Not long ago we highlighted the problem of falling severance tax revenue in West Virginia (see Falling WV Severance Tax Revenue a Problem for Gov. Justice). The state previously forecast severance tax revenues of $85 million for July, August and September. They got $59 million–or $26 million less. Unfortunately for WV the same downward trend continued in October.
Read More “WV State Severance Tax Revenue Whacked by Low NatGas Price”
Each year the International Energy Agency (IEA) issues a special World Energy Outlook report. The 2019 edition was released last week. In this year’s Stated Policies Scenario, the share of natural gas in global primary energy demand grows to about 25% by 2040, and in the Sustainable Development Scenario, gas retains a critical role by supplying a projected one fifth of the world’s primary energy in 2050. Shale production growth is now slowing as investors lose interest, but IEA says: “the shale race is not yet run; many of the most profound impacts of the shale revolution still lie ahead.” Cool!
Read More “IEA World Energy Outlook 2019: Shale’s Best Days Yet to Come”
MARCELLUS/UTICA REGION: Sen. Yudichak switches parties; Johns Hopkins researcher – Pa. should ban fracking; Pipeline inspectors seek final nod for $2.2M OT deal; OTHER U.S. REGIONS: Salaries growing faster in oil-rich Texas than New York; NATIONAL: Committee votes FERC, DOE, DOI nominations through to full Senate; Rising baseload demand for gas means more price spikes, volatility; Challenging commercial environment for new US liquefaction projects seen persisting.
Read More “Shale Energy Stories of Interest: Wed, Nov 20, 2019”
It looks like we may be almost at a peak–the day we knew would come (but secretly hoped never would) where not only the Marcellus/Utica, but all of the major shale plays in the country stop producing more natural gas each month than they did the month before. Yesterday the EIA (U.S. Energy Information Administration, our favorite government agency) issued its monthly Drilling Productivity Report. It shows the M-U will end up producing 33,674 million cubic feet per day (MMcf/d) of natural gas in November, and their forecast is the M-U will produce 33,720 MMcf/d in December, a gain of 46 MMcf/d (one-tenth of one percent). In other words, statistically we’re at a standstill (not growing) and in the near future we expect to see *less* monthly production. We’re just about cresting the top the hill.
Read More “EIA Nov ’19 Drilling Report: Permian Gas Grows More than M-U”
Do you know how many Marcellus (or Utica) shale wells have been drilled in Pennsylvania since shale drilling began? We’re talking drilled, fracked and now online. That number is now over 9,000. You know how many times fracking has caused an earthquake (or “seismic event” as it’s called in the biz)? Precisely once. Which is statistically zero. The Pennsylvania State Seismic Network (PASEIS) keeps track of these things, and that’s what they say. One fracking-induced “event” that happened back in April 2016.
Read More “State Seismic Network: Only 1 Fracking-Induced “Earthquake” in PA”
Acting like a petulant baby whose binky was taken out of his mouth, New York Gov. Andrew Cuomo is threatening to put giant natural gas utility National Grid out of business in New York State by canceling their franchise, their right to operate, and giving it to another company (see Psychotic Cuomo to Cancel National Grid Gas Franchise in 2 Weeks). Why? Because Cuomo himself denied National Grid new supplies of natural gas via pipelines, causing National Grid to ban new customers from connecting from fear there won’t be enough gas (their downstate territory covers all of Long Island and parts of New York City). The political fallout from the ban has been swift and harsh–against Cuomo. So he blames the victim (National Grid) instead of himself. How is National Grid handling the crisis?
Read More “National Grid Struggles to Respond to Cuomo’s Petulant Demands”
In September MDN told you about environmentalist wackos at the Bernheim Arboretum (about 25 miles from Louisville, Kentucky) who refuse to grant an easement for 4,000 feet of land they bought *after* the Louisville Gas and Electric Company (LG&E) already had a state-approved plan to build a new pipeline over that land as part of tiny 12-inch, 12-mile pipeline (see KY Utility Hints at Defunding Local Arboretum Blocking New Pipe). The Arboretum’s refusal, along with a few other property owners, means 62 homes and businesses have been denied the right to connect to LG&E’s local natgas utility system. Unfortunately the Kentucky Energy and Environment Cabinet (state agency) has just sided with the wackos.
Read More “KY Regulators Side with Enviro Wackos in Blocking Tiny Pipeline”
U.S. Senator Pat Toomey, from Pennsylvania, introduced a resolution two weeks ago that he (and other sane individuals) want to adopt to prevent people like “Crazy” Bernie Sanders and Elizabeth “Pocahontas” Warren from banning fracking, should they ever get elected president. (Sanders or Warren as president is a truly nightmarish prospect, meaning the country has officially gone to Hades.) Best put some protections in place now before frothing-at-the-mouth socialist/communists like Sanders or Warren get elected.
