Biden Admin Seeks to Restart Drilling in Wayne Natl Forest
The executive branch of the federal government, including the U.S. Forest Service (USFS) and the Bureau of Land Management (BLM), is appealing, to a federal appeals court, a Columbus federal court ruling that prohibits their respective agencies from issuing new permits to drill on oil and gas leases in Ohio’s Wayne National Forest (WNF). Talk about mixed signals! We thought old Joe had shut down and wants to keep shut down all drilling on federal land, which includes WNF (see How Biden’s Drilling Ban on Federal Lands Affects the M-U). Now Biden’s own USFS and BLM are suing to allow it!
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ECA Marcellus Trust I, traded over-the-counter on the pink sheets, canceled distributions (dividends) to investors for the first three quarters of 2020 due to the pandemic and the crash in oil and gas prices. The company restarted paying dividends in 4Q20–a grand total of 9/10ths of one penny per unit (see 
All three M-U states received permits to drill new shale wells last week. Pennsylvania received a big 18 new permits (after receiving no new permits the previous week). More than half of those 18 permits were for wells on two pads in southwestern PA. Ohio received 7 new permits last week all in one county (Jefferson), split between Encino Energy and Ascent Resources. And West Virginia received 10 new permits with 7 of them for a single pad in Lewis County.
MARCELLUS/UTICA REGION: Stephens bill to protect natural gas passes Ohio House; Emissions reduction at Cabot – a primer; NATIONAL: Cyberattack halts fuel movement on Colonial petroleum pipeline; EIA’s natural gas price forecast ticks up to $3.05 on exports, U.S. demand; Low European stocks, high global gas prices keep U.S. LNG production at full capacity; INTERNATIONAL: China now emits more GHG than rest of developed world combined.
In July 2020, PA Gov. Tom Wolf signed into law House Bill (HB) 732, a bill that grants tax breaks to companies willing to build brand new petrochemical plants in the Keystone State–plants that use huge quantities of Marcellus Shale gas (see 
Nuverra Environmental Solutions (formerly Heckmann) is one of the largest companies in the United States that handles 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. For over a year, it’s been less. In 2020 Nuverra’s revenue sank by 34% and the rig count that it tracks fell by 27% (see 
Summit Midstream Partners, formed in 2009 and headquartered in The Woodlands, Texas, operates natural gas, crude oil, and produced water gathering (pipeline) systems in several unconventional shale plays, including the Marcellus and Utica. Last week Summit issued its first-quarter 2021 update. The company’s Utica Shale segment continued to be the star performer.
Yesterday MDN reported comments by Energy Transfer (ET) that the company plans to finally (after years of delays) complete the final pieces of the Mariner East 2 pipeline project by the third quarter of this year (see 
Of course, there was big news to report on Friday, the day MDN took off as a brief vacation day (the graduation ceremony was great!). The big news from last Thursday afternoon and Friday was (a) EQT’s first quarter update, and (b) EQT announced it has cut a deal to buy the northeastern Pennsylvania Marcellus assets of Alta Resources for a whopping $2.9 billion–pretty close to the asking price (see 
There are still a few select pipeline projects under construction in the Marcellus/Utica, even during the anti-fossil fuel Joe Biden regime. One such project of keen interest for us is the Mariner East 2 (ME2) NGL pipeline that runs from eastern Ohio through Pennsylvania to the Marcus Hook refinery near Philadelphia. The builder and owner of ME2 project, Energy Transfer, issued its quarterly update last week. As part of that update we found a reference from top management that ME2 will be completely finished (“done done”) sometime in the third quarter of this year.
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 first-quarter update last Thursday. The company’s Marcellus net gas production averaged 27.4 million cubic feet per day (MMcf/d) in 1Q21, compared to 30.3 MMcf/d of net gas production in 1Q20 (a 10% decrease). However, revenues were up a big 31% in 1Q21 vs. 1Q20.
Anti-fossil fuel activist Jill Antares Hunkler (whom we had never heard of before) testified before the same House Committee on Oversight and Reform’s environment subcommittee that Swedish special needs child (and minor celebrity) Greta Thunberg testified before on Earth Day. The two (plus others) peddled the same tired lies they always peddle about fossil fuels in general, and the Ohio shale industry in particular. A member of the Ohio O&G industry is standing up to challenge their lies.