Facts & Rumors # 626
January 17, 2026
Marcellus, Utica, Permian and Eagle Ford Plays
The Demand Decade. An era that is going to require historic amounts of new energy. Mike Sommers, President of API, this week gave a “state of the industry” speech discussing the Demand Decade. It’s worth your reading. LINK HERE.
U.S. NatGas Demand Sets Up Largest Pipeline Expansion Since 2008. P&G Journal. Strong growth in U.S. natural gas demand is driving the largest wave of pipeline construction since the peak of the shale boom in 2008, with nearly 18 billion cubic feet per day of new capacity expected to come online in 2026, according to a new analysis from Morningstar DBRS. The expansion is being fueled by a combination of rising LNG exports, growing power demand from data centers and manufacturing, and surging associated gas production in the Permian Basin, where pipeline takeaway constraints have pushed regional prices sharply lower.
Pipeline Companies Can Defer Required Work. Pipeline companies can defer required work, feds say. E&E News. U.S. pipeline safety regulators rolled out a new enforcement policy Monday that allows companies to put off compliance activities if they can prove the actions would exacerbate what the Trump administration calls a “national energy emergency.” The Pipeline and Hazardous Materials Safety Administration (PHMSA) said the policy — issued in response to the energy “emergency” President Donald Trump declared on the first day of his second term — is meant to give relief to consumers in areas affected by the emergency.
E.P.A. Moves to Limit States’ Ability to Block Pipelines. The New York Times. The Trump administration on Tuesday moved to limit the ability of states to block the construction of oil and gas pipelines, coal export terminals and other energy projects that could pollute local waterways. The proposed rule from the Environmental Protection Agency would curtail a section of the Clean Water Act that states have used for decades to restrict fossil fuel development. It is expected to set up a legal battle with Democratic state officials across the country.
Southwest PA Pipeline Approved. Thanks, MDN. Last summer, Texas Eastern Transmission Pipeline Company (aka TETCO, owned by Enbridge) filed to build the Appalachia to Market III Project, abbreviated A2M III. The A2M III is designed to provide additional natural gas supply in Pennsylvania and the broader region to meet growing demand from utilities and industrial users for Marcellus gas. The A2M III Project will provide up to 32,000 dekatherms per day (32 MMcf/d) of additional firm natural gas transportation service from the Appalachian supply basin in Southwest Pennsylvania to meet the needs of two existing local distribution company customers in Pennsylvania and Delaware. Over the weekend, the Pennsylvania Department of Environmental Protection (DEP) published a notice that it has issued requested water quality permits and approvals for the project.
Devon Energy and Coterra Energy Discussing Merger. Devon Energy (DVN.N), opens new tab and Coterra Energy (CTRA.N), opens new tab are exploring a potential merger, in a deal that could create one of the largest independent U.S. shale producers, three people familiar with the matter said.
A possible combination, which would rank among the largest between U.S. energy producers in recent years, comes as U.S. crude prices are pressured by a near-term global oil glut and the prospect of more supplies entering the market in the coming years from Venezuela.
New Producer — Grenadier Energy Gets Approval to Drill in Eastern Ohio. Texas-based company approved to frack more than 170 acres of wildlife area in eastern Ohio. Ohio Capital Journal. A Texas-based company was chosen as the highest and best bid to frack about 170 acres of Leesville Wildlife Area during Monday’s Ohio Oil and Gas Land Management Commission meeting. Grenadier Energy III’s bid was selected among three total bids. The commission is required to pick the “highest and best bid” per Ohio law. The lease bonus is $1,029,840 and includes a 12.5% royalty, according to the Ohio Department of Natural Resources.
Appalachia Midstream Files Permit for Pipeline. Appalachia Midstream files permit for Pennsylvania gas pipeline. P&G Journal. Appalachia Midstream Services LLC has filed state and federal permit applications to construct a new natural gas pipeline in north-central Pennsylvania, according to a notice published in the Pennsylvania Bulletin. The proposed project involves the installation of approximately 16,200 ft (3.07 miles) of 12-in. steel natural gas pipeline in McNett Township, Lycoming County, supporting Marcellus Shale development tied to existing Williams pipeline infrastructure.
Ohio Opens 6000 Acres for NatGas and Oil Extraction. Ohio opens 6,600 acres of protected lands for oil and gas extraction. Signal Ohio. A state board voted Monday to open about 6,600 combined acres of public lands from both the Jockey Hollow and Egypt Valley Wildlife areas in eastern Ohio to the natural gas industry. The Oil and Gas Land Management Commission also selected Grenadier Energy, of Texas, as the winning bidder for mineral rights beneath about 172 acres of the Leesville Wildlife Area in Carroll County. The company will pay about $1 million as a signing bonus and will pay an additional 18% royalty payment on sales of gas produced, a state spokeswoman said.
