Facts & Rumors # 369
February 22, 2020
Shale Directories Conferences
8th Annual Utica Midstream
March 19, 2020
North Canton, OH
8th Annual Upstream PA 2020
April 16, 2020
State College, PA
4th Annual Appalachian Storage Hub Conference
June 4, 2020
Hilton Garden Inn
Southpointe, Canonsburg, PA
8th Annual Utica Downstream
October 15, 2020
North Canton, OH
8th Annual Midstream PA 2020
November 12, 2020
State College, PA
2nd Annual Appalachian Basin Real Estate Conference
December 10, 2020
Latest facts and a rumor from the Marcellus, Utica, and Permian, Eagle Ford Plays
Good News on Shell Cracker. While this warm winter has been bad for NatGas drilling business, it’s been a boon to Shell. The construction of the cracker is four months a head of schedule. There is even a chance that the cracker plant can be started up in the fall.
When does the expansion start? I have heard from many sources that Shell will start working on the expansion once the plant is up and running. Stay tuned for this information.
Bechtel can now start moving resources down the river to the PTTDLM cracker plant. (RUMOR)
Leidy South Project Needs Your Support. FERC has released the Environmental Assessment (EA) for the Leidy South Expansion Project, concluding that environment impacts would be reduced to “less than significant levels” with the implementation of mitigation measures proposed by Williams and FERC.
This milestone triggered a 30-day public comment period, and it helped keep this critical natural gas project on pace to be in service in time for the 2020/2021 winter season. SIGN THE SUPPORT PETITION
We appreciate your support for this important project.
NESE Project Is Back! A hotly contested proposal to build a pipeline to take natural gas to customers in New York City and Long Island is back before New Jersey regulators. The Northeast Supply Enhancement Project would add to the existing Transco pipeline and would carry enough gas to heat 2.3 million homes. It would take gas from Pennsylvania through New Jersey and its Raritan Bay to New York. Oklahoma-based Williams Companies plans to spend $926 million on the project, saying that it is needed to ensure adequate heating and energy supplies to New York City and Long Island, and that it can be built safely with minimal environmental disruption. Williams filed its latest application with the New Jersey Department of Environmental Protection on Jan, 21, a filing made public Thursday by the state. It is at least the fourth time the Tulsa company has applied for permission to build the project, which includes more than 23 miles of pipeline through Raritan Bay into New York, and a compressor station to be built in Franklin Township in Somerset County, New Jersey. The company withdrew its application twice before, and New Jersey regulators denied it once.
Williams 4th Qtr. Update. Williams has reported its fourth quarter 2019 gathered volumes were up 10% in 2019 from a year earlier, to a record 13.3 billion cubic feet per day (Bcf/d), Kallanish Energy reports.
The 2019 gathered volume was a record 12.9 Bcf/d, up 5% over 2018.
It reported a record Q4 2019 firm transportation capacity of 21.8 billion cubic feet per day, up 8% over Q4 2018. That was driven by expansion projects, including the Gateway and Rivervale South to Market expansions in the Northeast and the North Seattle Lateral in Washington state.
The midstream company, a major mover of natural gas, also reported a record 2019 adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was driven by strong growth in the Atlantic-Gulf and Northeast gathering and processing.
In Q4 2019, the company reported net income from continuing operations of $138 million, or 11 cents per share. That compares to a loss of $572 million, or 47 cents per share, in Q4 2018.
“Williams achieved yet another year of record results, once again delivering impressive year-over-year growth and exceeding guidance midpoints in our key financial metrics while drastically reducing capital expenditures,” said president and CEO Alan Armstrong, in a statement.
It reported cash flow from operations of $991 million, up $29 million, or 3%, over 4Q 2018. Williams adjusted EBITDA was $1.284 billion, up $87 million, or 7%, from Q4 2018. Distributable cash flow in the most recent quarter was $828 million, up $80 million, or 11%, over the year-ago quarter. 8.
For full-year 2019, net income from continuing operations was $862 million, or 71 cents per share. That’s up $1.0 billion over full-year 2018’s loss of $156 million, or 47 cents per share.
