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Shale Gas News – August 4, 2018

shale gas news - desRosiers_headshotBill desRosiers
External Affairs Coordinator, Cabot Oil & Gas

 

The Shale Gas News, heard every Saturday at 10 AM on 94.3 FM, 1510 AM and Sundays on YesFM, talked about LNG exports, U.S. GDP, a grandma protester and much more last week.

The Shale Gas News has grown again; welcome Gem 104 as our FOURTH station! Gem 104 helps to solidify the Shale Gas News coverage in an important Marcellus region, PA’s northern tier. The Shale Gas News is now broadcasting in Bradford, Lackawanna, Lancaster, Lebanon, Luzerne, Lycoming, Pike, Sullivan, Susquehanna, Tioga and Wayne Counties, as well as in greater central PA. The Shale Gas News is aired on Saturday or Sunday depending on the station.

Every Saturday Rusty Fender and I host a morning radio show to discuss all things natural gas. This week, as a guest, we had Jeannine McKnight, Director of School of Petroleum & Natural Gas at Lackawanna College.

shale gas news

The Shale Gas News, typically, is broadcast live. On the August 4th show (click above), we covered the following new territory (see news excerpts below):

  • Energy Department wants to speed ‘small-scale’ natural gas exports.  The Energy Department is proposing to streamline the approval process for companies that want to carry out “small-scale” exports of liquefied natural gas (LNG). Under a proposal published Friday in the Federal Register, companies would get automatic approval of gas export applications as long as the proposed exports are 140 million cubic feet per day or less and the Energy Department does not need to do an extensive environmental review.
  • Big Oil goes from begging for cash to rewarding shareholders. When crude crashed below $30 a barrel, the debt-riddled oil industry was forced to beg for cash from Wall Street. Many cash-strapped companies survived the downturn by selling shares at a record-setting pace. The oil industry is returning the favor now that crude has soared back to around $70 a barrel and companies are once again minting money. CEOs are sharing the windfall with shareholders through large share buyback programs and even some dividend hikes.
  • The Oil And Gas Boom Sends U.S. GDP Soaring. Higher oil prices this year boosted U.S. oil production, and the U.S. oil industry played a large part in America’s impressive second quarter economic growth—the fastest growth since the third quarter of 2014. Real U.S. gross domestic product (GDP) rose at an annual rate of 4.1 percent in the second quarter of 2018, according to the ‘advance’ estimate released by the Bureau of Economic Analysis (BEA) on Friday. The first quarter of this year, by comparison, saw real GDP increase by 2.2 percent.
  • WV Grandma Sits in 1971 Ford Pinto to Block MV Pipe Work. This is one of those “you can’t make this stuff up” stories. A 64 year-old retired school teacher from West Virginia (want to know what’s wrong in this country? look at the people teaching our kids) somehow got assistance from someone to drag and then hoist an old, bombed-out, non-functioning 1971 Ford Pinto up into the air, suspending it on blocks, sticking it in front of work being done to construct the Mountain Valley Pipeline in Monroe County, WV. With grandma sitting in it. The car and signs hung in the area had spray-painted slogans like, “defend what you love,” “resist all pipelines,” and “this is our home.” In other words, the woman is an old hippie, trying to relive the glory days of Vietnam protests.
  • EQT Still Fighting WV Minimum Royalty Law for Flat Rate Leases. Follow the bouncing ball. Earlier this year the West Virginia legislature passed Senate Bill (SB) 360, which Gov. Jim Justice subsequently signed into law. The new law overturns a ruling by the WV Supreme Court in Leggett v. EQT Production, a case in which the Supremes (in a very unusual move) reversed their own previous decision and allowed EQT to deduct post-production expenses in old flat rate leases. In essence, SB 360 guarantees rights owners/landowners a 12.5% minimum royalty, regardless of post-production deductions–but only in flat rate leases.
  • EQT Retains Shale Rights in Recent Diversified $575M Deal in WV. On June 19 MDN exclusively brought you the news that Diversified Gas & Oil had purchased EQT’s Huron Shale assets in Kentucky, Virginia and West Virginia for $575 million. The original announcement didn’t name the seller–that information was available only here on MDN. It wasn’t until June 29 that EQT admitted to the world that they were the seller. EQT said the sale includes nearly 12,000 wells with 200 million cubic feet per day of natural gas production and 2.5 million (!) acres of leases and some 6,400 miles of gathering pipelines.
  • Stop Press: Chesapeake Sells ALL of its Ohio Utica Assets for $2B. In what is perhaps the second biggest thing to hit Ohio since maybe the plow (the first being the Utica Shale, borrowing a phrase from Aubrey McClendon), Chesapeake Energy announced yesterday it is selling ALL of its 933,000 Ohio acres (including 320,000 net Utica acres) and 920 operated and non-operated Ohio Utica wells to Encino Acquisition Partners for $2 billion. This is truly big news! Encino Energy is a young company, founded in 2011, headquartered in Houston, TX. Last year Encino formed a partnership with Canada Pension Plan Investment Board to form Encino Acquisition Partners.

The Shale Gas News sponsored by Linde Corporation

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