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 farmgas on April 3, 2024 at 8:33am

In a capitalistic society, how do competing gas companies show more discipline in managing their own production?  And then throw associated gas into the mix...

Permalink Reply by Ralph cramdon on April 3, 2024 at 9:44am

Farmgas you hit the nail right on the head .... They should teach this the FIRST DAY of business classes ... Old Farmer says ? "What the cure for high prices ? High prices ... Whats the cure for low prices , low prices .".. This statement only works in a Capitalist system 

Permalink Reply by farmgas on April 3, 2024 at 10:09am

50 years ago in my college economic classes pricing was related to supply & demand equations.  Over supply meant lower pricing while demand was high.  How does the gas industry lower supply without collusion amongst themselves?  If gas company A reduces gas supply and company B & C do not, then company A suffers revenue loss.  Right?  

Permalink Reply by Ralph cramdon on April 3, 2024 at 10:36am

The trick is to buy gas / oil when prices stink and nobody wants to own it .... Sometimes easier said than done .... It takes a big set of [balls] when things look depressed 

Permalink Reply by Ralph cramdon on April 4, 2024 at 7:16am

Strip prices for 2025 in the $3,50 range .... Lowest cost producers win ....

Permalink Reply by farmgas on April 7, 2024 at 3:40pm

The production slowdown seems to be working.  Pricing is edging ahead.  Good news for landowners in Central PA.

Permalink Reply by Ralph cramdon on April 8, 2024 at 8:05am

Equities have moved much quicker than Gas spot prices ... The current price inn the $1.80 range is unsustainable..... Hung out with a Chessie Landman yesterday ... Interesting stories ..... 

Permalink Reply by farmgas on April 8, 2024 at 9:08am

It`s reported Chesapeake Energy has plans to continue drilling wells and keep them in their inventory for TIL as needed when prices increase.  This sounds like a good plan for them.  Can smaller gas companies do this and not get a quicker return on their investment?  Will Chesapeake Energy drill more wells in Northeast PA now?  

Permalink Reply by Dott on April 8, 2024 at 12:01pm

farmgas, please explain. You wrote "Chesapeake Energy will continue drilling wells and keep them in their inventory for TIL."

What does TIL stand for? Also do you mean they will drill wells and cap them and not allow them to produce until prices rise?

Permalink Reply by farmgas on April 8, 2024 at 1:56pm

A recent news report stated Chesapeake will do just as you mentioned. It was reported they will continue to drill wells with a plan to "turn them in-line" (TIL) when prices rise again.  Not certain where they will do this but maybe a positive message for the industry and Northeast PA where Chesapeake drills. 

Permalink Reply by Ralph cramdon on April 8, 2024 at 8:02pm

Lack of takeaway continues to be an issue in the NE PA gas play .. Seems like CTRA has a reduced effort also ... COG wasted so much land / gas while prices where low in that region ....

Permalink Reply by farmgas on April 15, 2024 at 10:33am

Natural gas price continue to rise.  Where will it be this summer?  Will the current global problems impact the price?  EQT is making lease swaps in NEPA & Ohio

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