Shale Directories Conferences
November 10, 2022
Hilton Garden Inn, Southpointe
Canonsburg, PA (near Pittsburgh)
Latest facts and rumors from the Marcellus, Utica, and Permian, Eagle Ford Plays
NatGas @ 14-year High. US natural gas prices spike to 14-year high. Here’s why. CNN. US natural gas prices have skyrocketed to levels unseen since 2008, a spike that threatens to offset the benefits of falling prices at the gas pump. Natural gas futures surged 7% on Tuesday to close at $9.33 per million British thermal unit (BTU), the highest closing price since August 1, 2008. Although natural gas futures cooled off a touch on Wednesday, they remain up about 70% just since the end of June. And natural gas is up a staggering 525% since closing at $1.48 in June 2020 when Covid-19 had shut much of the US economy down. The summer spike is being driven in part by high demand as scorching temperatures through much of the country force Americans to crank up the air conditioning. That in turn has chipped away at relatively low inventory levels.
MVP Not a Done Deal. Was Manchin Fooled? Activists continue fight against Mountain Valley Pipeline. Virginia Public Media. Initially proposed in 2014, the Mountain Valley Pipeline is an unfinished 303-mile natural gas pipeline that runs through six counties in Virginia and 11 in West Virginia. The pipeline is more than 90% complete, according to MVP’s website. However, it has been blocked by lawsuits from environmental justice organizations and protests from residents of the areas that have been affected throughout its construction. Russell Chisholm, co-chairperson of POWHR, called the Circle of Protection a “movement-building and solidarity effort,” as well as an opportunity to heal during stressful times for those fighting against the MVP construction. The Mountain Valley Pipeline LLC., the organization overseeing the project, said it’s acting with care to ensure the safety of communities along the project’s route.
NatGas Record Volatility. U.S. Natural Gas Price Volatility at All-Time High in 2022. Natural Gas Intelligence. Natural gas price volatility hit an all-time record earlier this year and remains elevated on weather-driven demand and soaring LNG exports, among other factors, according to the Energy Information Administration (EIA). EIA said volatility, a measure of how much daily prices change, reached its highest level in 20 years in February. The 30-day historical volatility of U.S. natural gas prices, based on the Henry Hub front-month futures prices, averaged 179% in February, compared to the five-year average of 48%, the agency said in its weekly gas note.
NJ Pipeline Problems for FERC. N.J. pipeline project could shake up FERC gas reviews. Energywire. A proposed Northeast pipeline expansion could test the Federal Energy Regulatory Commission’s approach to scrutinizing demand for new natural gas infrastructure at a time when a slew of states are trying to use less of the fossil fuel. The Regional Energy Access Expansion (REAE) project is designed to support growing demand for natural gas in New Jersey, Pennsylvania and Maryland, according to developer Transcontinental Gas Pipe Line Co. LLC. New Jersey state officials, however, have told FERC that the Garden State doesn’t need more gas, in part because of the state’s climate policies and energy efficiency goals.
Chevron Promoting ‘Positive News’. Chevron funds Permian Basin website focused on ‘positive news’ — and sponsored content. Houston Chronicle. Oil major Chevron is sponsoring a new online publication to highlight “positive community news” in the Permian Basin of West Texas and New Mexico, the company said Monday. The San Ramon, Calif. based oil and gas giant is the sole sponsor for Permian Proud, a free online publication launched Aug. 15. On the website, articles appear under categories like community, industry, events, sports, and culture. There is no list of contributing writers or editors on the site, and the articles do not have bylines and mostly link to other sites.
O&G Industry Focuses on Carbon Capture Projects. Oil industry gears up to tap U.S. climate bill for carbon capture projects. Reuters. Tax credits in the $430 billion U.S. climate and tax bill set to be signed into law this week will kickstart carbon sequestration projects, say oil and gas proponents, offsetting startup costs for some of the anti-pollution initiatives. Carbon capture and storage hubs that take gases from chemical, power and gas producers and oil refineries have become the energy industry’s preferred way to combat climate warming. But large-scale development has snagged over costs and lack of guaranteed revenue. The Biden administration’s Inflation Reduction Act, which was approved by lawmakers last week, provides a tax credit of up to $85 per ton for burying carbon dioxide produced by industrial activity, and up to $180 per ton for pulling carbon dioxide (CO2) from the air.
