Shale Directories Conferences
FALL 2022 Hydrogen & Carbon Capture Conference IV
November 10, 2022
Hilton Garden Inn, Southpointe
Canonsburg, PA (near Pittsburgh)
Latest facts and rumors from the Marcellus, Utica, and Permian, Eagle Ford Plays
Easter Eggs in the Climate Bill. ‘Easter eggs’ in climate bill delight oil and gas industry. Politico. The oil and gas industry doesn’t hate the climate bill. The industry as a whole isn’t yet embracing the $700 billion-plus reconciliation deal, which would penalize some forms of fossil fuel pollution while making one of the largest investments in clean energy in U.S. history. But the legislation also contains what some called “Easter eggs” that would benefit oil and gas companies, including access to new swaths of federal waters in Alaska and the Gulf of Mexico. “There are some things in there that are helpful to our business,” Rich Walsh, senior vice president and general counsel at Valero, one of the country’s largest fuel refiners, said during an earnings call Thursday with investors. Note: Bloomberg Law and USA Today also reports.
NatGas Stays Hot. Natural gas futures still hot as summer temperatures pummel North America. NGI. North American natural gas prices continued to be pressured to the upside this week amid sizzling temperatures and low storage inventories. The August New York Mercantile Exchange (Nymex) contract went out meekly as prompt month on Wednesday after a nearly week-long rally. The August gas futures contract settled at $8.687/MMBtu, down 30.6 cents day/day. September then fell 42.0 cents day/day on Thursday to $8.134. However, the momentum is firmly with the bulls with prices back to where they were in early June before an explosion at Freeport LNG in Texas left 2 Bcf/d of natural gas available to the market. The majority of U.S. locations moved back above $8.00 for August delivery, after having slumped below $6.00 for July baseload, NGI’s Bidweek Alert data showed.
EQT Pursuing LNG contracts. EQT sees opportunities for Gulf, East Coast LNG contracts. Pittsburgh Business Times. EQT Corp., one of the biggest advocates for Appalachia’s increase in production of liquified natural gas to ease domestic and European energy woes, is working toward LNG contracts to supply the Gulf Coast as well as helping others who are looking to build LNG plants on the East Coast. EQT CFO David Khani told analysts during Thursday’s second-quarter conference call that the company was talking with three to four LNG facilities on the Gulf Coast about duration of contracts and the percentage of LNG that would go to international markets. “There’s great demand from a producer standpoint,” Khani said. “These facilities need gas supply and so it gives us (options).”
WV’S Blacklist. West Virginia blacklists five Wall Street giants for ‘boycotting’ energy companies. Washington Examiner. West Virginia has taken the dramatic move of deeming five financial institutions ineligible for state banking contracts on the grounds that they “boycott” fossil fuel companies. The restricted financial institution list released Thursday includes BlackRock, Goldman Sachs, JPMorgan Chase, Morgan Stanley, and Wells Fargo — many of the biggest financial firms in the world. The determination was made by West Virginia Treasurer Riley Moore’s office and is effective Thursday. As the blacklist goes into effect, all five firms will no longer be eligible for state contracts and any existing contracts will be void. The news means the firms will lose access to $18 billion in annual inflows and outflows. Note: New York Times also reports
NatGas Production Record in 2021. U.S. natural gas production set a new record in 2021. Forbes. Over the past decade, the U.S. shale gas boom propelled the U.S. into the global lead among natural producers. In 2021, the U.S. set a new all-time high for natural gas production. For the year, the U.S. held a commanding 23.1% share of global natural gas production, ahead of Russia (17.4%) and even the entire Middle East (17.7%). The U.S. is also the world’s top consumer of natural gas. In fact, most of the leading producers are also the world’s leading consumers. The surge of natural gas production in the U.S. has also launched the U.S. into first place globally in natural gas liquids (NGL) production. The U.S. is the world’s fastest-growing LNG exporter, with a 49.1% average annual growth rate over the past decade (and a 100% increase in LNG exports from 2019 to 2021).
Frack Supply Shortage to Impact Drilling. Limited frack supply could hamper U.S. crude oil output. Reuters. Demand for hydraulic fracturing equipment is quickly outpacing supply, executives said this week, setting the stage for a new obstacle to U.S. oil and gas production growth. Oil companies have been under pressure from the Biden administration to lift production to curb high energy prices. Some companies, particularly private firms, also want to boost output to capitalize on oil’s surge to $100 a barrel. However, in order to boost output, equipment and crews are needed. “Availability of frac fleets is one of main bottlenecks impeding oil and natural gas production growth for the next 18 months,” Robert Drummond, chief executive officer of fracking firm NexTier Oilfield Solutions said on Wednesday.
