Replies to This Discussion

Permalink Reply by paleface on December 14, 2010 at 12:39pm

 Thats what OPEC does cut back on production than the surplus gets used up drives prices back up.The gas companys are learning to play hard ball.

Permalink Reply by Brian V. on December 14, 2010 at 5:41pm

Interesting presentation. I sure wish one of these companies would find a marketable oil reserve here in Tioga County. CHK just broke ground last month on it's first wells in Tioga County down in Liberty and had been paying a group of landowners $4000/acre. I tried to get an offer but was told they are not actively leasing Charleston right now.

Permalink Reply by paleface on December 15, 2010 at 2:39am

 Chesapeake is always buying than they need cash so they sell they regroup and start buying again you have to catch them when there pockets are full it seems thats the way they do it and its working so far.

Permalink Reply by Ann Ticopa on December 15, 2010 at 3:14am

No, I don't think Chesapeake is going to shut down their operations in the Northern Tier.  But I don't expect them to deploy a bunch of landmen in TC when the weather breaks either. 

Permalink Reply by Ann Ticopa on December 15, 2010 at 2:43am

The fact that TC gas is "dry" is good news/bad news.  It can be used with minimal processing to remove "contaminants" (NGLs).  But because of the over-supply of natural gas, it's the NGLs that the gascos are looking to now for their profits. 

 

It's not all smooth sailing though for NGLs, ethane in particular.   NG with a high ethane content can't be transported in regular NG pipelines.  So the ethane has to be removed and transported separately to the petrochemical plants that use it as feedstock (polyethylene).  

 

"Extra ethane poses obstacle in US Marcellus Shale development

...This ["hot spot"] had large ethane volumes that producers needed to remove in order to ship the natural gas through the existing pipelines.

But there is no current infrastructure in the northeast US to process the extracted ethane gas, so producers have nowhere to sell or use the extracted ethane.

“The amount of drilling and the low price of [natural] gas have combined to cause a situation where producers need to be able to sell NGL to have enough revenue to pay for their drilling and lease acreage acquisitions,” Keller said.

The ethane extracted from the natural gas stream cannot be wasted and producers need to sell it for additional revenue to maintain their operations. ..."

http://www.icis.com/Articles/2010/10/18/9402406/extra-ethane-poses-...

 

Permalink Reply by Brian V. on December 15, 2010 at 2:54am

Good stuff Ann. I have never ever heard of ethane. I still don't quite understand it's uses.

Permalink Reply by Ann Ticopa on December 15, 2010 at 4:03am

Ethane -> ethylene -> polyethyene

"Petrochemicals Make Things Happen"

http://www.petrochemistry.net/flowchart/flowchart.htm

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