Cash flow from operations in 2019 was $3.69 billion, up 12% from 2018. Williams full-year 2019 adjusted EBITDA was $5.02 billion, up $377 million, or 8%, from 2018.
Distributed cash flow was $3.30 billion, up $425 million, or 15%, over 2018. The company had revenue of $2.1 billion in Q4 2019, and $8.2 billion for full-year 2019.
“These results were underpinned by our strong operations – we set records for both gathered volumes and firm reserved transportation capacity and our safety metrics continue to improve,” Armstrong said.
Energy Transfer 4th Qtr. Update. Energy Transfer said during an earnings call with analysts and media discussions with potential shippers to build a large offshore crude oil export facility in the Gulf of Mexico are progressing, but a final investment decision has not been made, Kallanish Energy reports.
Such a facility would be designed to handle Very Large Crude Carriers (VLCCs).
The company also said once complete, the Ted Collins crude oil pipeline will move more than 1 million barrels of crude per day 75 miles between terminals in Houston and Nederland, Texas, as well as to other Gulf Coast refineries. The shale boom has made the U.S. the world’s No. 1 crude oil producer.
Highest annual profit in 25 years
Energy Transfer also reported it closed 2019 with the highest yearly profit in the company’s 25-year history. It said it made $3.6 billion in 2019, more than three times the $1.1 billion made in 2018.
The increase was due mainly to higher operating income, said the Texas-based midstream giant. The profit comes in spite of yearly revenue remaining nearly flat at $54.2 billion in 2019, compared to $54.1 billion in 2018.
The company reported moving higher volumes of crude oil, natural gas and natural gas liquids across its 86,000 miles of pipelines in 38 states.
It reported moving 4.7 million barrels per day (Mmbpd) in the Q4 2019, up from 4.3 Mmbpd in Q4 2018. The increase is due to Bakken shipments in North Dakota and Montana, and Texas pipelines.
Net income rises
It reported fourth-quarter net income of $1.01 billion, or 38 cents per share, an increase of $395 million from one year earlier, when net income totaled $617 million, or 26 cents per share. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) in Q4 2019 was $2.81 billion, an increase of $138 million from Q4 2018.
That was due to strong performances among the partnership’s core segments with additional record operating performance in natural gas liquids and its refined products transportation and service segment.
Distributable cash flow attributable to partners in Q4 2019 was $1.55 billion, an increase of $30 million from a year earlier. Energy Transfer’s Q4 2019 revenue reached $13.7 billion, up from $13.5 billion in Q4 2018.
Last December, the company and Shell US LNG prepared bid details for the proposed LNG liquefaction facility at Lake Charles, Louisiana. It would produce 16.45 million tonnes per year (Mtpa) of LNG for export.
This month, the company placed the Frac VII facility in service, bringing its total fractionation capacity at Mont Belvieu, Texas, to more than 900,000 Bpd.
Pioneer To Drill More in 2020. Texas-based Pioneer Natural Resources said it plans to increase its 2020 capital spending budget for drilling, at a time when many E&P companies are cutting that funding, Kallanish Energy reports.
The company said it plans to spend $3.15 billion to $3.45 billion in 2020, a slight increase from the $3.0 billion in 2019. It cited substantial improvements in efficiencies in announcing its plan.
Pioneer is among the most active E&P companies in Texas in terms of drilling permits filed with the Railroad Commission of Texas, according to the Houston Chronicle newspaper.
Net income rises
Cash flow in 2020 is expected to be $3.9 billion, said the company. In Q4 2019, the company reported net income of $344 million, or $2.06 per share, up from $324 million, and $1.89 per share, in Q4 2018.
Its average realized price for oil in the Q4 2019 was $56.01 per barrel, while its average realized natural gas price was $2.21 per thousand cubic feet and its average realized price for natural gas liquids was $18.60/Bbl.
For full-year 2019, the company reported net income of $756 million, or $4.50 per share, down from $978 million, or $5.70 per share in full-year 2018.