Permian Record High in September. Oil output in Permian to rise to record high in September -EIA. Reuters. Oil output in the Permian in Texas and New Mexico, the biggest U.S. shale oil basin, is due to rise 79,000 barrels per day (bpd) to a record 5.408 million bpd in September, the U.S. Energy Information Administration (EIA) said in its productivity report on Monday. Total output in the major U.S. shale oil basins will rise 141,000 bpd to 9.049 million bpd in September, the highest since March 2020, the statistical arm of the Department of Energy projected. In the Bakken in North Dakota and Montana, the EIA forecast oil output will rise 21,000 bpd to 1.157 million bpd in September, the most since November 2021.
IRA Big Win for TX. Texas is expected to see $67 billion in clean energy investment under Democrats’ inflation bill. Houston Chronicle. Texas’s clean energy sector is expected to be one of the largest beneficiaries of the climate and health care legislation President Joe Biden has signed into law, according to estimates released by the White House Wednesday. But the legislation is also expected to hurt the nation’s oil and gas industry. Texas is the largest oil and gas producer. “The IRA adds costs and regulations to producers when the federal government should be taking actions to support increased American energy production,” Barry Russell, president of the Independent Petroleum Association of America, said in a statement. “This bill will exacerbate supply concerns at a time of high crude and gasoline prices; it will not bring greater stability nor help Americans with inflation.”
Phillips Looking to Buy Pipeline. Phillips 66 offers to buy pipeline operator DCP Midstream. Reuters. U.S. refiner Phillips 66 (PSX.N) on Wednesday offered to acquire the public units of DCP Midstream (DCP.N) in a deal that would value the pipeline operator at $7.2 billion deal and bulk up Phillip’s natural gas liquids business. A deal would mark the first major move by Mark Lashier, who took over as the chief executive officer of Phillips 66 last month. Earlier this year, the company acquired the public units in transportation and storage business Phillips 66 Partners. Enbridge will, in turn, take over as operator and more than double its stake in Grey Oak pipeline, previously operated by Phillips 66. The Grey Oak pipeline transport crude oil from West Texas to the Gulf Coast.
Denbury Exploring Options. US oil company Denbury explores options including sale. Bloomberg. Denbury Inc., an independent oil company based in Plano, Texas, has been exploring options including a sale, according to people with knowledge of the matter. The company, which has a market capitalization of about $4 billion, has been working with an adviser to evaluate strategic options, said the people, who asked not to be identified because they weren’t authorized to speak publicly. The company has 1.5 billion tons of carbon storage potential along the Gulf Coast including sites in Texas, Louisiana and Alabama. Denbury has a goal to fully offset its emissions and those of its customers within the decade, in one of the most aggressive net-zero targets of in the US oil and gas sector.
West Virginians Love O&G. Survey finds more than 80% of West Virginians support oil and gas drilling. West Virginia News. A large majority of West Virginians — 81% — support natural gas and oil drilling in the state, a recent survey commissioned by the Gas and Oil Association of West Virginia Inc. found. The survey also found 52% of West Virginians ranked inflation as the most important issue facing the state, followed by energy independence (17%) and the environment (10%).
Enbridge Expands in TX. Enbridge assumes operation in 1,300-kilometre Gulf Coast pipeline project. CBC. Enbridge Inc. says it has completed a deal that will see the Calgary-based pipeline giant become operator of the Gray Oak oil pipeline in Texas. Enbridge says its joint venture merger deal with Houston-based energy company Phillips 66 will result in a single joint venture holding both companies’ indirect ownership interests in Gray Oak, as well as DCP Midstream LP, a Denver-based natural gas company. Under the terms of the deal, Enbridge will increase its indirect economic interest in Gray Oak to 58.5 per cent from 22.8 per cent. Enbridge will also reduce its indirect economic interest in DCP Midstream to 13.2 per cent from 28.3 per cent.
PA Permit August 8, to August 18, 2022
County Township E&P Companies
1. Elk Jones Seneca
2. Greene Franklin Rice
3. Greene Jefferson EQT
4. Greene Morris EQT
5. Sullivan Elkland Chesapeake
6. Sullivan Elkland Chesapeake
OH Permits August 7, to August 13, 2022
County Township E&P Companies
1. Belmont Wheeling Ascent
2. Harrison Monroe EAP OHIO
3. Harrison Monroe EAP OHIO
4. Harrison Monroe EAP OHIO
5. Harrison Monroe EAP OHIO
WV Permits August 8, to August 12, 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. Tyler Jay-Bee Oil & Gas
Joe Barone 610.764.1232