I see your point OT regarding the teeter totter effect with gas & coal, we’ll see how your prediction plays out. Producer consolidation - the word Monopoly comes to mind. I doubt that land and mineral owners will have any advantage if many of the current producers are reduced to only a few. Imagine if we only had one cell phone provider in our country... do you think customer service would improve? what about prices? .....Get your new iPhone for $2499 & only $325 per month for service.
So what needs to happen to turn NG prices around?
A Simple answer is work to Increase LNG export contracts.
-Long Cold winter to eat away at surplus...I just ordered a polar vortex 2.0 from Amazon, unfortunately they are back ordered due to Montana Amazon prime members ordering first. I am wishing for snow and extreme cold weather from October through April.
- more attacks on foreign refineries
- Keep anti-fossil fuel, fake green deal dems out of office
- or what Ron said
You agree with Ron’s “Dark-side” of the O&G industry out to plunder and steal anyway they can. You even think folks that have been here on GMS for years involved in informative discussions are industry trolls.
The really sick and demented thing is that little ole you sitting there on your patch of dirt is wishing for extremely cold weather this winter that will kill and harm people and suck away their wealth with high heating bills and lost work. And attacks on refineries that will kill people and suck wealth out of the world and maybe start World War III. All so you can make a few bucks for your minerals. How are you any different than a thieving O&G company. You are just as willing to step on people and wish ill on them to get ahead.
Hey! Please stop this crappy comments towards each other! They do nothing except to cause anger toward each other. This site was created to offer information to interested folks...… not to belittle someone you do not agree with! If you have such anger, then write these nasty complaints on a price of toilet paper and flush it down the toilet!
I do not always agree with Ron Hale but he does make some valid points to consider. Nasty complaints against other folks posting on any site only show that thinking processes are bogged down to the limit of intelligence, and will never help anyone.
You are right Granddad Ladd,
I shouldn’t have taken the low road. I also want GMS to once again be an informative forum filled with thought provoking discussions that folks want to enter. It has been quite awhile since a new discussion hasn’t been immediately hijacked with rambling conspiracy theories. This is not the GMS of years back.
I must’ve been distracted , my post was not well written,sorry ran out of time to add a more meaningful reply . My bullet points are merely things that could affect NG prices . Farmgas if you are who you say you are , my bad. I may have got you confused with a different gas ....The one in the past that makes posts regarding declining natural gas prices ....months latter offering to flip your minerals. Anyways, I know personally a industry troll on this site that has a diff. member names in 2 states and has been acting like a landowner on this site for years.... he will be laughing when he reads this comment ... keep the free lunches coming and I won’t “out you” ;). Disclaimer - the lunch part was a joke
The great Nostradamus & Hale once wrote : predator trolls of the O&G industry will live out their remaining yrs at gitmo
FYI - ETA on the Amazon polar vortex order : shipping mid January arrival late January.
Another Disclaimer - I am not the next great GMS conspiracy guru , The above 2 lines are only an attempt at humor, Although I do love cold weather and snow.
My opinion for 2020 and beyond is varied, depending on Politics (a real surprise, huh?), and the traction or lack thereof of the Anti fossil fuel gang.
Democrats oppose (now, at least) any further use of FFs, yet they fail to embrace the one true difference-maker in Nuclear Energy for electrification....this makes no sense to me. If the Democrats take the Presidency and retain the House, I am afraid you will see E&P retraction in new infrastructure, for a time at least.
It appears that the Climate Change Alarmists are starting to lose some ground worldwide, as renewable investment has nosedived in 2019.....it just does not work!
Natural Gas is the perfect bridge fuel, and makes sense for the world to embrace it. If that occurs, things might improve for NG, but I fear the glut of production will keep prices low for the foreseeable future. Not optimistic.
Take my opinion with a grain of salt big enough to move with a bulldozer because the only constant in oil and gas is change. Right now I don't see another real boom coming along. Horizontal fracking has made it too easy to bring product to market. Consequently, when the price climbs production doesn't lag far behind. The price won't climb for long before production overtakes it and drives the price back down. Prices also won't completely bottom out for long because companies will go bankrupt or sell their assets or shut-in wells.
The easiest way to tell who is going to survive a downturn is to look at how much debt a company has. It's not the only determining factor, of course, but the companies with way too much debt just don't survive.
I don't think we can tell who's going to be around for another year or two and who won't. Most of the companies operating today made it through 2014 and learned some lessons from that downturn. There will always be some M&A action to shake things up, but I'm not deep enough into that side of the business to know who's going to do what.
Kyle, I agree your comments seem to reflect what the future holds for the gas industry. It seems to me that gas companies will anticipate their production needs to satisfy financial obligations, and only drill new wells and shut them in, and only open them up as needed. In essence, keeping an inventory of wells to be used as needed. Unless there is a large increase in market demand there doesn`t appear to be much incentive to drill new wells and glut the market again. Does that sound accurate? So, which companies can sustain that type of business model? Will it promote a few large scale companies or a group of smaller ones?
Pretty much. They will always be drilling new wells. Any time they get a capital infusion it will go to the drilling program. The old wells really drop off quickly in terms of production, so they constantly have to bring new wells online to replace the "lost" production. They do keep quite a few wells in Drilled but UnCompleted status (DUC wells), but those are going to be brought online at some point. The number of DUCs in the Marcellus shale region has gone down this year. Again, I'm not sure which companies will make it through and which won't. I just don't have the financial and leadership details on each company.
I think the private innovative lean companies will take the cake.