Shale Gas News – November 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 LNG Exports, offshore oil auction, Kimble Royalty 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 Mike Narcavage of Southwestern Energy.

Shale Gas News

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

  • Oil and gas production rising in North Dakota, but future is murky. North Dakota posted a solid hike in petroleum output in September, while the industry now races to start new wells before pro-oil President Donald Trump leaves office.  Still, the oil and gas outlook in North Dakota — and the rest of the U.S. — is murky as oil prices remain depressed and COVID-19 continues to sap the economy.
  • LNG Recap: U.S. Exports Still Strong, Lead Global Gains. U.S. liquefied natural gas (LNG) exports remained strong as the week got underway, with feed gas deliveries holding near record highs of about 10 Bcf/d. The ongoing strength in domestic cargo departures helped push global exports to their highest level in six months through October, data intelligence firm Kpler said last week. Global exports stood at 307 million tons (Mt) year-to-date through October, up 5 Mt from the same period last year.
  • Final offshore oil auction under Trump shows Gulf’s ‘long future’: officials. The Trump administration on Wednesday will offer all available areas in the Gulf of Mexico for auction to oil and gas companies in its final offshore sale before the January inauguration of President-elect Joe Biden, a Democrat who has pledged to ban new drilling on federal lands and waters. The Bureau of Ocean Energy Management, an arm of the Interior Department, will offer about 78 million acres (31.6 mln hectares) off the coasts of Texas, Louisiana, Mississippi and Alabama for oil and gas development.
  • Advisers to Minn. regulators resign over pipeline permit. Nearly three-quarters of a panel tasked with advising the Minnesota Pollution Control Agency on environmental justice issues resigned in protest Monday after the agency granted a critical water quality permit to Enbridge Inc.’s Line 3 oil pipeline project.
  • Spot Prices for M-U NatGas in Basement – Dominion South $0.30/Mcf. We’ve been tracking the daily price of the NYMEX December futures contract at the South Louisiana Henry Hub on and off for the past few months. Yesterday it closed down again, at $2.86/Mcf (or MMBtu). However, the “spot price” for gas–actual physical gas bought and sold at various trading points along pipelines–has all but crashed and burned in the Marcellus/Utica. It’s bad. Like, historic record low bad.
  • Kimbell Royalty Buys Royalty Payments from M-U Landowners. Kimbell Royalty Partners, headquartered in Fort Worth, Texas, is a leading buyer of oil and natural gas mineral and royalty interests, owning interests in more than 96,000 wells across 28 states, including wells in the Marcellus/Utica region. Yesterday the publicly-traded company issued its third-quarter 2020 update. We discovered some information about their involvement in the M-U, including the Marcellus in northeastern Pennsylvania.
  • ExxonMobil Deciding Fate of XTO Asset Value in 4Q.  Last week ExxonMobil issued its third-quarter 2020 update. The company announced it is currently reviewing and making a decision about whether or not to write down (impair) the value of its North American dry gas assets–i.e. XTO Energy. If it writes down the value XTO assets, it will take a huge write-down in value (assets currently on the books at a value of $25-$30 billion).

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