Shale Gas News – August 1, 2020

Bill desRosiers
External Affairs Coordinator, Cabot Oil & Gas

The Shale Gas News, heard every Saturday at 10 AM on 94.3 FM, 1510 AM, 1600 AM, 104.1 FM and Sundays on YesFM, talked about oil tax, Tokyo Gas, the Biden Energy Plan and much more last week.

The Shale Gas News has grown again to the Williamsport area on stations WEJS 1600 AM & 104.1 FM. 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 and now the Williamsport area. The Shale Gas News is aired on Saturday or Sunday depending on the station.

Every Saturday Rusty Fender, Matt Henderson and I host a morning radio show to discuss all things natural gas. This week we played commentary from the press conference held this past week at LCCC where Rep. Aaron Kaufer, State Senator John Yudichak discussed the passage of HB732 and the signing of the bill by Governor Wolf.

The Shale Gas News, typically, is broadcast live. On the August 1st show (click above), we covered the following new territory (see news excerpts below):

  • Tokyo Gas to spend $657 mln in U.S. shale, solar assets. Tokyo Gas Co Ltd will spend 69 billion yen ($657 million) to take control of a U.S. shale gas operator, Castleton Resources, and to buy a U.S. solar power development project in a bid to expand its overseas operations, it said on Wednesday. The move reflects a long-term strategy mapped out by Japan’s biggest city gas supplier last year, which includes stepping up overseas expansion and boosting stakes in renewable energy and liquefied natural gas (LNG) development operations.
  • House drops pipeline ban, is set to block Pebble permitting. House Democrats are poised to vote on an amendment to block the proposed Pebble mine in Alaska but won’t consider a controversial pipeline plan when a second package of fiscal 2021 spending bills hits the floor this week.
  • Oil and Gas Groups See ‘Some Common Ground’ in Biden Energy Plan. Joseph R. Biden Jr. won over environmentalists and liberals when he announced a $2 trillion plan to promote electric vehicles, energy efficiency and other policies intended to address climate change. But the plan released on July 14 has also earned a measure of support from an unexpected source: the oil and gas industry that is closely aligned with the Trump administration and is a big source of campaign contributions to the president.
  • U.S. shale producers, slammed by oil price crash, seen posting worst quarter since 2016. U.S. shale oil producers, whose weak returns in recent years had them out of favor with investors even before the coronavirus pandemic crushed oil prices and decimated production, are expected to post their worst second-quarter results since 2016. Oil <CLc1/LCOc1> is down about 35% since January as fuel demand tumbled during economic lockdowns. Results include a modern nadir for crude with U.S. prices averaging less than $17 per barrel in April.
  • White House Says Trump to Nominate Two More to FERC. President Trump intends to nominate Mark Christie, the current chairman of the Virginia State Corporation Commission, and Allison Clements, the founder and president of energy policy and strategy consulting firm Goodgrid LLC, to become FERC commissioners, the White House said Monday.
  • The oil tax difference between Alaska and Texas. A criticism recently leveled at Alaska’s current oil tax by some people promoting the Fair Share Act, the ballot initiative to raise oil taxes, is that the total royalty plus production tax rate in Texas is higher than Alaska. Like much of the discussion marketing the initiative, it sounds good until examined in detail.   The private royalty rates in Texas vary between 12.5% and 30% of gross value, with 25% being the most common. The production tax rate is 5%, for a total of 30%. (This is the highest combined rate of any state.) In Alaska, with a 12.5% royalty and a gross minimum tax of 4% (which switches to a net tax at about $65/bbl), the total would be 16.5%.

The Shale Gas News sponsored by Linde Corporation

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