Gulfport rumored to be shutting down all Utica drilling

http://marcellusdrilling.com/2015/11/rumor-gulfport-energy-suspends...

Ray Charles could have seen this coming.

Maybe they need to stockpile/purchase some more leases they can't drill.  Yuck, yuck. 

Gulfport spent a ton of money on financially wretched prospects other Okies generated.  When I would read about the transactions I always thought to myself: "these Okies are flinging billions of dollars between themselves, saving each others hides by finding new victims and wasting other peoples money.  There is something very wrong/toxic here."

There has to be a reckoning.  A terrible reckoning!

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Permalink Reply by Joseph-Ohio on November 10, 2015 at 7:48pm
Sounds encouraging.

Thanks for your read.
Permalink Reply by Tim Tarr on November 10, 2015 at 8:31pm

MWE has pushed back schedules for the second time on processing plants.

Now Marathon has sweetened the offer by increasing the cash portion of the buyout. The former CEO of MWE has come out against the buyout. Might get real interesting if dry gas is now hot spot. Don't need those (new) processing plants for 1040-1055 Btu (Dry) gas.

At >$3 gas only a few companies can fund the drill bit. Throw in >$45 oil and that wet gas/oil is not profitable. The big KILLER is an expected rise in interest rates. Increase the cost of money and some will go under real fast. The Gas/oil still there but not the excessive drilling. Just will take the decline curve some time to do it's work. That's when the survivors will make their $$$$.

Permalink Reply by Bluflame on November 11, 2015 at 9:05am

Dennis,

  IMHO, new wet gas wells are few and far between. As the well decline curve sets in, fractionation activity will inevitably be reduced. Prices for all NGL's are in the tank. MW performs fractionation on a fee basis, and currently it's a loser for the E&P's.

  Let's hope things improve!

BluFlame

Permalink Reply by dennis elias on November 11, 2015 at 11:30am

Keep the  government out of free enterprise... I would never want the government to handle my Check book . Just want to add and explore on a few things that a few of you are commenting on ? . I can tell you this, when I was involved in lining up water contracts for sources for the Oil & gas fracking  . We knew what was coming to the area 6 years ago , When everyone else was in the dark. Now look where we are at , The only reason they have shut  some wells down , is because of the lower gas prices , why would you or these Big Companies continue paid out royalties at the low prices. Just shut them down and wait for the prices to go back up . I was told many times , with higher up official , they want the gas prices to go to $4.00 and up . Why ! because of greed ,  Be patience while some are bickering , they will continue to move forward , regardless what we think .        

Permalink Reply by Joseph-Ohio on November 11, 2015 at 1:40pm

Thinking it's too late to keep them out of it myself.

The POTUS disallowed Keystone XL and practically did a 180 on Gas & Oil the way it appears to me.

Don't know how we can expect to keep it (government) out if it's already in.

Seems like  we (landowners / lessors) may be better off working with it (government) toward implementing more landowner / lessor cognizant legislation.

Permalink Reply by dennis elias on November 11, 2015 at 2:35pm

over all the USA government most likely will not interfere . It will be up to the State , which in many cases have set the standard in drilling permits and etc ,etc

The keystone pipeline was rejected by our so call president , which really don't make sense . Because we have gas lines being lay all over the country , So what's the big deal on the Keystone ?

  

Permalink Reply by Bluflame on November 11, 2015 at 2:45pm

Dennis, 

  And the gas lines date back to John D. Rockefeller, whose fortune expanded immensely thanks to Ohio & Pennsylvania natural gas transported to market via pipeline.

  The Keystone XL pipeline was conceived to transport Canadian tar sands oil to the gulf coast. Since oil prices plummeted, the tar sands have become unprofitable and most, if not all operations, are shut down.

  Bottom line……Obama may have unwittingly done the Keystone XL investors a favor!

BluFlame

Permalink Reply by Joseph-Ohio on November 11, 2015 at 4:52pm
State government is still (also) government.

IMO, it's also way too big and way too intrusive.
Permalink Reply by Bluflame on November 12, 2015 at 8:57am

Dennis,

  As far as I know, we are the only country in the world where underground hydrocarbons are owned by the landowners vs the government. I hope someone reading this will chime in if they are aware of others. Canada??

  Furthermore, all extraction and related services in the US are performed by private companies. Therefore, royalty payments come to private citizens vs the government as in other countries. Also, landowners here have the option to sell their mineral rights as many have done.

   IMHO, the shale revolution would not have happened (at least as quickly) if our favorite Uncle were calling the shots. The best evidence of this is little shale activity in other countries that have shale resources. Inevitably, it has led us to the current state of over-production. It will self correct as it has many times over the years. (Please God, just give me one more oil & gas boom. I promise I won't **** it up.) The only question is when.

   Let's hope the govt, national or state, always keeps this industry an arms length away.

BluFlame

  

Permalink Reply by Paul Butler on November 12, 2015 at 9:27am

I'm no fan of Obama, nevertheless I have to note a few things.

Government funding/subsidies in the 1970's provided resources for  the initial research into both fracking and horizontal drilling.  Read George Mitchell's biography.

Since Obama arrived, we have more than doubled oil & gas production in the US.  People on the left feel betrayed that Obama let that happen.

Republicans/rednecks need to remember, they didn't vote for Obama.  The people who voted for Obama want Obama to take the republicans/rednecks by the nose and kick them in the backside.

The people who voted for Obama want him to keep a baleful eye on the oil & gas industry.  The industry has a well established reputation as being full of criminals, scumbags and sociopaths.

That's democracy.  George W spent much money and resources giving Iraq democracy.  If it's good enough for Iraq, it's good enough for us.

Permalink Reply by Bluflame on November 12, 2015 at 9:33am

Good points, Paul! As a royalty owner myself, I have first-hand experience with deceptive O&G industry practices. The Ohio legal system is full of lawsuits targeting those practices.

BluFlame

Permalink Reply by Barb Smith on November 11, 2015 at 9:02am
No rumor here
Magnum Hunter delisted on the NYSE all common and preferred shares suspended
Great job Gary on the JV and immenet sale of Eureka Hunter pipeline. Whose next ?

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