I found this article:
Now, maybe this guy is talking his book as he owns quite a few coal stocks. But, his argument makes some sense. I know one thing, the sign-on bonus is the only thing we can count on. And i have doubts Shell will build an ethane cracker in PA.
An excellent article by Rutt Bridges, everyone should take the time to read.
Junkie, your response is interesting, but doesn't say much. Stock prices rarely reflect true value and are subject to supply/demand. Supply and demand is why nat gas is currently under $2.50.....The question I have is if a well is 80% depleted after two years, why not just shut it in and move on? Once fracked, are the wells on auto pilot for 20 years or do they need constant work? Net present value isn't good for a 20 year well according to the author. But this is something I would look at if thinking about selling my mineral rights.
One year later and the Buell 5H is still doing 10 million a day (With the valve half closed) and the liquids production is actually getting better, there is more gas in these 15 counties of Appalachia than we can use in 100 lifetimes.
Why would all the major players in the industry be moving to our area to build more wells, that would essentially be $millions in losses every single time? How do they stay in business? Yet another armchair expert.