Is there hope for the gas industry?

We are halfway through 2021, and now what is the outlook for further development in PA, Ohio & WV?  Are prospects looking better for this year or will 2022 be a better year for us?  Everything seems to be at a standstill?  Why??   Anyone with encouraging news?

Views: 3423

▶ Reply to This

Replies to This Discussion

Permalink Reply by Nancy Mosley on July 25, 2021 at 12:58pm

The West Virginia Office of Oil and Gas Weekly Reports might be similar. West Virginia Weekly Reports website   It is somewhat complicated but there are instructions.

Permalink Reply by Ralph cramdon on July 25, 2021 at 3:15pm

Wet gas is valuable if it has a decent amount of propane or butane , ethane not as attractive ...... 

 Ohio Utica and Utica in general is fairly more expensive to drill , the Pittsburgh region look to be the Utica hotspot , with some monster wells reported by EQT ,  but for now the Marcellus is generating better returns and presently for the major gassers it all about generating Free Cash Flows .... Production increases are on hold for now ......  Once the tier one Marcellus is played out the Utica will be developed ...... Many of the existing pipes  used for MArcellus gas will then flow Utica gas ,......  

Permalink Reply by william Allen. Ladd on July 26, 2021 at 12:36am

About two years ago  A large pipeline, about thirty inch  I believe it was,  was being laid  in a west to east direction.  It crossed route 249 just south of Sabinsville maybe three or four miles.   I have no idea where it was coming from or being laid to. I no longer drive around the area,  (gave up both vehicle and license due to age,  'Me being 86 years old'.   Pipe installers had several problems dropping down onto rt 349  with three or four washouts on the west side of Long run road.   Is any one familiar where this large diameter pipeline  terminates at?   Granddad Ladd

Permalink Reply by Corvette on July 26, 2021 at 4:07am

Could be the Mariner East pipeline. Sunoco ran it from Cadiz Ohio to be loaded on ships for Europe at Marcus Hook New Jersey'

Permalink Reply by Ralph cramdon on July 26, 2021 at 5:25am

Mariner East tracks thru southern PA ,.... Mr Ladd is located in N PA 

Permalink Reply by farmgas on July 27, 2021 at 12:54am

Ralph:  Seems like most companies favor only drilling Marcellus wells with an occasional Utica well.  Both EQT & Range seem to follow this pattern.  CNX Gas seems to do the opposite.  Seneca Resources seems to be expanding their Utica well drilling in northern PA.  How will the completion of the Shell Cracker Plant in Monaca, PA impact future drilling in the region?  Which companies will be affected?  

Permalink Reply by farmgas on July 27, 2021 at 3:22pm

Do gas companies consider creating their own consumer for their gas?  For example, any insights into any gas companies financing the building of an electric generation plant.

Permalink Reply by william Allen. Ladd on July 28, 2021 at 1:05am

That is a great question Farmgas.   To do so just might be better then to just convert some company over from some other form of energy.  Financing in part of some university project  might be a good start.    Granddad Ladd

Permalink Reply by Ralph cramdon on July 28, 2021 at 1:36am

COG has encouraged power plant deals  in its region ..... Gas companies I would think would be reluctant to actually own power plants , as it takes away its focus on drilling ......... NFG has been under pressure over the years to sell its consumer gas distribution business and focus on drilling ... CNX separated its coal  operation a few years back  ,.. EQT also sold its gas distribution system a few years ago .....

Permalink Reply by Ralph cramdon on July 28, 2021 at 1:33am

CNX share price has lagged due to lack of future Marcellus well sites ... Most think CNX has less than 10 years of tier 1 Marcellus left ... NFG / Seneca has tier 2 Marcellus , therefore it is developing its Utica ..... Last I looked NFG Utica  doesn't match top tier Marcellus to the South  and East ... NFG buying Shell Tioga was a bit of a surprise as Shell Tioga well results has been less than stellar ...... Shell did pipe up the area fairly well and that helped seal the deal ..... 

 Shell cracker will get much of its Ethane from AR which already has a deal with Shell ... I would suspect that RRC also has a deal as well .... 

 To date , much of the Utica is dry gas ... RRC and AR are the  two major wet gas producers , AR is top 3 in the Country ..... and with 50% or so of its wet gas being propane commands a decent premium for its product .... CHK and COG , east of Tioga produce mostly dry gas ,,, CNX is more dry gassy as well ..... EQT is more dry , but does have a decent wet exposure ..... 

 RRC reported its 2 qtr yesterday , ho hum was the market response ,,, I think AR reports tonight ...... Many have high expectations due to AR exposure to soaring propane prices ...... 

 

Permalink Reply by farmgas on July 28, 2021 at 2:13am

Thanks Ralph for your insightful comments.  I read the RRC 2Q report yesterday and like so many other gas company reports it was less then informative.  The best one in my view is Seneca Resources which still details their drilling plans and overall system.  CNX just provides a financial report now.  It will be interesting to read their report tomorrow.  In the RRC report on page 18 they discuss their core inventory vs peers core inventory.  They tout theirs to be greater then their peers.  You mention CNX tier 1 Marcellus well sites to be be less then 10 years.  That`s not too far off.  Is this why they champion their Utica potential so much?  They have Marcellus  potential in their CPA region which is not being developed.  NFG seems to be OK with lower Utica potential then does RRC, EQT or CNX.  On page 27 of the RRC report they discussed how future stacked pay will drive their production.  Are other gas companies planning the same?

Permalink Reply by Ralph cramdon on July 28, 2021 at 3:35am

RRC blew it big time when they payed way too much from Memorial 's 'deep pink ' in LA .... Deep Pink turned out to be very limited in size , RRC took on huge debt ..  and recently sold it of for pennies on the  dollar .... To this day , I am surprised RRC management remains in place , as they nearly destroyed the company .......... 

 

They will all use up their tier 1 lands first , then return to many of these pads to drill deeper ... There will be substantial saving as the gathering pipes will be already in place ... Devonian and Utica then will be the targets ..... 

 Sold off my modest RRC holdings , yesterday early , including pre market ..... I was unimpressed with results considering high NGL prices and better N gas prices as well ..... 

 Still hold a couple of other Marcellus players .... Hoping for the best ... 

 AR has been reporting getting $50 / barrel  for their liquids the last few weeks ... AR reported they got $40 for liquids qtr #2 ...... AR hedges will hold back gas profits ... EQT less hedged ..... CNX fully hedged .... SWN , I don't really follow .... NFG not enough beta .... CHK is really interesting here , COG in the doldrums  

RSS

© 2024   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service