Annual revenue flat
The company produced free cash flow of $384 million in the fourth quarter and $540 million for full-year 2019. Annual revenue in 2019 was $9.3 billion, nearly equal to the $9.4 billion reported in full-year 2018.
It returned $780 million of capital to shareholders through dividends and stock repurchases in 2019.
“2019 was an excellent year for Pioneer, where we delivered strong cash flow, robust free cash flow generation and top tier corporate returns,” said president and CEO Scott Sheffield, in a statement.
“This was driven by an intense focus on execution that resulted in significant well cost reductions while maintaining peer-leading oil production per well in the Permian Basin,” he said.
Total production above guidance
In Q4 2019, total production averaged 363,000 barrels of oil-equivalent per day (Boe/d), above the top end of the company guidance.
In the quarter, oil production averaged 220,000 barrels per day of oil, at the top end of company guidance. The company placed 77 horizontal wells on production in the fourth quarter.
In 2020, it plans to operate 23 to 24 rigs in the Permian Basin of West Texas/southeast New Mexico. Its 2020 drilling program is expected to produce 345 to 375 wells in production, compared to 306 wells placed in production in 2019.
The wells placed in service in 2020 are expected to be 40% Wolfcamp B, 40% Wolfcamp A, 15% Spraberry and 5% other formations, with an average lateral length of 9,800 feet.
Total production in 2020 is projected to be 383,000 to 403,000 Boe/d.
FERC Has Good News for Mountain Valley Pipeline. The Federal Energy Regulatory Commission has issued a favorable final Environmental Impact Statement for the $484 million Mountain Valley Pipeline’s Southgate extension into North Carolina, Kallanish Energy reports.
The impacts associated with the 75.1-mile natural gas extension would be minimized to “less than significant levels,” the federal agency said.
The approval comes as Mountain Valley remains bogged down in legal and regulatory challenges that have halted construction. It was 90% complete at Dec. 31.
The FERC approval of the extension had initially been scheduled for last December, but was postponed due to route changes that required further review. The extension will run from near Chatham in southern Virginia, into Rockingham and Alamance counties in North Carolina. It would end near Graham, North Carolina.
The project calls for the construction of 73.7 miles of 16-inch and 24-inch pipeline, plus one compressor station, four new meter stations and other related facilities.
The $468 million extension would be owned and operated by Mountain Valley Pipeline. It is expected to begin service in 2021.
The MVP is designed to move natural gas from the Marcellus and Utica shales in the Appalachian Basin to markets along the Atlantic coast including electric utilities. It’s a 303-mile, 42-inch natural gas pipeline system that will run from northwestern West Virginia to southern Virginia, flowing 2 billion cubic feet per day.
MVP is owned by joint-venture partners Equitrans, NextEra US Gas Assets, Con Edison Transmission, WGL Midstream, and RGC Midstream. The price tag has risen from $5.3 billion to $5.5 billion. The completion date is late 2020.
Construction has been halted at times by FERC, a federal appeals court, state agencies and the U.S. Army Corps of Engineers.
RRC Announces New Flaring Criterion. An official with the Railroad Commission of Texas (RRC), which oversees various oil and gas industry activities in the state, on Tuesday unveiled what reportedly is a new criterion for gas flaring. “I calculated the relationship between oil production and flaring, and identified that metric as Flaring Intensity,” RRC Commissioner Ryan Sitton commented in the executive summary to his report on flaring for the first quarter of 2020. “By measuring the flaring intensity of nations, states and various companies, and comparing them all to the global industry average, we now have an effective benchmark to compare performance.” “The Texas oil and natural gas community believes more data is necessary to ensure sound policies and science guide decisions about operations,” Texas Oil & Gas Association (TXOGA) President Todd Staples stated following the release of the RRC flaring report. “While this report points out that Texas’ flaring intensity is already among the lowest rates in the world, industry in Texas is working collaboratively to identify ways to minimize flaring and reduce intensity levels even further.” Staples also noted that a key component of a flaring-reduction strategy will be adding pipeline capacity to handle existing production and new future output.
