Other Stories of Interest: Wed, Feb 23, 2022
MARCELLUS/UTICA REGION: Take a tour of Lackawanna College School of Petroleum & Natural Gas; Bill that would boost DEP Office of O&G funding passes WV Senate; NATIONAL: A deep dive into the process, quirks and idiosyncrasies of U.S. natgas pricing; Russia is a major supplier of oil to the U.S.; 22% increase in North American land upstream capital spending in 2022; INTERNATIONAL: Russia response could see oil burst through $100; Oil stabilizes as an end to Iran negotiations approaches; Germany freezes Nord Stream 2 gas project as Ukraine crisis deepens.
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In the “with friends like these” department…One of the main partners with Equitrans Midstream in the project to build the 303-mile Mountain Valley Pipeline (MVP) project is NextEra Energy (31% ownership). MVP took it on the chin three weeks ago when the Democrat judges on the U.S. Court of Appeals for the Fourth Circuit overturned a key permit and a key FERC decision to allow MVP to finish up. The pipeline is 94% complete and in the ground. Yet now, because of those court rulings, NextEra Energy says the pipeline has a “very low probability” of completion.
Olympus Energy (formerly Huntley & Huntley), which drills in southwestern Pennsylvania near Pittsburgh, has just entered into a contract with U.S. Well Services (USWS) to provide the company with electric fracking. The deal calls for USWS to provide electric fracking to Olympus for 2022 with a potential contract extension until 2024. What is electric fracking?
One of the great things about the oil and gas industry is that it never stops innovating. O&G companies are always tinkering, trying new things. That includes both new technology and new techniques. Such innovation was on full display at the recent Hydraulic Fracturing Technology Conference (HFTC), held in The Woodlands, Texas, on February 1-3. Ian Palmer, author of “The Shale Controversy” and a Forbes website contributor, attended the event and provides an update on new innovations in low-tech, high-tech, and climate-tech.
The Bidenistas fight dirty. Last week MDN told you about a federal court ruling against Biden’s plan to use the so-called global “social cost of carbon dioxide” emissions as a new filter for all sorts of government agencies when considering whether or not to approve projects and activities, like drilling for oil and gas on federally-owned land (see 
A former wind lobbyist and friend of Chuck Schumer, Richard “Dick” Glick, took over as chairman of the Federal Energy Regulatory Commission (FERC) under Joe “Dementia” Biden. Glick is a radical leftist, a swamp-dwelling D.C. Democrat. Under his oversight, the five-member FERC board (three Democrats, two Republicans) voted 3-2 last week to begin using global warming factors when reviewing new natural gas pipeline projects (see 
So far two states (that we are aware of) are either threatening, or already are, removing state investments from any funds managed by BlackRock Inc. Other states are considering it. We told you about West Virginia removing its investments with BlackRock back in January (see 
Believe it or not, today is a New York Stock Exchange holiday (i.e. bank) holiday. MDN rarely takes a day off, so we tend to track with those holidays observed by the NYSE. Have no fear, we are monitoring the news and if anything earth-shattering happens, we’ll bring you the latest. Otherwise, look for full-strength MDN to return tomorrow.
Antero Resources, one of the biggest Marcellus/Utica drillers with 3.2 Bcfe/d (billion cubic feet equivalent per day) of production, issued its fourth-quarter and full-year 2021 update yesterday. The company earned $901 million in 4Q21, up from $70 million in 4Q20, but still lost $187 million for the full year due to hedges gone bad. Antero generated $237 million and $849 million of Free Cash Flow during the fourth quarter and full year of 2021, respectively. The company placed 10 Marcellus wells and four Utica wells online to sales during 4Q. Antero plans to drill 60-65 new wells in 2022.
The West Virginia Senate Energy, Industry and Mining Committee had two bills on its agenda for consideration this past Tuesday related to funding the state’s “cash-strapped” oil and gas well inspection unit. One of the bills, Senate Bill (SB) 480 was signed off without discussion and moved along to its next stop before a vote, which is the Senate Finance Committee. The other bill, SB 613, was held over for a future meeting. It got the cold shoulder.
In years gone by, when oil drilling in the Texas/New Mexico Permian, Texas Eagle Ford, or North Dakota Bakken picked up, the increase in oil drilling came with an increase in natural gas production–something called “associated gas” because the gas is not produced for its own sake but as a byproduct of oil drilling. With tightening environmental laws that require oil drillers to capture instead of burn off or flare the gas, those oil drillers looked for markets to sell their associated gas. All of that extra associated gas would compete in the market with Marcellus/Utica gas, because our gas and the associated gas often flows to the same Midwest and Gulf Coast markets. Prices crash due to an abundance of supply with the same (or even less) demand. This time around, things have changed.
The West Virginia Public Energy Authority is a seven-member board that aims to make the best use of WV’s abundant natural energy resources. State code gives the board power to buy, lease, and issue bonds to build electric power plants and natgas transmission projects. Gov. Jim Justice reactivated the board last summer after it had been dormant for upwards of a decade. The first meeting of the new board is next Wednesday.