Range 2ND Qtr. (Thank you, MDN) Range Resources delivered its second quarter 2022 update yesterday. The company made an amazing $453 million in profit during 2Q. On a conference call with analysts, CEO Jeff Ventura wasted no time in delivering a shot across the bow of the Bidenistas, saying, “Energy policy will need to be rooted in market realities. If infrastructure projects, namely pipelines and LNG terminals are not prioritized and given a reasonable regulatory review, then I believe it’s simply impossible to meet the growing global demand for reliable, safe and affordable fuels.” Ba-boom! On the wonkish side, Range’s top driller, Dennis Degner, discussed the company’s strategy of drilling new wells on existing pads. Sometimes Range returns to the same pad three times. A three-peat!
Pipelines to Prosperity. (Thank you, Stephanie Catarino Wissman, API) No issue hurts Pennsylvania families more than rising inflation and energy costs. The global mismatch between energy demand and available supply has put upward pressure on fuel prices.
The world needs more energy, not less. Policies that encourage investment in energy exploration and infrastructure build-out can help boost supply while strengthening U.S. energy leadership and national security.
Washington does not have to look far for solutions.
Pennsylvania’s shale revolution unlocked previously untapped natural gas reserves in the Marcellus and Utica shales, attracting significant new investment, generating billions in revenue and solidifying the state’s position as a major energy producer. Furthermore, modern natural gas development created tens of thousands of industry and indirect jobs in the commonwealth.
Without the natural gas provided by the Keystone State, people across the country would likely see higher prices. Pennsylvania’s shale gas boom has helped insulate U.S. consumers from extreme spikes in price, such as those seen recently in Europe. There restricted natural gas has led to increased reliance on Russian gas as well as renewables for electricity.
Despite the progress we have made, poor policy decisions at the federal level and numerous legal challenges have led to pipeline constraints in Pennsylvania and neighboring states, affecting access to abundant, reliable natural gas in New England and beyond. Given the vast supply of shale gas in Pennsylvania, policymakers should unleash homegrown energy by supporting policies that encourage new investment and infrastructure.
But first we need predictable regulations and efficient permitting here in the state. The American Petroleum Institute has a 10-point plan, called “Ten in 2022,” that would bolster U.S. energy leadership and safeguard affordable energy.
Three important reforms would foster new investment and certainty.
First, end permitting obstruction on natural gas projects. The Federal Energy Regulatory Commission should cease efforts to overstep its permitting authority under the Natural Gas Act. It should adhere to traditional considerations of public needs as well as focus on direct impacts arising from the construction and operation of natural gas projects.
Second, accelerate liquid natural gas (LNG) exports and approve pending LNG applications. Congress should amend the Natural Gas Act to streamline the Department of Energy (DOE) to a single approval process for all U.S. LNG projects. DOE should approve pending LNG applications to enable the U.S. to deliver reliable energy to our allies abroad.
Third, designate critical energy infrastructure projects. Congress should authorize projects that support the production, processing and delivery of energy. These projects are of such concern to the national interest that they should be entitled to undergo a streamlined review and permitting process not to exceed one year.
Several other policy reforms and solutions should also be on the table. These include lifting development restrictions on federal lands and waters, fixing the National Environmental Policy Act (NEPA) permitting process, dismantling supply chain bottlenecks and unlocking investment and access to capital.
These solutions offer a way energy producers can supply more American-sourced energy to consumers here at home and to our allies abroad. Pennsylvania has shown the rest of the country what can happen when we embrace and encourage the development of homegrown energy through smartly crafted government policy.
It’s time for Washington to take notice and lead.
Stephanie Catarino Wissman is executive director of the American Petroleum Institute Pennsylvania.
WV Politicians Pushing MVP Approval. West Virginia federal legislators are putting pressure on a federal agency to approve a four-year extension of the deadline to complete the Mountain Valley Pipeline.
Rep. David B. McKinley, R-1st District, along with Senators Shelley Moore Capito, R-W.Va., and Joe Manchin, D-W.Va., who is Chairman of the Senate Energy and Natural Resources Committee, and Rep. Carol Miller, R-3rd District, signed a letter last week to the Federal Energy Regulatory Commission (FERC) urging them to support the completion of the Mountain Valley Pipeline (MVP) and approve its pending request for a four-year extension.
The 303-mile, 42-inch diameter pipeline, which when finished would bring natural gas from North Central West Virginia to Chatham, Va., was initially scheduled to be operational by the end of 2018 at a cost of about $3.5 billion. That did not happen and permits were extended to Oct. 13, 2022.