TX Flaring Not as Bad. Texas’ natural gas flaring is not as big a problem as some critics have portrayed it, one of the state’s top energy regulators said yesterday in addressing a controversy with implications for greenhouse gas emissions and his own political career. Texas has drawn national scrutiny for allowing oil and gas companies to burn natural gas in flares when they can’t afford to ship it to market. But the state’s flaring intensity — the amount of gas that’s wasted when compared with the amount of oil produced — compares favorably to other oil-producing regions and even some U.S. states, Ryan Sitton, one of three members of the state Railroad Commission, said yesterday in a first-ever regulatory report.
The Texas Railroad Commission adopts a rule change that opens the door for more fracking across the state. The goal is simple: energy independence. According to the RRC’s website, Rule 3.40 “restricted exploration in unconventional fracture treated fields when oil and gas mineral ownership is divided at different depths below the surface. A UFT field is a field in which horizontal drilling and hydraulic fracturing must be used to recover oil and gas. To take advantage of technological advances that can tap into once inaccessible hydrocarbon resources in UFT fields, Commissioners voted to allow assignment of acreage to multiple wells in these fields. This rule revision will further protect mineral owner interest and allow access to additional resources.” Industry insiders say it is a longtime coming. “We’ll see a lot less red tape and a lot more efficiency to get it to market and be able to the hydraulic fracturing, and not take so much time in trying to deal with the mineral right owners,” says Kym Bolado, host of ‘In the Oil Patch,’ Sunday nights on KTRH.
Kinder Offers New Guidance on Permian Pass Pipeline. Houston pipeline operator Kinder Morgan plans to build the company’s third pipeline to move natural gas from the Permian Basin of West Texas to the Gulf Coast but the project may have to wait until more customers sign up. Kinder Morgan brought its Permian Basin-to-Corpus Christi Gulf Coast Express Pipeline into service in September while construction continues for its Permian Highway Pipeline, which will move gas from the West Texas shale play through the Texas Hill Country to the Katy Hub near Houston. The company’s CEO Steve Kean told the Houston Chronicle that Kinder Morgan remains in talks with producers to build the Permian Pass Pipeline, a proposed project that will move 2 billion cubic feet of natural gas per day from the prolific West Texas shale play to interstate pipelines and liquefied natural gas export terminals in East Texas and Louisiana. “While we were in deep discussions mid-last year, that has cooled a bit as producers re-examine their capital commitments,” Kean said. “I still think we’re going to need it.”
Judge Says, “Start Now!” Judge’s order allows pipeline construction in Hill Country to ‘begin immediately’. An order by a federal judge will allow Kinder Morgan to proceed with its construction plans of the Hill Country portion of its Permian Highway Pipeline. U.S. District Court Judge Robert Pitman of the Western District of Texas issued the order on Feb. 14, which denied a temporary restraining order (TRO) filed by several Hill Country property owners in hopes of preventing the pipeline to be built on their properties. Judge Pitman acknowledged in the order, “the Court appreciates Plaintiffs’ arguments and has concerns about the fate of the warblers whose habitat is in the path of the pipeline.” However, he also said that the parties involved in the lawsuit against Kinder Morgan did not show that the pipeline would cause “irreparable harm” to the golden-cheeked warbler population, thus warranting the denial. With the judge denying the TRO, the order stated “Kinder Morgan intends to begin construction immediately, first by clearing the land.” The order noted that Kinder Morgan is not allowed to clear vegetation between March 1 and July 31 in habitat areas for the endangered golden-cheeked warbler. The order also stated that all parties in the federal suit are scheduled to meet on a phone conference on Tuesday at 3:30 p.m. to set dates for the next legal proceedings.
