EPA Launches Massive Power Grab, Targets O&G Methane Emissions
The federal Environmental Protection Agency, the left’s favorite tool to undermine the U.S. Constitution, is attempting to do just that–undermine the Constitution. Today the EPA is floating a massive new regulation that seizes control of oil and gas drilling (and pipelines) away from the individual states, as provided for under the Constitution, and centralizes control in Washington, D.C. under the EPA. How? By forcing a one-size-fits-all regulation on so-called fugitive methane emissions that all states must comply with.
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Seems like everybody is getting “responsible” all of a sudden. Over the past year, we went from nobody hearing of “responsibly sourced gas” (RSG) to now almost everyone clamoring to hop onto the RSG bandwagon. At least that seems to be the case here in the Marcellus/Utica. The nascent RSG movement is rapidly developing. By our count, there are four independent organizations/programs that certify parts of the natural gas industry and provide a certification that gas is responsibly produced and/or sourced. So far there have been at least seven (maybe more) major M-U drillers and several M-U pipeline companies to sign on for RSG certification. We try to make sense of the RSG landscape below…
Last week six U.S. Senators (five of whom from major energy-producing states) introduced a series of three bipartisan bills aimed at encouraging the development of hydrogen energy infrastructure. Sen. John Cornyn, a Republican from Texas, was one of the sponsors and promoters. So too was Chris Coons, far-left Democrat from Delaware. That shows the range of support for efforts to help goose hydrogen use in this country.
MARCELLUS/UTICA REGION: Chesapeake Energy completes acquisition of Vine Energy; INTERNATIONAL: OPEC+ heads for Biden clash; LNG carriers drive Panama Canal’s growth in FY21; Global oil, natural gas demand strong into ‘foreseeable future,’ says Aramco; Europe’s energy crisis deepens as Russia cuts gas exports.
Last week MDN told you the news that EQT Corporation has sold part of its reserve capacity along the Mountain Valley Pipeline (MVP) to “an undisclosed investment-grade entity for six years” (see 
In a normal world where freedom rings throughout the land and free enterprise and capitalism rule, if the price of a commodity like natural gas soars, new drilling would happen and new pipelines (midstream infrastructure) would get built. In a warped world where wokey leftists demand divestment from “fossil fuels” those things don’t happen. Right now we desperately need more pipelines and more drilling. Neither is happening. RBN Energy explains how lack of new pipeline capacity is holding back new drilling–and why it’s happening, particularly in the Marcellus/Utica…
EQT, the country’s largest natural gas producer, issued its third quarter update yesterday. There was a LOT of news in the update. Where to start? Three important things to note from yesterday’s update: (1) EQT blew it on hedges, losing $2 billion during 3Q21 compared with losing $600 million in 3Q20. (2) CEO Toby Rice says the company is done, for now, with expanding by buying other companies. No more mergers and acquisitions. (3) EQT produced a whopping 495 Bcfe (billion cubic feet equivalent) during 3Q21, up 35% from the same period last year. That works out to be 5.5 Bcfe per day.
Although three major Marcellus/Utica drillers provided third quarter updates yesterday, we only cover EQT’s update in today’s lineup of stories. Come back Monday for details from both Antero Resources and CNX Resources. S&P Global Platts reviewed all three updates from yesterday and noticed a difference in how each of the three companies is approaching hedging, or preselling production for a specific price up to a year or more in advance. According to S&P, regaining investment-grade ratings for company stock was a stated goal by executives at all three companies during their 3Q earnings calls. They all aim to maximize free cash flows and paying down debt. Hedging programs were touted as the pathway to accomplish these balance-sheet goals.
Chesapeake Energy, which has gone through a transformation since declaring bankruptcy earlier this year, announced yesterday it has selected oilfield services (OFS) company Nabors Industries as its preferred drilling contractor across all of the company’s shale oil and natural gas assets moving forward. Nabors is Chessy’s new dancing partner. What’s that? Who is Nabors?