Michigan Utility Trading Coal for Gas-Fired Electric Plants
Consumers Energy, Michigan’s second-largest power provider, will quit burning coal to produce electricity by 2025 and instead will purchase four existing natural gas-fired power plants for $1.3 billion. At least if the company can get approval from state regulators. The company says buying existing gas-fired plants (instead of building new plants) will help it transition to carbonless energy over the next 20 years. Buying instead of building means the company won’t have “stranded assets” when (we say if) they eventually foreswear using fossil fuels to generate electricity.
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Back in January MDN told you that UGI Corporation, one of Pennsylvania’s largest natural gas utility companies, wants to buy Mountaineer Gas Company, one of West Virginia’s largest natural gas utility companies, for $540 million (see 
Last week MDN told you that Detroit-based utility company DTE Energy was about to spin off its pipeline assets into a new/separate company called DT Midstream (see 
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Last week MDN told you about an unplanned outage at two MarkWest natural gas processing plants located in West Virginia (see 
Diversified Energy (née Diversified Gas & Oil) continues to expand *outside* of the Marcellus/Utica region. In April the company announced it had purchased ~780 net operated wells and leases in the Cotton Valley/Haynesville region of Lousiana for $135 million (see 
Patterson-UTI Energy, which operates 15 active rigs in the Marcellus/Utica (out of 45 active M-U rigs, or fully one-third of all active M-U rigs) announced yesterday it is buying a smaller competitor, Pioneer Energy Services Corp., for approximately $295 million. Patterson will add Pioneer’s fleet of 16 super-spec drilling rigs to Patterson’s own current fleet of 150 super-spec drilling rigs in the U.S. What are super-spec rigs?
The natural gas markets just made a bit of history. Friday, July 2nd, marked the last day in a series of nine days that the NYMEX futures price for natural gas increased from the previous day. Beginning Monday the price has slide down just a bit. Nine straight trading days of higher natgas prices is the longest period of day-over-day price rises in the past 20 years! The weather certainly had a lot to do with the increase in prices, but a key part, perhaps the starring role in why prices have continued to climb, is the role of LNG exports.
All three Marcellus/Utica states received permits to drill new shale wells last week. Pennsylvania issued 12 new permits, 7 of them in the northeast PA dry gas region and 5 in the southwest wet gas region. Ohio issued 3 new permits, all of them for the same driller in Carroll County. (The Ohio driller is brand new!) And West Virginia issued 6 new permits with 5 of the 6 going to Antero Resources.
On June 24, the operator of the SOS D-2 injection well in Cambridge, Ohio (Guernsey County) reported a small release from a pipeline that transfers fluid from a storage tank to the injection well. The well’s owner/operator, Silcor Oilfield Services Inc., contained the leak. The Ohio Dept. of Natural Resources (ODNR) was alerted and is overseeing remediation of the affected area and repair of the line. End of story. Except…
Last week MDN told you that EQT Corporation, the largest natural gas driller in the U.S., had released its 2020 ESG report and announced the company would be “net carbon zero” by 2025 or sooner (see 
The tinpot dictators who run the Organization of the Petroleum Exporting Countries plus Russia (OPEC+) can’t agree on increasing overall production levels of oil. What a surprise. Meanwhile, America’s own shale frackers refuse to increase their own drilling to meet the increase in world demand, having been cowed by woke leftists into “behaving” themselves. And so the world’s oil production (not supplies, but actual production) continues to decline at a time when more oil is needed. Lack of supply is driving the price of oil higher.