What are we missing here? What are we overlooking?

If the gas wells seem to deplete so quickly (as it appears to be the case with many of us), then how will there be enough gas to justify all the pipelines and processing plants are they are being constructed? What do the operators / companies know that we don't? 

When I originally leased, I was told royalties would stay high for 4 years before they dropped off. I've had a big drop less then 2 years into this. I've read before that these wells would produce for 20 plus years. That seems to be way off now.

Even with all the new wells being drilled, if volume drops so fast, then how will there be enough gas to sustain these plants such as the ones MarkWest is constructing.

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Permalink Reply by Undecided About Oil on July 12, 2015 at 6:52am

This article ...

$5 Billion Shuffle

explains the monopolistic, off book, under the table, illegal collusion between Access Midstream ( pipeline / processing plant ) and CHPK where all of the pipeline and processing costs have been shifted to the Royalty Owners. You would think this only affects Royalty Owners with NET Leases but Royalty Owner with GROSS ( No Transmission Costs / No Post Production Costs ) Leases are paying these costs, too. The Royalty Owners were paying, up to, $2.94/mcf  instead of the actual cost of $0.09/mcf. Access Midstream has been making an astronomical amount of PROFIT because CHPK has agreed to use them EXCLUSIVELY, because Access Midstream previously over-paid CHPK for their pipeline network. 

Mike MurphyPermalink Reply by Mike Murphy on July 13, 2015 at 1:58am

MarkWest Energy Partners LP has 18 projects under construction in the three-state Appalachian region that makes up the Utica and Marcellus shale plays.

While oil and gas drillers are reining in activity in Ohio, West Virginia and Pennsylvania, the Denver-based natural gas midstream company (NYSE:MWE) is ramping up activity    there are still thousands of wells to be drilled along with hundreds that are possibilities for restimulation ....those numbers will take 20 to 30 years to do one well or one hundred wells are just a drop in the bucket in are great  energy basin  and who knows what lays beneath the Marcellus and Utica formation down 20,000 feet  deepest exploratory well I know of was drilled 14,000 feet near Bridgeport ohio  so feel there is something more under us

Permalink Reply by Harry E. Rose on July 13, 2015 at 2:02am
MP just purchased Mark west for $15.6 billion.
Mike MurphyPermalink Reply by Mike Murphy on July 13, 2015 at 2:07am

that wont stop the projects already in motion  maybe even create more

Permalink Reply by Harry E. Rose on July 13, 2015 at 2:12am
No doubt in my mind.

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