Oil and NatGas Drilling Permits Surge 55% under Trump. E&E News. The Trump administration’s efforts to boost the U.S. oil and gas industry resulted in a 55 percent increase in permits to drill on public lands in just under a year. The Interior Department’s Bureau of Land Management approved 5,742 permits to drill between Jan. 20, 2025 — the first day of President Donald Trump’s second term — and Jan. 6 of this year, according to data from the agency. That dwarfs the 3,696 approvals issued over the comparable period in 2024-2025 under former President Joe Biden. BLM also held 22 lease sales in 2025, leasing some 328,000 new acres of public land across 10 states for oil and gas development.
New Oil Discovery in the Permian. Geological survey in Texas uncovers 1.6 billion barrels of oil. Fox 4. A recent U.S. Geological Survey assessment of previously undiscovered gas and oil in Texas’ Permian Basin has found that there are enough resources there to fuel the entire nation for months. The gas and oil, measured in trillions of cubic feet and billions of barrels, are located in the Woodford and Barnett shale, which to date have produced only a day’s worth of U.S. oil consumption. The assessment found that there are technically recoverable resources of 28.3 trillion cubic feet of gas and 1.6 billion barrels of oil, the USGS said in their Wednesday release.
Silver Hill Acquires Eagle Ford Assets in South Texas Expansion. P&G Journal. Silver Hill Energy Partners has closed the acquisition of oil and gas assets in South Texas from 1776 Energy, expanding its footprint in the Eagle Ford and Austin Chalk plays. The deal includes roughly 17,500 net acres and about 550 gross drilling locations across Karnes and Gonzales counties, according to the company. Silver Hill acquired 100% of 1776 Energy’s interest in the properties, along with associated rights and assets.
NatGas to Mexico to Surge in 2026. U.S. natural gas exports to Mexico poised to surge in 2026. Natural Gas Intelligence. Mexico’s reliance on U.S. natural gas is set to deepen in 2026, with analysts predicting growth in pipeline imports to historic levels as robust demand outpaces lagging domestic production and new infrastructure comes online. Consultancy Simplificado y Punto director David Madero told NGI that Mexico’s natural gas demand would grow faster than domestic natural gas supply in 2026, meaning “imports will continue to increase and will reach historic record levels.”
December DUC’s Report A triple-digit drop in the number of drilled, but uncompleted wells in the Permian Basin in December led to a 25% year-over-year reduction in DUCs in four of the US’s most productive O&G formations, new federal data shows.
The latest edition of the Energy Information Administration’s Short-term Energy Outlook (STEO) found 2,120 DUCs in place in Appalachia (including the Marcelus and Utica Shale plays), Bakken, Eagle Ford and Permian last month.
That total was down a whopping 700 wells, or 24.8% from December 2024’s 2,820-well total. The 2,120-well total was down 36 DUCs, or 1.7%, from November’s 2,156 total, according to the January STEO.
The Permian’s total number of DUCs year-over-year plummeted 450 wells, or 35.9%, to 821 from 1,280. The formation’s December total was down an additional 21 DUCs, or 2.5% from the November figure.
Second-place Appalachia trailed the Permian by a wide margin in terms of the drop in wells. In the Marcellus and Utica, December’s number of DUCs fell to 702, down 95 wells, or 11.9% from 797 one year ago. Two months ago, Appalachia had 707 DUCs in place.
Both the Bakken and Eagle Ford fell 73 DUCs year-over-year. In the Bakken, the well total year-over-year dropped to 257 from 330, a 22.1% reduction. The play’s total was down 13 wells, or 4.8%, from November’s 270 total.
Last month, the Eagle Ford’s drilled, but uncompleted well total was 340, down 17.7%, from 413 one year ago, the STEO reported. The latest figure actually was up three wells from November’s 337.
PA January 5, to January 15, 2026
County Township E&P Companies
1. Greene Wayne EQT
2. Lycoming McHenry EQT
3. Lycoming McHenry EQT
4. Tioga Bloss Repsol
5. Tioga Bloss Repsol
6. Tioga Bloss Repsol
7. Tioga Bloss Repsol
8. Tioga Bloss Repsol
9. Tioga Bloss Repsol
10. Tioga Charleston Seneca
11. Tioga Farmington Seneca
12. Washington West Finley CNX
OH January 4, to January 10, 2026
County Township E&P Companies
1. Jefferson Wayne Ascent
2. Jefferson Wayne Ascent
WV December 20, 2025 to January 8, 2026
1. Harrison Antero
2. Lewis HG Energy
3. Lewis HG Energy
4. Lewis HG Energy
5. Lewis HG Energy
6. Lewis HG Energy
7. Lewis HG Energy
