EQT and U.S. Well Services (USWS) have signed a deal for USWS to provide electric fracking for one-third of EQT’s completions operations over the next three years. Does USWS (and e-fracking) sound familiar? It should! Range Resources signed with USWS in January (see Range Resources Converts to Electric Fracking with US Well Serv.).
Read More “EQT Converting One-Third of Completions to US Well E-Fracking”
Remember that old Abbott and Costello comedy routine, “Who’s on First?” That aptly describes what appears to be happening at the Pennsylvania Dept. of Community and Economic Development (DCED). PA Gov. Tom Wolf issued an edict several weeks ago that bans businesses from working unless they appear on a list of “life-sustaining” activities, in an effort to halt the spread of the COVID-19 coronavirus. Companies can apply for a waiver if they’re not on the life-sustaining list. The DCED is in charge (if you can call it that) of reviewing and issuing the waivers. Yesterday the DCED issued waivers to Energy Transfer to button up some final bits of work on the Mariner East 2 (ME2) pipeline project in several locations near Philadelphia. A few hours later DCED rescinded/pulled those waivers. What’s going on?
Read More “PA DCED First Grants Then Rescinds ME2 Pipe Construction Waivers”
A couple of weeks ago midstream giant Williams said it had swallowed a big, fat poison pill (see Williams Swallows Poison Pill to Prevent Company Takeover). The Williams board adopted something called a “limited duration stockholder rights agreement” to fend off potential hostile takeover attempts from those who would buy up a significant number of shares of stock while the company’s share price is down due to the worldwide stock market crash over COVID-19 coronavirus concerns. A major (and influential) proxy adviser, Institutional Shareholder Services (ISS), has taken the “unusual step” of advising Williams shareholders to vote against reelecting board Chairman Stephen Bergstrom at the annual meeting later this month, in retaliation for his poison pill.
Read More “ISS Asks Williams Stockholders to Block Chairman re Poison Pill”
Quick: What’s the raw material used to make respirator masks, gloves, face shields and other high-demand products used by the medical community to combat the coronavirus pandemic? Correct, it’s plastics. And what is the primary feedstock used to make the plastic that in turn makes all of those live-saving products? Correct again: natural gas and natural gas liquids. Or another word for it, petrochemicals. The “Think About Energy” seminar series, usually held in-person, hosted its first virtual event yesterday. Four fantastic speakers spoke about how the coronavirus pandemic, among other things, may drive the expansion of petrochemicals in PA. Expanding the petchem industry in the Keystone State may literally be a life or death issue.
Read More “PA Petrochemical Growth May Happen Due to…Coronavirus?”
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. Given that Nuverra’s customers, oil and gas drillers, are canceling work right and left meaning less work for Nuverra, the company announced it is laying off roughly 100 employees, cutting the salaries of everyone else, and slicing other non-essential expenses in an effort to ride out the coronavirus/oil price crash storm.
Read More “Nuverra Environmental Cuts Budget 30%, Lays off 100 People”
A recent column appearing in a Virginia newspaper shares what it believes is a revelation: When big energy/utility companies like Dominion Energy say they will achieve “net-zero carbon emissions,” they don’t mean they will stop using fossil fuels to create energy. Not by a long-shot. What “zero carbon” or “net-zero carbon” means is that all carbon dioxide (generated when burning natural gas to generate electricity, for example) is captured and used for something else. CO2 is not released into the atmosphere. Even though companies like Dominion are able to capture and reuse CO2, and prevent methane from leaking, it’s STILL not good enough for those who irrationally hate fossil fuels.
Read More “Dominion’s Net-Zero Emissions in Va. Does NOT Mean Fossil-Free”
We’ve preached “lower for longer” for a long time now–the theory that natural gas prices are low and will remain low for the foreseeable future. Not because we want it to be that way, but because it is that way, and we want you, our beloved MDN readers, to know the truth. We live for the day when we can tell you natgas prices are heading higher. Are we finally beginning to see some hope in that regard? Maybe! We’ve outlined the latest thinking across several recent posts that given the crash in oil prices, less associated natural gas will be produced leading to less supply on the market and (eventually) higher prices for gas. When will that happen? We have some new speculation to share.
Read More “The Case for Rising NatGas Prices – How High and How Soon?”
MARCELLUS/UTICA REGION: Shale gas was in trouble, then came the coronavirus; No need for natural gas pipeline across Raritan Bay, environmental report says; NATIONAL: Natural gas market starting to discount oil production shut-ins; Coronavirus clouds outlook, but EIA still sees Henry Hub at $2.11 this year; What COVID-19, global LNG demand loss could mean for U.S. gas storage refill; Shale cutbacks to fall on weakest drillers as glut drowns market; Keeping up with the Jones Act! Changes a pandemic and price war could bring; INTERNATIONAL: Russia: U.S. shale decline can’t count as ‘output cut’; Maybe the U.S. should delay virtual G20 oil meeting; Big Oil market question: What’s already priced in?; Saudi wealth fund builds $200 million stake in Norway’s state oil company.
