Shale Directories Conferences
November 10, 2022
Hilton Garden Inn, Southpointe
Canonsburg, PA (near Pittsburgh)
Latest facts and a rumor from the Marcellus, Utica, and Permian, Eagle Ford Plays
Shale Companies Are Delivering Big Numbers to Wall Street. U.S. shale companies top Wall Street estimates, focus on returns. Reuters. U.S. shale producers Devon Energy (DVN.N), Diamondback Energy (FANG.O) and Coterra Energy on Monday reported sharp increases in profit that beat Wall Street estimates, but held production plans steady as they stressed a focus on shareholder returns. U.S. oil and gas producers are facing a windfall from higher energy prices, as Russia’s invasion of Ukraine has stoked global supply concerns and sent oil futures to their highest levels in years. On Monday, WTI was trading around $105 a barrel. Devon and Coterra reported more than a four-fold rise in quarterly income on Monday, while Diamondback’s profit rose more than three-fold. All three increased their dividends.
Why Is Production Slowing? Demand for U.S. natural gas has never been higher. So why is production slowing? Fortune. “If those three states were its own country, it would be the number three natural gas producer in the world,” Greg Kozera, marketing director at petrochemical research non-profit Shale Crescent USA and former president of the Virginia Oil & Gas Association, told Fortune. “Appalachia is the elephant in the room,” he said. “We’ve had a [production] slowdown since December of ‘21,” Eugene Kim, director of natural gas research at Wood Mackenzie, a global energy consultancy group, told Fortune. Kim says that extenuating factors, including bad weather last winter and frequent power outages, are partially responsible for the slowdown. But even accounting for these problems, producing enough gas to meet demand is becoming a huge challenge for the region because of infrastructure constraints. “Other factors that are limiting this growth, compared to years of the past in the Northeast— infrastructure development has been stymied,” Kim said.
Whistler Pipeline Reaches FID. Whistler Pipeline expansion reaches final investment decision. WhiteWater Midstream, and a joint venture between Stonepeak Infrastructure Partners and West Texas Gas, Inc. have reached a final investment decision to move forward with the expansion of the Whistler Pipeline after having secured sufficient firm transportation agreements with shippers. The Whistler Pipeline expansion will increase the mainline capacity from 2 billion cubic feet per day (Bcf/d) to 2.5 Bcf/d through the planned installation of three new compressor stations. The expansion is expected to be in service in September 2023. “The decision to move forward with this expansion project after securing sufficient commitments from shippers demonstrates our disciplined approach to investing,” said Timothy J. Aydt, MPLX executive vice president and chief commercial officer. “Whistler has demonstrated its ability to provide reliable and cost-efficient residue gas transportation out of the Permian Basin, which is vital to our growing gas processing position, producers in the region, and gas customers.”
Permian Is Running out of Everything! The Permian basin oil field is running out of workers, materials — and cash. Wall Street Journal. America’s most prolific oil field is running out of the workers, cash and equipment needed to produce more oil. In the Permian Basin, the sprawling oil-rich region in West Texas and southeastern New Mexico, drillers are facing long delays and steep competition for everything from roughnecks to steel to fracking pumps. The region is the only place where U.S. crude production is expected to grow significantly this year, and the Biden administration is hoping production there can help alleviate high prices at the pump. But mounting supply-chain crunches are putting a ceiling on how much more frackers can produce there, said energy executives and analysts, despite the highest oil prices in roughly seven years.
MVP Delayed Again! Litmus Test. Mountain Valley Pipeline, a litmus test for big projects, is delayed again. Equitrans Midstream Corp. has again delayed the start date for its 303-mile Mountain Valley Pipeline and raised its estimated cost to $6.6 billion, more than twice the original estimate. But the big question was whether the natural gas pipeline would ever be completed and what that could mean. Mountain Valley Pipeline, MVP for short, has become the harbinger of whether there’s still a desire for, or even the possibility of, large infrastructure projects being completed, even as Congress and the Biden administration talk about “building back.” The pipeline was envisioned to bring shale gas from the Marcellus and Utica in Appalachia to markets in the Southeast. It began construction in 2018 and has been beset by legal challenges.
PA Bills to Increase Production. PA house passes package of bills to increase fossil fuel production. The Pennsylvania House of Representatives Monday have passed a package of legislation that would increase fossil fuel energy production in the state. This package of bills would significantly diminish the strength of the Delaware River Basin Compact (DRBC), an inter-state agreement between Pennsylvania, New Jersey, New York and Delaware, which created a commission to oversee regulations in the Delaware River. It would also increase Pennsylvania’s power in voting within the commission. The DRBC voted last year to ban fracking in Delaware River Basin after citing scientific evidence that fracking has polluted drinking water.
