Shale Energy Stories of Interest: Fri, Mar 6, 2020
MARCELLUS/UTICA REGION: ODNR awards three drilling permits; NATIONAL: North American midstream energy companies face $123 billion of debt maturities in 2020-24; Exxon CEO dismisses rivals’ climate targets as ‘beauty competition’; INTERNATIONAL: Coronavirus leads OPEC to recommend sharper oil output reduction through June; OPEC+ proposes major cuts, but Russia may not come along; Germany sees no role for natural gas in draft plan for hydrogen.
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Is history repeating itself? Ohio House Bill 55 would require certain pieces of information to be included on royalty statements landowners receive from Ohio drillers. Ohio State Rep. Jack Cera (Democrat from Bellaire) introduced HB 55 last year–for the third time since 2011. Like the two previous times, the bill is now mired in committee and doesn’t appear to be making any headway toward a vote. Let’s look at what information landowners receive now under existing law, and what details they would receive under this bill if passed.
In 2015 Kelsy Warren and his Energy Transfer Equity (now just Energy Transfer) company pursued Williams, wanting to merge Williams into its own operation. Williams initially fought ET tooth and nail, but in the end, cut a deal (see 
A kerfuffle between Gulfport Energy and Tug Hill Operating has been settled by a Texas judge. Gulfport and Tug Hill cut a deal in November 2018 for Tug Hill to purchase certain Marcellus shale assets in Ohio from Gulfport for $26 million. According to Gulfport, Tug Hill never sealed the deal and should be forced to complete it now. Tug Hill said Gulfport didn’t come through with necessary releases from third parties related to the deal, and therefore the deal is null and void. The judge agreed with Tug Hill.
Water is the lifeblood of shale drilling. Water must get to the pad for use in drilling and fracking. But then, after the drilling is done and the well is connected, produced water continues to flow from the borehole for years to come. All that water must be managed. In the early days of Marcellus/Utica drilling every spare gallon of produced water got recycled for reuse drilling the next well. With a slowdown in new M-U drilling, produced water is piling up. What can be done to manage it? The 
Columbia Gas of Massachusetts (NiSource) never quite recovered (reputationally) from a series of explosions in September 2018 that occurred with its local delivery pipelines north of Boston (see 
IHS Markit employs more than 5,000 analysts, data scientists, financial experts and industry specialists. Their global information expertise spans numerous industries, including finance, energy, and transportation. Yesterday IHS Markit issued a bulletin to say its analysts expect when the tabulating is all done that world oil demand, due to fear over the COVID-19 coronavirus, fell by some 3.8 million barrels per day over the same quarter from 2019. That would be a new all-time, world record quarterly drop in oil demand. The previous record happened during the worldwide recession of 2009 when demand dropped 3.6 million bpd. Should we be worried that we are about to experience another worldwide recession?
In what has to be unethical at a minimum, and perhaps even illegal at the maximum, Pennsylvania Attorney General Josh Shapiro spoke on the phone with two anti-drilling “reporters” from the Pittsburgh Post-Gazette (Don Hopey and David Templeton) to let them know he is on an official witch hunt launching “more than a dozen investigations” to turn fracking and anything connected with fracking into a crime.
Some 30 radical environmental groups (including ringleader Penn Future) is fearful their campaign to stop House Bill (HB) 1100 is failing. HB 1100 is aimed at attracting new petrochemical investments to the state. How do we know Big Green is fearful? Because the groups are attempting to gin up opposition to the bill by staging a faux protest rally on March 9 at the Capitol in Harrisburg.
Are you interested in a great career in the pipeline industry in the northeastern part of the country? We may be able to help. The Appalachian Pipeliners Associations (APA), with a mission to help grow and support the pipeline industry in the northeastern U.S., is offering up to $50,000 worth of scholarships for use during the 2020/2021 academic school year to students pursuing Associates, Bachelors and Graduate degrees, as well as students pursuing Vocational or Trade School degrees/certifications. That’s right! Let the APA help fund your education so you have a great job when you graduate! But there is a catch…applications must be filed by March 6th (this Friday).
The American Petroleum Institute recently released the results of a study they commissioned that outlines the “dire consequences” of a ban on hydraulic fracturing–the kind of ban being pushed by Bernie Sanders, Elizabeth Warren, and Joe Biden. Here’s how dire it gets: If a frack ban is slapped into place by a Democrat President, by 2022 it will result in 7.5 million lost jobs, and by 2030 a total loss out of the economy of $7.5 TRILLION! You might as well say we will enter a new economic depression, the likes of which we haven’t experienced since the 1930s.