Read More “Shale Energy Stories of Interest: Thu, Apr 9, 2020”
The Pennsylvania Dept. of Environmental Protection (DEP) says CNX Resources failed to prevent soil erosion at seven of the company’s well pad sites in Washington and Greene counties in 2017/2018. The failure, says DEP, resulted in the release of soil and sediment, including a few cases of sediment-laden water being released into nearby streams. CNX corrected the violations and has struck a deal with DEP regarding compensation. Instead of paying a fine to the DEP, CNX will pay $180,000 to restore a trout stream in a Washington County park.
Read More “CNX Pays $180K for Erosion, Sedimentation at SWPA Well Sites”
There’s at least a partial truce in the ongoing tariff war between the U.S. and China. President Trump began slapping tariffs on certain Chinese imports in retaliation for China’s longstanding policy of ripping off U.S. intellectual property, stealing our trade secrets, and in some cases blocking our goods and services from selling in their country. We’ve had a grossly unfair trade situation with China taking advantage of the U.S. for decades (under weak presidents). Trump had the you-know-whats to put a stop to it. The so-called trade war escalated and China slapped tariffs on certain commodities we used to sell there–including LNG (natural gas). We haven’t sold an LNG cargo to China in over a year. Until now. China is suddenly waiving their 25% tariff on U.S. LNG. Four U.S. LNG cargoes are steaming to the Orient right now.
Read More “China Resumes U.S. LNG Imports, NatGas Price Inches Higher”
Companies in the Marcellus/Utica shale industry have stepped up and given money, and in some cases retooled manufacturing operations, in order to help communities, first responders and medical professionals respond to the COVID-19 coronavirus pandemic. Companies like ExxonMobil, Range Resources, Cabot Oil & Gas, EQT, Alta Resources, Chevron, Greylock Energy, Olympus Energy, Penn E&R, Southwestern Energy and others. We are gratified and proud of the industry where we hang our hat.
Read More “Marcellus Companies $tep Up to Help During COVID-19 Crisis”
If you’ve read MDN for any length of time you know we’ve preached the gospel of “lower for longer”–that natural gas prices will remain low, quite low, for a long period of time. How low? Likely in the $2/Mcf range (or just under, or just over). Gone are the days of $3 and $4 gas–at least for a period of years. Although that may have now changed with the double shock of too much oil and the coronavirus destroying demand, which affects natural gas prices. How? Less oil drilling in American shale means less associated gas produced by oil drilling. Less supply equals higher prices. But let’s not go down that rabbit trail right now. We spotted a couple of articles by analysts who predict the current oil price crash will have a profound and long-term effect not only on the oil industry but also on the petrochemical industry–the downstream recipient and user of oil (and gas).
Read More ““Lower for Longer” Not Only for NatGas, but Oil & Petchem Too”
The gloves are off. Today we’re calling out the American Petroleum Institute and the Big Oil supermajors that control the API for their selfishness and shortsightedness. Apparently the supermajors have long wanted American shale and the plethora of smaller independents to just go away–so they (Big Oil) could once again control the world market for oil. The result of that philosophy, whether intentional or not, will be to allow foreign countries like Saudi Arabia and Russia to buy up OUR American shale companies, for themselves (see U.S. in Danger of Losing Our Shale Oil Industry to Other Countries). The API hides under the covering of “don’t interfere in free markets” in advising President Trump to not do anything to help American shale. That’s bunkum.
Read More “Calling Out API & Big Oil as Enemies of Independent Shale Cos.”
America is in danger of losing ownership of our shale oil companies to bad actors including Saudi Arabia, Russia and other foreign countries. Those countries are actively, aggressively, purposely waging a price war against us, trying to drive American shale companies into bankruptcy. Why? So they can turn around and buy up our companies and once again control the world market for oil. It is a *hostile* action. President Trump, please don’t let it happen!
Read More “U.S. in Danger of Losing Our Shale Oil Industry to Other Countries”
Enverus, a leading oil and gas SaaS and data analytics company, has just released its latest FundamentalEdge report called, “The Dark Side of the Boom.” The report focuses on the new global supply and demand outlook since the failure of OPEC+ to reach an agreement on temporary production cuts resulting in an all-out price war. It also takes into account the effects on world energy demand as a result of the coronavirus. The report covers not only the crude oil situation but also natural gas, NGLs, rig count changes and more. What “overlooked bright spots” does Enervus find in a sea of bad news?
Read More “Enverus Finds Bright Spot in the “Dark Side of the Boom””
MARCELLUS/UTICA REGION: Even facing a pandemic, NY State remains in the grip of green movement; Nearly 650 MW of New York City peaking capacity will retire to comply with tighter regulations; Congresswoman Miller urges support for oil and gas industry during COVID-19 response; OTHER U.S. REGIONS: Court revives Michigan anti-fracking effort; NATIONAL: U.S. natural gas output expected to fall by most ever next year; U.S. oil rig count seen plunging 65% in record time, eclipsing recent downturns; Shale drillers warming to a once-unthinkable idea: a cap on oil; U.S. to again become net importer of crude oil amid COVID-19 pandemic, EIA says; Cost structure threatens the survival of many U.S. crude oil producers; Led by Harold Hamm, America’s oil frackers are slashing output; INTERNATIONAL: Japan, Singapore lockdowns to stifle Asian gas, power demand further; U.S. energy secretary hopeful Saudi, Russia to end oil row this week.
Read More “Shale Energy Stories of Interest: Wed, Apr 8, 2020”