WV Limited Ability to Help Europe. WV fossil fuel leaders acknowledge limits in state’s ability to support Europe through energy exports. During a joint state legislative committee meeting Tuesday, April 26, West Virginia fossil fuel industry leaders acknowledged limits in how much in-state coal and natural gas production can support Europe’s transition away from Russian energy. Eric Vir, chief financial officer of West Virginia-headquartered oil and gas producer Pillar Energy LLC, noted record-high pricing for natural gas. But he lamented that natural gas formations in the Southern and Southwestern United States are outproducing the Appalachian basin. Vir contended that, unless the region gets more pipeline infrastructure – such as the legally beleaguered Mountain Valley Pipeline – the region will keep lagging behind other basins in natural gas production.
TX Regulator Moving to Oversight of Carbon Storage Permits. Texas oil regulator takes key step toward oversight of carbon storage permits. Texas’ oil regulator on Tuesday took a major step towards gaining oversight of the permitting for carbon capture and storage wells, the agency said, a move that would speed up the approval process for such projects. The Railroad Commission (RRC) of Texas approved publishing proposed amendments to its carbon dioxide rules for public comment, which will then be sent to the Environmental Protection Agency as part of a pre-application that kicks off the review process. Carbon capture and storage wells, known as Class VI wells, have been heralded by some as a way to curb global warming by sequestering greenhouse gas emissions from refineries and other industrial sites.
Permian NatGas Pipeline Expanding. Permian Basin natural gas pipelines expanding in response to fossil fuel market growth. Carlsbad Current Argus. Two natural gas pipelines starting in the Permian Basin were being expanded to increase the region’s take away capacity by more than a billion cubic feet per day of gas. The Whistler Pipeline received needed transportation commitments from operators to increase its capacity from 2 billion to 2.5 billion cubic feet per day, per an announcement. Owned and operated by WhiteWater Midstream, MPLX and a joint venture between Stonepeak Infrastructure Partners and West Texas Gas, the expansion was expected to go into effect by September 2023. The Whistler connects the Waha natural gas hub in the Permian Basin where gas is extracted from southeast New Mexico and West Texas to refinery and export markets along the Gulf Coast.
Ukraine Fights for Its Life; Philadelphia Is Dormant. (Thank you, Forbes) Just north of Philadelphia International Airport and south of the Philadelphia sports Stadium complex lies the Port of Philadelphia, one of the largest freshwater ports in the world. So strategically located is the Port of Philadelphia, it also lies just a few miles north from the oil and gas refineries of Marcus Hook, Pennsylvania, and three hours south of some of the most abundant natural gas wells in the world, located in Northeastern Pennsylvania.
Logically, the Port of Philadelphia should be central to the relief of Ukraine by being able to export large amounts of natural gas that could fill the gap for our NATO allies of the natural gas supplies that Russia is now cutting off to Poland and Bulgaria, along with ending Nord Stream 2 that would have increased supply to Germany and the Czech Republic. That is not happening, of course, as most of the natural gas bounty just 120 miles from Philadelphia can’t even reach the City due to lack of pipeline capacity. Indeed Philadelphia itself has failed to develop a natural gas export terminal. Thus, while Ukraine fights for its life and Vladimir Putin threatens nuclear war, Philadelphia remains dormant, hardly participating at all in the fight against Vladimir Putin’s aggression.
It is possible that Philadelphia’s slumber may be ending, if only by external pressure. In April, Pennsylvania State Representative Marina White sponsored House Bill (HB) 2458, which, if approved by the Pennsylvania Senate and signed by the Governor, would create a task force to study how to establish a liquid natural gas export terminal in Philadelphia.
The bill was passed by the Pennsylvania State House of Representatives on April 13.
State Representative White is a rarity – a Republican Representative from Philadelphia. Philadelphia is a city that hasn’t had a Republican Mayor since 1951. Democrats outnumber Republicans by a 5 to 1 margin. For the last 8 years, Pennsylvania also has had a Democratic Governor, Tom Wolf. Wolf has not been kind to the natural gas industry, which has become huge in Pennsylvania, but he hasn’t acted entirely in opposition either, unlike his neighbors in New Jersey, New York, and Maryland. Similarly, Philadelphia remains inconsistent in its actions regarding the future of natural gas in the City.
