Anti-Drilling/Fossil Fuel | Electrical Generation | Industrywide Issues | Pennsylvania | Regulation | Statewide PA | Taxation
PA Gov. Wolf’s Stacked EQB Approves RGGI Carbon Tax by 15-4 Vote
Pennsylvania Gov. Tom Wolf pulled a fast one. He pressured the PA Environmental Quality Board (EQB), a powerful committee operating under the larger umbrella of the PA Dept. of Environmental Protection (DEP), to hold a hearing and cast a vote yesterday (in the dead of summer with everyone out of town) on whether or not PA should join the Regional Greenhouse Gas Initiative (RGGI), an obscene tax on carbon for power generators including natgas power plants. The EQB, packed with people who depend on Wolf for their jobs (he’s their boss), voted in favor of advancing the $2.6 billion RGGI carbon tax proposal by 15-4. No surprise there. It was an inside job.
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This is so tiresome. The Chester County District Attorney’s office continues to persecute two lowly Pennsylvania Constables for doing their job in warning off crazy anti-fossil fuel fanatics who approached a construction site for the Mariner East 2 pipeline project. The DA’s office thought it could fool everyone with a catchy slogan, calling what the constables did a “buy a badge scheme.” What it was, was two guys working for near minimum wage who happen to have a badge, using that badge to keep people from hurting themselves. And for that, they’re being prosecuted by the Chester DA. Shameful. The case is being tried before a jury right now.
Last week not a whole lot of permit action was goin’ on. Pennsylvania scored only a single (1) new permit. We can’t remember the last time that happened! The PA permit was for a well that will be drilled by EQT in Greene County. Ohio’s Utica got skunked with no new permits. West Virginia rode in to save the day, posting 5 new permits–4 of them for Tug Hill and 1 for Antero Resources.
MARCELLUS/UTICA REGION: Chesapeake Utilities, a small utility operator, has big renewable gas plans; OTHER U.S. REGIONS: ISO New England Tracker: Power, gas prices up in June; expected higher in winter; NATIONAL: WTI settles above $75; Biden climate czar threatens to bypass Congress on clean energy; After blowing $300 billion, U.S. shale finally makes money; E&Ps’ credit metrics improve as U.S. emerges from the pandemic; Fix the RFS! (video); INTERNATIONAL: Gas import options expanding for China; Record natural gas prices give power markets a jolt; Panama Canal LNG transits jump 12% through three quarters of current fiscal year.
In a letter dated May 27, federal Environmental Protection Agency (EPA) Wetlands Branch Chief Jeffrey Lapp pressured the U.S. Army Corps of Engineers to deny Equitrans’ Mountain Valley Pipeline (MVP) a Section 404 Clean Water Act permit that would allow the 303-mile pipeline project (now 92% complete) to finish crossing some 300+ streams and swamps in West Virginia and Virginia. Gee, the Biden EPA trying to close down an almost completed pipeline project. Why are we not surprised?
Although Mountain Valley Pipeline (MVP), a 303-mile project from West Virginia to southern Virginia to flow Marcellus/Utica molecules south (critically needed) is under withering attacks by America-hating leftists, the project soldiers on and (we hope) will get completed. Part of the charade the project must engage in to get finished is bowing to the global warming gods. The latest attempt to appease the warming gods is an announcement yesterday by MVP that it will purchase “carbon offsets” (the old Catholic equivalent of buying indulgences for sins) to help the builder, Equitrans, reach its goal of mythical net-zero carbon emissions by 2050.
Antis and leftwing environmentalists in New Jersey continue their mission to block more natural gas from flowing to New York City, threatening the residents of the city, by attacking two compressor stations in the NJ suburbs. The latest conscripts to the holy mission of defeating “fossil fuels” can be found among the weaklings who sit on the Vernon Township (NJ) Council, who voted 4-1 to oppose a proposed expansion of Tennessee Gas Pipeline Company’s compressor station in Wantage (Sussex County).
Seneca Resources Company, the exploration and production subsidiary of National Fuel Gas Company (NFG), is the latest company to jump on the ESG (environmental, social, governance) bandwagon. Seneca is partnering with NexTier Oilfield Solutions, an oilfield services company that fracks and completes wells for companies like Seneca, to study the carbon emissions that come from fracking shale wells.
One year ago, in July 2020, we brought you the bombshell news that Dominion Energy was calling it quits in the pipeline business, abandoning the Atlantic Coast Pipeline project (on which they had already spent billions of dollars) and selling its existing (extensive) pipeline network to Warren Buffett for $9.7 billion (see 
How can anyone say, with a straight face, that Biden has been “better for fossil fuel companies” than Trump? Some very short-sighted individuals say we should look at the price of oil and gas, and the stock price of oil and gas companies, and pronounce that Biden has actually been better for our industry than four years of Donald Trump. Yet Biden’s own Treasury Secretary, Janet Yellen, is warning Big Banks to quit funding fossil fuel companies…or else. She is threatening them! This isn’t Stalin’s Soviet Union!! It’s the land of the free and the home of the brave. Or at least it used to be.
According to an analysis done by S&P Global Market Intelligence, the five largest drillers in the Pennsylvania Marcellus Shale resumed their drilling in June in a big way. S&P’s analysis shows those five drillers were responsible for 51% of the new drilling permits issued last month, up from 28% of new permits issued in May. Perhaps we know why. The price of natgas at regional hubs in PA rocketed over the past month. At the Leidy Hub in the northeast’s dry gas window (centered on Susquehanna County, PA), cash prices went from a low of 93.7 cents/MMBtu on May 3 to $3.07/MMBtu at the end of June.
A natural gas-fired electric power plant planned for Charles City County (near Richmond, Va.) by NOVI Energy known as C4GT (Charles City Combined-Cycle Gas Turbine) is now officially dead. NOVI has been working on the 1,100-megawatt project for over six years. An even larger plant planned for the same general area, the 1,650 MW Chickahominy Power Station (a project of Balico) is still in the works (see 
Charlie Melançon is a former U.S. Congressman from Louisiana who played an integral role in rebuilding Louisiana’s infrastructure following the devastation caused by Hurricanes Katrina and Rita. Melançon served on the House Committee on Energy and Commerce, which oversaw energy policy and environmental quality among other issues. He sees a lot of parallels between his home state of Louisiana and Pennsylvania. Melançon has written an editorial appearing in a major PA newspaper hoping to inform and encourage Pennsylvanians to wake up to the fact that pipelines are the key to PA becoming the energy hub of the northeast. Conversely, without (more) pipelines, PA will not realize its potential. Pipelines are the key. Melançon is uniquely qualified to know.
What’s taking the shale oil industry so long to restart drilling in a big way? Shale oil production remains some 1.4 million barrels per day (15%) below pre-COVID pandemic levels despite oil prices reaching near three-year highs of $77 per barrel since the start of this year. When you dig into the numbers it becomes apparent what’s happening. A lot of shale drilling is now done by big, integrated major oil companies–the Exxons and Chevrons and BPs of the world. Shale production from the majors is 68% below pre-pandemic levels. If you look at the output of smaller independent, non-publicly traded oil drillers, their production is only 2% below pre-pandemic levels.
A few weeks ago MDN brought you the news that three far-left Democrat judges on the U.S. Court of Appeals for the D.C. Circuit overturned a Federal Energy Regulatory Commission (FERC) approval for a long-completed and flowing natural gas pipeline in the St. Louis, MO area–a pipeline that flows Marcellus/Utica gas to residents, businesses, and electric generating plants throughout the region (see