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  • Best of the Rest

    Shale Energy Stories of Interest: Mon, Jun 22, 2020

    June 22, 2020June 22, 2020

    MARCELLUS/UTICA REGION: W.Va. natural gas industry works through pandemic; OTHER U.S. REGIONS: Texas court criticizes climate “lawfare” against energy producers; NATIONAL: United States’ LNG exports slip in April; The green civil war; INTERNATIONAL: Higher Western Canada spot prices limit U.S. natural gas imports from Canada; ‘Fracking is over’ in UK, energy minister says; Shock finding? China is the world’s biggest energy producer.
    Read More “Shale Energy Stories of Interest: Mon, Jun 22, 2020”

  • Chesapeake Energy | Energy Companies

    Chesapeake Misses Interest Payment, Line of Credit Drops $700M

    June 19, 2020June 19, 2020
    Chesapeake’s Stock performance last 6 months (click for larger version)

    On Monday Chesapeake Energy missed making two scheduled interest payments owed to the company’s noteholders totaling $13.5 million according to a Securities and Exchange Commission filing made yesterday. The company also reported to the SEC that its “borrowing base” (value of assets against which they can borrow, or their “line of credit”) has taken a hit too. Previously the borrowing base was $3 billion. It’s now $2.3 billion. Poof–$700 million disappeared just like that. The stock market pegs the value of the company, the company’s market capitalization, at $127 million. Given it carries debts of $9 billion, well, you do the math.
    Read More “Chesapeake Misses Interest Payment, Line of Credit Drops $700M”

  • Industrywide Issues | Pennsylvania | Regulation | Statewide PA

    PA Shale Drilling Permits Become Most Expensive in the Nation

    June 19, 2020June 19, 2020

    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.
    Read More “PA Shale Drilling Permits Become Most Expensive in the Nation”

  • Crude Oil | Industrywide Issues

    Onshore Rig Count Hits New Low of 298 – Finds Bottom?

    June 19, 2020June 19, 2020

    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 U.S. Rig Count Goes Below 300 – Marcellus Gains 1, Utica Loses 2). This week for the first time in months, S&P didn’t bother to report on the latest Enverus rig count. So we have our own report. Overall rigs decreased by one more, to 298, over the past week, prompting some industry experts to speculate we’ve finally “hit bottom” with the rig count. Have we?
    Read More “Onshore Rig Count Hits New Low of 298 – Finds Bottom?”

  • Industrywide Issues | Litigation | Pipelines

    Trump Administration Asks Supreme Court to Lift NP12 Permit Ban

    June 19, 2020July 7, 2020

    A perceptive MDN reader emailed yesterday to ask us the status of the U.S. Army Corps of Engineers Nationwide Permit (NP) 12, blocked for all pipelines in May by a Montana federal judge appointed by Obama (see Obama Judge Blocks New Pipe Projects that Use NP12 Permit). We have an update on this important issue because it impacts ALL pipeline projects using NP12, including Mountain Valley Pipeline (MVP) and Atlantic Coast Pipeline (ACP).
    Read More “Trump Administration Asks Supreme Court to Lift NP12 Permit Ban”

  • Electrical Generation | Greene County (NY) | Industrywide Issues | New York

    2 Gas-Fired Plants in NY, Mass. File Bankruptcy for Third Time

    June 19, 2020June 19, 2020

    Talen Energy Corp. subsidiary NorthEast Gas Generation owns two natural gas-fired electric generation plants–one in Athens (Greene County), NY, and one in Charlton (Worcester County), MA. Yesterday Talen/NorthEast filed for Chapter 11 bankruptcy, the third time NorthEast has filed since 2014. The current plan is to hand over ownership to the company’s debtholders.
    Read More “2 Gas-Fired Plants in NY, Mass. File Bankruptcy for Third Time”

  • Chesapeake Utilities | Energy Services

    Chesapeake Clucking About “Renewable” NatGas from Chicken Poop

    June 19, 2020June 19, 2020

    Two weeks ago to the day MDN took a swipe at Chesapeake Utilities and their fascination with producing natural gas from chicken poop (see Chesapeake Utilities Turning Chicken Poop into “Renewable” NatGas). The larger purpose of that post was to puncture the balloon of so-called “renewable” natural gas (RNG). Here it is two weeks later and Chesapeake is once again clucking away more about their chicken poop renewables program. We couldn’t resist taking another swipe…
    Read More “Chesapeake Clucking About “Renewable” NatGas from Chicken Poop”

  • Best of the Rest

    Shale Energy Stories of Interest: Fri, Jun 19, 2020

    June 19, 2020June 19, 2020

    OTHER U.S. REGIONS: Ovintiv lays off 25% of workforce after oil demand slumps; Report details benefits of natural gas across Illinois, especially during COVID-19 recovery; NATIONAL: Dow, Shell announce joint plans to develop electric cracking technology; The oil and gas situation: the E&P sector faces a reckoning; Failing cities and states use climate change lawsuits as fiscal escape hatch; INTERNATIONAL: 800 Enbridge workers voluntarily leaving company.
    Read More “Shale Energy Stories of Interest: Fri, Jun 19, 2020”

  • Allegheny County | Energy Companies | Industrywide Issues | Merrion Oil & Gas | Pennsylvania | Regulation

    Town Revokes Permit to Drill Shale Well at Pittsburgh Steel Mill

    June 18, 2020July 2, 2020
    Edgar Thomson Steel Works (credit: Craig Sturge)

