So the GAs lease business has slowed down now. When do you think it will take off again.
Okay everyone, the gas lease business has slowed down because of the low cost od natural gas. We had a great winter to save fuel this season. So I'm assuming the LAnd Companies are taking a stand, "we don't need you, natural gas is low. You land owners should pay us to drill."
We all know natural gas will go up. It will be in more demand than ever before. Seems things like the proposed " Shell Cracker Plant" is on it's way (2016 probably). Here in PA or really close. Gasoline is high and maybe we will seriously start looking at switching to CNG vehicles.
My lease is over in 3 years and I'm hoping they have to renew the lease. Nothing is happening close to me. They drilled a mile and half away and left. I don't think they fracked. It might be 20 years from now but someday some one will be fracking under me. When does everyone feel the good prices for leases will spike again ?
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Permalink Reply by Jim Litwinowicz on
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You didn't state where you are located but that makes a big difference. If you are in what is perceived as a wet gas area there will still be considerable activity. And even if you are in the dry gas zone of Eastern Pa, I hear they will be still drilling there because it is so close to the East Coast markets and they have substantial infrastructure already in place.
If you are in a dry gas area without the needed infrastructure, it may be slow for a year or two. But the pace on converting transportation and electrical generation to nat gas is accelerating due the huge price differential. The gas companies are also working quickly to convert their LNG import terminals to export terminals. Added up, demand and therefore prices will rebound in a year or two sufficiently to restore activity at a solid pace.
All just my opinion....
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