NATIONAL: Recent completions of natural gas pipeline projects increase transportation capacity; Shale producers find themselves in unusual position; Natural gas in storage set to decrease by about 30% of five-year average.
Read More “Other Stories of Interest: Wed, Mar 17, 2021”
Natural gas production in the Marcellus/Utica is slowly turning around. The rate of decline in production is slowing and (at some point) will reverse and begin to show increases month over month. That was our takeaway from yesterday’s Drilling Productivity Report (DPR), a report issued each month by our favorite government agency, the U.S. Energy Information Administration (EIA). In two shale plays–the Haynesville in Louisiana and East Texas, and the Permian in West Texas and eastern New Mexico–natural gas production is forecasted to increase over the next month. The Haynesville is a gas-focused play (like the M-U). The Permian is an oil-focused play and the extra gas there comes from more oil drilling (associated gas).
Read More “EIA DPR: NatGas Production Still Down in M-U, Goes Up in LA & TX”
Gulfport Energy continues to try and wiggle out of legally-signed and binding long-term contracts with multiple pipeline companies, including deals that move Marcellus/Utica gas through the Rover and Rockies Express (REX) pipelines. Last year the Federal Energy Regulatory Commission (FERC) told Gulfport a very loud NO in breaking those contracts (see Gulfport Energy Looks to Cancel Pipeline Contracts via Bankruptcy). A very high bar much be reached to break a pipeline contract because those contracts are signed “in the best interest of the public.”
Read More “Gulfport Asks Court to Overrule FERC, Cancel Rover, REX Pipe Deals”
Once again Energy Transfer (ET), via subsidiary Sunoco Partners Marketing & Terminals, is squabbling with the Pennsylvania Dept. of Environmental Protection. ET is also at odds with the special court set up to hear appeals of DEP rulings called the Environmental Hearing Board (EHB). ET says a series of proposed and signed-off modifications to the Marcus Hook refinery near Philadelphia has been reopened and numbers/assumptions changed by the DEP, and combined together in a way that makes meeting air quality regulations more difficult and expensive. The DEP combined sources after the individual projects were previously approved by the agency.
Read More “Sunoco Fights DEP’s “Arbitrary and Capricious” Marcus Hook Plan”
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. In November, the company reported less-than-rosy results for the third quarter, because of the coronavirus and producers slowing down their drilling programs (see Nuverra 3Q: Revenue Down 45%, M-U Rig Count Down 57%). The trend continued for fourth-quarter (and full-year) results, which the company issued yesterday.
Read More “Nuverra 2020: Revenue Down 34%, M-U Rig Count Down 27%”
Pennsylvania State Senator Gene Yaw is on fire! His verbal barbs concerning energy production keep coming–and they’re aimed at the right people for the right reasons. Last week the Senate committee Yaw chairs, the Senate Environmental Resources and Energy Committee, held hearings to consider the new 2021/22 budget request from the PA Dept. of Conservation and Natural Resources (DCNR). As we told you last week, Yaw asked some pointed questions of DCNR Secretary Cindy Adams Dunn (see Sen. Yaw Tells DCNR to Lease More PA State Land for Gas Drilling). It turns out there was another exchange between them that had escaped our notice, until now.
Read More “PA Sen. Gene Yaw: Promoting EVs is Promoting Mining by Children”
The push is on to make the Marcellus/Utica the country’s second petrochemical hub. The U.S. Gulf Coast is the country’s first and primary petchem hub, but in light of multiple hurricanes and even snowstorms this past year (with multiple disruptions), it’s obvious to everyone that the M-U region can and should become a second petchem hub. An entire conference to discuss how to make that happen will be held next week in Wheeling, WV. The 2nd annual Appalachian Basin Real Estate Conference, an all-day program slated for March 25, will convene at Oglebay Resort. This is a shameless promotion aimed at encouraging you to attend–in person or virtually.
Read More “U.S. Security & Safety Depends on M-U Becoming 2nd Petchem Hub”
MARCELLUS/UTICA REGION: Pa.’s natural gas industry is a target — again; Pennsylvania lawmakers seek to block entry to multi-state climate compact; NATIONAL: U.S. LNG exports edge up in January 2021; Poorest choice ever confirmed as Secretary of Interior; House Republicans pitch nuclear, natural gas as ‘cleaner’ energy future; Natural gas price prediction – prices drop and remain oversold; Wind & solar subsidies (video); INTERNATIONAL: Asia became the main export destination for growing U.S. LNG exports in 2020.
