EIA DPR: Shale NatGas & Oil Production Flirt with Record Highs
Six of the seven largest shale plays in the U.S. will see an increase in natural gas production in December according to the latest monthly Drilling Productivity Report (DPR) issued by the U.S. Energy Information Administration (EIA). Sadly, the Marcellus/Utica, collectively lumped together as “Appalachia” in the report, will see the lowest increase of just 7 MMcf/d (million cubic feet per day) in production next month. The M-U’s chief rival, the Haynesville, continues to see explosive growth, an increase of 111 MMcf/d. The oil-based Permian will see an increase in natgas production of 87 MMcf/d due to associated gas coming out of the ground along with oil.
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Nuverra Environmental Solutions (formerly Heckmann) is one of the largest companies in the United States that handles the transportation and disposal of shale drilling wastewater and leftover rock and dirt from drilling. The company has major operations in the Marcellus/Utica region. We keep an eye on its performance as an indicator of whether there is more or less drilling happening in the M-U. Although the rig count in the M-U went up year over year for 3Q21, revenues for Nuverra did not.
In October the owner of the Glen Riddle Station Apartment complex in Delaware County, PA convinced a county judge to order the release of emails between officials in Middletown Township and Energy Transfer, owner of the Mariner East pipeline system (see 
Anti-fossil fuelers at Fair Shake Environmental Legal Services and the FracTracker Alliance are asking Pennsylvania residents to report the road spreading of oil and gas wastewater. Bear in mind such spreading is legal (if it’s conventional oil and gas wastewater). Also bear in mind other sources of water are sometimes spread on dirt roads in PA, so there’s no practical way to tell if the water you see being spread came from a conventional well or a nearby creek. In essence, these anti groups want to turn PA residents into rats and snitches in hopes of…what? Proving that a legal activity is taking place?
How much more of Joe Biden’s completely failed policies are you willing to tolerate? His so-called “Build Back Better” budget bill, which will cost Americans (YOU) $1.75 trillion (no, it’s NOT paid for by “someone else”), retains a new tax on methane that will jack up the rates everyone pays for natural gas by an estimated 12-34%. The price of gasoline is up 53% year over year for October ($3.291 in Oct 2021 vs. $2.158 in Oct 2020). Similarly, the price of #2 heating oil is up 59% year over year for October ($3.397 in Oct 2021 vs. $2.142 in Oct 2020). The price of natural gas has also jumped–even more!
OTHER U.S. REGIONS: Exxon launches sale of shale gas properties in Texas; NATIONAL: Schumer urges Biden to tap SPR; Oil prices edge higher as market awaits SPR decision; Shale is making too much money to rescue Biden from oil shortage; INTERNATIONAL: Russia joins OPEC+ USA pushback; For Canadian producers, most promising natural gas price outlook in years.
EV Royalty Partners, an affiliate of EnerVest Ltd., has retained Oil & Gas Asset Clearinghouse for the sale of a Utica Shale overriding royalty interest (ORRI) package across multiple counties in Ohio. The package on offer includes portions of ORRI in some 340,894 acres. The acreage is actively leased and developed by Encino Energy, Ascent Resources, and Southwestern Energy. Bids are due by Dec. 2nd.
You know it’s the end of the world when (in this case) the far-left editors of the Pittsburgh Post-Gazette, who universally hate shale drilling, support shale drilling under public parks in Allegheny County (Greater Pittsburgh). Last week MDN told you that anti-drilling zealots in Allegheny County were making yet another play, as they did eight years ago, to get County Council to pass a permanent ban on fracking under (not on) county parks (see 
Over the past two years, MDN has told you about a tiny 2.1-mile looping pipeline segment proposed by Kinder Morgan’s Tennessee Gas Pipeline (TGP), to be buried next to the existing TGP, to connect regions around Springfield, Massachusetts to receive more natural gas supplies. Springfield neighborhoods like Holyoke have an ongoing moratorium on hooking up new natgas customers unless/until more supply is provided (see 
Although this story technically is not about the Marcellus/Utica, it is about the parent company of the Shell ethane cracker in Beaver County, PA, and it is instructive for politicians everywhere that increasingly love to bash fossil fuel companies. Royal Dutch Shell Plc was founded in and has been headquartered in The Netherlands for the past 100+ years. The Netherlands is attacking the company via the courts and with threats of insane taxes. So Shell is doing the unthinkable: Reorganizing and dropping “Royal Dutch” from the name and relocating its headquarters from the Netherlands to London.
It’s been too long (months!) since we’ve last updated our calendar of events page. We updated it as of today. Below is the list of events we are aware of that will be of interest to those with an interest in the Marcellus/Utica shale region for the balance of 2021 and into early 2022. Some events are in the region (PA, WV). Some are not (TX, KY). Some are virtual/online, but most have returned to in-person. All of them are of potential interest to the MDN audience.
Epsilon Energy concentrates most of its effort on the Marcellus in Susquehanna County, PA. Epsilon doesn’t typically do its own drilling. The company joint venture partners with (gives money to) other companies, like Chesapeake Energy, and the other company typically does the drilling. Epsilon issued its third quarter update on Wednesday. The company’s Marcellus net gas production was 2.6 Bcf (billion cubic feet) in total for 3Q21, compared to 3.0 Bcf of net gas production in 3Q20 (a 13% decrease). However, revenues were $13.1 million in 3Q21, compared to $5.8 million in 3Q20 (more than doubled). In addition to the 3Q numbers, we have an update on Epsilon’s lawsuit against its partner Chesapeake Energy.