wet gas versus "oil only"

Fairly near Neighbors in southern Tuscarawas County (a couple miles from Harrison and Guernsey Counties) were turned down by McClendon and another Big Guy Company this past week, both for the same reason: You are just a little west of the wet gas window and are viewed as "oil only." So, tell me, when did oil become less valuable than wet gas? Aren't we going to be flooded with all that gas soon, lowering its value even further? What should I advise my elderly neighbors to do - they were looking for a lease or sale of % of their mineral interests in over 100 acre unleased  farm...telling gramma and granpa to "sit tight" for a couple more decades seems cruel - but is it realistic? Will oil be of value here again? Or are the investors clamoring for fast gas riches first then come back and go for the oil?  Plus, anybody know if it's light oil, thick stuff or do we have to wait and see? 

Where's Ron D Jockefeller posting when we need him? Any other professional opinions out there? Thanks for all opinions!

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Permalink Reply by James Foster on October 13, 2013 at 2:54am

One issue that producers could have in the oil window that they did not have in North Dakota is gas infrastructure. In North Dakota there was none just like in Coshocton, Tusc, Muskingum. In North Dakota they burned off the gas and are still burning off as much as one third of it after some infrastucture has been developed. Ohio law now prohibits flaring off of gas in marketable quantities. Flaring for testing can be done for a limited time and for safety such as hitting a pocket of gas while drilling but not on any permanent basis like in the old days.

Permalink Reply by Dott on October 13, 2013 at 10:31am

Good to know about the flaring James. I thought that Tusc is starting to see infrastructure for the gas. Won't they be ready for some well in a year from now?

Permalink Reply by Dott on October 12, 2013 at 9:54pm

Al,

What township are your neighbors in southern Tuscarawas County located?

Permalink Reply by al raptoria on October 12, 2013 at 10:12pm

Perry for the ones who are the oldest I'd like to see get some money soon.

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