Shale Gas News – August 10, 2019

Bill 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 natural gas demand, Gulfport Energy, NY’s horrific energy bill 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 U.S. Congressman Fred Keller, representing the 12th district of Pennsylvania.

Shale Gas News

The Shale Gas News, typically, is broadcast live. On the August 10th show (click above), we covered the following new territory (see news excerpts below):

  • U.S. natural gas demand is at a record – and prices keep dropping. U.S. natural gas demand is at an all-time high and expected to keep rising – and yet, prices are falling. U.S. gas futures this week collapsed to a three-year low, while spot prices were on track to post their weakest summer in over 20 years. In other markets, such lackluster pricing would cause investment to retrench and supply to contract. But gas production is at a record high and expected to keep growing. Demand is rising as power generators shut coal plants and burn more gas for electricity and as rapidly expanding liquefied natural gas (LNG) terminals turn more of the fuel into super-cooled liquid for export.
  • Occidental Completes $55 Billion Acquisition Of Anadarko. Occidental Petroleum has just completed one of the largest oil mergers and acquisitions (M&A) of the past few years, buying Anadarko Petroleum and assuming its debt in a transaction valued at a total of US$55 billion. At a special meeting held on Thursday, Anadarko’s shareholders overwhelmingly voted in favor of the company to be acquired by Occidental, with more than 99 percent of Anadarko’s shares voting for the takeover, Oxy said in a statement, adding that it has now successfully completed the transaction.
  • Gulfport 2Q: Drills 4 New Utica Wells, Completes 25 Utica Wells. Gulfport Energy, one of the biggest drillers in the Ohio Utica Shale (210,000 acres), concentrates its drilling in the Ohio Utica and the Oklahoma SCOOP plays. The company released its operating and financial update for 2Q19 last week. As we told you in May, 2019 is “the year of the DUC” for Gulfport. And so it has been.
  • New York Residents Must Dump Oil & Gas Furnaces by 2050. This is no joke. It’s not an “Onion” piece where we’re trying to fool you. In June the New York State legislature passed a horrific “energy” bill that was later signed into law by Gov. Andrew Cuomo. The new law limits carbon dioxide emissions to zero (an impossibility) by 2050. Everyone is now waking up and saying, “Oh crap, what did we just do?” You see, almost everyone in the state uses either fuel oil, natural gas or propane to heat their homes during our exceptionally cold winters. That’s all gone by 2050–no more burning fossil fuels to heat your home. Welcome to the USSR of NY.
  • TETCO Pipe Explodes in Kentucky Killing 1; Southbound M-U Gas Stops. Early yesterday morning around 1:20 am, the Texas Eastern Transmission Company (TETCO) pipeline exploded near a trailer park in Lincoln County, Kentucky. The blast and resulting fire killed one woman, injured five more, and destroyed five homes in the area. Flames shot up more than 300 feet into the air, visible from neighboring counties.
  • Williams Planning Layoffs as Northeast Drillers Scale Back. Last week midstream giant Williams released its second quarter 2019 update. Although the company reported net income of $175 million, up 130% over the previous year’s 2Q, total revenue dipped a tad from $2.09 billion to $2.04 billion. Amidst a lot of good news, there was one cloud. Because northeast drillers are pulling in the production reigns (given super low prices), and because Williams has recently sold off a bunch of assets, the company has launched a “voluntary separation program” to reduce head count.
  • Antero Resources Sets a Drilling World Record in 2Q.  Yesterday Antero Resources, one of the biggest (and best) drillers in the Marcellus/Utica, issued their second quarter update. The company spent the lowest amount of money to drill in 2Q of any quarter since 2013 (just $303 million), yet production was 28% higher in 2Q than a year ago.

The Shale Gas News sponsored by Linde Corporation

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