E&Y Study: How Bad was 2020 for O&G Drillers? Investment Down 60%
EY, formerly known as Ernst & Young Global Limited, is one of the Big Four accounting firms in the world. The company is also a powerhouse consulting firm. EY published a new study yesterday called “EY US oil and gas reserves, production and ESG benchmarking study” (full copy below). In the study EY tells us what we already knew: That 2020, due to the coronavirus, was a waste of a year in the oil and gas sector. It was bad–really bad. The EY study puts some numbers to just how bad, including the shocking number that capital expenditures (capex) totaled $60.3 billion, 60% lower than 2019. Of the 50 companies studied they collectively drilled 41% and 32% fewer development and exploration wells, respectively, compared with 2019.
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Having struck out at the state level, a group of Big Green radicals is now asking dementia Joe to cancel a tiny 6.8-mile natural gas pipeline stretching from Brownsville to North Brooklyn in New York City that’s already pretty much built. Their false claim? That pipeline is RACIST. That’s right folks. We bet you didn’t know a hunk of inanimate steel buried in the ground could be racist. The radicals claim it can be and is, and Uncle Joe should just wave his magic leftist wand and cancel it.
Researchers at Penn State evaluated eight oil and gas wastewaters (i.e. brines), waste soybean oil, and commercial dust suppressants, comparing them to see how well they controlled particle pollution on simulated patches of road. If you believe the headlines about the study, you would believe wastewater is “not usually the best option” for treating dusty roads in PA. If you read the research study itself, you come to the conclusion the study draws no such conclusion.
It may be depressing to see just how radicalized our children have become with the climate lies they are fed day in and day out by the media and their teachers (see today’s companion post, Our Kids Have Been Radicalized with Climate Lies). However, there is something that can be done. Children are influenced by their teachers. And good teachers, when they have objective, compelling evidence presented to them, will in turn present that evidence to their students. Groups like Ohio Oil and Gas Energy Education Program (OOGEEP) are helping to turn the tide by training teachers about the oil and gas industry.
The constant drumbeat of lies fed to children from the time they are in pre-kindergarten through graduate school that the earth is catastrophically heating due to mankind (a completely false claim) is having an effect. Indeed, it has had a tragic effect–it has radicalized our kids to the point they are now willing to give up their freedoms and they are willing to engage in lawless acts of eco-terrorism, motivated by the belief that everyone on the planet will toast in the next ten years “if we don’t do something now.” It’s sick and it’s child abuse.
Last week both Pennsylvania and West Virginia issued permits to drill new shale wells. Ohio remained skunked for a sixth week in a row. What’s going on in Ohio? Or rather, what isn’t going on there? PA issued 15 new shale permits. Not to be outdone, WV also issued 15 new shale permits.
OTHER U.S. REGIONS: NM governor’s car gets 13 mpg as she demands state average of 52 mpg; Ida hit one of the country’s biggest oil and chemical hubs; INTERNATIONAL: Trudeau pledges tighter rules for oil cos.
Although some 92% of the 303-mile Mountain Valley Pipeline (MVP) is already built and in the ground, important segments remain unfinished, including pipeline built under or through rivers, streams, and wetlands. One of the key remaining segments for water crossings is in Virginia. Last Thursday the Virginia Dept. of Environmental Quality (DEQ) issued a draft Section 401 of the federal Clean Water Act permit that would approve plans to let MVP finish its work in the state. The DEQ is now accepting comments on the plan. Anti-drilling zealots have gone nearly berserk with the news. Did they really think they would stop this $6 billion project?
Olympus Energy, the renamed Huntley & Huntley Energy Exploration (HHEX), continues to make progress in Upper Burrell Township in Westmoreland County, PA. The company currently has two well pads (Zeus and Calliope) with multiple wells drilled in Upper Burrell. Now comes word of plans for a third well pad, named the Selene Well Pad by the company. Olympus will present plans for the new pad at a hearing on Wednesday.
Say a prayer for the folks in Louisiana. Hurricane Ida made landfall Sunday as a Category 4 storm near Port Fourchon, Louisiana. Gov. John Bel Edwards described it as “one of the strongest storms to make landfall here in modern times.” As the storm worked its way through the Gulf of Mexico, nearly all (95%) of the oil and natural gas platforms in the Gulf went offline and evacuated personnel in preparation. Given supplies going offline, and given the hurricane missed major LNG export facilities (meaning they will continue to operate), the price of natural gas skyrocketed, closing at $4.37 and (according to some analysts) on its way to a modern-era high of $4.50 or more.
Some interesting facts and figures from our favorite government agency, the U.S. Energy Information Administration (EIA). In 2011 the U.S. had 317.6 gigawatts (GW) of coal-fired electric generation capacity. About 88.7 GW (28%) of that capacity was retired from 2011 to 2020. The primary reason? Marcellus/Utica natural gas. Cheap, abundant, and clean-burning natural gas began to be used in electric generating plants. Another fun fact: Of the 93.5 GW of natural gas capacity built in the U.S. from 2011 to 2020, 14.3 GW (15%) is located in Pennsylvania and Ohio.
We believe there is a total lack of scientific proof that an increasing amount of carbon dioxide (CO2) in the atmosphere, put there by burning fossil fuels, is causing Mom Earth to catastrophically toast. In fact, we did our own quick analysis of temperatures in the Binghamton area over the past 70 years and found a total lack of proof that CO2 is causing global warming (see 
A number of big Marcellus/Utica drillers (i.e. producers) have gone whole hog on ESG (environmental, social, governance) programs in an attempt to prove to the world natural gas and the way we produce it is green too. One of the companies that popped up over a year ago to help M-U drillers (and drillers in other plays) prove they are clean and green was Independent Energy Standards Corporation (IES) TrustWell™ Responsible Gas Program (see 
In June MDN brought you the news that Enbridge’s Texas Eastern Transmission (TETCO) pipeline was being flow-restricted by the Pipeline and Hazardous Material Safety Administration (PHMSA). Some 40% of the Marcellus/Utica molecules that flow through TETCO’s pipeline to destinations in the southeastern U.S. disappeared and were predicted to stay that way until the end of September (see 
What’s happening with New Fortress Energy’s (NFE) proposed LNG liquefaction plant planned for Wyalusing, PA? We told you in March the company hasn’t given up on the plan, but for now is focused elsewhere (see