NATIONAL: USA natgas faces wild 2022; Energy prices rose more than other commodities in 2021; U.S. oil, natural gas executives bullish on Henry Hub price in 2022; Seven top energy stories of 2021; Top 10 RBN Energy prognostications for 2022; INTERNATIONAL: OPEC sees tighter Q1 as it considers production hike; How Europe’s energy crisis could force the EU to adopt more sensible policies.
Read More “Other Stories of Interest: Tue, Jan 4, 2022”
Energy Transfer’s (ET) Revolution Pipeline in southwestern Pennsylvania runs through Bulter, Beaver, Allegheny, and Washington counties. The 24-inch gathering pipeline shifted and exploded in September 2018, just as it was entering service (see Revolution Pipeline Near Pittsburgh Explodes – Home & Barn Destroyed). After more than $30 million in fines, court actions, and outright acrimony, the Pennsylvania Dept. of Environmental Protection (DEP) finally allowed ET to fix the problems and bring the pipeline back online in March of 2021 (see PA DEP Finally Allows Revolution Pipe to Restart – After $125K Fine). On Wednesday, Dec. 22, 2021, the “Galaxy” compressor station in Butler County that is part of the Revolution system experienced an explosion and fire during “pigging” operations.
Read More “Explosion, Fire at Revolution Pipe Compressor in Bulter County, PA”
In September MDN broke the news that Rockdale Marcellus had filed for Chapter 11 bankruptcy protection in U.S. Bankruptcy Court for the Western District of Pennsylvania (see NEPA Driller Rockdale Marcellus Files for Chapter 11 Bankruptcy). On Dec. 16 an auction for Rockdale’s assets was held in Dallas, Texas. The highest bidder and winner was Repsol, buying substantially all of Rockdale’s assets for $220 million in cash, plus the assumption of $2 million in debt owed to trade creditors. Last Wednesday, Dec. 29, the U.S. Bankruptcy Court for the Western District of Pennsylvania approved the auction results and sale to Repsol.
Read More “Repsol Buys Rockdale PA Assets Out of Bankruptcy for $222M”
Some really good (and expected) news to report. The West Virginia Dept. of Environmental Protection (WV DEP) issued a key permit for the Mountain Valley Pipeline (MVP) to finish work crossing rivers and streams in the Mountain State. MVP, a 303-mile pipeline from West Virginia into southern Virginia, is currently 94% built and in the ground. There are several portions left to complete it, including crossing rivers and streams in both Virginia and West Virginia. The permits needed to do so come from three sources: the U.S. Army Corps of Engineers, the Virginia Water Control Board, and WV DEP.
Read More “WV DEP Issues Key Water Permit for Mountain Valley Pipeline”
In 2015 Kelsy Warren and his Energy Transfer Equity (now just Energy Transfer) company pursued Williams, wanting to merge Williams into its own operation. Williams initially fought ET tooth and nail, but in the end, caved and cut a deal (see Williams Accepts ETE’s “Indecent Proposal” – Price Went Down $10B). Without recounting all the sordid details, ET got cold feet and left Williams at the altar, and Williams sued to recoup a contractual breakup fee (see Merger Turns Sour: Williams Sues ETE/CEO Kelcy Warren). Plenty of lawsuits ensued and finally, after more than six years, a judge ruled on Wednesday, Dec. 29, that ET must pay Williams a $410 million breakup fee provided for in the signed deal.
Read More “Judge: Energy Transfer Must Pay Williams $410M for Aborted Merger”
In early December the Pennsylvania Dept. of Environmental Protection (DEP) agreed to allow Energy Transfer to change the way it will install the Mariner East 2 (ME2) pipeline in the Marsh Creek Lake area in Chester County, PA (see PA DEP Approves ME2 Plan to Finish Pipe Thru Marsh Creek Lake Area). Two weeks later the DEP issued the necessary permits to allow construction to commence (see PA DEP Issues Revised Permits for ME2 Pipe Near Marsh Creek Lake). The Marsh Creek Lake work is the final big project to complete ME2. Needless to say, anti-fossil fuel zealots are distraught. Antis get funny when they get upset.
Read More “Bitter Antis Admit Defeat – ME2 Pipeline to be Completed in 1Q22”
In November 2020 the town of Weymouth, Massachusetts dropped a legal fight to block an Enbridge compressor station under construction in the town (see Weymouth, MA Drops Opposition to Compressor in Return for $38M). The price to get the town to shut up was an initial $10 million lump-sum payment (due within 30 days) followed by $28 million more in property taxes over the next 35 years, for a total price tag of $38 million smackeroos. However, leftist wackos who truly believe this plant will cause man-made global warming didn’t get the memo. A group of wackos co-filed with the town to appeal a state permit allowing the plant to get built. A three-judge panel ruled last week the wackos don’t have standing to appeal a state agency approval of the compressor project.
Read More “MA Court Rejects Appeal to Cancel Permit for Weymouth Compressor”
Two weeks ago the Enverus U.S. rig count hit another new post-pandemic high of 719 active rigs. However, last week the count retreated by 13 rigs to 706 active rigs, mainly due to a big drop in rigs in the oil-focused Permian Basin. The Marcellus held steady last week at 37 active rigs, while the Utica held steady at 10 active rigs. The combined M-U had 47 active rigs last week.
