Facts & Rumors # 561
July 27, 2024
U.S. Needs NatGas to Win AI Race. U.S. will fall behind in the AI race without natural gas, Williams Companies CEO says. CNBC. The U.S. will fall behind in the artificial intelligence race if it does not embrace natural gas to help meet surging electricity demand from data centers, the CEO of one of the nation’s largest pipeline operators told CNBC. “The only way we’re going to be able to keep up with the kind of power demand and the electrification that’s already afoot is natural gas,” Williams Companies CEO Alan Armstrong said in an interview last week.
Manchin-Barrasso permitting bill getting markup next week. E&E News. The Senate Energy and Natural Resources Committee will vote on S. 4753, from Chair Joe Manchin (I-W.Va.) and ranking member John Barrasso (R-Wyo.), which seeks to build out the electric grid, ease reviews for renewable energy projects, secure natural gas export approvals and push oil and gas lease sales. Manchin and Barrasso have been working to sell the bill to colleagues. On Wednesday, Barrasso was heard telling fellow Wyoming Republican Cynthia Lummis that an “environmental extremist” group proclaimed it “Frankenstein’s monster.” Lummis said earlier she was “encouraged” by the duo.
FERC Chair Supports Manchin, Barrasso Permitting Plan. FERC chair calls Manchin, Barrasso permitting plan ‘promising’. E&E News. FERC Chair Willie Phillips expressed cautious optimism on Thursday about Sens. Joe Manchin (I-W.Va.) and John Barrasso’s (R-Wyo.) latest attempt to reform the nation’s convoluted process for building and permitting new power lines. While FERC does not endorse legislation, Phillips told reporters after the agency’s open meeting that he is hopeful the transmission policies within the new permitting package unveiled earlier this week will be “a step in the right direction.”
NatGas Storage 15% Below Average. Thanks, MDN. According to the U.S. Energy Information Administration (EIA), injections into natural gas storage so far this injection season (April 1–October 31) is 15% (166 Bcf) *less* than the previous five-year average (2019–23) for the same period. Injections into storage are also 15% (172 Bcf) less than this same time last year. Yet working natural gas inventories in the Lower 48 states are 17% *higher* than the five-year average and 8% higher than this time last year. How can that be?
Heatwaves Drive Record NatGas Generation. July heatwaves, U.S. ‘probably’ saw highest natural gas generation in history, EIA says. Power Engineering. U.S. power plant operators generated 6.9 million MWh of electricity from natural gas on a daily basis in the lower 48 states on July 9, 2024, the U.S. Energy Information Administration (EIA) said, which is “probably” the most in history, and definitely the most since at least January 1, 2019, when the EIA began to collect hourly data about natural gas generation.
Freeport Resumes LNG Export. Freeport LNG in Texas resumes exports as gas processing ramps up. Reuters. The United States’ second largest liquefied natural gas exporter Freeport LNG has resumed shipments after shutting operations ahead of Hurricane Beryl, with processing on track to reach about half its capacity on Monday, preliminary LSEG data showed. Beryl hit the Texas coast on July 8, causing damage to ports and energy infrastructure and leaving more than 2 million customers without power. Freeport LNG, which shut its three liquefaction trains on July 7 and later reported wind damage, has had a slow operational restart since.
Freeport Delayed until August. Thanks, MDN. Yeah, we kind of felt like it was too good to be true. Tuesday, we told you that an LNG carrier had left Freeport LNG’s port last weekend fully loaded, and a couple of carriers were queued up, waiting to dock and load. It certainly seemed like things were beginning to rock and roll once again after Freeport had been totally down since July 5 due to Hurricane Beryl. However, a super-secret source whispering to S&P Global Commodity Insights says the full plant won’t be operational until “early August.” And more bad news for Freeport: Fitch Ratings has downgraded the company’s credit rating.
EQT to Ship NatGas to TX for LNG Export. Thanks, MDN. In April, MDN brought you the news that EQT Corporation, the largest natural gas producer in the country (totally focused on the Marcellus/Utica) had signed two agreements with Glenfarne Energy’s Texas LNG Brownsville export facility to liquefy 2.0 million tons per annum (MTPA) of EQT-extracted shale gas. That works out to be roughly 264 million cubic feet per day (MMcf/d) of EQT’s M-U molecules hitching a ride to South Texas. Yesterday, Glenfarne announced that what had been a “back of the envelope” agreement with EQT has been upgraded to a binding contract, called a “tolling agreement.”
New FERC Commissioners. Thanks, MDN. In June, three new commissioners joined the Federal Energy Regulatory Commission. A majority of FERC is now composed of newly added commissioners (only two of the five were previously there). So, how does that change the character and functioning of this critically important federal agency? How long will it take the new folks to come up to speed?
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Big Oil Slashing Prices. US oilfield firms slash prices as mega-mergers shrink customer base. Reuters. A wave of mega-mergers among oil producers is forcing the U.S. service companies that drill and hydraulically fracture wells to slash their prices, merge, or risk bankruptcy as they compete for a dwindling number of customers. U.S. oil producers announced more than $275 billion in deals over the past year and a half, including multi-billion-dollar combinations such as Exxon Mobil and Pioneer Natural Resources. As big producers integrate and become more efficient while raising oil output, there is less work for the oilfield services companies that depend on them, according to service company executives and energy analysts.
