Surging Natural Gas Prices

How are the surging natural gas prices affecting drilling this year, and what about going into 2022?  Are the gas companies taking advantage of these higher prices?  What`s next?

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Permalink Reply by Ralph cramdon on October 3, 2023 at 1:41am

Production continues to be high , if economy slows demand for gas will soften ... Gas is poised to be in the $3 range for 2024 if the futures hold . A falling / crashing dow takes no prisoners....  

Permalink Reply by paleface on October 5, 2023 at 11:48am

High interest rates cut back on shale drilling.I wonder if thats what Bidens plan was.

Permalink Reply by Ralph cramdon on October 6, 2023 at 12:30am

Low prices cuts back drilling effort ... Gas over $3.10 . Mortgage rates over 7% will eventually put a hurt on Housing . Corn prices keep fading lower , with higher input costs , I wonder what the average break even corn price is , and will acreage  prices start fading ? 

Permalink Reply by farmgas on October 6, 2023 at 2:36am

Once gas prices begin to rise, how soon afterwards should royalty owners expect to see an increase in their payments?  How does a gas company determine what the monthly price to use when prices go & down daily?  Do they average the price rate over a 30 day period or what?

Permalink Reply by paleface on October 6, 2023 at 8:30am

Nymex $3.35

Permalink Reply by Ralph cramdon on October 6, 2023 at 11:12am

Some of these producers need $3 or better gas to keep the lights on . .. Next issue ,at $3 gas the Haynesville once again becomes profitable ... 

Permalink Reply by farmgas on October 7, 2023 at 2:30pm

It`s a little confusing when so much of their gas produced is hedged above $3.00 why gas companies can`t sustain their operations.   Equally so, shouldn`t royalty owners expect their royalty payments to reflect these hedged prices too?

Permalink Reply by Nancy Mosley on October 7, 2023 at 2:48pm

I think the royalty price is related to the hedged price in that situation.

Permalink Reply by Ralph cramdon on October 9, 2023 at 2:59am

A few never hedged when prices where higher , since then drilling rates/ overhead  have increased ... Transportation costs also eat up a substantial amount of $$$$ .... $3.36 gas should keep most producers happy ... Conflict in Mid East might be pushing prices higher as well . Former outfit Cabot was in a hurry to hold leases , hence increased production at low prices due to pipeline constraints , which resulted in Cabot giving 'away' valuable gas at pennies on the dollar .. What a waste of Assets ... 

Permalink Reply by farmgas on October 9, 2023 at 3:08am

The impact to natural gas price is so uncertain with so many factors that can influence it.  A cold wave or as just experienced, a global conflict.  Will the middle east conflict affect shipping, production or consumption. of gas?  

Permalink Reply by Ralph cramdon on October 10, 2023 at 2:18am

Its a very fast changing world , hold on to your hats and enjoy the ride ... Recession or World Oil crisis ? Place your bets ...

Permalink Reply by paleface on October 10, 2023 at 5:03am

Nymex $3.41, Seneca  usually pays 1.00 under that.

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