Facts & Rumors # 578
December 14, 2024
OH Approves More Fracking under State Lands. Ohio O&G Commission approves more fracking under state lands. Marcellus Drilling News. Yesterday, the Ohio Oil and Gas Land Management Commission (OGLMC) voted to award a contract to Gulfport Energy to drill and frack under (not on) about 30 acres of the Egypt Valley Wildlife Area in Belmont County. Commissioners also voted to open an additional 884 acres of Salt Fork State Park in Guernsey County for oil and gas development.
Methane Emissions down 52% in the Appalachian Basin. Thanks, MDN. The environmental left is hellbent on regulating fossil fuels, including oil and natural gas, out of existence. One of their favorite (false) memes is to claim methane is a bazillion times more “potent” in causing global warming than other things, like carbon dioxide. The false narrative continues that shale drilling is causing a stratospheric increase in fugitive methane leaks into Mom Earth’s atmosphere. Except….it isn’t true. According to data from the Environmental Protection Agency, methane emissions from the country’s top oil and gas-producing basins have fallen 44 percent since 2011. Methane emissions right here in the Marcellus/Utica have fallen 52% from 2019 to 2023!
Big Push for Permitting Reform. Oil, gas lobbyists call for federal permitting reform before end of year. Daily Energy Insider. Before the current session of Congress closes, a coalition of oil and gas trade associations representing more than 80 percent of U.S. domestic production urged the Speaker of the House to take swift action on permitting reform. “As the association that represents independent oil and natural gas producers in more than 30 states across the United States and offshore, our member companies are developing the wells that bring Americans the oil and natural gas we need,” said IPPA Chief Operating Officer and Executive Vice President Dan Naatz. “With permitting reform, our members can more efficiently, safely and reliably move their product to market so the United States has a reliable energy supply. IPAA urges swift action by Congress on legislation to improve permitting and the NEPA process.”
Fossil Fuels to “Save the Day!” Thanks, MDN. Wednesday, the analysts at S&P Global Commodity Insights, the leading independent provider of information, data, analysis, benchmark prices, and workflow solutions for the commodities and energy markets, released their 2025 energy outlook. S&P published the top 10 “key themes” from the report. Key theme #2 was this: “Total energy demand growth to outstrip clean energy supply growth.” The concomitant conclusion is that *something* has to meet that new energy demand, and since unreliable renewables can’t and won’t, fossil fuels will ride in to save the day—as they always have.
Big Oil Targeting AI Data Centers. Big Oil eyes powering Big Tech’s data center demand. Reuters. Chevron Corp and Exxon Mobil are considering entering the electricity business, with the U.S. oil majors working on deals to use natural gas and carbon capture to power the technology industry’s AI data centers, executives with the companies said separately on Wednesday. Chevron has been in talks for more than a year about supplying natural gas-fired power, coupled with carbon capture technologies, to data centers, Jeff Gustavson, president of Chevron New Energies, said in an interview at the Reuters NEXT conference in New York.
STEO Predicts 40% higher NatGas Prices in Winer 2025. Thanks, MDN. The U.S. Energy Information Administration (EIA) issued its latest monthly Short-Term Energy Outlook yesterday, the agency’s monthly best guess about where energy prices and production will go in the next 12 months. In October, the EIA predicted the average spot price for natural gas would be $3.10/MMBtu in 2025 (see Oct. STEO Predicts Lower Output, NatGas Price to Avg $3.10 in 2025). Last month, the agency reduced that number by $0.20 to $2.90/MMBtu (see Nov. STEO Predicts Henry Hub Gas Price to Average $2.90 in 2025). The yo-yo continues to gyrate. Yesterday’s report predicts the price will average $3.00/MMBtu for the rest of the winter and all of 2025—some 40% higher than the average price in November.
Rigs Up! U.S. drillers add oil and gas rigs for first time in 8 weeks -Baker Hughes. Reuters. U.S. energy firms this week added oil and natural gas rigs for the first time in eight weeks, energy services firm Baker Hughes said in its closely followed report on Friday. The oil and gas rig count, an early indicator of future output, rose by seven to 589 in the week to Dec. 6, its highest since mid-September.
