Chesapeake Turns its Back on NatGas in Pursuit of St. Elmo’s Oil
Chesapeake Energy CEO Doug Lawler continues his quest to transform what used to be the nation’s second largest natural gas producer into an oil company. Yesterday the company issued its first quarter 2019 update. From that update we learn that Chessy will pull money out of its Marcellus and Haynesville shale gas drilling programs, dropping from three to two rigs in the Marcellus and from two to one rigs in the Haynesville, in order to put more money, rigs, time and effort into the company’s Powder River Basin oil drilling program. We liken their pursuit of oil riches to trying to grab St. Elmo’s Fire–it appears, and as soon as you reach to grab it, it’s gone.
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MarkWest Energy, now part of MPLX (Marathon Petroleum) operates the nation’s largest cryogenic gas processing plant operation in the country, the Sherwood Complex, in West Virginia (see 
A radical Pennsylvania environmental group called PennEnvironment is pushing a media narrative that a “collection of 88 Republican and Democratic Pennsylvania state legislators” have joined together to introduce and endorse a truly insane plan that would require all (as in 100%) of electricity generated in the Keystone State to come from so-called renewables by 2050–just 30 years from now. It will NEVER happen, but that’s beside the point. Our point is that one named Republican is part of this “bipartisan collection” of 88 leftists. The lone Republican is PA State Sen. Tom Killion from the Philadelphia area.
Huntingdon County, PA landowner Ellen Gerhart, adamantly opposed to the Mariner East 2 pipeline being constructed across her land, tried to block construction on her property. She had her day in court last August and was found guilty of violating a judge’s previous order to stop interfering with construction (see 
Whew, that was close. We’ve had a concern that if Chevron ended up buying Anadarko Petroleum (for Anadarko’s Permian Basin oil assets), it might lead to Chevron pulling back from their drilling program in the Marcellus/Utica (see 
MARCELLUS/UTICA REGION: Ohio’s oil and gas industry offers a wide variety of career opportunities; Exelon to close Pennsylvania Three Mile Island nuclear plant in September; Michael Bloomberg is paying a climate prosecutor $125,000 to work ‘pro bono’ for Maryland’s AG; NATIONAL: U.S. energy consumption, production, and exports reach record highs in 2018; The shale revolution isn’t just about cheap energy, it’s changing geopolitics; Once-key data about natural gas loses clout; Clean Energy inks slew of natural gas contracts nationwide; Trump’s misguided U-turn on the Jones Act; INTERNATIONAL: Natural gas vehicles likely to account for 50 pc of total new sales by 2030.
Saudi Arabia is sniffing around the Marcellus Shale. Bloomberg reports that super secret talks are happening between Saudi Aramco (largest oil company in the world, owned by the Saudi government) and Equinor, which until recently was called Statoil. Equinor is majority-owned by the government of Norway. The Saudis are considering “buying a stake” in or possibly a joint venture with Equinor. It seems Norway is hesitant to hop into bed with the Saudis. We don’t blame them.
A Pennsylvania federal judge has ordered a former EQT employee to turn over his cell phone to EQT so they can have experts examine it for deleted text messages to Toby Rice and others helping him. You may recall EQT accused two fired workers of stealing company secrets and sharing those secrets with Toby and Derek Rice, who are trying to take over EQT (see 
Here’s an interesting and fun fact: In just 12 years electricity generated by coal plants has gone from powering 87% of Ohio’s homes and businesses to just 47%. So-called renewables (solar and wind) make up a whopping 3% of Ohio’s electric generation. So what’s replacing coal? Natural gas, which now generates 34% of the state’s electricity. Gas still hasn’t beaten coal, but give it a few more years and it will.
On multiple occasions we have outlined the reasons why federal agencies like the Federal Energy Regulatory Commission (FERC) exist–in order to prevent individual states from harming their neighbors economically. An individual state can’t block a new interstate highway, or the trucks and cars that travel it, from entering their state. It’s the same for power transmission lines and for pipelines. Yet New York Gov. Andrew Cuomo is violating that law by rejecting interstate pipelines.
One of the few “green” advocates we respect is Michael Shellenberger, a Time Magazine “Hero of the Environment,” Green Book Award Winner, and president of Environmental Progress, a research and policy organization. His articles often appear on the Forbes website (we’ve linked to many of them in our “Best of the Rest” roundup). Shellenberger, one of the few environmentalists to endorse and defend fracking, recently penned an article that accuses the fracking/shale industry of a double standard when it comes to their opposition to bailing out nuclear plants with government subsidies.
The Pennsylvania Dept. of Environmental Protection (DEP) has just fined EQT $330,775 for erosion and sedimentation violations at two well sites in Forward Township, Allegheny County, PA. Water with sediment in it leaked from the well sites in early 2018, which sometimes happens. The reason for the stiff fine is that EQT failed to notify the DEP when it happened. If the DEP finds out via its own inspections first, the cost goes way up.