Other Stories of Interest: Mon, May 2, 2022
OTHER U.S. REGIONS: As natural gas prices hit 14-year high, shale awaits; NATIONAL: America’s energy answers are right at home; why look elsewhere?
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Marcellus Driller BKV (i.e. Banpu) Considering IPO, Says Reuters
Banpu is Thailand’s largest coal mining company. But Banpu is far more than just a coal company. It has multiple subsidiaries in various energy industries scattered around the globe. For example, here in the U.S. Banpu partners with Kalnin Ventures and operates BKV Corporation (Banpu Kalnin Ventures), the American shale drilling arm of Banpu. Reuters is reporting rumors that BKV has begun preparations for an initial public offering (IPO). Reuters is almost always right about these things.
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Beaver County | Carbon Capture | Energy Companies | Industrywide Issues | Lackawanna County | Pennsylvania | Shell
Shell, Archaea Energy Explore Carbon Capture Projects for SW, NE PA
click for larger version Two different companies working on two different plans have met with Pennsylvania’s Dept. of Environmental Protection (DEP) to discuss potential carbon capture and storage/sequestration (CCS) projects in the Keystone State. Shell, which is nearly done building its multi-billion-dollar ethane cracker in Beaver County, PA, is looking to establish a CCS project in Beaver County. Archaea Energy, one of the largest so-called renewable natural gas (RNG) producers in the U.S., is looking to set up a CCS project in Lackawanna County, PA (near Scranton).
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Philly’s Carbon Emissions are Dropping Thx to Marcellus Shale Gas
Last week Philadelphia released a so-called “Greenhouse Gas Inventory” report (full copy below) comparing emissions from 2019, the most recent pre-pandemic data, to a baseline in 2006. The report shows citywide emissions have dropped 20% since 2006. In reporting done by the lefties at PBS about this news, you have to read down to the fifth paragraph before you locate the reason for the 20% drop in Philly’s emissions: using Marcellus Shale gas to generate electricity.
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Bidenistas Change of Heart – Support for Long-Term LNG Deals
In March Joe Biden announced a deal with Europe to deliver more LNG to the Continent, starting this year (see U.S. & Europe Announce New LNG Deal – Very Light on Details). The U.S. guaranteed Europe would receive 15 bcm (billion cubic meters) of natural gas beginning in 2022. As we speculated at the time, most of that additional gas will come from redirecting existing U.S. cargoes from other destinations to Europe (see Can U.S. Alone Meet Biden’s Call for Extra LNG Supplies to Europe?). The U.S. is not capable of producing any more LNG from our existing export facilities (with the exception of small increases at a few facilities, see DOE Authorizes More LNG Exports from 2 Cheniere Facilities). We actually need more export facilities if we are to materially increase LNG shipments to Europe. The Biden administration recently changed its heart on approving new LNG facilities, embracing the fact that such facilities will need long-term (decades-long) contracts.
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EQT 1Q22: Explores Investing in LNG Export Terminals
Yesterday EQT Corporation released its first quarter 2022 update and held a conference call with analysts. The big news came from CEO Toby Rice, who said in his opening remarks, “We are currently in discussions with LNG end-users across various geographies and are contemplating equity investment opportunities in LNG export facilities.” Later in the call, in response to a question, Rice added, “Our ultimate prize that we’re looking for here at EQT is to get exposure to international markets…One of the ways that we get more flexibility towards accessing those contracts is to take an investment in the LNG facility itself.”
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Antero 1Q22: “King of Hedging” Now Unhedged – Great Pipes to Gulf
Antero Resources, one of the largest drillers in the Marcellus/Utica (with major assets in West Virginia) issued its first quarter 2022 update yesterday. We’ve often marveled at Antero’s ability to make money on its natural gas and NGLs with hedging–preselling gas and NGLs at prices that beat whatever the current market price is at the time (see Antero 1Q21: Holds Production Steady, Reduces Debt, Hedging Champs). The “king of hedging” as CEO Paul Rady calls his company, is now…NOT hedging!
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CNX 1Q22: CEO Takes a Swipe at RGGI Carbon Tax & Paris Accord
CNX Resources issued its first quarter 2022 update yesterday, and boy what an update! CEO Nick DeIuliis took direct aim at leftist anti-fossil fuel policies that are harming the human race. He spared no words! Policies including PA Gov. Tom Wolf’s RGGI carbon tax and the so-called Paris Climate Accord came in for a round of attacks by Nick. Love it! But what about the company’s performance in 1Q22? How did CNX fare financially and operationally?
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Other Stories of Interest: Fri, Apr 29, 2022
NATIONAL: US weekly LNG exports down by three LNGCs; Drilling rig prices are spiking in the U.S. shale patch; US natural gas storage climbs 40 Bcf to 1.49 Tcf as NYMEX future rally stalls; Golden LNG export opportunity comes with potential risks for shale; INTERNATIONAL: The oil and gas industry is booming despite net-zero ambitions.
