• 3 minutes "Biden Is Running U.S. Energy Security Into The Ground" by Irina Slav
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 9 minutes "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 56 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 9 days 87,000 new IRS agents, higher taxes, and a massive green energy slush fund... "Here Are The Winners And Losers In The 'Inflation Reduction Act'"-ZeroHedge
  • 7 days Energy Armageddon
  • 22 hours "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 3 days "The Global Digital ID Prison" by James Corbett of CorbettReport.com
  • 3 days "Forget Oil, The Real Crisis Is Diesel Inventories: The US Has Just 25 Days Left" by Zero Hedge - 5 Stars *****
  • 22 hours Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 3 days "Europe’s Energy Crisis Has Ended Its Era Of Abundance" by Irina Slav
  • 11 hours Is Europe heading for winter of discontent with extensive gas shortages?
  • 3 days The Federal Reserve and Money...Aspects which are not widely known
  • 4 days Goldman Betting on Cryptocurrencies
  • 7 days Сryptocurrency predictions
  • 12 days Putin and Xi Bet on the Global South
Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Premium Content

2 Red Flags For The World’s Top Shale Play

A lot of activity the past few days in Pennsylvania: home of the Marcellus shale, arguably the world’s best-performing unconventional natural gas and liquids play right now.

And it looks like things could get more complicated for drillers here going forward.

Partly on the financial front. With a special committee of the Pennsylvania House passing a bill Wednesday to impose a new tax on natgas production in the state.

Under the legislation, producers would be charged 2 cents tax on every mcf of gas produced — when prices are below $3/mcf. With that rate escalating to as much as 3.5 cents per mcf if the gas price exceeds $5.99/mcf.

The bill comes after much debate about a new shale tax aimed at Marcellus production. And the proposed rates were significantly reduced during discussions amongst legislators drafting the new rules.

Still the new bill would impose a notable jump in costs for Marcellus drillers. And its passing is expected to be controversial — with a final vote expected as early as next week.

At the same time, another measure being considered in Pennsylvania could have a greater effect on shale production: new and tougher rules on fracking operations in the state.

Such stricter measures had been implemented by Pennsylvania environmental regulators late in 2016. But were immediately challenged by shale producers, who convinced a state judge to grant a temporary injunction against the new rules. Related: Big Oil Refuses To Give Up On The Barents Sea

But the Pennsylvania Department of Environmental Protection struck back this week. Going before state judges to argue that the rules should be immediately reinstated.

The regulatory agency says it should be relied upon as expert, and given the benefit of the doubt in letting the tougher frack rules stand. And if judges agree, we could see Marcellus drillers saddled with more expensive and time-consuming permitting for drilling.

Watch for a ruling in the case over the coming several weeks, and for final passing (or not) of the new severance tax sooner than that. Both these happenings could have a material effect on production from America’s top natgas play.

Here’s to making the rules.

By Dave Forest

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News