In 2019, Philadelphia City Council approved a new natural gas plant for Philadelphia Gas Works.
As mentioned, it has taken no action until now however to build an export terminal, which would appear to be a logical step.
Last year, Philadelphia pledged to become carbon neutral by 2050.
At no time did the City government make its feelings known about the pipelines that have been proposed from Northeast Pennsylvania which would serve Philadelphia, thus securing its energy needs. However the City did not make any moves to ban natural gas from future buildings as did San Francisco and New York City. While that means that Philadelphia hasn’t unwittingly increased its possible need on Russian natural gas in the same way that New York City has, it also hasn’t taken any affirmative steps to use its strategic location and excellent facilities to become part of the answer to Vladimir Putin.
Not surprisingly, the local elite is appalled by anything that might mean new investment in fossil fuel resources. The lead mass circulation newspaper, the Philadelphia Inquirer, has editorialized against fracking and claimed that Pennsylvania prioritizes the process over public health.
A major local environmental organization, the Delaware Riverkeeper Network, has consistently and vociferously demanded that all fracking be stopped in Pennsylvania.
One of the leading Democratic candidates for Governor, Attorney General Josh Shapiro of suburban Montgomery County, actually indicted members of the industry last year, extracting a payment from Range Resources RRC -3.4%, and is seeking to punish other natural gas companies.
In many ways the idleness of the Port is a typical Philadelphia story. Unable to agree on which path to take, the City often twittles its thumbs as other places step up. Now it appears that even Germany may agree to embargo Russian gas. Should that happen, an even larger natural gas supply shortage would exist in Europe in the immediate future. Despite the best wishes of many in the environmental community, the current alternative to natural gas isn’t renewable energy, it’s coal. That of course means worse pollution for the planet.
Philadelphia could help and provide an alternative that would be better for the environment, assist the people of Ukraine, and of our allies who are also helping Ukraine, and provide large amounts of good jobs to local people. Instead, the City sits and waits, while all around South Philadelphia one hears only the sounds of silence.
Early Heat Driving NatGas Prices. June natural gas blows past $8 early as Texas heat stokes supply worries. Natural gas futures continued to rocket higher in early trading Wednesday as forecasts advertised potential record early-season heat regionally, exacerbating supply concerns. Coming off a 47.9-cent rally in the previous session, the June Nymex contract was up another 46.8 cents to $8.422/MMBtu at around 8:50 a.m. ET. Prices as of early Wednesday had advanced beyond $8.197, a key resistance level pegged by ICAP Technical Analysis. Bulls had tried and failed to break through this barrier in Tuesday’s session, ICAP analyst Brian LaRose observed.
PA Permit April 25, to May 5, 2022
County Township E&P Companies
1. Allegheny Frazier Range
2. Allegheny Frazier Range
3. Allegheny Frazier Range
4. Bradford Franklin Chesapeake
5. Bradford West Burlington Chesapeake
6. Greene Aleppo EQT
7. Greene Aleppo EQT
8. Greene Aleppo EQT
9. Greene Center Rice
10. Greene Center Rice
11. Greene Springfield EQT
12. Greene Springfield EQT
13. Greene Springfield EQT
14. Greene Springfield EQT
15. Greene Springfield EQT
16. Greene Springfield EQT
17. Indiana Armstrong INR OPR LLC
18. Indiana Armstrong INR OPR LLC
19. Lycoming Gamble Inflection Energy
20. Lycoming Gamble Inflection Energy
OH Permits April 26, to April 30, 2022
County Township E&P Companies
1. Belmont Colerain Ascent
2. Belmont Colerain Ascent
3. Belmont Wheeling Ascent
4. Belmont Wheeling Ascent
5. Carroll Monroe EAP OHIO
6. Carroll Monroe EAP OHIO
7. Carroll Monroe EAP OHIO
8. Carroll Monroe EAP OHIO
9. Guernsey Richland Ascent
10. Guernsey Richland Ascent
WV Permits April 25, to April 29, 2022
1. Marshall SWN
2. Marshall SWN
3. Monongalia CNX
4. Monongalia CNX
5. Monongalia CNX
6. Tyler Antero
7. Wetzel Antero
8. Wetzel Antero
9. Wetzel Antero
10. Wetzel Antero
11. Wetzel Antero
12. Wetzel Antero
Joe Barone 610.764.1232