Economic Growth Due to O&G Boom. The United States is enjoying an unprecedented 11th consecutive year of sustained economic growth. Predictably, both of the occupants of the White House during this time-span have claimed credit. But in reality, our historic run of economic prosperity can be traced to an American energy renaissance that has spanned both the Obama and Trump administrations. Energy is the one thing that all Americans use. And with that fundamental reality in mind, advances in hydraulic fracturing, aka “fracking,” and horizontal drilling have allowed us to literally drill our way to lower energy prices and economic prosperity. So it’s no wonder why U.S. gross domestic product (GDP) has spiked more than 25%, unemployment rates have fallen to record lows and median household incomes have increased at the same time the United States has emerged as an unexpected energy superpower. Collectively, the oil and natural gas boom has been credited for 10% of GDP growth since the Great Recession.
PA Elected Officials, Unions and Business Leaders Support Fracking. Pennsylvania voters, elected officials across the political spectrum, union building trades members, and business leaders agree – banning the safe, responsible use of hydraulic fracturing will devastate our economy, burden consumers with skyrocketing energy costs, and reverse more than a decade of environmental progress.
Despite the severe blow such a policy would deliver to working families, Sen. Sanders – the leading candidate in the Democratic presidential primary – double downed on his proposed “fracking ban” during last night’s debate. In the U.S. House, Rep. Ocasio-Cortez has also introduced legislation to end the very industry that has propelled Pennsylvania to the forefront of the American Energy Revolution.
The response from virtually everyone to these extreme and outside the mainstream policy measures has been swift, loud, and broad.
Here’s what they’re saying:
Rep. Conor Lamb (D-Pa.): “In western Pennsylvania, people feel betrayed when they hear that there are any Democrats who support the elimination of jobs in our communities — good, middle-class, union jobs — and whose policies could easily lead to an increase in carbon emissions. Where I come from, jobs come first, thanks in part to a long history of union organizing that formed the traditional backbone of our party.” (2/14/20)
Sen. Pat Toomey (R-Pa.): “The fact is natural gas has transformed Pennsylvania. It’s changing our country.” … “It has led to a whole renaissance in the petrochemical industry. It’s tremendous for the environment.” … “Its geopolitical benefits are enormous, as well, as important allies of ours can buy natural gas from the United States rather than authoritarian governments that wish us no good will.” Toomey also said it is imperative to push back “on this terrible set of ideas that’s gaining traction among some in the Democratic Party.” (2/20/20)
Rep. Matt Cartwright (D-Pa.): “Natural gas is an important part of our area’s economy and our nation’s overall energy supply.” (2/20/20)
Sen. Ted Cruz (R-Tx.): “We are currently experiencing an American energy renaissance with the United States having now become the number one producer of oil and the number one producer of natural gas on the planet. The political leaders who are advocating for this are also advocating for massive government control of the economy and socialism.” (2/18/20)
Rep. Lizzie Fletcher (D-Tx.): Banning fracking “would negatively impact our national economy, our energy costs, our environment, and increase our dependence on foreign energy sources.” (2/12/20)
Sen. Bob Casey (D-Pa.): “The false choice is that you have to choose fracking over good climate policy,” Casey said. He also stated that natural gas is a clean fossil fuel that must be regulated but not banned because it has made the United States “less dependent and which creates, as we know, lots of jobs in Pennsylvania.” (11/14/19)
Pittsburgh Mayor Bill Peduto (D): “Candidates have already come out and said they want to ban fracking, which will be devastating not only to Western Pennsylvania but to all areas that have been, for 100 years, dependent on fossil fuels for their livelihood.” (2/19/20)
Pa. Lt. Gov. John Fetterman (D): “I am drawing from honest belief when I say: Banning fracking in Pennsylvania right now is wholly unrealistic.” (2/19/20)
Frm. Pa. Gov. Ed Rendell (D): When asked if Bernie Sanders can win Pennsylvania, Rendell responded “No, he’s against fracking and fracking is viewed in Pennsylvania as an economic boom for the state.” (2/20/20)
Pa. President of AFL-CIO Rick Bloomingdale: “Nobody can tell me what these new jobs are that are going to replace these good union jobs in the energy industry if we ban fracking.” (2/20/20)
Banning the safe, responsible use of hydraulic fracturing would cost Pennsylvania 609,000 jobs, $23.4 Billion in state and local revenue, and increase the cost of living for Pennsylvanians by $4,654 annually, according to a report by the U.S. Chamber of Commerce’s Global Energy Institute.
