CNX Resources just laid off 14% of their work force.   Is this going to be the trend for the next year or two with all the gas companies?   Will gas companies out source more of their worker needs?  When will we see more drilling?

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I was hoping the G7 meeting would have had a plan to get NG to Europe so they aren’t at the whim of Russia closing the valve and freezing them and we could sell them some NG.  Instead it looks like a worldwide economic downturn is coming which means less energy is needed. 

Naturalgasnow just did an article stating that LNG exports to Europe are growing rapidly. They are now buying a substantial amount form us....something like 30% of their nat gas is from the US.

Here's a link

Thanks for this information, Jim.   I imagine the news can only get better as more LNG is exported to Europe.   Being patient is not easy these days waiting for the industry & market to evolve into a hungry consumer for more gas.   It has been spoken on several different discussions that LNG will be key for more growth in the industry.

Actually all of the Domestic O&G will be placed in the US Treasury after each owner is convicted.

See    Executive Order:  Severe Human Rights Violations and Corruption, signed 12/21/2017.

There are currently over 110,000 Sealed Federal Indictments ready to drop across the US. All Corruption will cease as promised by Our President Donald J. Trump, the Military and the NSA. think the government, which you seem to have current disdain for, will seize control of all privately held O&G interests.  That is either pure communism or leading to a Monarchy.  You sir are inviting the thing you fear.  What makes you think that the concerns you think will take control have yours or anyone else’s interests at heart? 

There are going to be a lot of layoffs in the nat gas field, especially in the Appalachian fields. Prices are too low  now and will remain low, perhaps go even lower.'

The Permian is the new King.  They are drilling there like crazy for the oil but also getting huge amounts of associated nat gas.  So much that they were 'selling' nat gas in negative rates a couple months ago....paying to get the gas out of the zone. Texas has strict limits on flaring so they are forced to pay out to remove the gas. And a couple new pipelines will be online this fall with several more in the next two years.  This will put massive quantities of nat gas on the market, driving prices down.

They don't care what the price of nat gas is there because they make their money on oil.  Nat gas is more a nuisance to them. It was selling for $1.55 last week, the highest price since March. It was actually selling at negative .25 in June/July, averaging .65 over the year.

Now way can other areas compete at prices below a dollar.

What could happen to world or US economy to change the impact of the Permian field?   If oil demand is reduced I suppose then more attention would focus on the Appalachian Basin.   It is constantly being reported that gas production is increasing in the Appalachian Basin.   Is this a supply v. demand scenario that is regional to SW US v. NE US?

Production is up because of much better technology to get the gas out.  There are fewer rigs than 5-6yrs ago but they get much more per well which helps lower costs and keeps Pa gas competitive.  Much longer laterals, more frack stages, much more propant, better field designs and more. 

The NE Pa area has the advantage of being close to huge east coast markets reducing transportation costs. If they ever get a few more pipelines past Cuomo and through NY that would be a big boost.

In W Pa, another cracker plant or two would help as would the proposed underground storage facility in W Va.

As for oil, I don't know the break even price of Permian oil so I don't know how far it have to go before they slow drilling there.  IRRC, it was in the $40/bl range so it would have to fall a ways. And 'break even' will vary from on spot to another within the Permian.


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