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 shale oil production, rig counts, natural gas futures 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 replayed an interview which Ian Jefferies, President & CEO of the Association of American Railroads, did with Cheddar, an online publication, stressing the importance of the rail industry during covid.
The Shale Gas News, typically, is broadcast live. On the May 23rd show (click above), we covered the following new territory (see news excerpts below):
- U.S. Pipeline Safety Report Reveals Fewer Incidents, More Infrastructure. Liquid pipeline incidents have decreased by 36% in the last five years even as pipeline mileage has increased by almost 10%, according to a review by energy industry groups.
- Big Surge for Natural Gas Futures as Production Drops Further; Cash Rallies Too. Natural gas futures raced higher Monday as supply/demand balances finally started to move in a more supportive direction for prices. With a further push from the cash market, the June Nymex gas futures contract settled up 13.7 cents from Friday’s close at $1.783. July jumped 12.6 cents to $1.959.
- Biden campaign said he would rescind Keystone Pipeline permit if elected. Joe Biden’s presidential campaign said Monday that if he were elected to the White House, he would rescind the Keystone XL Pipeline permit. The Keystone XL pipeline proposal was initially rejected in 2015 by the Obama administration, which included Biden as vice president, but approved two years later by the Trump administration. Rescinding the permit for the pipeline allowing it to cross the border into the United States would effectively kill the project.
- Can US Shale Producers Innovate Themselves Out of Trouble? The shale industry was in trouble even when oil was priced at $30 a barrel. Hundreds of small producers across Texas and the Midwest were laden with debt, sweet spots already taken and forcing well operators to tap higher-cost locations. WTI crude at under $20 a barrel, is less than half the $40-plus-a-barrel breakeven needed by the shale industry. The slump in crude prices and a supply glut lasting into the foreseeable future leaves the shale industry with stark choices: to limit production, cut costs and increase productivity.
- Should U.S. Shale Be Worried About A Chinese Takeover? American shale is easy prey as Beijing goes bargain-hunting. China could soon embark on a global buying spree following the coronavirus-induced economic crisis and the re-opening of its economy, and the U.S. shale patch is an obvious target thanks to unprecedented demand destruction, ultra-low energy prices, and catastrophic debt levels that have left hundreds of IOCs on the verge of bankruptcy. And now, some officials fear that a Chinese takeover of the battered sector is looming, which poses a national security risk.
- EIA Predicts A Record Drop In U.S. Shale Oil Production. Crude oil production in the seven major US shale basins will fall by a record 197,000 barrels per day next month, the Energy Information Administration reported on Monday. Production in the seven most prolific shale basins in the United States is expected to fall to 7.822 million bpd, the EIA said, down from 8.019 million bpd this month. It will be a record monthly loss. The largest drop on the list for crude oil and condensate production is in the Permian, which is expected to fall by 87,000 bpd to 4.290 million bpd. The next largest basin, the Eagle Ford, is expected to fall by 36,000 bpd in June, to 1.174 million bpd. There are losses expected in all seven basins on the EIA’s list.
- US Land Rig Count Falls to 369 – Marcellus Loses Another 2 Rigs. The crash in the drilling rig count continued last week for the ninth straight week, although the decline slowed for a third week in a row. U.S. oil and gas rigs for land-based operations fell another 29 last week, to a total of 369 active rigs. Most of the decrease comes from oil-focused rigs. However, we’ve noticed a disturbing trend in the Marcellus rig count.
The Shale Gas News sponsored by Linde Corporation
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