Gulfport Energy Files for Pre-arranged Chapter 11 Bankruptcy
We hoped it wouldn’t happen, but warned you it might when Gulfport Energy announced several weeks ago it had missed a debt payment and was in “restructuring” talks (see Gulfport Energy Misses Debt Payment, in “Restructuring” Talks). On Saturday, Gulfport, the third-largest driller in the Ohio Utica Shale (by the number of wells drilled), announced it had filed for a “pre-arranged” Chapter 11 bankruptcy.
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EOG Resources, one of the largest oil and gas drillers in the U.S. (with operations in Trinidad and China too) has just sold *all* of its Marcellus assets located in Bradford County, PA to (we’ll tell you below, MDN has the exclusive on this) for $130 million. EOG has now left the M-U building.
In August Southwestern Energy announced it is buying out and merging in Montage Resources in an all-stock deal (see 
Once again PTT Global Chemical is changing the timeline for a final investment decision (FID) to build a $10 billion ethane cracker plant in Belmont County, OH–for the umpteenth time. The most recent timeline had a decision coming by the end of this year or in the first quarter of next year. Whoops, they did it again! The new timeline is now “at least the middle of 2021.”
When a pipeline company considers whether or not to build a new pipeline, the company conducts an “open season”–a time when drillers (producers) can sign long-term contracts to use capacity along the pipeline. 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 a driller that signed to a 10- or 20-year contract goes bankrupt? Or what happens if a contract will force a driller into bankruptcy? Can such a contract be canceled?
MARCELLUS/UTICA REGION: More taxes will impede Marcellus Shale production; OTHER U.S. REGIONS: San Francisco bans natural gas in new buildings; NATIONAL: LNG feedgas demand has reached a new all-time high; Cheniere doubling down to cut LNG environmental footprint as stakeholder pressure grows; Physical gas flow constraints, volatility arise at Henry Hub; State climate action unlikely after Democrats fail to flip statehouses; The coming energy shocks under a Biden administration; EPA nominees may face challenging Senate confirmation path; INTERNATIONAL: Europe’s Green Deal is bad news for U.S. LNG.
Here’s a little known fact: Fracking for natural gas in shale only extracts about 20% of the methane gas that’s trapped in shale rock, meaning (of course) that 80% of the gas gets left behind. Researchers with the Dept. of Energy’s (DOE) Los Alamos National Laboratory have made what we consider an astonishing breakthrough discovery: Too much pressure used during fracking actually locks some of the methane away tighter in the shale, instead of loosening it. In a published paper revealing their results (full copy below), researchers recommend a range of pressures to use to optimize (increase) recovery rates for methane in the Marcellus.
Like a bad Stephen King horror flick, the Sisters of the Corn (our name for a group of leftist nuns in Lancaster County, PA) have returned to file yet another frivolous lawsuit against Williams over a pipeline that crosses their land–a pipeline (Atlantic Sunrise) that has been up and running for years. The Sisters claim an infringement of their “religious liberties” in the lawsuit. They tried this argument once before and the U.S. Supreme Court refused to hear the case.
In line with a rise of COVID-19 cases in the general population throughout the state of Pennsylvania (and elsewhere), workers at the Shell ethane cracker site in Monaca, PA (near Pittsburgh) have seen a big jump in active coronavirus cases. As of yesterday, the number of active cases stood at 39. Wednesday the number was 31. Shell says most if not all of the cases are coming from offsite and onsite transmission among the 7,000 active workers is not a factor in the rising number.
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 third-quarter 2020 update yesterday. Ascent reports it shut-in 210 million cubic feet per day (MMcf/d) of production, but still managed to produce 2 billion cubic feet per day (Bcf/d) during 3Q.
The Pennsylvania Dept. of Environmental Protection (DEP) continues to block Energy Transfer’s Revolution Pipeline gathering system in western PA from restarting. In September the DEP finally, after two years, gave ET permission to fix problems that caused the pipeline to explode. Even though ET has fixed the original site of the explosion, the DEP says there are other areas of concern and forbids certain sections of the pipeline from restarting, until…
The Enverus U.S. rig count rose by a whopping 20 to 379 over the past week. Prior to that, the count rose by 11, 11, and 13 for each of the three weeks prior, respectively. That’s up 55 rigs over the past month! The Marcellus and Utica each remained constant last week, not adding and not dropping. The Marcellus stands at 27 rigs, and the Utica at 6.
A cool new initiative called 
MARCELLUS/UTICA REGION: Pittsburgh mayor touts ‘Marshall Plan’ for Appalachia, a proposed $600B for transition from fossil fuels to greener energy; Consumers from the Tristate region saved more than $107.5 billion thanks to affordable natural gas; NATIONAL: Making sense of the hydrogen buzz; Biden presidency imperils key oil pipelines; Biden’s oil plan…the good, the bad and the illegal; Biden is targeting U.S. industry; INTERNATIONAL: Saudi Aramco pitches natural gas to China.
Yesterday Pittsburgh Business Times‘ ace reporter Paul Gough got EQT CEO Toby Rice to open up and talk about the company’s recently announced deal to buy Chevron’s considerable Marcellus/Utica assets (see