Natural gas prices are at $8.39/MMBtu after reaching a low of $7.84 a week ago and a high of $9.26 on the first of the month. Volatility is the watchword these days. Drilling rigs are at 759, a decline of four since last month! We got up to 765 around the first of the month, so that’s a decline of six in the last two weeks. I’ve got to admit, that’s strange and unexpected. Looking at the news I don’t have a good explanation for it. Gas storage is at 2,771 Bcf, and increase of 77 Bcf, and still very close to the five year low.
The group called Appalachian Energy Frontier is made up of nine members. Its goal is to bring development of hydrogen energy to our area. Three of the members, Equinor, Shell, and US Steel, have applied for the $2 billion grant that is available through the US government for the development of a hydrogen hub. At first blush it’s a little odd that only three members would apply, but the AEF is really only an informational group, trying to raise awareness and educate the public and private sector about hydrogen.
Eighty percent of West Virginians support oil and gas drilling. You don’t say? There are some other statistics in the report, so a quick click through is probably worth it.
FERC has granted Mountain Valley Pipeline a four-year extension on its certificate.
Plugging old oil and gas wells is a good thing any way you look at it. The Department of the Interior has released money to the States for plugging, and West Virginia is getting $25 million. They plan to plug 160 wells with that. That’s not a lot of wells, but a little is better than nothing. At least we’re not PA, they’re only plugging 50 wells with their $25 million.
Southwestern won’t be able to drill within Weirton City limits.
We’re shipping more and more natural gas overseas, but there’s a limit to the number of tankers that can ship LNG. They’re specially built for the purpose. Combine that with decreasing volumes from Russia, and Europe is looking at very high prices. Winter might be tough for them over there.
Russell Johns, a professor at Penn State University, has written a letter to the editor, published in the Daily Collegian, in which he states that natural gas and nuclear have a smaller carbon footprint than solar and wind energy production. I’d like to see actual numbers on that.
EQT has bought Tug Hill for $5.2 billion. Any of our clients who signed leases with Tug Hill will now be working with EQT. It doesn’t change the lease in any way. EQT has to honor the terms of the lease exactly as it was signed.
The UK banned fracking a few years ago. Now that the energy is truly needed, the UK has reversed its ban.
I haven’t seen an article talking about Technically Recoverable Resources (TRR) in quite a while, so here’s a link to an article about CNX over at Seeking Alpha. It includes a bunch of interesting maps and analysis of the best areas to drill. I had no idea that Monongalia County was such a good area for Utica development. I’m surprised that nobody has pushed harder there. Prices are pretty low, relative to the rest of the “good” counties. Seems like a great long-term investment area. Northeast Natural Energy is the only company really working there, well, and CNX, as evidenced by the article. But CNX doesn’t do as much leasing there as NNE, so they aren’t first in my mind when I think of Mon County natural gas development.
Two people in the northern panhandle filed a lawsuit trying to invalidate West Virginian’s new forced pooling law. That lawsuit has been thrown out, but they could still refile.
Shelley Moore Capito has introduced a bill to the Senate that will codify the agreement that Joe Manchin made regarding permitting for the Mountain Valley Pipeline.
Antero has acquired pipelines and compression stations from Crestwood in the Harrison and Doddridge County area. This announcement notes that it brings 425 drilling locations under Antero’s control. Perhaps Antero will increase drilling and leasing activity in Harrison County again. It sure has been a while since Harrison was a hotbed of activity.