Read More “Enverus Rig Count @ 706 (-13); Marcellus @ 37 (+0), Utica @ 10 (+0)”
MARCELLUS/UTICA REGION: Eastern Generation scuttles natgas plans in NYC; NATIONAL: U.S. natural gas faces high volatility in 2022; First US LNG cargo from certified gas could set sail; The top energy stories of 2021; The energy year in review: a year of predictable surprises; Fed survey shows oil and gas firms planning a modest 2022 comeback; Breaking norms at the Biden EPA; INTERNATIONAL: Another LNG cargo appears to divert to Europe; Europe ‘can eradicate energy poverty’ by quitting fossil fuels.
Read More “Other Stories of Interest: Mon, Jan 3, 2022”
This past year was indeed unusual in many ways. It began with controversy over the most recent national election, a controversy that continues (by some) until the present day. The Joe Biden administration has proved to be every bit as bad (and worse) for the oil and gas industry as we predicted. Our industry is constantly under attack by the radical left who seeks to sentence mankind back to the Stone Age with no access to safe, reliable energy and life-saving and preserving plastics (which come from oil and natural gas). Yet we believe there is reason for optimism and hope. The coming 2022 Congressional elections promise to return both the House and Senate to Republican (and fossil fuel-friendly) hands. We eagerly anticipate what lies ahead this coming year!
Below is a listing of the Top 25 most-read stories posted on the MDN site over the past year. Enjoy!
Read More “MDN’s Top 25 Stories for 2021”
We wish you a Merry Christmas…and a Happy New Year! MDN will take off (i.e. no new stories posted) between Dec. 24 and New Year’s Day in observance of the holiday season. Don’t worry, we’ll still keep an eye on the news and if anything earth-shattering happens, we’ll post about it. However, our intent is to take a break from writing for an entire week. We will see you again on Monday, January 3rd.
A brief note to thank you, our loyal readers, from the bottom of our heart. Thank you for subscribing and resubscribing year after year. We take our responsibility seriously to bring you the news–in context–throughout the year. We look forward to a better 2022 with eager anticipation for what it will bring in the Marcellus/Utica.
In early November MDN told you about a massive new power grab being attempted by the Biden Dept. of Transportation’s PHMSA, implementing new regulations to take control of local gathering pipelines, in contravention to the U.S. Constitution (see Massive Power Grab Proposed by Biden DOT: Regulate Gathering Lines). At the time it appeared that the oil and gas industry was asleep at the switch and would not oppose this madness. It seems the industry has finally woken up and is now pushing back against the power grab.
Read More “O&G Industry Wakes Up, Opposes Fed Control Over Gathering Pipelines”
MDN first told you about plans to build the Chickahominy Power Station, a 1,650 megawatt state-of-the-art natural gas-fired power plant planned for Charles City County (near Richmond, Va.) in June 2018 (see Huge New Marcellus-Fired Power Plant Coming Near Richmond, VA). In September of this year, the Chickahominy project asked the Virginia State Corporation Commission (SCC), which oversees intrastate pipelines for utility companies, to excuse itself from regulating and overseeing the construction of a pipeline that will feed the Chickahominy power plant (see Va. Power Plant Says State Doesn’t Need to Approve Feeder Pipeline). The SCC ruled yesterday that yes, they will indeed oversee and regulate this proposed pipeline, thank you very much.
Read More “Regulators: Chickahominy Pipeline Subject to Va. State Oversight”
Score another victory for the forces of evil. Based on the flimsiest of excuses, the Federal Energy Regulatory Commission (FERC) has canceled a $102 million contract with Burns & McDonnell, an environmental engineering and construction firm, to perform an environmental review of a Columbia Gas Transmission pipeline project that includes upgrading a meter station and two compressor stations in Virginia. Anti-fossil fuel zealots are responsible.
Read More “Radicals Convince FERC to Cancel Deal with Pipe Contractor in Va.”
Federal Energy Regulatory Commission (FERC) Chairman Richard “Dick” Glick never met a pipeline project he actually likes. Now Glick has ammunition to torpedo every single newly proposed pipeline project that comes across his desk in the person of newly added Democrat Commissioner Willie Phillips, a swamp-dwelling D.C. apparatchik (see Senate Confirms D.C. Swamp-Dwelling Democrat Lawyer to FERC). This was the nightmare scenario we warned you about prior to the 2020 election, that FERC will be politicized and refuse to authorize any new pipelines. We hate being right about these things.
Read More “FERC’s 3rd Democrat Commissioner Spells Trouble for O&G Industry”
New Jersey is a huge and important market for Marcellus Shale gas. NJ’s far-left Governor, Phil Murphy, recently won reelection to his job by 84,286 votes, about 3% of all votes cast. In other words, Murphy doesn’t have any kind of mandate to continue his socialist policies. Yet he’s now doubling down. Murphy is attempting to ban the use of natural gas for heating, stoves, etc. across the entire state! It’s completely bonkers and insane. Some 75% of the homes and businesses heat with natural gas.
Read More “NJ Gov Murphy Seeks to Ban NatGas for Heat, Appliances Statewide”