Super Spec Drilling Rigs in Short Supply – Day Rates Soar
We spotted an article about scarcity for “super-spec rigs” affecting the shale marketplace. Super-spec rigs are high-end rigs with lots of bells and whistles. They drill better and faster than standard rigs. With inventories of super-spec rigs running low, prices to lease them are running high. The “day rate” to lease a rig with lots of bells and whistles is running over $30,000 per day. Base rigs, according to rig company Patterson-UTI, have days rates starting “in the mid-$20,000s.”
Read More “Super Spec Drilling Rigs in Short Supply – Day Rates Soar”
The Pennsylvania Dept. of Environmental Protection (DEP) finally got their reporting system back online after it had gone down for a second time in three weeks. We have collected the permits issued over a two-week period in this report, to catch things up (and because PA didn’t issue any permits for one of the two weeks). This current report shows permits issued from Monday, Feb. 28 through Sunday, Mar. 13. PA issued 15 new permits over the two-week period. The top permitees in PA were EQT and CNX, both with five permits each. In Ohio, 11 new permits were issued, with Encino Energy receiving four and Gulfport three permits. West Virginia also issued 11 new permits for the two-week period. Antero received six of WV’s permits, and both Southwestern Energy and Arsenal Resources scored two each.
NATIONAL: Oil suffers ‘spectacular’ collapse, enters bear market 5 days after 14-year highs; Times Square billboards have oil message for Biden; Drilling permits spiked then plunged under Biden; INTERNATIONAL: Sinopec starts construction of world’s largest LNG storage tank; Why LNG won’t fully replace Russian gas in Europe.
On Monday, Jan. 31, Pennsylvania Gov. Tom Wolf announced PA had been awarded its initial allocation of $25 million, and will receive a total of $104 million, from Biden’s so-called Bipartisan Infrastructure Law to plug orphaned and abandoned wells in the state (see 
An updated report issued by the Pennsylvania Independent Fiscal Office (IFO) shows that PA exports far more electricity out of state than any other state in the entire country. In 2021 PA generated 241.6 million megawatt-hours (MWH) of electricity. The state itself used 156.2 million MWH, and exported 85.5 million MWH to other states. The number one source (by far) of fuel used to generate that much electricity? Marcellus natural gas. PA Gov. Tom Wolf’s insane Regional Greenhouse Gas Initiative (RGGI) carbon tax threatens to shut down that gas-fired production.
It must be sad to live your life focusing all your energy on something you hate. You live in a prison of someone else’s making. You hand the keys of your happiness to someone else, rather than being the captain of your own destiny. Such must be the life of the Pennsylvania “Green” Party’s candidate for governor, Christina “PK Ditty” Digiulio, whose mission in life is to defeat new pipelines, like the now-completed Mariner East 2 pipeline.
The CERAWeek conference was held in Houston, Texas all of last week. We’re still analyzing important news from the event. The CEOs of major drillers and midstream companies were there, as were heads of government agencies (like Jennifer Granholm, Biden’s incompetent Secretary of Energy). For example, we spotted a report from a session where the heads of three drillers, Pioneer Natural Resources, ConocoPhillips, and Chesapeake Energy, shared their insights on what lies ahead for 2022 and 2023. The panel provided insight into how and why growth (new drilling, more production) is being limited in U.S. shale plays, including in the Marcellus/Utica.
The mighty BP (formerly British Petroleum) admits they were wrong in the company’s latest Annual Energy Outlook for 2022 (full copy below). In BP’s Energy Outlook for 2020, BP (wrongly) predicted the world had hit so-called “peak oil” demand for crude oil and other liquid fuels, topping out at around 100 million barrels per day (bpd) in 2019. Whoops. That was wrong. BP now says oil/liquids demand will rise to 101 million bpd by 2025 and stay there for another five years, to around 2030. As for natural gas, the LNG trade “grows strongly over the first 10 years of the outlook” and then tapers off. By 2050 LNG production, claims BP, will only be 10% higher than it was in 2019.
Two weeks ago U.S. Sen. Joe Manchin, from West Virginia, unloaded on the five commissioners of the Federal Energy Regulatory Commission (FERC) during a hearing before the committee he chairs, the Senate Energy Committee (see 
How many times must we say this before it sinks in: FERC (the Federal Energy Regulatory Commission) is an economic agency, NOT an environmental agency. FERC’s role is to ensure pipelines, electric transmission lines, etc. are able to get built and are economic and not an undue burden for ratepayers. FERC’s role is NOT to worry about so-called global warming. Yet the liberal Democrats inside FERC, and now the liberal Democrats on the U.S. Court of Appeals for the District of Columbia, insist FERC reopen already-approved projects, like a tiny pipeline expansion in Massachusetts, and re-do long-completed evaluations in light of global warming considerations. It’s INSANE.
Plum Boro (Allegheny County, PA) officials and environmental leftist groups (backed by Big Green foreign money) are gearing up to oppose Plum’s second wastewater injection well with smears and lies. A long-fought-over wastewater injection well in Plum finally opened for business in mid-2021, having overcome all sorts of smears and slanders and lawsuits by the enviro-left (see 
There’s a reason a single shale play near the Gulf Coast, the Louisiana and East Texas Haynesville, has more active rigs and drills more wells than both the Marcellus and Utica shales combined. That reason? Lower taxes and less regulation. Particularly compared with Pennsylvania, where the taxes and “fees” are high and regulations are far too restrictive. Two Pennsylvania State Senators, one of whom is in a primary for governor, propose to correct the situation with a new bill that would suspend the state income tax on shale drillers, among other positive moves.
We’ve written about Doug McLinko, Commissioner for Bradford County, PA, a number of times. McLinko has been a strong supporter of the shale industry for years. In a recent interview with a local newspaper, McLinko and fellow Commissioner Daryl Miller took national leaders to task, including President Biden, for their pursuit of foreign energy sources over domestic sources. In particular, McLinko believes rail and pipelines could be an effective countermeasure to move our energy around, guarding against wild price gyrations.