Marcellus Drilling News

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.
Read More “CNX Issues 2021 Corporate Responsibility, Vision for Future”
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”
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.
Read More “Diversified Energy Buys Second Well-Plugging Co. – Based in OH”
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”