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 September 12, 2023 at 12:08am

Production kissed 104 bcf over the weekend , ouch .. Freeport LNG has been NOT taking much gas the last few days , 

Permalink Reply by farmgas on September 12, 2023 at 4:41am

Why do gas companies continue to produce so much gas?  What is the strategy of gas companies to affect gas pricing levels or do they really have any influence?  Is high gas production needed to sustain their business health?  Is high gas production  needed to match existing supply contracts and they don`t have a choice now?

Permalink Reply by Ralph cramdon on September 12, 2023 at 12:35pm

Pure greed . I have posted in the past bout the 'old farmer " ...... What the cure for high prices ? High prices .. What is the cure for low prices ? Low prices .. Eggs locally were recently over $4 , now in the low to mid dollar range .. Chicken Farmers are no different from gas producers 

Permalink Reply by Deb Reynolds on September 12, 2023 at 2:52pm

there was a scarcity of eggs because chicken farmers had to slaughter whole flocks due to disease. NOT the same thing. 

Permalink Reply by Ralph cramdon on September 13, 2023 at 12:08am

Thanks for the correction Deb . Using eggs as the example was a poor choice . That being said , The Ole Farmer theory is on page one when investing in Materials and commodities 

Permalink Reply by farmgas on September 19, 2023 at 1:26pm

When will gas storage begin to be used as heating season starts soon?  Will current production match draw?  Any projection when prices will begin to increase?

Permalink Reply by Ralph cramdon on September 19, 2023 at 11:43pm

Futures show gas averaging  $3.20 / $3.30  for most of 2024 , the bounce begins in Dec and carries over thru next summer . Looking out to 2025 , gas prices in the $4 range are available . Opened a position just yesterday in Liquidy Marcellus player ... Tricky time , Dow in my opinion is poised to show some weakness . 

Permalink Reply by farmgas on September 23, 2023 at 12:44am

It seems that different gas companies use many different gas prices for calculating royalty payments.  What goes into these calculations?  Do they charge different prices from well to well or pad to pad in the same area?

Permalink Reply by farmgas on October 2, 2023 at 9:42am

We seem to be in the deepest bust period I have seen in the past 15 years.  What`s causing it and when will it be over?

Permalink Reply by Ralph cramdon on October 2, 2023 at 1:43pm

Deepest bust recently was 2020 covid .. Quality energy stocks could be bought for pennies on the dollar . I remain and have even expanded the Ralph portfolio firewall ... T bills over 5.5 % less than a year .... A sinking DOW takes no prisoners.... Even left leaning Bloomberg news has been flashing a warning on recession , the flashing was loud and often today .... 

Permalink Reply by Ralph cramdon on October 3, 2023 at 12:53am

Gassers taken to the woodshed yesterday 

Permalink Reply by farmgas on October 3, 2023 at 12:56am

What market changes are needed to change the pattern going forward other then the obvious cold weather factor?

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