Read More “U.S. Sen. Pat Toomey Floats Resolution to Block Dem Frack Ban”
Yesterday MDN brought you an article about the supply chain in Ohio–companies that sell goods and services to upstream (drilling), midstream (pipeline) and downstream (petrochemical) companies (see Ohio’s Non-Drilling Counties Look to Profit from Utica Shale Too). That article talked about businesses located in counties just west of the Utica shale in Ohio and whether or not they can get in on some of the economic action. We spotted another story, this one in the Wall Street Journal, about supply chain companies serving the oil and gas industry. If yesterday’s article was the positive/up side of supply chain, the WSJ article is the flip side–the down side of depending too much on our cyclical industry.
Read More “Supply Chain Cos. Getting Whacked by Shale Drilling Slowdown”
The U.S. Energy Information Administration (EIA) recently released its “Natural Gas Annual 2018” report which shows the U.S. set new records in natural gas production, consumption, and exports in 2018. In 2018, dry natural gas production increased by 12%, reaching a record-high average of 83.8 billion cubic feet per day (Bcf/d). That’s the largest percentage increase since 1951, and the largest volumetric increase in the history of the series, dating back to 1930! Behold the miracle of shale.
Read More “U.S. Record in 2018 for NatGas Production, Consumption, Exports”
MARCELLUS/UTICA REGION: Encino Acquisition Partners appoints Alexandra Pruner to Board of Directors; David Porges to step down from Equitrans Midstream board of directors; Falcon Pipeline drilling briefly shut down over instrumentation; OTHER U.S. REGIONS: New construction natural gas ban trend appears on East Coast; NATIONAL: U.S. rig count crashes again: loses nearly 100 rigs in 3 months; INTERNATIONAL: Spain top destination for U.S. LNG exports in September; Gazprom’s production up, European deliveries slip; Trinidad gas gap will claim more industries: regulator.
Read More “Shale Energy Stories of Interest: Tue, Nov 19, 2019”
Gulfport Energy, one of the biggest drillers in the Ohio Utica Shale (210,000 acres), concentrates its drilling in the Ohio Utica and the Oklahoma SCOOP plays. A few weeks ago the company announced they are shopping some of their non-operated assets in the Ohio Utica (see Gulfport 3Q – Looking to Sell Non-Operated Utica Assets). This morning the company made another major announcement: They are laying off 13% of the workforce, ending (for now) their stock share buy-back program, and “refreshing” the board with three new members.
Read More “Gulfport Fires 13% of Workers, Ends Stock Buy-Back, Board Changes”
The Appalachia Development Group (ADG) is leading an effort to build a ~$3.3 billion NGL storage hub in Appalachia. From the start, the thinking has been the storage hub would be located somewhere in West Virginia (see WV’s US Senators Lead the Charge to Build $10B NGL Storage Hub). But what’s this? ADG Chairman and CEO Steven Hedrick, speaking at a conference last week, confirmed potential sites for the project have been narrowed down to two. And one of those sites, according to “sources” (not Hedrick), is located in southwestern Pennsylvania.
Read More “PA One of Two Finalists for “Massive” Ethane Storage Hub”
Some Marcellus/Utica gas flows all the way to the Midwest, to markets that include Chicago and St. Louis. Last week we reported that the Spire STL Pipeline is ready to begin service, connecting to the Rockies Express (REX) pipeline to flow M-U gas to the St. Louis area (see Spire Pipeline Ready to Flow Marcellus/Utica Gas to St. Louis). A second company is now floating a plan to flow some of our molecules to customers in Illinois and Missouri.
Read More “More M-U Gas to Missouri? MoGas Floats Plan to Expand Pipeline”
A leftist anti-fossil group calling itself Protect PT, in Penn Township (Westmoreland County), PA, backed with big money from Big Green groups, continues to sue in an effort to block shale drilling in the township. And they keep losing their lawsuits. Protect PT has launched multiple challenges to a local Penn Township ordinance which allows Apex Energy and Huntley & Huntley to drill and operate wells.
Read More “Anti Group Loses Yet Another Penn Twp (PA) Frack Ban Case”
Drilling is great for local counties when it arrives. Especially for the “supply chain” in those counties–companies that sell goods and services to drilling companies. Everything from retail to convenience stores to restaurants to hotels to trucking companies and more. But what about businesses in nearby counties without any drilling activity? Is there any way they can share in the bounty too? There sure is!
Read More “Ohio’s Non-Drilling Counties Look to Profit from Utica Shale Too”