This deeply misguided policy introduction comes on the heels of a research study (in addition to dozens of other peer-reviewed studies over the years) backed by state and federal agencies confirming shale development has no adverse effect on Pennsylvania waterways. The International Energy Agency (IEA) also found that the U.S. saw the largest decline in energy-related CO2 emissions last year due to the shift towards natural gas.
What’s more, this year’s draft EPA Greenhouse Gas Emissions Inventory reported a 10% decrease in U.S. greenhouse gas emissions, credited to the increasing use of natural gas for power generation.
In a recent piece discussing this very issue, Pittsburgh Post-Gazette columnist Brian O’Neill highlighted the energy savings Pennsylvania consumers are realizing, calculating that the cost has dropped to about half what it was in November 2005:
“That’s real savings for real people. It’s a particular benefit to those living paycheck to paycheck or on a fixed income. That’s one of the prisms through which all arguments for banning fracking should be seen. Another is the fact that the Marcellus drilling boom has allowed natural gas to replace coal in electrical power plants. That has meant a decline in greenhouse gases there.”
Pennsylvania voters recognize the economic and environmental progress that safe, responsible natural gas delivers. Lawmakers should think twice before promising bans on a technology that continues to be a win-win-win for the Commonwealth.
PA Senator Toomey Supports Fracking. U.S. Sen. Pat Toomey on Wednesday said the development of the natural gas industry has been tremendously constructive for Pennsylvania and he wants it to remain that way. Toomey, R-Lehigh Valley, was at Linde Corp. with U.S. Rep. Dan Meuser, R-Dallas, to talk about his Senate Resolution 411 and also to extol the benefits of natural gas in Pennsylvania — now the second state in the union of all 50 states in natural gas production. And, Toomey said, Texas, which is the number one state, and Pennsylvania produce almost half of all the natural gas in the United States. Toomey came with great concern for recent statements by Democratic presidential candidates who oppose hydraulic fracturing, or fracking, a process where cracks in and below the Earth’s surface are opened and widened by injecting water, chemicals, and sand at high pressure. Toomey has introduced Resolution 411 to reaffirm that a president may not unilaterally impose a moratorium on hydraulic fracturing on state and private lands.
January DUC’s. The total number of DUC (drilled, but uncompleted wells) in the seven most prolific basins/plays in the Lower 48 U.S. states dipped slightly in January from December, the Energy Information Administration reports.
Four of the seven basins/plays reported a drop in DUC, led by the Anadarko Basin, where 50 drilled, but uncompleted wells were brought online. The basin’s total of DUC last month fell 6.6%, to 711 from 761 in December.
Reductions also were recorded in the Eagle Ford (down 12 DUC, to 1,392), the Niobrara (down 10, or 2.1%, to 457), and Appalachia, including the Marcellus and Utica Shale plays, (down six DUC, 1.1%, to 537).
The trio of basins/plays which reported an increase in DUC from December to January was led by the Bakken, where the DUC total rose by 27, or 3.3%, to 841.
The Permian Basin saw its DUC total increase by 14, to 3,504, while the Haynesville Shale’s DUC total from December to January rose by three, or 1.3%, bringing its total to 240.
ET Announces TX deals. Energy Transfer (ET) said Wednesday it’s signed a number of gathering, processing, transportation and fractionation agreements with a large, unnamed integrated energy company, Kallanish Energy reports.
These agreements increase and extend long-term commitments between the company and Energy Transfer in the Eagle Ford Shale play and Delaware Basin through 2034 and 2040, respectively.
The unnamed company will benefit from Energy Transfer’s integrated gas gathering, processing and transportation systems, as well as its natural gas liquids transportation and fractionation assets, according to ET.
Energy Transfer’s system will provide flow assurance and reliability for the production from the roughly 255,000 net acres the company has dedicated to Energy Transfer.
