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 farmgas on June 28, 2022 at 2:26am

Where in the Appalachian Basin area might we see some infrastructure growth?  Maybe some new gathering pipelines or compressor stations to stimulate some new drilling.  Will this growth occur in West Virginia, Ohio, Western PA, Central PA (Westmoreland, Indiana area), North Central PA (Tioga, Bradford area) or Northeastern PA?  

Permalink Reply by Ralph cramdon on June 28, 2022 at 10:55am

The gas needs to move out of State ... NY is currently a ZERO  new pipeline zone ..... Same with New England and NJ ..... The MVP Pipeline going to the Southeast US has been in the Courts for years and currently stalled once again ... CTRA and CHK are keeping production flat in NE , PA due to lack of pipes ...... So its very difficult to get new pipe permits to move gas out of State ,, meanwhile Outfits like KNTK in the Permian have some excess capacity that will be used up in the next few years ........More SE PA gas could be piped to the Gulf Coast in the future as more LNG Plants come online .....Turned Bullish on Fri, on  OILY Stocks and Gassers with good wet gas exposure .

Permalink Reply by Ralph cramdon on June 30, 2022 at 2:05am

Repub Gov Candidate Lee Zeldin is pro Fracking in NY .... Most likely if he should win , new Pipelines would also be allowed .... We shall see .....

Permalink Reply by Ralph cramdon on July 5, 2022 at 3:23am

Timberrrrrrrrrr.   Turned NEGATIVE last WED .... 99% OUT for the next few MONTHS ..... Everything gets sucked down in this meltdown , even profitable stocks .....

Permalink Reply by farmgas on July 13, 2022 at 7:54am

How are gas companies & investors responding to current market & wall street conditions?  Is the Ukraine Russia war still driving the future for the gas industry?  

Permalink Reply by Ralph cramdon on July 14, 2022 at 12:50am

Ukraine has helped LNG shipping overseas , but capacity is limited due to infrastructure constraints .. Gas in the $6 range is very good number for producers and profits will be darn good ..... The current heat in the Midwest is also supporting gas prices  as the wind has been non existent for the massive Windmill Farms in Texas ...... Production is slowly creeping higher  but on the flip side more LNG export capacity is under construction ..... 

 Nothing will matter if the economic news continues to drag down the Dow ... Even highly profitable outfits will get sucked down the drain if the Headlines continue to read that Inflation / Recession loom for America .... Oil/ Gas stocks are down 20 to 35% lower than it was a Month ago .... Looks like more pain today , I continue to sit mostly on the sidelines with a few trades mostly in Pipelines ... Even high Dividend Pipelines will suffer if current economic conditions continue to make Headlines .... Just got a phone call that a fellow who uses Aircraft Quality Aluminum Pipe that prices have jumped over 25% just in the last month ..... The damage being done to the economy is real and caution as an investor is urged ... Real Estate will be the next Headline maker , those first time Home Buyers will suffer ,,, it could get very ugly , fast .... 

Permalink Reply by farmgas on July 14, 2022 at 7:39am

As LNG construction increases is there a way to determine what NG production is needed to supply it?  Do gas companies plan their production or new drilling around this new need?  How far in advance do gas companies plan their step-up in drilling to satisfy this future demand?  It seems LNG will drive our gas market for the foreseeable future. 

Permalink Reply by Ralph cramdon on July 14, 2022 at 11:55pm

Yes Farmgas there are charts that show the LNG plants under construction and the volume of gas needed for each plant ... We  currently have capacity LNG  in the 13 BCF/D range , which equates roughly 13% of US daily production ... Haynesville will benefit as its closest to the Coast , which will have the lowest transportation costs .... Getting new pipes from the Marcellus could be an issue as neighboring States are mostly ANTI Pipeline .... The Shell cracker will help Marcellus producers and continued wishpers of another cracker in WV would be beneficial as well .... 

 Public companies are keeping production flat , private outfits are raising their production ..... Inflation and supply constraints are a big issue for those who are drilling today ....  

Permalink Reply by Ralph cramdon on July 14, 2022 at 1:16am

Here are two NYSE listed stocks that have exposure to Euro Nat Gas ... NRT and VET ..... This is NOT an endorsement of either Stock ... NRT is a Royalty outfit , VET is a producer .... 

Permalink Reply by farmgas on July 18, 2022 at 6:09am

2nd quarter gas company reports coming out next week.  Anyone have expectations what will be reported?  

Permalink Reply by farmgas on July 19, 2022 at 11:35am

Is this extreme heat in the US consuming significant NG for electricity to provide AC?  

Permalink Reply by Ralph cramdon on July 22, 2022 at 1:12am

Lots of gas being consumed ,, prices still high ..... Share prices have stalled due to fear of a recession ..... gassers will show very good profits .. Those who are least hedged will show more $$$ , those who are heavily hedged will be making excuses .... Would I be hedging $7 gas ???  YES !!!!!!!!  Most are producing gas in the $2.25 range with some below 2 Bucks 

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