Natural gas prices are at $6.96/MMBtu, down significantly from last month’s $7.42. Natural gas in storage is at 2,369 Bcf, which is below the five year average but just above the five year low. Drilling rigs are at 752, up 19 from last month. Slow and steady increase, we like it. We wouldn’t mind seeing a little more increase, but at least it’s not booming so we hopefully won’t see a crazy bust.
The website Modern Diplomacy has published an opinion piece calling for the Biden Administration to allow drilling for kerogen in the Green River Formation. This is a formation/play that I had not previously been aware of, and it’s different enough that reading the article is well worth it.
The first four paragraphs of this article are about the Eastern Panhandle Expansion, which would bring gas from Pennsylvania to West Virginia, through Maryland. It’s only an eight mile pipeline, with only one mile of it in Maryland, but one part of the government of Maryland is blocking the pipeline. It’s a little frustrating to see, even if it’s just a relatively small pipeline which will only provide gas to a relatively small number of people.
EQT is investing in a fuel cell that uses natural gas.
The Fed increased interest rates, and oil prices went down.
Pilot Co. runs truck stops across the country, and is investing in CNG and hydrogen. This is large scale adoption of those technologies, and hints at large trucks running on both fuels in the near-ish future.
Tug Hill is considering selling out–for $5,000,000,000.
Put on your tin hats. There are suggestions floating around that the Freeport LNG explosion was caused by Russian hackers. It’s just suggestions for now, so don’t get all uptight and worried about it.
SWN has announced the buyback of up to $1 billion worth of its stock. That’s always a good sign.
The Biden Administration wrote a letter to oil refineries. Chevron wrote back. Both letters are worth reading. Interestingly, Joe Biden quickly said that the Chevron letter showed that the oil refineries were “sensitive” and that they had gotten their feelings hurt. I didn’t get that sense from the Chevron letter at all. To me, the Biden Administration letter came across as somewhat poorly researched and written. It didn’t come across as a first or rough draft, but it seemed to lack some polish. I am not getting into politics here, because oil and gas issues cross the political divide, but this makes the Biden Administration appear desperate.
Natural gas production went up about 2% in 2Q 2022. The article predicts that natural gas production will continue to increase, but in the low single digits.
Cheniere Energy is expanding its Corpus Christi LNG plant.
Oil drilling has increased, and DUCs have decreased. The same is true for the natural gas industry, with the actual numbers being a little different, of course.
Europe is increasing new natural gas production projects.
Mountain Valley Pipeline’s request for a new panel of judges has been denied.
When the Freeport LNG plant went offline natural gas use declined, so natural gas storage naturally increased and the price of natural gas naturally went down.
The American Petroleum Institute and others invited President Biden to visit some American oil and gas sites before he goes to visit Saudi Arabia next month.
The Biden Administration met with oil and gas executives. The meeting was described in various ways, but seems to have been productive.
Mountain Valley Pipeline has asked for another four years to complete the project. This pipeline does not need another four years. This is just MVP signaling that it won’t give up.
Someone over at Yahoo Finance thinks that massive investment is on its way to oil and gas.
The industry is talking more and more about re-fracking. We figured it was only a matter of time.
Refining capacity on the East Coast has dropped from 1.2 Mbpd to 0.8 Mbpd since 2017.
West Virginia oil and gas production increased by 6% last year.
The Supreme Court sided with the State of West Virginia in it’s case against the EPA. If people want something done about environmental (or other) issues, it’s going to have to be through legislation, through elected representatives, which is the way it should be. Major decisions need to be made by those who can be held accountable for those decisions, not unelected bureaucrats.
Libya has shut down two export terminals and an oil field.
PHMSA has delayed its new regulations on gathering lines.
Get this! The European Union has voted that the use of natural gas (in some circumstances) is considered to be green. Go figure.