I suspect NG prices will not recede back to $3 now. In my view the industry would not be able to operate with a profit at those low levels. Is it possible for gas prices to end next year above $9? Next year will be an interesting year for the gas industry? Can they sustain their growth??
No reply button on you last post Farmgas ... If memory serves me ,,, Jan Future price as of yesterday was $9.30 .... Then drop to the mid 4's by late spring ..... Many things are unknown ,,, This winters weather ? Politics ? Hurricanes in Gulf of Mexico ? Production has slipped the last few days after breaking records ....... The old Farmer is always lurking in the back of my mind ... " Whats the cure for high prices ? The Farmer always answers ' High Prices " !!! It has been a great run up since 2020 spring .... Great for Investors and producers alike .... but the Oil Mans prayer also lurks inside of me .... "Lord give me one more great oil well and I 'PROMISE " not to piss the money away this time "
$9.90 today .... Producer profits will be soaring
Are royalty holders seeing this surge in NG prices being passed on to them?
yes. Even old vertical wells are paying much better than before.
Nancy , how much income does an older vertical well produce ? Thanks in advance ...
Ralph those old wells could have methane leaks,you know what that could entail.
Excellent point Paleface , cementing an old gas well can get costly .... There is something in the newly passed Biden Inflation / Green Energy Bill that provides $$$$ for closure of old producing wells ... I do not know the details ....
Here's another question ? Lets say the Mineral Rights Holder is different from the Landowner ... Who would be responsible for a well cleanup / closure , the Mineral Rights holder or the Landowner , or both ?
Ralph, I believe the state DEP agency will handle the plugging & clean-up of abandoned wells, if that is what you are asking. If there is still a gas company identifiable then they are responsible for the plugging & clean-up. Here in PA I believe the DEP is being responsive to handling these old abandon wells.
well owner, I believe. Well operator maybe but operator is not always same as owner. This might be the same as the leaseholder, or not. Maybe a corporate entity that owns the well (the casings etc). This would be the working interest holder for a well.
It might be different if the landowner is just surface owner but has rights to house gas, where the natural gas from the well could be used for domestic needs of a dwelling on the premises. Some old wells are house gas only, mineral (royalty) owner gets nothing. This is getting way past my area of knowledge.