Other Stories of Interest: Wed, May 12, 2021
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.
Read More “Other Stories of Interest: Wed, May 12, 2021”
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.
The Enverus rig count added another 7 rigs for the week ending May 5 to hit a new post-pandemic high of 545 active rigs. Oil-focused rigs climbed by 10 to 417, leaving them just two rigs shy of 12-month highs seen in early April. The number of active gas-focused rigs fell back three to 128 (after hitting a 13-month high for the previous week). Both the Marcellus and the Utica maintained their numbers for the week (no change), ending the week at 36 for the Marcellus and 13 for the Utica.
MDN editor Jim Willis is taking a rare day off today, Friday, May 7, in order to travel and attend the graduation of his youngest child (a son)…from graduate school. Jim is a proud dad. He has three great kids. All three now have their master’s degree, and all three are teachers! Jim will catch you up on all the latest Marcellus/Utica news with the Monday edition. Have a great weekend.