New Discovery Casts Doubt on Gas Well Methane Migration Claims
A group of international scientists has discovered a fourth type of natural gas. Wait, there are different “types” of natgas? Yes, at least different types of origins for natural gas. To date, three main sources of natural gas had been identified–microbial, thermogenic, and abiotic. Scientists have discovered a fourth type or origin for natural gas–natgas generated by radiolysis, which is the dissociation of molecules by ionizing radiation of the organic matter in shale rock. Yeah, it’s science and it’s complicated. Let us bottom line this for you right here: The presence of natural gas with a “thermogenic” signature (i.e. fingerprint), which indicates gas coming from a drilled shale well, has been blamed for contaminating water supplies in places like Dimock, PA. It’s quite possible thermogenic gas has been misidentified as radiolysis gas, and that leaky wells are not the cause of gas in water.
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Engineers at the University of Pittsburgh’s Swanson School of Engineering are developing a new way to reduce the environmental impact of drilling and fracking by cleaning produced water for reuse. Produced water is the water that comes out of the hole long after drilling and fracking is done. It is “water from the depths”–far below the water table–and it’s full of minerals, which is why it’s often called brine (or salt). Pitt engineers have researched membrane distillation (MD) to treat this salty wastewater. Pitt has discovered how to use MD to economically recycle and reuse produced water from shale.
NATIONAL: Andros launches mineral platform with $122M mineral, royalty acquisition; U.S. LNG exports stay near record levels in May; Biden to usher in cheap Chinese panels with solar power shake-up; Banning U.S. oil exports would be Biden’s ultimate energy folly; INTERNATIONAL: Environmental groups sue to end support for 30 EU-backed gas projects.
On May 24, Cleveland State University researchers quietly published the “Shale Investment Dashboard in Ohio Q1 and Q2 2021” (full copy below). The new report details shale-related investment in Ohio, looking at upstream, midstream, and downstream activities. The investment estimates are from January through June of 2021–the first half of last year. The report shows investment in the Ohio Utica continued to increase last year, during the height of the pandemic. It also shows just two companies drilled 73% of Ohio’s new shale wells and 69% of the money invested in drilling new shale wells in the Buckeye State in 1H21. Which two companies?
In what is being called an “explosive” trading session yesterday, the price for the front-month NYMEX contract (July) spiked up 80 cents in a single day to close at $9.32/MMBtu–the highest level in over 13 years. The August NYMEX contract closed at one penny less, $9.31/MMBtu. The weather seems to be the main reason for the spike. Longer range forecasts for Texas and the Midcontinent region are for high heat in the coming weeks. The high heat will lead to running air conditioners that use electricity. Windmills in Texas are “faltering” and not expected to deliver their normal load, meaning natgas plants will need to make up the difference. Once again unreliable renewables prove they are not up to the task.
It’s time to remove three radicalized Democrat judges who have consistently (12 of 14 times) voted against Mountain Valley Pipeline (MVP) in appeals brought by Big Green groups. The three judges of the U.S. Court of Appeals for the Fourth Circuit (we call it the 4th Circus) are bigoted and prejudiced against natural gas pipeline projects. We’re talking about Judge Stephanie Thacker, appointed by Barack Hussein Obama; Judge James Wynn, appointed by Barack Hussein Obama; and Chief Judge Roger Gregory, appointed by William Jefferson Clinton. These three leftwing judges find the smallest, nitpicky things to use as an excuse to block the completion of the 94% completed, 303-mile MVP project. MVP has just filed a request with the 15 members of the 4th Circuit to appoint three new judges in their place.
Broadcasting its intent to expand aggressively in the LNG export market, Chesapeake Energy is advertising to hire a liquefied natural gas (LNG) advisor. The LinkedIn ad shows that so far 41 people have applied. The ad opens by saying the company is looking for “a lead for new business opportunities for Chesapeake for liquified natural gas (LNG) and provides guidance on LNG Marketing activities in order to optimize the company’s revenue.” And hey, good news: The job can be 100% remote!
In August 2018 DTE Energy broke ground on a new state-of-the-art natural gas-fired power plant in St. Clair County, Michigan (see 
RBN Energy’s own Rusty Braziel (the R and the B in RBN) is back with another powerhouse post on the RBN blog site. This one is about the market for ethane. For those new to MDN, ethane is one of the primary NGLs (natural gas liquids) that comes out of the ground along with oil and natural gas. Propane and butane are a couple of other common NGLs produced in the Marcellus/Utica. Ethane is the raw material used to produce ethylene, and ethylene is turned into plastic pellets that are used to manufacture thousands of different products you use every day of your life. The ethane market is, according to Braziel, “in turmoil” right now. Ethane prices are up, almost double since January, and are at their highest level in 10 years. Ethane traditionally has been a waste product for many M-U drillers. Now it’s an important source of revenue.
From time to time we highlight deals by companies that purchase landowners’ (or rights owners’) royalty payments–giving them a lump sum payment upfront in return for signing over all future royalty payments to the company buying the rights. Buying future royalty payments is not unlike companies that approach and pay lottery winners who receive payouts over a long period (for life, or for a period of years), with the lottery winner selling his or her future payments for a single lump sum now. Two companies of the larger companies in this space are about to merge.
Energy Transfer (ET) has signed a fifth customer to accept shipments of LNG produced by ET’s yet-to-be-constructed LNG export facility in Lake Charles, Louisiana, located on the Calcasieu ship channel. Yesterday (yes, on a Sunday), ET issued a press release to announce a 25-year deal with China Gas to purchase 0.7 million tonnes (MT) of LNG per year on a free-on-board (FOB) basis. Added with the other deals, ET has now pre-sold 5.8 MT per year of the site’s planned capacity to produce 16.45 MT per year, meaning 35% of the capacity is now spoken for. More than a third of the way there!
In April the New York State Assembly passed Assembly Bill A7389C. Early Friday morning the New York State Senate, on the last day of the current session, passed the same bill, sending it to Gov. Kathy Hochul’s desk for a signature. A7389C (full copy below) slaps a two-year moratorium on cryptocurrency mining (i.e. bitcoin mining) powered by electricity generated from burning fossil fuels. Here’s how it works in New York (we’ve seen this multiple times): First comes a moratorium that lasts a year or two, then the moratorium gets extended, and eventually the moratorium turns into an outright, permanent ban. That’s how it worked with fracking, and that’s how it will work with bitcoin mining in New York, a state that has become extremely hostile to business.