Read More “Other Stories of Interest: Tue, Mar 16, 2021”
Last August the North Carolina Dept. of Environmental Quality (DEQ) rejected a water permit for Equitrans’ proposed Mountain Valley Pipeline (MVP) Southgate project (see Politics: North Carolina Rejects MVP Southgate Pipe Permits). As we said at the time, although the DEQ tried to disguise the rejection using lame excuses, the rejection was political and prompted by NC Democrat Gov. Roy Cooper. Turns out not even the Dems on the federal U.S. Court of Appeals for the Fourth Circuit could stomach the transparent political motivation and last week overturned the DEQ’s rejection, telling the DEQ to do it over again.
Read More “MVP Southgate Pipeline Gets Boost from 4th Circuit re NC Permit”
The good news for Equitrans’ 303-mile Mountain Valley Pipeline (MVP) is that the U.S. Court of Appeals for the Fourth Circuit last week overruled North Carolina’s Dept. of Environmental Quality in rejecting a water permit for the project (see today’s lead story). However, MVP wasn’t letting last year’s DEQ action slow it down. In January MVP reluctantly filed eminent domain lawsuits against 100 landowners who refuse to reasonably negotiate an easement for the pipeline.
Read More “MVP Southgate Launches Eminent Domain Lawsuits Against NC Landowners”
Ohio’s House Bill (HB) 6 is a law granting billions (plural) of dollars to FirstEnergy in an attempt to prop up the company’s economically failing nuclear power plants. FirstEnergy is accused of bribing state legislators to pass, and keep passed, HB 6 by paying out $61 million (see FirstEnergy Involved in Bribery Scheme to Pass $1B Nuke Bailout Law). It is the biggest bribery scandal in Ohio history. FirstEnergy is finally, openly, admitting they paid the bribe money. Yet the company still refuses to admit that what they did is a crime.
Read More “FirstEnergy Admits to $61M Payment in Massive Bribery Scandal”
Last week MDN brought you news of a new forced pooling bill under consideration in this year’s West Virginia legislative session (see WV Makes a New Push for Forced Pooling Using New WVU Study). Forced pooling is one of those rare issues where drillers and landowners are typically on opposite sides of the debate. The WV drilling industry continues to press hard for this new bill, while landowner groups continue to push back just as hard against it.
Read More “WV O&G Pushes Hard for Forced Pooling Law, Landowners Push Back”
Last Saturday Pennsylvania Gov. Tom Wolf’s office published, via the Pennsylvania Bulletin, a list of agency-by-agency regulations currently in development with an estimated schedule for future actions. In the list is the all-important (to the oil and gas industry) Dept. of Environmental Protection (DEP). It’s been our observation when the government in general, and DEP in particular, changes a regulation, it typically makes it more onerous (and expensive) to comply with. Some of the upcoming changes to DEP regulations happening this year we’ve already warned you about. Others are new to us.
Read More “List of Changes (i.e. Problems) Coming to PA DEP Regs in 2021”
In a brilliant move aimed at boxing in the Delaware River Basin Commission (DRBC), two northeastern Pennsylvania State Senators–Gene Yaw and Lisa Baker–along with members of the PA Senate Republican Caucus, filed a lawsuit in January against the DRBC accusing the quasi-governmental agency of “taking” the property rights of PA residents without just compensation under the law (see PA Senators Sue DRBC for “Taking” Property re Frack Ban). A group of 16 PA Democrat Senators has just filed to “intervene” in the lawsuit.
Read More “16 PA Senate Democrats Try to Block Republican DRBC Lawsuit”
MARCELLUS/UTICA REGION: An open letter to President Biden on shale energy; OTHER U.S. REGIONS: Colorado’s legal cannabis farms emit more carbon than its coal mines; NATIONAL: U.S. Silica, Smart Sand report rising demand for proppant by E&P customers.
Read More “Other Stories of Interest: Mon, Mar 15, 2021”
Ascent Resources, originally founded as American Energy Partners by gas legend Aubrey McClendon, is a privately-held company that focuses 100% on the Ohio Utica Shale. Ascent is Ohio’s largest natural gas producer and the 8th largest natural gas producer in the U.S. The company issued its fourth-quarter and full-year 2020 update earlier this week. According to Ascent CEO Jeff Fisher, “Ascent has successfully delivered on its operational and financial objectives in 2020.” Ascent reports it shut-in (curtailed) roughly 100 million cubic feet equivalent per day (MMcfe/d) of production in 4Q. The company produced 1.9 billion cubic feet per day (Bcfe/d) during 4Q, down from 2 Bcfe/d in 3Q.
Read More “Ascent: Spud 60, Fracked 77, Turned to Sales 75 New Wells in 2020”