Natural gas prices are at $1.66/MMBtu, having hit a high of $1.96 and a low of $1.58. Prices are low. Gas storage is at 2,325 Tcf, well above the five year average. Drilling rigs are at 629, up a little from last month.
The eminent domain challenge against the MVP has again been struck down by the 4th Circuit. The landowners plan to appeal again to the Supreme Court.
The saga of the West Virginia oil and gas tax debacle goes on. Update: We’re stuck with this law for another year.
The MVP is expected to be in service on June 1, 2024, in spite of recent delays due to weather.
Natural gas prices were ridiculously low for about two weeks of February. Then CHK, Antero, EQT, and Comstock all announced they were going to cut the amount of gas produced this year, and prices began to recover. Guess we were oversupplied. Here’s EQT’s official statement.
It seems that the Biden Administration’s 45V regulation may block all of the hydrogen hubs that the Biden Administration recently announced funding for.
A lawsuit against the Biden Administration’s pause in LNG permits is pending. It will be similar to the lawsuit against the pause in leasing a few years ago, as the FERC is supposed to allow permitting unless there’s been a clear finding that the shipments aren’t in the public’s best interest. That lawsuit was successful.
The State of West Virginia doesn’t do business with a few banks because of their stance on oil and gas issues. The State Treasurer warned a few more that they were at risk of losing the state’s business if they don’t change their policies.
Secretary of Energy, Jennifer Granholm, notes that the LNG pause will last months, and a different Biden advisor said it would be 10-14 months. That’s a long time.
Three people have been nominated to take positions at FERC.
The EPA has delayed finalizing carbon standards for power plants until after the election.
OPEC+ intends to extend its production cuts until after 2Q24.
Protesters blocked construction on the Mountain Valley Pipeline again.
An Ohio jury has decided that the Utica shale formation includes the Point Pleasant formation. Not being a geologist, I don’t have an informed opinion about this part of it. As a lawyer, if you want to reserve back the Point Pleasant for some reason, you’ll want to specify that that’s what you want, just to be safe, even in West Virginia. Look closely at, and be sure you understand, any formation limit language that you get in your lease.
An oilfield services company, Heavy Iron, moved from Washington, PA to Chester, WV. Chester is the very northern tip of the northern panhandle.
EQT has agreed to buy Equitrans (which used to be part of EQT) for $5.5 billion in stock, giving EQT control of the Mountain Valley Pipeline.
The West Virginia Surface Owner’s Rights Organization (WVSORO) is recommending that people not sign leases for pore space. We heartily agree, and not just because we like the people over at WVSORO. Just like oil and gas leases, pore space leases are written by the company and for the company. Make sure to read and understand anything an energy company asks you to sign. Get legal representation. You won’t be sorry you did.
Gas storage analysts think we’re going to have too much gas in storage. Surprise? No. Not at this point.
OPEC+ said they were going to continue with production cuts, but analysts say they’ve increased production.