EIA Predicts Electric from Gas-Fired Plants to Decrease 8% in 2021
Our favorite government agency, the U.S. Energy Information Administration (EIA), is forecasting less power generation from natural gas in 2021, largely as a result of rising fuel costs. EIA says electric power generation by gas-fired plants will decrease by 8% this year. The biggest winner in 2021? Coal-fired generation will expand and produce 14% more electricity this year than it did last year.
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Two of three M-U drilling states received permits last week. Pennsylvania scored 14 permits to drill new shale wells. Ohio received no new permits for Utica wells. West Virginia received 5 new permits to drill new shale wells.
MARCELLUS/UTICA REGION: PA House reintroduces bill to limit regs as part of 2021 environmental agenda; NATIONAL: Largest single shipment of ethane heads to China after loading at US export facility; President Biden has limited flexibility in moving against oil industry; Validere and Xpansiv partner to attach ESG attributes to energy products; Fossil fuels’ place in a low-carbon future; INTERNATIONAL: U.S. imposes sanctions on vessel set to work on Nord Stream 2 pipeline; Canada pushes back on Biden plan to cancel Keystone XL.
Last August we told you about the politically-motivated prosecution (by the Chester County, PA District Attorney’s office) of two men connected to a security firm providing off-duty constables to protect Mariner East 2 (ME2) pipeline construction sites (see 
Every now and again we happen across information we think is kind of cool–things that others miss. This is one of those times. In many areas of shale drilling in Pennsylvania the drillers recycle 100% (or near 100%) of shale wastewater, both flowback (from fracking) and brine (naturally-occurring water from the depths comes out long after fracking is done). The recycled wastewater is then used to drill and frack more wells. We discovered a handy list of at least 27 such wastewater recycling facilities (and their locations in 11 different counties) spread across the Keystone State.
EQT Corporation, the largest natural gas producer in the United States, is asking West Virginia officials to remove two judges from hearing cases brought by landowners against the EQT relating to royalty disputes for alleged improper deductions. EQT wants Judges Timothy Sweeney and David W. Hummel Jr. to be disqualified from at least three cases (that we know of).
Like 99% of Hail Mary passes, the effort by environmental radicals in southwestern PA to block a forthcoming shale wastewater injection well has failed. As we told you last week, a group of antis, in a desperate final attempt to block an injection well in Plum (Allegheny County), PA, threw a Hail Mary pass by asking Pennsylvania Gov. Tom Wolf to assume dictatorial powers and block the project (see 
Ohio Attorney General Dave Yost continues to hammer FirstEnergy Corporation. In November Yost filed a lawsuit to block the collection of $150 million provided for under House Bill (HB) 6, aimed at propping up FirstEnergy’s unprofitable nuclear power plants in the state (see 
Although we consider the Haynesville Shale play to be the chief competitor to the Marcellus/Utica (because the Haynesville is also a gas play and currently operates more rigs that we do here in the M-U), the Permian is another major competitor. After the M-U, the Permian produces more natural gas (associated gas) than any other play, including the Haynesville. According to the experts at RBN Energy, the Permian is already back to producing as much natural gas as it did prior to the pandemic, and the numbers will only continue to climb.
Last week the Trump Dept. of Energy (DOE) released a new report titled “Economic and National Security Impacts under a Hydraulic Fracturing Ban” (full copy below). The report shows that a ban on hydraulic fracturing would spike greenhouse gas emissions, boost coal generation, and reverse America’s energy exporter status. A full-on fracking ban would result in 7.7 million jobs lost across the country and the overall U.S. economy would take a significant hit just as the pandemic recovery is underway. Devastating.
Dear MDN Reader:
It’s been a long road, but we’re nearing the end. Shell’s $6 billion ethane cracker plant, officially called the Pennsylvania Petrochemicals Complex (PPC), is close to being done. It’s likely the PPC, located in Beaver County, PA, will be up and running sometime next year. When it is, the market for Marcellus/Utica NGLs will profoundly change. PPC will use an average of 85,000 barrels per day of M-U ethane. Our ethane will no longer be a waste product that many drillers pay to get rid of, but rather a profitable product they sell.
Over the past week, the Enverus U.S. rig count jumped by a big 18 additional active rigs. The Permian play in Texas and New Mexico saw the biggest increase, adding 14 new rigs (the most since before the pandemic). The Marcellus added two more rigs, bringing the combined Marcellus/Utica rig count to 42, the highest we’ve seen in months–maybe more than a year.