Harris Tough on O&G. Harris seen as tougher oil industry opponent than Biden. Bloomberg. As California attorney general, Kamala Harris brought lawsuits against fossil fuel companies, prosecuted a pipeline company over an oil leak and investigated Exxon Mobil Corp. for misleading the public about climate change. Now, with the vice president suddenly in contention for the Democratic nomination after President Joe Biden abandoned his reelection bid Sunday, that track record is of deep interest to both the US energy industry and climate activists alike.
PA’s Senator Casey Supports Harris’ Anti-Fracking Position. Casey is endorsing Kamala Harris’ anti-fracking agenda. Delaware Valley Journal. Opinion. “There’s no question I’m in favor of banning fracking,” then-Democratic presidential candidate Kamala Harris said in 2019. And now that she’s the presumptive frontrunner in the Democratic presidential race — with the backing of U.S. Sen. Bob Casey Jr. — Dave McCormick wants everyone to hear what Harris has to say. McCormick, the Republican businessman hoping to unseat the three-term Democrat, began reminding Keystone State voters of Harris’ pro-Green-New-Deal policies as soon as she received Casey’s endorsement.
ADDC Pipeline Opens In Permian. ADCC Pipeline opens new outlet for Permian gas. Midland Reporter Telegram. Permian Basin natural gas could soon find a new demand point with the opening of the ADCC Pipeline earlier this month. The ADCC Pipeline is capable of providing approximately 1.7 billion cubic feet of natural gas transportation capacity to the Cheniere Corpus Christi Liquefaction facility from markets on Whistler Pipeline’s Agua Dulce Header in South Texas.
Woodside to Buy Tellurian. Woodside to buy Tellurian in $900 million bet on gas demand. Bloomberg. Woodside Energy Group Ltd. has agreed to buy troubled US liquefied natural gas export project developer Tellurian Inc. for about $900 million in a bet on rapid growth in global demand for the fuel. Australia’s biggest oil and gas producer will pay about $1 a share in cash to take full control of Tellurian, including the proposed US Gulf Coast Driftwood LNG project, it said Monday. Woodside’s shares fell 2.1% in Sydney, their biggest one-day drop since May 1.
Wind Power Declining. U.S. natural gas-fired power generation jumped this week amid the lowest wind power output in 33 months seen on Monday while demand for cooling is rising in the summer.
On July 22, wind power output in the Lower 48 states was at its lowest level in the country since October 4, 2021, per preliminary data from the U.S. Energy Information Administration (EIA) cited by Reuters. This was despite constantly rising wind power capacity installations over the past three years.
The hot summer with low wind speeds has led to low wind power generation, which has prompted power producers to boost natural gas-powered generation to keep up with the summer electricity demand.
So far this year, six of the 10 lowest days for wind power have occurred in July, according to Reuters estimates. Last year, just two of the 10 lowest wind power output days were in the month of July.
Last year, slower wind speeds than normal led to the first annual drop in U.S. electricity generation from wind turbines since the mid-1990s, despite the addition of 6.2 gigawatts (GW) of new wind capacity in 2023, the EIA said earlier this year. U.S. wind generation in 2023 totaled 425,235 gigawatt hours (GWh), down by 2.1% compared to the 434,297 GWh generated in 2022.
“The 2023 decline in wind generation indicates that wind as a generation source is maturing after decades of rapid growth,” the EIA noted.
To offset lower wind power output, U.S. electricity generators have fired up more natural gas plants which can provide reliable energy when wind speeds are low.
Natural gas-fired electricity generation in the United States has jumped year-to-date compared to the same period last year, as total power demand rose with warmer temperatures and demand from data centers.
For years, natural gas has accounted for the largest share of U.S. power generation, at around 40% of all electricity-generating sources.
This year, natural gas is expected to provide around 42% of America’s electricity, similar to last year, as total consumption is set to grow by 3% in 2024 and another 2% in 2025, per data from the EIA.
PA Permits July 15, to July 25, 2024
County Township E&P Companies
1. Indiana Young INR OPRC
2. Indiana Young INR OPRC
3. Sullivan Elkland Chesapeake
4. Sullivan Elkland Chesapeake
5. Westmoreland Upper Burrell Olympus
6. Westmoreland Upper Burrell Olympus
OH Permits July 14, to July 20, 2024
County Township E&P Companies
1. Guernsey Valley EAP OHIO
2. Guernsey Valley EAP OHIO
3. Guernsey Valley EAP OHIO
4. Guernsey Valley EAP OHIO
WV Permits July 15, to July 19, 2024
1. Wetzel EQT
2. Wetzel EQT
3. Wetzel EQT
4. Wetzel EQT
5. Wetzel EQT
6. Wetzel EQT
7. Wetzel EQT
8. Wetzel EQT
9. Wetzel Antero
10. Wetzel Antero
11. Wetzel Antero