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Big Coal Sues PA to Block PA Carbon Tax + Court Hearing for Senate
Three cheers for Big Coal! We’re not all that thrilled with using coal in power plants given there is a much more environmentally-friendly option–natural gas. But we’re certainly not against coal energy and we’re all for free enterprise and competition among fuel sources. The coal industry in Pennsylvania has our respect and admiration for standing up for itself and suing the state to block the insane Regional Greenhouse Gas Initiative (RGGI) carbon tax. PA Gov. Tom Wolf is forcing his state to join RGGI, which will assess huge new taxes on both coal and gas-fired power plants, threatening to drive both out of business.
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Range 1Q: Drilled 13 & Completed 15 Wells, Free Cash Flow Soars
click for larger version Range Resources issued its first quarter 2022 update yesterday, announcing an awesome 1Q with respect to free cash flow (the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets). Range reported the highest level of quarterly free cash flow in the company’s 46-year history. Range is on track to generate $1.4 billion in free cash flow this year, allowing it to restart issuing dividends and increase its stock buyback program.
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Antis Try Again to Ban Fracking Under Allegheny County Parks
Allegheny County Councilor Bethany Hallam, a committed anti-fossil fueler (wearing an outfit made from fossil fuels, sitting in a chair made from fossil fuels) Since 2013 anti-fossil fuel zealots–people with an irrational hatred of fossil fuels–have tried to ban drilling under (not on) public parks in Allegheny County, PA (near Pittsburgh). In November 2013 the Allegheny County Council voted down a proposed ban on drilling under parks (see Allegheny County (PA) Council Votes Down Drill Ban for Parks). In 2014 the Council approved drilling under Deer Lakes Park, which created hysteria among antis that lingers to this day (see Allegheny Cty Approves Deer Lakes Park Lease, Antis Throw Tantrum). Interestingly, nobody died and no harm came to the environment with drilling under Deer Lakes Park. Yet the zealots never give up. They restarted their effort again last fall (see Antis Lobby to Ban Fracking Under (Not In) Allegheny County Parks). There’s been a development in antis’ efforts to block drilling under county parks.
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Having a Plan to Produce Hydrogen Won’t be Enough to Win $2B Hub
Pennsylvania, Ohio, and West Virginia are all scrambling to form intrastate working groups and 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 infrastructure law provides $8 billion for four regional hydrogen hubs. Why the big push for hydrogen by the natural gas industry? Because the hydrogen that will get stored, used, and distributed from such a hub will be created by splitting methane molecules–supplied by natural gas. A hydrogen hub would be a huge new customer for M-U natural gas. But according to experts, having a plan to produce hydrogen may be the least important factor in securing a regional “hub” designation.
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U.S. Senators Oppose Rework of Army Corps’ NWP 12 Pipeline Permit
Because of constant court challenges against pipelines, the Trump administration completed a redo of the U.S. Army Corps of Engineers Nationwide Permit 12 (NWP12), a general permit used in constructing pipelines, just prior to leaving office. From the beginning of the Biden administration, anti-fossil fuel fanatics have attacked NWP12, hoping they can cancel it or otherwise make it so onerous nobody will use it. In March the Army Corps caved to the pressure and announced it will review (i.e. change) NWP12 (see Army Corps Looks to Rework Water Permit to Limit New Pipelines). Not so fast, says U.S. Senator Shelley Moore Capito (WV) and a list of other Republican Senators, who are telling the Army Corps in the strongest possible language it should back down from reviewing NWP12.
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3 Major Shale Gas Regions Compared: M-U, Permian, Haynesville
click for larger version Just three shale plays in the U.S. were responsible for producing 59% of all the natural gas produced in 2021. They were the Marcellus/Utica (i.e. Appalachia), the Permian (in Texas and New Mexico), and the Haynesville (mostly Louisiana, but some of it in Texas). Just one of those plays produced 31% of all the natural gas produced in the U.S. last year: The Marcellus/Utica. The U.S. Energy Information Administration has a high-level overview of the production for each of the top three gas-producing regions…
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Misguided Anti Burns Himself to Death at U.S. Supreme Court
In an act of intentional suicide, a misguided anti-fossil fueler from Colorado sat down in front of the U.S. Supreme Court at 6:30 pm on so-called Earth Day (Apr 22) and set himself on fire, killing himself. Mainstream media like the (Dis)Associated Press are attempting to pass it off as some sort of Buddhist ritual of “self-immolation”–something noble, even laudable, instead of what it was–the act of a disturbed mind, someone driven crazy by brainwashing from the radical environmental movement.
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