Facts & Rumors # 572
October 26, 2024
NatGas Declined in 2024. U.S. shale natural gas production has declined so far in 2024. Energy Information declined by about 1%, to 81.2 billion cubic feet per day (Bcf/d), compared with the same period in 2023, while other U.S. dry natural gas production increased by about 6% to 22.1 Bcf/d. Total U.S. dry natural gas production from January through September 2024 averaged 103.3 Bcf/d, essentially flat compared with the same period in 2023. The decline in shale gas production so far this year has been driven primarily by declines in production in the Haynesville and Utica plays.
NatGas Prices to Rise. Analysts look at natural gas price rise. Rigzone. Natural gas prices have been under pressure lately with seasonally warmer temperatures, so the potential for a sharper bounce was in the technical set up. Hogan also highlighted to Rigzone that the U.S. Energy Information Administration’s (EIA) latest weekly petroleum status report “was constructive for natural gas in both the production component and the storage information”.
Mexican Exports Helping NatGas Price. North American natural gas prices find footing with steady Mexico imports — spotlight. NGI. North American natural gas futures got a boost on Wednesday and Thursday as the November contract headed closer to expiry. The New York Mercantile Exchange futures contract for November was trading at around $2.530/MMBtu on Thursday afternoon, up from $2.311 at the close on Tuesday.
FERC Gives TX Developers 3 More Years. FERC gives developers 3 more years to build Texas gas terminal. E&E News. Developers of a large gas export terminal in southeast Texas have three extra years to finish work on the project and make it ready for service, federal regulators said Thursday. In a letter, the Federal Energy Regulatory Commission gave sponsors of the Golden Pass LNG export terminal until the end of November 2029 to complete the liquefied natural gas project. Reuters also reports.
Encino Expanding In OH. Thanks, MDN. Encino Energy wants to establish new oil and gas wells on Leesville Lake lands owned by the Muskingum Watershed Conservancy District (MWCD) in Carroll County. The conservancy district’s board of directors is expected to consider a lease agreement with the company’s Ohio affiliate at its meeting tomorrow. The left is apoplectic. The MWCD manages over 54,000 acres of land in Ohio. Over the past decade, the MWCD has leased over half of that land for shale drilling. This isn’t the conservancy’s first rodeo with shale drillers. Encino is one of four operators the MWCD has leased with and is the largest of the four that leases MWCD-owned acreage.
Matterhorn Ramps Up Faster. Matterhorn natural gas pipeline ramps up faster than expected. Hart Energy. The Matterhorn Express Pipeline, which ramped up transmission of Permian Basin natural gas on Oct. 1, eclipsed 1.2 Bcf on Oct. 18, surpassing expectations of analysts at East Daley Analytics. Matterhorn, a joint venture (JV) of Whitewater Midstream, EnLink Midstream (recently acquired by ONEOK), Devon Energy and MPLX, began deliveries to its third interstate pipeline on Oct. 15, East Daley said. Kinder Morgan’s NGPL joined Williams Cos.’ Transco and Enbridge’s Texas Eastern (TETCO) pipelines in receiving gas.
$196 Million for NatGas Pipeline Modernization. U.S. allocates $196 million for natural gas pipeline modernization. Reuters. The U.S. government will award grants totaling $196 million for the repair and replacement of aging natural gas pipelines across 20 states, the Department of Transportation’s Pipeline and Hazardous Materials Safety Administration has announced on Tuesday. The grants, funded by President Joe Biden’s Bipartisan Infrastructure Law, will support 60 modernization projects. This round of funding will focus on replacing old, leak-prone pipes which pose safety hazards, inflate energy costs, and contribute to environmental harm. World Pipelines and Pipeline & Gas Journal also report.
U.S. Power System Becomes More Fossil-Dependent than China’s. Reuters. Utilities in the United States have relied on fossil fuels to generate a larger share of electricity than their counterparts in China since June, seriously undermining U.S. claims to be a leader in energy transition efforts. U.S. utilities have relied on fossil fuels to generate an average of 62.4% of total electricity production for the past four months, according to data from energy think tank Ember.
Range Adding 47 Wells. Thanks, MDN. Range Resources Corporation, the very first company to drill a shale well targeting the Marcellus Shale layer in Pennsylvania (in 2004), issued its third quarter 2024 update yesterday. Range produced 2.2 Bcfe/d in Q3. The company said it now expects 2024 production to average 2.17 Bcfe/d, up ~2% over the last three years as a result of well performance and optimized gathering and compression. Liquids are expected to comprise more than 30% of production and a big reason why the company made $50.6 million in profit for the quarter.
PA Permits October 14, to October 24, 2024
County Township E&P Companies
1. Lycoming Gamble Seneca
2. Susquehanna Liberty SWN
3. Susquehanna Liberty SWN
4. Susquehanna Liberty SWN
OH October 13 to October 19, 2024
County Township E&P Companies
1. Carroll Union EAP OHIO
2. Carroll Union EAP OHIO
3. Carroll Union EAP OHIO
4. Carroll Union EAP OHIO
5. Harrison Short Creek Ascent
WV Permits October 14, to October 18, 2024
1. Marshall SWN
2. Marshall SWN
3. Marshall SWN
