Permian Gas at Waha Hub Briefly Trades at $0, Implications for M-U
This one will make your head explode. We’ve been warning about this for some time, or rather, RBN Energy has been warning about it (and we’ve brought you their warnings). During a recent three hour period of natural gas trading at the Waha Hub (in West Texas), the price of gas went to negative 1 cent per thousand cubic feet (Mcf). You read that right. Someone was paying someone else to buy the gas from them! Why? Too much “associated gas” being produced in the prolific Permian Basin, and not enough pipelines to carry it to other markets. The Permian is all about oil drilling. Natural gas is a byproduct, to the point it may be worth giving it away for free just to get rid of it so a driller can keep pumping oil. The proliferation of natgas in the region is driving prices into the subbasement.
Read More “Permian Gas at Waha Hub Briefly Trades at $0, Implications for M-U”
In December 2014, Massachusetts-based utility Berkshire Gas Company announced the amount of natural gas they could purchase from the Tennessee Gas Pipeline (TGP) was at full capacity. There’s no additional gas supplies to buy–unless TGP should build their Northeast Energy Direct (NED) expansion project. So Berkshire was forced to tell new customers for natural gas in portions of Franklin County they would not be able to tap into Berkshire’s line (see 
The move to dissolve MLPs (master limited partnerships) and replace them with a corporate structure continues. In March, the Federal Energy Regulatory Commission (FERC) took “significant action” to address the Trump tax cut legislation enacted last December (see 
Ever notice how the antis apply a different set of rules and standards to those who support fossil fuels than they do to themselves? Here’s a great example. Virginia Natural Gas (VNG) wants to complete a decades-old project by building the final nine miles of the project from Norfolk, VA to Chesapeake, VA–called the Southside Connector Project. Those who oppose the project paid big bucks to “consultants” to write a report smearing the project as unsafe (see 
The “best of the rest”–stories that caught MDN’s eye that you may be interested in reading: Range Resources: A well-positioned way to play shale gas; Rep. Bryan Cutler is bringing his Solanco roots to the highest level of state politics; November 23 Natural Gas Weekly: The fears of under-supply are exaggerated; Natural gas is up, but drillers are down; New projects expected to reverse Gulf of Mexico natural gas production declines; Russia flexes muscles as natural gas industry booms; India is losing the natural gas race to China; How fracking turned OPEC into the walking dead.
Once upon a time the Clinton Sandstone layer was the most drilled rock layer in Ohio. Then the Utica/Point Pleasant came along and it seemed as if everybody forgot about the Clinton. Previously the Clinton was drilled vertically, or conventional-only. But what if you drilled the Clinton horizontally, like you do in the Utica? You might get a “Utica-lite” well, as we commented back in 2015 (see 
Earlier this month MDN brought you the exciting news that New Fortress Energy (NFE) is planning to build an LNG (liquefied natural gas) liquefaction plant in Wyalusing (Bradford County), PA in order to export Marcellus gas (see 
Earlier this month Encino Acquisition Partners (i.e. Encino Energy) completed its purchase of all of Chesapeake Energy’s Ohio Utica Shale assets for $2 billion, originally announced in July (see 
In a pattern that has repeated itself with both the Mountain Valley Pipeline and (now) the Atlantic Coast Pipeline (ACP), a key permit that allows ACP to build under and through streams and rivers and wetlands has been, for now, revoked. The permit is called a Nationwide Permit (NWP) 12 and was previously issued by the U.S. Army Corps of Engineers to allow ACP to build through streams, etc. in all three states where it runs–West Virginia, Virginia and North Carolina. Earlier this month the U.S. Fourth Circuit Court of Appeals put a temporary stop on constructing the pipeline across/under/through streams and rivers in WV (see 
NEXUS Pipeline, a $2.6 billion, 255-mile interstate pipeline that runs from Ohio into Michigan, began a partial startup in October, and is now fully online. Although there was early opposition to the project, and some complaints from landowners along the route of construction, the project is noteworthy for the just how little complaining there actually was. Not all of the restoration work–things like reseeding and landscaping–is done. Most of it is done, but not all. A few landowners still have some scattered complaints related to unfinished work. Massive amounts of rain in the region have prevented final restoration work, which NEXUS now says will have to wait until spring 2019. In the meantime, local school districts and municipalities are rubbing their hands, anticipating tax payments that will begin to flow into their coffers.
This is an “I told you so” post. Last Wednesday, just ahead of what was perhaps the coldest temps for Thanksgiving on record in New England, the price of electricity and the price of natural gas both spiked in New England. Most electricity produced in the region is produced by burning natural gas. Natgas was selling for $13.70/Mcf (thousand cubic feet, or million BTUs) last Wednesday. That was up from an average of $4.67/Mcf this year (up almost 300%). The reason for the spike is lack of natural gas, and the reason for lack of natural gas is a lack of pipelines, plain and simple. And this won’t be the last time. New England will get hosed this winter as prices rocket every time there’s a cold snap. We take no pleasure in saying, “Told you so.”
Events related (or of interest) to the Marcellus and Utica Shale, primarily pro-drilling events. To have your event included (or if you are aware of a worthy event you believe should be on this page), please send the details and/or a link to have it included to the calendar@marcellusdrilling.com email address.
This is big news that will impact nearly every landowner and shale driller in Pennsylvania. In April, MDN brought you the news that Pennsylvania Superior Court had handed down a decision (known as the “Briggs” case) that has the power to greatly restrict, perhaps even stop, Marcellus drilling in PA (see 
The West Virginia Surface Owners’ Rights Organization (WVSORO) is making some big accusations against EQT (perhaps other drillers too) in saying that EQT, which once owned thousands of conventional oil and gas wells in the state, is selling those wells to companies that may go out of business and therefore will not be able to properly plug those wells as they reach end-of-life and no longer produce. Specifically, WVSORO mentions the recent sale by EQT of its WV conventional assets to Diversified Gas & Oil. In June, MDN brought you the exclusive news that Diversified had purchased EQT’s Huron Shale assets in Kentucky, Virginia and West Virginia for $575 million (see