More than 90 percent of the pipe has been placed. However, because of protests and lawsuits the project has been delayed by court battles and the company is now asking for an extension of the permits to 2026 and the cost estimate to finish is now at more than $6 billion.
The latest court setback for the MVP was a decision made U.S. Court of Appeals for the 4th Circuit in Richmond, Va. to invalidate approvals previously granted by the U.S. Forest Service and the Bureau of Land Management (BLM) to construct the pipeline on federal land.
That includes Jefferson National Forest, which the MVP must pass through in Monroe and Giles Counties, with a total of about 3.5 miles on federal land involved. The pipeline also must run under the Appalachian Trail where it crosses the ridge line of Peters Mountain in Monroe County.
Permits to cross streams had also been tied up in court.
“At a time when energy prices are soaring, it is imperative that FERC works to accelerate the development of domestic energy infrastructure so that Americans may have access to a reliable and affordable supply of natural gas,” the letter to FERC said. “The United States is a world-leader in natural gas production, and as the conflict in Ukraine continues, the United States should use every tool at its disposal to make up for the shortfall in the global natural gas supply for our allies and trading partners. Natural gas produced in the Appalachian Basin is undoubtedly part of that solution.”
The letter said that although the MVP would not deliver natural gas for exports, “completion of the pipeline will certainly help to meet increasing domestic demand for natural gas and unlock other supplies of natural gas to send to our allies.”
“MVP is nearly 94 percent constructed but is still subject to ongoing litigation and permit challenges, to the detriment of American consumers, our national security, communities along the pipeline route, and the environment,” the letter said. “This project must be completed. Your approval of this extension request will also provide certainty to communities and landowners along the pipeline’s path that FERC intends for the MVP to be completed. West Virginians have told us that they want to see the project completed, their properties restored, and the benefits of the project accrue for their communities.”
Capito and Manchin have been working to get the project moving forward, especially after Russian invaded Ukraine and sanctions were placed on Russian gas and oil.
“We are looking at energy security and energy independence, our own resources, especially when you frame it up with what is going on in the Ukraine,” Capito said during an April interview. “We have many, many pipelines existing in this country so this is not a new concept.”
She and Manchin both said they want to see the case heard in Richmond to be moved to the D.C. court.
“The company has asked if they can get it (this court case) in the D.C. court,” Capito said. “Most businesses don’t want to do that, but that tells you they will have a more objective hearing in the D.C. court. At the same time, we’ve got to make sure (federal agencies) move quicker and faster and fairer to make sure the proper environmental permits are permitted so they can finish this project.”
Capito said “it just makes common sense, in my view” because the pipeline is almost 95 percent complete and is needed.
“We cannot get a pipeline out of the Marcellus Shale (in north central West Virginia),” Manchin said earlier this year.
“The Mountain Valley Pipeline is 95 percent complete. That means the pipeline is in the ground, covered and reclamation done (on the land above it). But they have been blocked. That pipeline must be connected to the market.”
Manchin also called for the 4th Circuit case in Richmond to be moved to the D.C. court.
“We need to ramp up (the supply of natural gas),” he said, and the Marcellus Shale is the “richest formation in the world.”
Opponents of the MVP have pointed out the impact on the environment, especially in areas like Monroe County which includes karst (underground limestone which has been eroded by dissolution, producing ridges, towers, fissures, sinkholes and other characteristic landforms), and also the dangers of a large-capacity pipeline that could leak or explode with the underground instability.
They also have questioned the eminent domain component, with many landowners not wanting the pipeline on their land but had no choice.
Opponents said the pipeline was not for the “public good,” but for corporate profit.
In 2020, Dominion Energy and Duke Energy canceled the $8 billion 600-mile natural gas Atlantic Coast Pipeline that would have transported natural gas from north central West Virginia to Lumberton, N.C. because of “legal uncertainty” after spending an estimated $4 billion on it.
PA Permit July 18, to July 28, 2022
County Township E&P Companies
1. Elk Fox Seneca
2. Greene Wayne EQT
3. Greene Whitely Greylock
4. Greene Whitely Greylock
5. Greene Whitely Greylock
6. Tioga Union PA Gen Energy
7. Tioga Union PA Gen Energy
8. Tioga Union PA Gen Energy
OH Permits July 16, to July 22, 2022
County Township E&P Companies
1. No New Permits
WV Permits July 18, to July 22, 2022
1. Tyler Jay-Bee Oil & Gas
2. Tyler Jay-Bee Oil & Gas
3. Tyler Jay-Bee Oil & Gas
4. Tyler Jay-Bee Oil & Gas
5. Wetzel Tug Hill
6. Wetzel Tug Hill
7. Wetzel Tug Hill
8. Wetzel Tug Hill
Joe Barone 610.764.1232
