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 Ralph cramdon on December 22, 2023 at 1:12am

Paleface , you are right , technology is always improving  , EOG currently in central / eastern Ohio is a classic example for those who follow the ins and outs of the industry .. Haynesville in E Texas is another developing story of smarter drilling . 

Permalink Reply by paleface on December 22, 2023 at 4:21am

If your not drilled yet its actually a good thing I know you'd rather have the cash now but the future money will much better. Shell wells best month were about 19 million MCF a day and dropped off sharply after 3 months Seneca wells are around 20 million MCF a day and are holding after a year. Of course, there is always the exception...

Permalink Reply by Ralph cramdon on December 23, 2023 at 12:52am

The contracts have also gotten smarter , with more folks aware of pratices like the old Chesapeake whose expenses were so high that many recieved a mere pittance of what they deserved ... 

   A Merry Christmas to my two website 'buddies' ... Energy is my full time gig , often 12 hours a day , its been a good year for returns , not in gas or oil , but coal . Steel making coal aka 'coking ' coal .. Having  mostly stayed away from gas and oil this year ,. Coal , pipeliners , a couple of windmillers and T bills was on the menu this year .. Windmillers have been riding high till sometime this summer and had gotten a butt whipping .. Entered into the sector for the first time late / summer to mid fall ...                                                            With all the Energy  websites out there , this is the only one I post on and I also do not post on social networks ...  For whatever reasons I like you guys , and hope those Billions of cubic feet of gas come your way .. Christmas Blessings to all . 

Permalink Reply by paleface on December 23, 2023 at 4:00am

Merry Christmas to you Ralph and to anyone that's reading this.

Permalink Reply by farmgas on December 23, 2023 at 6:16am

Merry Christmas to all GMS members ... thanks for all of your insights Ralph.   Lets get more people involved next year just like it used to be for GMS.

Permalink Reply by Nancy Mosley on December 23, 2023 at 8:06am

Thank you for all your contributions and Merry Christmas to all!

Permalink Reply by Ralph cramdon on December 26, 2023 at 7:01am

Tricky oil situation ... Middle East conflict acting up  vs ... OPEC has held back 3 million BB/d of production to inflate oil prices .... Tough to be bullish with that much excess capacity .. Tough to watch as conflict increases , threatening  shipping .... 

Permalink Reply by farmgas on December 28, 2023 at 10:49am

Is most natural gas for LNG use coming from the Texas region?  Is Appalachian gas use more  widely driven by weather conditions in the upper region of the United States?  If so, then why is cheaper "associated gas" driving the market price in the Appalachia Basin? 

Permalink Reply by Ralph cramdon on December 29, 2023 at 1:12am

Morning Farmgas . Appalachia production growth is constrained by lack  new pipes .. , though AR ships the great majority of its production out of basin as do others . Though heavily populated NY / NJ and New England need more gas , the politicians have nixed any thoughts of new pipes into the region . The MVP pipe running into SE US has been held up for years in courts and way over budget . Gas is indeed shipped from Appalachia into LNG plants. , AR presentaion has some good info .                                             Haynesville is the closest to many LNG plants and shipping costs are consideralbly less . The tradeoff is that its more expensive to drill the Haynesville .. Currently Haynesville needs roughly $3 gas to break even , Parts of Appalachia breakeven is a bit less . 

 Permian gas has flooded the market and gets shipped to the coast and increasingly to Mexico ... Gas in the Permian is looked as a byproduct of oil , the price of gas is not the deciding factor whether to drill , the money is in the oil .

.. The best oil wells are gassy wells that help drive the oil to the hole . 

 Setting up the office in Naples Fla for the next few months , hopefully it be up and running by Monday ... 

 Gas going to below $2 ? Above $3 ? Only old man winter knows , he is in control . 

Permalink Reply by Ralph cramdon on December 29, 2023 at 1:22am

A healthy , happy New Year to my PA friends . May your gas prices rise high enough to give you economic security . 

 Last bit of trivia . Did you know that Eastern Naples has a oil Field .. " Sunniland Field " off " Oilfield road "  was developed in the mid 1900's , in and near the swamps . I have collected some great limestone fossils with many embedded shells and marine life . A few wells are still active and most are closed . 

Permalink Reply by farmgas on December 29, 2023 at 3:53am

Follow the oil Ralph...being a "snowbird" this winter isn`t too bad.  For those of us in Pennsylvania we will just have to hope winter weather turns frigid soon, and we are warmed by rising gas prices.  Cheers!

 

Permalink Reply by paleface on January 2, 2024 at 2:55am

Seneca has the Geophysical Survey people out in Westfield area Tioga County Pa. Planning there drilling strategy for late 2024. 

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