WV U.S. Senators Strongly Oppose Biden’s Climate Policies, Nominees
West Virginia is represented by one Republican U.S. Senator, Shelley Moore Capito, and one Democrat, Joe Manchin. Manchin is tolerable (just) because he advocates for coal and oil/gas. Manchin is also the new chairman of the powerful Senate Committee on Energy and Natural Resources. Manchin, to his credit, is pushing back against Joe Biden’s ill-advised cancelation of the Keystone XL oil pipeline. In fact, both Biden and Capito are loudly supporting Keystone and (important for us) the Mountain Valley Pipeline (MVP) project, which runs through WV.
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Two of three M-U states received permits to drill new shale wells last week. Pennsylvania received 22 new permits (second week in a row with 22 new permits). Ohio received zero new permits. And West Virginia received 6 new permits (down from 8 new permits the previous week).
OTHER U.S. REGIONS: CELDF defeated in court (again), this time in small NH town; Biden drilling ban forces Democratic-led New Mexico to reckon with oil dependence; NATIONAL: Heating and petrochemical demand in Asia contribute to more U.S. propane exports; LNG exports rise to boost Henry Hub prices; Billionaire names oil stocks he calls ‘the investment opportunity of my career’; Fracking ramps back up as crude oil becomes a hot commodity again; Exxon’s well-timed hop onto carbon-capture bandwagon; INTERNATIONAL: Total rebrands in pivot away from oil after better quarter.
Cabot Oil & Gas, the powerhouse dry gas producer operating in one northeastern Pennsylvania county (and producing roughly 2.5% of the natgas for the entire nation from that one county) is not due to release full 4Q and full-year 2020 numbers until Feb. 19. However, the company did provide some high-level numbers for last year and a preview of what it plans to do in 2021.
Last year the West Virginia Dept. of Environmental Protection (WVDEP) fined the Mountain Valley Pipeline (MVP) project $265,972 for erosion and sediment issues related to constructing the 303-mile pipeline (see 
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 reports it *will* pay investors for 4Q20–a grand total of 9/10ths of one penny per unit.
Life is full of unsung heroes. The West Virginia Geological and Economic Survey (WVGES) is one such hero in the Mountain State. WVGES plays a vital role in the state’s shale gas/oil industry. How WVGES determines where and how much natural gas, oil, and NGLs are located under the crust of WV. They also determine how best to take advantage of those natural resources.
Our favorite government agency, the U.S. Energy Information Administration (EIA), is a sub-unit of the Dept. of Energy. The DOE, as you know, is now part of the Evil Empire (aka the Biden Administration). As you also know, old dementia Joe has been bashing away at fossil fuels since he took office, promising to “transition away” from fossil fuels during his tenure of occupying the White House. Yet the EIA is out with a projection that shows “renewables” (includes not just wind and solar but hydro and “other”) will still make up less than half (42%) of electric power production 30 years from now! Fossil fuels (natural gas and coal) will still have a larger share of electric production than renewables 30 years from now. How’s that for a “transition away” from fossil fuels?
Reuters is reporting natural gas prices across North America have “soared” over the past few days as homes and businesses cranked up their heaters to escape a blast of arctic air and snow moving from Canada to the U.S. Midwest and northeast. The price of natgas trading at the Waha Hub in the Texas Permian Basin is at its highest since December 2018. Here in the northeast prices in Boston and New York City hit fresh one-year highs over the past few days. And it’s the same in Pittsburgh and northeastern PA.
Last Friday National Fuel Gas Company (NFG), the parent company for Seneca Resources and Empire Pipeline, issued its latest quarterly update for the quarter ending Dec. 31 (NFG’s first quarter 2021, everyone else’s fourth quarter 2020). Among the pearls of good news for NFG is that the company is adding a rig back in Tioga County, PA to drill on acreage NFG purchased from Shell.
Analysts at S&P Global Platts say that with the current cold snap underway in the northeast, already decreasing natural gas production from the Marcellus/Utica may accelerate with wellhead freeze-offs. Sometimes in colder temps (hey, it was 2 degrees at MDN HQ this morning) water and other liquids in the gas can freeze and block the flow of gas, called a wellhead freeze-off.
Aubrey McClendon, the co-founder of Chesapeake Energy and the guy most responsible for discovering and commercializing the Ohio Utica Shale, once famously said the Utica “is the best thing to hit the state of Ohio economically since maybe the plow.” And indeed it has been. The Utica is often overshadowed by its larger and more productive cousin the Marcellus Shale. According to Mike Chadsey from the Ohio Oil and Gas Association, the Utica has never really gotten the level of attention and respect it deserves.
In January MDN told you that after five loooong years, a federal judge in Scranton, PA had finally ruled the Wayne Land and Mineral Group (WLMG) v. Delaware River Basin Commission (DRBC) lawsuit will go to trial this year (see 
The West Virginia Office of Oil and Gas (part of the Dept. of Environmental Protection) reports there are some 60,000 active and 15,000 abandoned oil and gas wells in the state. Staffers at Oil and Gas respond to complaints and do the inspection for all those wells. Currently, there are just 14 field staffers with three moving to other positions leaving just 11 staffers who are in the field to monitor all those wells.