Millennials Frack Marcellus/Utica Drillers into ESG Compliance
Pimple-faced Millennial investors have, seemingly overnight, drilled a hole and have fracked open large cracks throughout the upstream shale sector, particularly in the Marcellus/Utica. Millennial investors demand drillers bow down to the Climate Gods by incessantly repeating the phrase ESG over and over again. Nobody can actually define what ESG means, but sprinkle that phrase liberally throughout investor presentations and it’s like magic.
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One of our favorite Forbes contributors, Jude Clemente, has written an article detailing how LNG (liquefied natural gas) usage worldwide along with exports from the United States, have both come roaring back now that the pandemic is beginning to appear in the review mirror. There is a fantastic chart in the article (below) identifying the 12 biggest U.S. LNG importers by country. The number one importer may or may not surprise you: South Korea. We bet the number two importer will surprise you (it did us)…
MARCELLUS/UTICA REGION: Planned solar project near Gettysburg denied key permit; Wind energy company closing Lehigh Valley manufacturing plant, shifting work to Mexico; Klaber’s Viewpoint: The environment as a political weapon; OTHER U.S. REGIONS: How an old power plant is being refitted for the hydrogen economy; NATIONAL: The oil industry is ready for the next production boom — if Biden allows it; Inflation hits shale patch with steel costs surging, Citi says; LNG-powered Mardi Gras makes U.S. debut docking; Can power-to-ammonia provide grid flexibility?; Could public support for renewables wane?
We simply don’t get it. Either through fear of regulatory and shareholder reprisals, exhaustion in fighting the good fight, or maybe even falling for the false God of Climate Change, big and important oil and gas companies like pipeline giant Williams are beginning to cave to the climate crazies, planning for an oil-less and gas-less future. We kid you not. Williams is IN the business of flowing hydrocarbon molecules (oil and gas) from point A to point B. Yet now they’ve signed a “memorandum of understanding” with Microsoft, a software company, to lecture and teach Williams how to dump fossil fuels and flow different molecules instead, like hydrogen. It’s the darnedest thing we’ve ever seen.
For the past seven years a privately-owned dump near Scranton, the Keystone Sanitary Landfill, has sought to expand in order to accept more garbage. The dump is also authorized to accept Marcellus Shale drill cuttings–rock and soil leftover after drilling. Yesterday the Pennsylvania Dept. of Environmental Protection (DEP) announced after seven years of study, hearings, meetings, and whatever else the DEP does to fiddle away the time, they have finally approved Keystone’s request to expand.
In June 2020, the Pennsylvania Supreme Court denied hearing an appeal for a case from Sunoco Logistics Partners about a permit for a pump station in Lebanon County, PA used to help flow natural gas liquids through the Mariner East pipeline system (see 
How does this work in the real world? Gas and electric customers on Aquidneck Island (part of Rhode Island) ran out of natural gas leaving thousands without heat on the island for days during a frigid cold snap in 2019. Customers without heat subsequently launched a class action lawsuit. On Wednesday a judge ruled the lawsuit may continue. Yet RI legislators will not allow the utility, Narragansett Electric (formerly part of National Grid) to implement any permanent fixes (like a new pipeline) to prevent another outage from happening! And it will happen at some point. This is what passes for “justice” in Rhode Island.
Calling it “an extraordinary year for the global gas industry,” the International Gas Union (IGU) yesterday released its 12th annual World LNG Report–the world’s most comprehensive public source of information on key developments and trends in the LNG sector (full copy below). From huge drops in demand levels at the height of the pandemic lockdowns, through exceptional spikes when the winter deep freeze sent the world’s energy systems into crisis, the IGU says LNG, quite literally, delivered.
The Federal Energy Regulatory Commission (FERC), now firmly under the jackboots of Chairman Richard “Dick” Glick, has just struck a major blow to five natural gas pipeline projects, four of them either located in the Marcellus/Utica or located elsewhere but will flow significant amounts of our gas. Just coming to light now is the fact that last Thursday functionaries inside the bowels of FERC issued notices to five pipeline projects that FERC has hit the pause button on finishing up final approvals so the agency can take the next six months to complete full environmental impact statements (EIS’s), gauging whether or not these projects will cause too much mythical, man-made global warming. We’d be really angry about this except our anger quotient is already exhausted with this bunch of leftist nuts.
Enjoy the Republican majority on the Federal Energy Regulatory Commission (FERC) while you have it. That majority will end soon. Three FERC Republican commissioners have approved Enable Midstream Partners’ Gulf Run natural gas pipeline which will, in part, connect Marcellus/Utica gas supplies to the Gulf Coast for exporting (see 
RBN Energy is a fountain of great information about the oil and gas sector. Headed by industry icon Rusty Braziel, RBN tracks and reports on a number of O&G companies. One of the best features of their information service is tracking the performance of three groups of publicly-traded O&G companies: Oil-Weighted E&Ps, Diversified E&Ps, and Gas-Weighted E&Ps. That last group, the gas-focused companies, is a list of 10 E&Ps. Only two of the ten don’t have any operations in the Marcellus/Utica–all the rest do. RBN has just published a post about the financial performance in 1Q21 for all three groups. The numbers are very encouraging.
We have some further clarification on the status of Equitrans Midstream’s 303-mile Mountain Valley Pipeline (MVP) project. One month ago Equitrans announced due to ongoing delays in permits (because of lawsuits filed by Big Green groups) MVP will not finish construction until next year (see 
When was the last time you heard about a state legislature with the guts to reject a governor’s nominee to head a regulatory agency because the nominee proved to be, well, dumb? Yeah, like never. Until now! The ranks of dullard bureaucrats are legion across the country, but you can count on one less dullard in North Carolina where the Republican legislature, after quizzing Democrat Gov. Roy Cooper’s nominee to head the state’s Department of Environmental Quality (DEQ), determined she flunked because she didn’t know a darned thing about Mountain Valley Pipeline’s proposed Southgate project.