Shale Gas News – March 21, 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 99 cent gasoline, gas fired power plants, oil price war 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, as a guest, we had Peter Wulfhorst, Extension Educator, Ag Entrepreneurship & Economic & Community Development Extension Team at Penn State Extension. We also replayed a speech from Representative Gerald Mullery of the 119th District of Luzerne County discussing the importance of HB 1100.

In this week’s Shale Directories meet a member segment we were joined by Pete Dandrea of MJ Painting Contractor Corp.

Shale Gas News

The Shale Gas News, typically, is broadcast live. On the March 21st show (click above), we covered the following new territory (see news excerpts below):

  • Gasoline hits 99 cents at Kentucky station, sells out. The price of a gallon of gasoline has hit 99 cents at a station in Kentucky. GasBuddy analyst Patrick De Haan was tipped off by users of the GasBuddy app that the Spur 7 BP in on state route 25 in London had dropped below a buck. Don’t head there looking for a deal right now, though, because an employee at the station told Fox News Autos that the price was already 99 cents on Wednesday and that they’re currently sold out of fuel and didn’t know when the pumps would be open again. Commenters on Gas Buddy say the station is known for its low prices and is often very busy.
  • No End in Sight to the Oil Price War Between Russia and Saudi Arabia. Russia and Saudi Arabia, two of the world’s biggest oil producers, are each making a bet that they are better placed than the other to bear the pain of the oil price war that they set off over the past week—and that they can get what they want as a result. That raises two big questions: Are they able to stand the pain? And what exactly do they want? One week ago, as Saudi Arabia and other big OPEC countries and Russia gathered in Vienna to plan production cuts that could put a floor under falling prices due to the outbreak of coronavirus, crude was trading at more than $50 a barrel. That’s when Moscow decided to blow up a three-year-old pact to manage global oil supplies, refusing to sign on to Saudi Arabia’s proposed cuts, sending the price of oil sharply down.
  • List of 10 Large Gas-Fired Power Plants Built or Coming in Ohio. One of our favorite Energy in Depth writers, Nicole Jacobs, has just published a great post that outlines the huge impact new natural gas-fired (mostly Utica Shale gas) power plants have had and will have in Ohio. She includes a list of 10 projects either already built and running, under construction, or on the books to get built. When you add up the total capacity for all 10 plants, they will generate an amazing 9,215 megawatts of electricity, enough to power upward of 9 million homes! The companies building those 10 plants are investing $15.9 billion. This is huge for Ohio’s economy.
  • EQT Cuts Capex Another $75M, Cancels 15% of Pipeline Contracts. Yesterday EQT, the nation’s largest natural gas producing company, issued a press release to update investors and the marketplace on a couple of important issues. First, the company has sliced off another $75 million in previously-planned spending for 2020. The company now plans to spend $1.075 – $1.175 billion on drilling and other expenses this year. Second, the company “has entered into an agreement with a third-party to permanently release firm transportation obligations of approximately 400 MMcf/d, or approximately 15% of EQT’s current portfolio.” Translation: EQT was able to cancel 15% of the contracted pipeline capacity they had, lowering expenses.
  • Who Sold the Most NatGas in the U.S. in 4th Quarter 2019? Who are the biggest natural gas sellers in the U.S.? You might be surprised to learn that the biggest *sellers* are not necessarily the biggest *producers* of natural gas. Oh, you might recognize some of the names of the top sellers (BP, Shell, ConocoPhillips). But others might be more of a mystery (Macquarie, Tenaska, Sequent, and J. Aron & Co.). Would it surprise you to learn that BP (i.e. British Petroleum) is the #1 seller of natgas in the U.S., and has been for years?
  • Biden Promises to End All U.S. Oil Drilling, Fracking in CNN Debate. Presidential candidate sleepy/creepy Uncle Joe Biden has gone as hard/radical left as Communist candidate crazy Bernie Sanders. In a debate between the two dinosaurs (both older than Donald Trump!) on CNN on Sunday, Biden came out hard against oil drilling–both onshore and offshore. He says if he’s elected as president, he’ll outright ban it. He also muttered “no new fracking.” In all seriousness, one has to ask the question if this was one of Joe’s lucid or not-so-lucid moments.
  • Chesapeake Energy Hires “Restructuring Advisers” – Over the past half-decade or more we’ve read and often reported on rumors and speculation that Chesapeake Energy Corporation, co-founded by Aubrey McClendon (who was later ousted by corporate raider Carl Icahn) would have to declare bankruptcy. Aubrey loaded the company up with debt. His successor, Doug Lawler, has tried to whittle that debt down, but he’s done his own fair share of larding the company up with debt too. Reuters is reporting the company has just hired “restructuring advisers.” A euphemism for bankruptcy advisers?

The Shale Gas News sponsored by Linde Corporation

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