PA Gov. Wolf Gives DEP Extra Time to File Carbon Tax Plan
Last October PA Gov. Tom Wolf, in a naked power-grab, said he would try to force PA to join the so-called Regional Greenhouse Gas Initiative (RGGI), a group of northeastern states attempting to assassinate coal and gas-fired power generation by taxing it to death with an insane carbon tax (see Gov. Wolf Goes Bonkers: EO Destroying Gas-Fired Elec, Carbon Tax). Wolf signed an Executive Order (EO) tasking his Dept. of Environmental Protection (DEP) with the job of concocting a plan by July 31. Yesterday Wolf tweaked his original EO and extended the deadline for DEP by an extra six weeks–to Sept. 15.
Read More “PA Gov. Wolf Gives DEP Extra Time to File Carbon Tax Plan”
In March a worker hired to x-ray welds on sections of the Mariner East 2 pipeline in southwestern Pennsylvania was charged with falsifying records–that he falsely claimed to have performed work when he didn’t (see 
Coincidentally we have a second story today about pipe welding inspectors. In another post, we tell you about a pipeline welding inspector who falsified records (see ME2 Pipe Worker in SWPA Admits Falsifying Welding Records 77 Times), which is very much the exception and not the rule. In this second story, an inspector who worked for Equitrans Midstream has filed what he hopes will become a class action lawsuit against the Equitrans, claiming he and others were jilted out of overtime pay.
The received wisdom has been that with the oil markets getting whacked by the Saudis, the Russians, and the virus, and with new drilling scaled back and oil wells in the Permian, Bakken, Eagle Ford and other oil plays being shut-in, far less “associated gas” would be produced, leading to tighter natgas supplies further leading to higher prices for natgas (benefitting the Marcellus/Utica). But the price of natgas has remained at a 25-year low. What the heck is going on?
OTHER U.S. REGIONS: Tellurian names Souki as executive chairman; NATIONAL: Oilfield services and equipment sector loses 15,000 jobs in May; U.S. feed gas deliveries for LNG rebounds, but more cargo cancellations likely; Trump administration allows Chesapeake to suspend drilling on over 100 leases; KBR to focus on government contracts, quit natural gas, energy business; Supreme Court unleashing power over pipelines, natural gas; INTERNATIONAL: Everyone suddenly wants higher oil prices; India launches its first natural gas exchange.
Each quarter the Ohio Dept. of Natural Resources (ODNR) issues an update on Utica (and Marcellus) oil and natural gas production. Until the recent blowup of the ODNR website (still only partially restored) ODNR would issue a detailed list of all active wells with production by well. No more. That report is missing from the latest quarterly high-level update from ODNR covering first quarter 2020 numbers. What we can tell you, based on the information that has been released, is that production between 4Q19 and 1Q20 was down significantly.
Equitrans Midstream’s 303-mile Mountain Valley Pipeline (MVP) project is now 92% complete and will be done and online in early 2021 (see 
New Fortress Energy, which likes to build and own as much of the LNG supply chain as possible, has built and recently finished an LNG import terminal in San Juan, Puerto Rico. Just one teeny, tiny problem: New Fortress didn’t get permission from the Federal Energy Regulatory Commission (FERC) before building it. Puerto Rico is a U.S. territory and subject to U.S. laws and regulations, including the regulation that requires FERC approval *before* building such a facility. Luuuucy, you have some ‘splainin to do!
In April 2019 President Trump issued an Executive Order directing the Secretary of Transportation to write a new rule allowing specially constructed tanker cars for railroads (DOT-113 tank cars) to ship LNG, i.e., liquefied natural gas (see 
In the American system of justice, when someone is accused of committing a crime, they are presumed innocent under the law until it is proven, in a court of law, they have committed said crime. But when a defendant, someone accused of committing a crime, is a fossil fuel company, that defendant is automatically presumed to be guilty. There is no presumption of innocence. That’s what is happening to Cabot Oil & Gas.
Not even Andrew Cuomo, as grossly corrupt as he is, has thought up something this vile and evil–using the currently toxic environment of race relations across our country as a means to block all new fossil fuel energy projects–specifically pipelines, compressor stations and power generating plants–by declaring such projects racist by definition. That’s what will happen in New Jersey if a new bill, Senate Bill 232, becomes law.
In Ohio, it costs drillers $5,500 to file for and receive a permit to drill a new shale well. In West Virginia, the cost is $10,150. In Pennsylvania, it has cost drillers $5,000 for a new shale well permit. Following a meeting yesterday of the PA Independent Regulatory Review Commission (IRRC), PA’s permit fee is about to zoom to the top of the M-U list: $12,500 (2 1/2 times the previous fee). In fact, the cost of a shale permit in PA will become the highest in the country.
Last week S&P Global Platts reported the Enverus (Drillinginfo) rig count for the U.S. had slipped to a new all-time low of 299 (see