The price of natural gas is $2.97/MMBtu, and the price seems to be going up. Gas storage levels are just under the five year average, pretty much like they have been for the month. Drilling rigs are up to 453, up 21 from last month.
A “groundbreaking” study looked at whether oil and gas wells had the potential for integrity issues (leaking). Using raw data, they determined that 14.1% of oil and gas wells drilled before 2018 had the potential for integrity issues. Testing around wells showed that 3% of wells in Colorado and 0.1% of wells in New Mexico exhibited characteristics that made them susceptible to leakage outside the well. No testing was done to see whether there was actual leakage. They should really follow up with an actual field test for actual leakage instead of just making allegations.
According to the EIA, last winter was warmer than average, until the cold snap in late January and early February, which made up for the rest of the winter. In fact, withdrawals from storage for last winter ended up being 10.6% more than average.
Some landowners who signed easements with the Atlantic Coast Pipeline are now requesting that the FERC force ACP to release those easements. Since the land is no longer needed for the pipeline, that’s a sensible thing to request. I’m going to brag here: our clients don’t have to worry about this issue because we got language in their easements allowing them to request a release once a specific amount of time has passed after cancellation. Of course, if the FERC agrees with the landowners and a release can be acquired sooner, we’ll do that.
Producers are exercising restraint in drilling. I think it’s mostly because they’re having a harder time getting money from banks.
Libya is having budget troubles which may keep them from producing as much oil as they have been.
West Virginia’s Treasurer spoke out against the Biden administration’s push to get banks and lenders to not give money to the oil and gas industry. Honestly, that may not be an awful thing. Banks have historically overlent to the oil and gas industry, leading to boom/bust cycles. A little less money flowing in to the industry should create stability. No money would, of course, be a bad thing.
LNG terminals are running at full capacity.
Oil production from Alaska has been declining since the late 80s. I was generally aware of this, but I wasn’t aware of how much it has declined from its peak. This last decade it’s been pretty flat, which is why it hasn’t made news.
Moody’s predicts a pretty stable oil and gas industry for the next 12-18 months. Predicting stability in oil and gas seems like a reputation destroyer. Moody’s does have a pretty good reputation, though. Guess we’ll see.
Europe won’t get to net-zero carbon without natural gas. Until battery tech advances far enough, renewables aren’t going to replace fossil fuels.
We’re importing less energy, but exporting about as much as we used to.
The semi-truck of the future is self-driving and powered by natural gas. Of course, we all know how “the X of the future” works out most of the time.
Permitting proceeds ahead on a methanol plant in Pleasants County, WV.
The Colonial Pipeline got shut down because it was hacked. UPDATE: It’s back up and running, and the fuel shortage will be alleviated soon.
EQT is just getting bigger. They’ve now bought a bunch of property in Northeast PA.
A liquefaction plant in Jacksonville, FL is going to triple it’s capacity.