    In early 2018 MDN told you that Pittsburgh’s oldest still-operating steel mill, U.S. Steel Corp.’s Edgar Thomson steel mill, is looking to drill shale wells on its property in order to supply natgas for the mill (see Marcellus Wells to be Drilled at Pittsburgh’s Oldest Working Steel Mill). Following delays from the state Dept. of Environmental Protection (DEP) in ironing out permit conditions, the local town zoning board has capriciously revoked a conditional use permit that allows the wells to be drilled.
    Read More “Town Revokes Permit to Drill Shale Well at Pittsburgh Steel Mill”

  • Electrical Generation | Industrywide Issues | Lawrence County | Pennsylvania

    Marcellus-Fired Hickory Run Power Plant in W PA Went Online May 18

    June 18, 2020June 18, 2020
    Hickory Run Energy Center (credit: Youngstown Business Journal)

    The Hickory Run Energy Center–an electric generating plant built at a former manufacturing site in New Castle (Lawrence County), PA–finally went online on May 18. It took three years to construct and employs 23 people. The plant is fed by Marcellus Shale gas.
    Read More “Marcellus-Fired Hickory Run Power Plant in W PA Went Online May 18”

  • Industrywide Issues | Pennsylvania | Statewide PA | Taxation

    PA PUC Distributes $200M from Impact Tax, Down $52M from Prev Yr

    June 18, 2020June 18, 2020
    click for larger version

    Each June the Pennsylvania Public Utility Commission (PUC), the agency charged with keeping tabs on impact fee revenue from shale drillers (PA’s version of a severance tax) releases the final numbers for impact fee revenues and disbursements for the prior calendar year. Yesterday was the appointed day for 2019 fee revenue generated. The PUC reports impact fees on natural gas producers in 2019 totaled $200,364,500, down roughly $52 million from $251,830,900 generated in 2018. With this year’s distribution, over the past nine years, PA has collected and distributed over $1.9 billion to communities across Pennsylvania–a massive amount!
    Read More “PA PUC Distributes $200M from Impact Tax, Down $52M from Prev Yr”

  • Industrywide Issues | Research

    New Haynesville Wells Produce More Gas than New M-U Wells

    June 18, 2020June 18, 2020

    There’s no getting around the fact that the Marcellus/Utica region, collectively called Appalachia, is THE 800-pound gorilla when it comes to natural gas production. We produce more natgas than any other region of the country–more than twice as much as the next highest producer, the oily Permian Basin. Yet the Haynesville Shale, a gas-focused play located in Louisiana, also produces a lot of natgas (about 36% of what the M-U produces). According to recent research by the U.S. Energy Information Administration (EIA), new wells in the Haynesville are more productive (producing more gas on average) than new wells drilled in the M-U. Huh.
    Read More “New Haynesville Wells Produce More Gas than New M-U Wells”

  • Dominion Energy | Energy Services | Industrywide Issues | Litigation | Pipelines | Regulation

    Atlantic Coast Pipeline Asks FERC for Extra 2 Years to Build

    June 18, 2020June 18, 2020

    On Monday Dominion Energy’s 600-mile Atlantic Coast Pipeline (ACP) scored a major victory at the U.S. Supreme Court with a decision that allows the project to drill and install pipe underneath the Appalachian Trail (see Victory! Atlantic Coast Pipeline Wins US Supreme Court Case). Fighting the Appalachian Trail case plus other legal and regulatory battles have caused the project to be delayed–by years. On Monday ACP formally asked the Federal Energy Regulatory Commission (FERC) for permission to extend the deadline to get the project done by an extra two years–until October 2022. We expect FERC will honor the request.
    Read More “Atlantic Coast Pipeline Asks FERC for Extra 2 Years to Build”

  • Coterra Energy (Cabot O&G) | Energy Companies | Industrywide Issues | Litigation | Pennsylvania | Susquehanna County

    Cabot Signals They Will Fight PA AG Sham Dimock Indictment

    June 18, 2020June 18, 2020

    Earlier this week Pennsylvania Attorney General Josh Shapiro announced an indictment of Cabot Oil & Gas for allegations of methane migration going back more than a decade (see PA AG Charges Cabot with Enviro Crimes for Long-Settled Dimock). It is a bogus charge, an attempt to turn an accident into a crime–all for political gain. Now that Cabot has had a few days to read and review Shapiro’s bogus indictment, they’ve responded. And the words they’re responding with sure sound like fighting words to us.
    Read More “Cabot Signals They Will Fight PA AG Sham Dimock Indictment”

  • Best of the Rest

    Shale Energy Stories of Interest: Thu, Jun 18, 2020

    June 18, 2020June 18, 2020

    MARCELLUS/UTICA REGION: ‘Desperate’ to get natural gas out of Appalachia, pipeline builders face long battle; OTHER U.S. REGIONS: WE Energies eyes Ixonia for gas storage facility; Officials want emails with climate activists and private lawyers kept from public; NATIONAL: US shale companies to boost oil output by 500,000 bpd by month-end; INTERNATIONAL: Why natural-gas prices haven’t yet bottomed despite this year’s 20% drop; U.S. is the surprising winner in China’s LNG market; Saudi oil exports to U.S. plunge toward lowest level in 35 years.
    Read More “Shale Energy Stories of Interest: Thu, Jun 18, 2020”

  • Weekly Permits

    Weekly Shale Drilling Permits Issued for PA, OH, WV for Jun 8-12

    June 17, 2020June 17, 2020

    The Ohio Dept. of Natural Resources (ODNR) finally restarted issuing permits for Utica drilling last week after a month-long drought of not issuing any new permits. There were 10 new permits issued in PA for shale drilling June 8-12. There were 6 new permits issued in OH for shale drilling during the same time period. There were no new permits issued in WV for shale drilling last week.
    Read More “Weekly Shale Drilling Permits Issued for PA, OH, WV for Jun 8-12”

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