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W&J speaker sees positives ahead for oil and gas

3 min read
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Dan Weaver acknowledged that if he were asked about the oil and gas industry a year ago, he’d have “a totally different answer than I have today. If I were asked six months ago, I would have had a totally different answer. And it will continue to be different for the foreseeable future.”

Blame the pandemic.

Weaver, a longtime oil and gas man born in Oil City, kicked off a three-part virtual webinar series Tuesday titled, “Effects of COVID-19 and the Economic Downturn on Western Pennsylvania Shale Gas Development.” The Center for Energy Policy and Management at Washington & Jefferson College is organizing the free series, through its Shale Gas Knowledge Hub.

Part I featured the president and executive director of the Pennsylvania Independent Oil and Gas Association discussing positives, negatives and challenges in his industry.

Oil and gas had been suffering pre-coronavirus, an industry beset by overproduction, layoffs and bankruptcy filings among producers. With so many people suddenly staying at home, “the virus killed fuel demand,” Weaver said. “There was nowhere to store oil and prices dropped. Prices have had something of a recovery.”

One of the positives locally, he pointed out, is the Northeast has “a current and steady demand for natural gas and we have the capacity to move it. We’re not overly supplied,” like the Permian Basin region in Texas and New Mexico, where prices have fallen into the negative range in recent months.

Prominent among the challenges, according to Weaver, is what he referred to as the state’s “stringent regulatory structure. We have to be careful not to make regulations too stringent or companies will go elsewhere.”

Weaver said diminished demand has sparked an industry need “to be creative to keep going.”

The leader of PIOGA believes there will be opportunities to prosper in this part of the U.S. He said location to markets and demand for natural gas “will remain long-term positives” and that growth of the natural gas power sector is projected to continue. Another benefit, he surmises, is that improved efficiencies in drilling and completions will result in more wells operating on pads, reducing the footprint.

Although he wasn’t physically in Washington County, Weaver did discuss the area, lamenting specifically the string of Ewing sarcoma cases that have occurred in recent years. “That’s extremely unfortunate,” he said. “This is an issue that must be taken seriously and studied carefully.”

Asked about investment in industry during the qusestion-and-answer session, Weaver said some companies may be more likely to “look for a unique funding source” other than big banks. “I think you will find local financiers investing in smaller projects.”

The second webinar is scheduled for 10 a.m. next Tuesday, with the finale at the same time July 14.

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