The execution of these agreements aligns with Energy Transfer’s focus on achieving long-term sustainable cash flow via fixed-fee contracts, by increasing the utilization of existing assets and minimizing new capital expenditures, the energy transportation/processing company said.\
Cyberattack Shuts Down Pipeline. A recent ransomware cyberattack caused a natural gas company to shut down a pipeline for two days, according to an alert from the Department of Homeland Security. DHS’s Cybersecurity and Infrastructure Security Agency (CISA) said yesterday it responded to the incident, but the agency did not say where or when the attack occurred. The technical document marks the first time the U.S. government has publicly reported a disruptive hack of U.S. pipeline networks. The unspecified “threat actor” behind the attack breached the facility’s network in a malicious link sent in an email, according to CISA. The malware first infected the information technology network before spreading to the operational technology network in a natural gas compression station. The hackers then triggered the ransomware, which encrypted data and blocked systems from running properly.
Message to LNG Producers: Shut in or Find New Markets. LNG producers on Feb. 14 were encouraged to shut in some supply amid the global glut that is helping drive down prices in Asia, or push more volumes to markets beyond Europe, perhaps Latin America. The takeaway from the final day of the 19th annual S&P Global Platts LNG Conference in Houston was that something has to give, and soon, to allow for more liquefaction projects to be built in time to fill a projected supply shortage around the middle of the decade. Qatari expansions and additional units coming online in the U.S. that were sanctioned years ago, in addition to supplies coming from Australia and other exporting countries, are pumping more LNG into traditional end-use markets than those markets can handle. Prices have cratered in recent months. Weaker-than-expected demand, relatively mild winter weather, the coronavirus outbreak and Chinese tariffs have made the situation worse.
Trump’s Trip to India Could Lead to More O&G Deals. Though the much-anticipated trade deal with the US is unlikely to be concluded during the February 24-25 visit of President Donald Trump, India is expected to agree to buy additional oil and gas from the US to narrow the trade deficit. US trade deficit with India declined to $17 billion in 2018-19 from $22 billion in 2016-17 as India started importing oil and gas from America in 2017. In 2018-19, India’s crude oil import from the US stood at $3.6 billion and LNG import at $527.14 million. In April-December 2019, India imported crude oil and LNG worth $3.7 billion and $576.28 million, respectively, from the US, making it the sixth largest supplier of crude oil and the fifth largest supplier of LNG to India. Last September, Prime Minister Narendra Modi met the brass of US oil companies in Houston for supply of crude oil and gas at discounted prices. Oil purchases from the US, which started in 2017-18, have already crossed about 6 million tonnes a year.
Worldwide Demand for LNG to Double by 2040. Worldwide demand for liquefied natural gas, or LNG, rose by 12.5% to hit 359 million tons last year, according to Royal Dutch Shell’s annual LNG Outlook report. Citing forecasts, Shell said that LNG demand was expected to double by 2040 to 700 million tons, with natural gas set to play “a growing role in shaping a lower-carbon energy system.” Shell added that LNG imports in China grew by 14% last year, while Bangladesh, India and Pakistan saw imports reach 36 million tons, representing growth of 19%. “The global LNG market continued to evolve in 2019 with demand increasing for LNG and natural gas in power and non-power sectors,” Maarten Wetselaar, integrated gas and new energies director at Shell, said in a statement issued Thursday. “Record supply investments will meet people’s growing need for the most flexible and cleanest-burning fossil fuel,” he added. “While we see weak market conditions today due to record new supply coming in, two successive mild winters and the Coronavirus situation, we expect equilibrium to return, driven by a combination of continued demand growth and reduction in new supply coming on-stream until the mid-2020s.”
PA Permits February 13, to February 20, 2020
County Township E&P Companies
- Armstrong Manor Exco
- Bradford Stevens SWN
- Bradford Stevens SWN
- Bradford Stevens SWN
- Wyoming Meshoppen Chesapeake
OH Permits February 8, 2020
County Township E&P Companies
- Jefferson Wayne Ascent