Shale Gas News – June 12, 2021

Bill desRosiers
External Affairs Coordinator, Cabot Oil & Gas

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The Shale Gas News, heard every Saturday at 10 AM on 94.3 FM, 1510 AM, 1600 AM, 104.1 FM and Sundays on YesFM, talked about pipeline safety, oil prices, NGL and much more last week.

The Shale Gas News has grown again to the Williamsport area on stations WEJS 1600 AM & 104.1 FM. The Shale Gas News is now broadcasting in Bradford, Lackawanna, Lancaster, Lebanon, Luzerne, Lycoming, Pike, Sullivan, Susquehanna, Tioga and Wayne Counties, as well as in greater central PA and now the Williamsport area. The Shale Gas News is aired on Saturday or Sunday depending on the station.

Every Saturday Rusty Fender, Matt Henderson and I host a morning radio show to discuss all things shale gas. This week, as a guest, we had State Representative Aaron Kaufer, representing the 120^th Legislative District in the Pennsylvania House of Representative, serving parts of Luzerne County.

The Shale Gas News, typically, is broadcast live. On the June 12th show (click above), we covered the following new natural gas territory (see news excerpts below):

‘A positive thing for Houston’: Oil closes above $70 a barrel for first time since 2018. Oil settled above $70 a barrel for the first time in nearly three years, crossing another milestone for the industry and Houston as prices continue their rebound from last year’s crash negative territory. Crude gained more than 1 percent Tuesday to settle at $70.05 a barrel in New York, the highest close since Oct. 2018. Oil has rallied in recent months as energy demand grew with increasing vaccinations, diminishing social distancing restrictions and a burst in travel and other activities.
Pipeline Safety Update – Issue No. 165 – On June 7, the Pipeline and Hazardous Materials Safety Administration (PHMSA) issued an Advisory Bulletin reminding owners and operators of gas pipeline facilities that Section 114(b) of the “Protecting our Infrastructure of Pipelines and Enhancing Safety Act of 2020” (PIPES Act 2020) contains a self-executing provision requiring operators of gas distribution, transmission and gathering pipeline facilities to update their inspection and operation and maintenance (O&M) plans to address eliminating hazardous leaks and minimizing releases of natural gas from their pipeline facilities and replacing or remediating pipelines that are known to leak because of their material, design, or past O&M history.
Biden admin pushes back on oil leasing freeze lawsuits. The Biden administration struck back this week on claims that the president acted outside his authority when he ordered a pause on new oil and gas leasing on public lands and waters.
Investors Set Their Sights On $100 Oil. Oil prices held their gains at the start of the week, with Brent at $71 and WTI just below $70 (after briefly touching that threshold on Monday). Analysts see investors pocketing gains at these roughly two-and-a-half-year highs, allowing the rally to take a breather.
Oklahoma revenue soars 34% on oil, gas production comeback. Oklahoma’s post-pandemic economic recovery is being bolstered by strong consumption tax receipts and a rebound of the state’s oil and gas market, a year after it tanked and pushed the state’s economy into a deep recession, Treasurer Randy McDaniel said. In May, gross receipts to the Treasury surged more than 34% to $1.24 billion, and 12-month receipts are running at a record high.
America’s Energy Gift to Dictators. The U.S. is barreling toward one of the greatest self-inflicted wounds in its history. This came into sharper focus last week when President Biden suspended oil leases in Alaska’s Arctic National Wildlife Refuge (ANWR), even as Russia and the Organization of the Petroleum Exporting Countries (OPEC) announced production increases. Mr. Biden’s anti-carbon fusillade will have no effect on the climate as global demand for fossil fuels will continue to increase for decades no matter what the U.S. does. Meantime, Russia, China and Iran will take advantage of America’s astonishing fossil-fuel retreat.
NGL Prices, Profitability “More than Double” for M-U Drillers. NGL (natural gas liquid) revenues for U.S. drillers soared in the first quarter of 2021–up 100% (i.e. doubled) over the same quarter in 2020, which was the quarter when COVID-19 began to seep into the public consciousness. In particular international demand for U.S. liquefied petroleum gas (LPG, or propane) helped propel NGL revenues higher in 1Q21. Guess which company posted the highest year-over-year increases for both NGL prices and revenues?