Happy to be back--update to natural gas industry.
Those of us who are new to owning mineral rights have been trying to educate ourselves on the future for natural gas.
The price of natural gas has been driven down by oversupply exceeding demand. The subject of PEAK OIL has been
around for years spouting that the global market will eventually run out of economically viable oil and natural gas. If this is true it seems to me that viable mineral rights will eventually be worthwhile as an investment. The other side of the coin points out that fossil fuel will not get political support in the future and minerals will be left in the ground and not have a value.
If the threat of EMP attack which could knock out electric power could make the ability to use natural gas generation and bypass electric power could add a lot of value to mineral rights to natural gas.
Eventually the natural gas supply will be less than the demand and the price of natural gas will increase together with the political climate that allows natural gas to be exported worldwide should also increase demand and prices.
In any event its looking like a long-term play with a lot of uncertainty. Maybe some of you more experienced players can expand.
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Permalink Reply by Coffeeguyzz on
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Mr. Vietze
The world of hydrocarbons is vast, dynamic, crucial to all of our lives, and wrought with much future uncertainty.
A brief reply from one who, decades ago, was involved in several early stage discovery and development projects of oil/gas resources in various countries around the world ,,,
You all, in the Appalachian Basin, are standing atop the biggest supply of natural gas on the planet.
The Marcellus, the Upper Devonian formations and the Utica contain a century or more of resource at today's rates of consumption.
Think Saudi Arabia/Kuwait type of potential in gaseous form rather than oil.
There are many technologies being rolled out, Adsorbed Natural Gas (ANG) being one, that will expand the utilization of natgas over oil due to its much lower price per energy content.
Operationally, laterals one, two, and three miles long are VERY tilted towards gas extraction versus oil due to the physical characteristics involved.
The often overlooked Natural Gas Liquid component (NGLs) are what myriad products are made from.
The build out of the Mariner East 2 to Marcus Hook this coming fall will spark a huge upsurge in production from SW PA and the 'wet' areas of OH and WV.
Your area should benefit economically for decades to come if the political/social forces seeking to thwart development are overcome.
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