Biden want higher gas prices?; Surging natural gas prices squeeze U.S. industrial sector; INTERNATIONAL: Aramco overtakes Apple.
Read More “Other Stories of Interest: Mon, May 16, 2022”
Energy Companies | Epsilon Energy

Epsilon Energy 1Q22 – Production Even, Revenue Up 61%
May 13, 2022May 13, 2022

Epsilon Energy concentrates most of its effort on developing Marcellus Shale wells in Susquehanna County, PA. Epsilon doesn’t typically 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. Usually. Epsilon issued its first quarter 2022 update earlier this week. The company’s Marcellus net gas production was 2.4 Bcf (billion cubic feet) in 1Q22.
Read More “Epsilon Energy 1Q22 – Production Even, Revenue Up 61%”
Crime | Industrywide Issues | Lease & Royalty Payments

How O&G Royalties/Mineral Rights Co. Committed $40M Fraud
May 13, 2022May 13, 2022

We don’t normally recommend books to read–especially those we haven’t read yet ourselves. Today we’re making an exception. Last week we received an email about a new book published on Amazon by Chris Bentley, the former President and CEO of Bellatorum Resources, an investment management firm that formerly specialized in Texas oil and gas royalties and mineral rights. Bentley recently published a book called Burning Bellatorum: The Story of a Forty Million Dollar Fraud and its Priceless Lessons for Investors and Entrepreneurs, detailing the $40 million fraud he committed while running his company. Since there are a number of companies that buy royalties and mineral rights in our region, we thought this information might be of interest to MDN readers.
Read More “How O&G Royalties/Mineral Rights Co. Committed $40M Fraud”