The State of Oil and Gas: December 15, 2023

Gas prices are at $2.49/MMBtu, down from a high of $2.96, but up from a recent low of $2.31. The drop was due to warmer winter weather, of course. Drilling rigs are at 623, up by five from last month, having hit a high of 626 last week. We may be bottoming out for the time being. Gas storage is at 3.557 Bcf, which is very close to the five year average and more than this time last year which was 3.337 Bcf.

An employee of the Mountain Valley Pipeline was injured by a falling rock.

Argentina’s new president intends to privatize the country’s energy sector, and shares in YPF (the national energy company) are going up. Argentina could become a big factor in oil and gas prices.

RBNEnergy has an article about LNG production and transportation that could be interesting to some of you.

Saudi Arabia would like OPEC+ to cut production of oil.

Royal Caribbean is accepting its first cruise ship that can be run on LNG.

Annual natural gas production dropped in PA in 2022. That’s the first time annual production has been down since the shale boom first started. Looking at the graph of wells drilled, it’s clear that the drop in production is a result of less drilling from 2020-2022 than from 2016-2019.

The only frac-out I’m aware of in our area happened last year in Greene County, PA. EQT has entered into an agreement with the PA DEP that allows them to continue drilling and producing from the pad with additional safety measures in place.

Equitrans, the company that built, or rather is finishing, the Mountain Valley Pipeline, is floating the idea of selling itself.

Hope Gas is growing again, acquiring Southern Public.

Brasil is hoping to join OPEC+.

The Supreme Court has ruled against the eminent domain case that was brought against the Mountain Valley Pipeline.

One of the news outlets in my little town of Buckhannon has posted an article about Hope Gas’ proposed pipeline up in Monongahela and Marion counties. I’m not sure why, as it won’t come close to us down here, but when a local news outlet does an article about my area of interest, I have to link to it. A news outlet a little closer to the pipeline location is trying to get detailed maps of the pipeline route through a FOIA request, and Hope Gas is fighting it.