Exxon to Boost Output by 18%. Exxon sets plan to boost oil and gas output by 18%. Reuters. Exxon Mobil on Wednesday said its annual project spending will rise to between $28 billion and $33 billion between 2026 and 2030 as it looks to boost its oil and gas output by 18%. This follows its acquisition of U.S. shale producer Pioneer Natural Resources. The top U.S. oil producer laid out a five-year plan to increase earnings by $20 billion and cash flow by $30 billion to fund its expansion plans for oil and liquefied natural gas (LNG) production and drive shareholder returns.
US Production Is Threatening OPEC’s Hold on the Oil Market. Texas Standard. Saudi Arabia, a founding member of OPEC, has aimed to keep oil prices elevated. But it’s struggling to keep allied countries oil production in check – and a new US Administration could shake things up even further. Matt Smith, energy analyst for Kpler, spoke with Texas Standard about what’s behind the shift and how a Trump appointee could mean more U.S. oil production. Smith: The U.S. is the largest oil producer in the world now by quite a margin. So the U.S. produces 13.5 million barrels a day, while Saudi Arabia and Russia are only around 9 million barrels a day now as they’re trying to keep that production reined in to support prices.
OPEC Cuts Oil Demand Growth Forecast. OPEC makes fifth and biggest cut to 2024 oil demand growth forecast. Oil and Gas 360. OPEC cut its 2024 global oil demand growth forecast for a fifth straight month on Wednesday and by the largest amount yet, a series of downgrades that highlights China’s sputtering role as the world’s demand growth engine. The weaker outlook underlines the challenge facing OPEC+, which comprises the Organization of the Petroleum Exporting Countries and allies such as Russia. OPEC+ earlier this month delayed its plan to start raising output until April 2025 against a backdrop of falling prices.
NatGas Storage Up in TX. Texas tops up natural gas salt storage to record ahead of winter risks, LNG ramp. Natural Gas Intelligence. Underground supplies of natural gas in Texas salt storage facilities have climbed to new records as traders position for potential winter volatility and the startup of two new LNG export projects. Texas salt storage levels reached 152 Bcf in October then rose to 155 Bcf in mid-November, Railroad Commission of Texas (RRC) data showed. That preliminary reading for Nov. 15 was an all-time record and followed the state’s highest October salt injection in a decade, according to Criterion Research Inc.’s James Bevan, vice president of research.
Tougher Russian Sanctions Could be Coming. U.S. considers new Russia oil sanctions to weaken Putin ahead of Trump. Bloomberg. The Biden administration is weighing new, harsher sanctions against Russia’s lucrative oil trade, seeking to tighten the squeeze on the Kremlin’s war machine just weeks before Donald Trump returns to the White House. Details of the possible new measures were still being worked out, but President Joe Biden’s team was considering restrictions that might target some Russian oil exports.
Top 5 NatGas Producing States in 2023. Five states drove record U.S. natural gas production in 2023. Energy Information Administration. Five states produced more than 70% of the record 113.1 billion cubic feet per day (Bcf/d) of U.S. marketed natural gas production in 2023. Texas accounted for 28% of U.S. marketed natural gas production in 2023, according to our Natural Gas Monthly, followed by Pennsylvania (18%), Louisiana (10%), West Virginia (8%), and New Mexico (8%).
PA December 2, to December 12, 2024
County Township E&P Companies
1. Bradford Springfield Blackhill Energy
2. Centre Snow Shoe XPR Energy
3. Greene Jefferson EQT
4. Greene Jefferson EQT
5. Lycoming McHenry EQT ARO
6. Lycoming McHenry EQT ARO
7. Lycoming McHenry EQT ARO
8. Lycoming McHenry EQT ARO
9. Lycoming McHenry EQT ARO
10. Lycoming Upper Fairfield Inflection
11. Washington East Finley EQT
12. Westmoreland Alleghany Olympus Energy
13. Westmoreland Washington CNX
14. Westmoreland Washington CNX
15. Wyoming Meshoppen Chesapeake
16. Wyoming Meshoppen Chesapeake
17. Wyoming Meshoppen Chesapeake
18. Wyoming Meshoppen Chesapeake
OH December 2, to December 7, 2024
County Township E&P Companies
1. Harrison Freeport EOG
2. Harrison Freeport EOG
3. Harrison Freeport EOG
4. Harrison Freeport EOG
5. Harrison Freeport EOG
6. Harrison Green Ascent
7. Harrison Green Ascent
8. Harrison Green Ascent
9. Harrison Green Ascent
WV Permits December 2, to December 6, 2024
1. Wetzel Antero
