Del-Mar Energy Pathway Pipe in Dela./Md. Now Two-Thirds Complete
A short 19-mile pipeline project called the Del-Mar Energy Pathway project, crossing both Delaware and Maryland, began its final phase of construction earlier this year after receiving approval from Maryland for traversing a wetland area (see Maryland Bd of Public Works Approves Wetlands Permit for Gas Pipe). In addition to building 19 miles of pipeline, Del-Mar is constructing new meter and delivery stations in Kent and Sussex counties in Delaware, and Wicomico and Somerset counties in Maryland, to carry more natural gas to locations in Delaware and Maryland. The good news is that some 60% of the pipeline is now built and in the ground.
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When a pipeline company considers whether or not to build a new pipeline, the company conducts an “open season”–a time when drillers (producers), traders, buyers and others who want guaranteed capacity along that pipeline can sign long-term contracts. Such contracts guarantee pipeline companies will be able to make back the considerable amount of money they have to spend to build the pipeline. What happens when those 5-, 10-, and 20-year contracts expire?
We are sick and tired of the Chicken Little scaremongering that comes from so-called “independent consultants” and the reports they issue for states like Pennsylvania claiming (falsely) that average temperatures in the state are set to rise by 6 degrees Fahrenheit by 2050. It is a demonstrably false claim. Yet that’s what is now being reported as fact.
Yet another assault on natural gas pipelines coming from the federal agency that’s supposed to promote them: the Federal Energy Regulatory Commission (FERC). When FERC approves a new pipeline project, the very first thing fossil fuel haters do is challenge that decision, requesting a “rehearing” or reconsideration of the decision. FERC under new Chairman Richard “Dick” Glick has just ruled that construction work on pipelines can’t proceed unless and until the rehearing request is no longer pending (FERC decides yes or no), which can take up to 90 days. In other words, FERC has just handed antis the right to delay a project by up to three months (in reality 10 months) just by filing a rehearing request.
You simply can’t miss the irrational exuberance of energy companies and investors proclaiming that hydrogen (H2) is the next big thing in energy. H2 is going to replace natural gas and cure the problem of man-caused global warming (which doesn’t exist, by the way). You can’t attend an oil and gas conference today without hearing at least one keynote or panel discussion about H2. (By the way, the 
MARCELLUS/UTICA REGION: Antero Resources announces appointment of Brenda R. Schroer to the Board of Directors; Peregrine acquires additional royalties in Appalachian Basin; OTHER U.S. REGIONS: Port of Corpus Christi to offer liquefied natural gas to incoming refueling ships; NATIONAL: Biden’s climate goal to require radical shifts in economy; The U.S. will need a lot of land for a zero-carbon economy; U.S. LNG club could get more exclusive; Biden’s First 100 Days: Interior sends ‘clear signal’ promoting wind, targeting oil, gas.
Pipeline giant Williams released its 1Q21 update on Monday, but it wasn’t until a conference call with analysts yesterday that CEO Alan Armstrong shared the big news that Williams has purchased Southern Company’s natural gas energy trading unit Sequent Energy Management for $50 million. The deal vastly expands Williams’ capability to market natural gas (i.e. find new customers).
Oil and gas drilling giant Equinor (formerly called Statoil) is owned by the Norwegian government. Equinor/Statoil has drilled in the Marcellus/Utica for years. The company also invests in other M-U drilling programs. Equinor is reporting production from both its operated (drilled) and nonoperated (invested-in) wells increased in 1Q21, helping to offset an overall drop in oil and gas production.
Jim Snell, Business Manager at Steamfitters Local 420 (Philadelphia area) has written a powerful editorial appearing in the Delaware Valley Journal. Snell begins his article by saying President Biden’s “build back better” proposal overlooks the backbone of America’s energy system: pipelines. Snell goes on to make an irrefutable case for how Marcellus Shale drilling in northeastern and southwestern PA benefits Philadelphia and southeastern PA.
An interesting turn of events for our weekly permit report. In querying the Pennsylvania database, it reports no new permits issued for the past week. We can’t recall that ever happening. Pennsylvania almost always has the most permits issued of the three M-U states. West Virginia, which typically has the second-highest number of permits issued each week, also issued no new shale drilling permits last week. Only Ohio, which lately has issued very few permits for Utica drilling, had a bumper week, issuing 8 new permits!
Anecdotally it seems as though there has been less drilling activity in the Marcellus/Utica over the past year. Some say it’s due to the coronavirus pandemic. Others say there’s more to it than that. If you’ve tracked public announcements by drilling companies, they claim to have pulled back on drilling and won’t increase current levels of drilling even when/if the price of natural gas increases. Why? They must turn a profit, or investors leaving for greener pastures (pun intended). But is there really less drilling happening in the M-U today than say one year ago?