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 February 8, 2024 at 3:54am

N Gas $1.93

Permalink Reply by farmgas on February 8, 2024 at 3:58am

Where are we going with NG pricing?  Weather doesn`t seem to be the total driver for pricing now or am I mistaken?

Permalink Reply by Ralph cramdon on February 8, 2024 at 1:25pm

You can thank over production plus the weather for tonights price of $1.87 

Permalink Reply by paleface on February 9, 2024 at 3:07am

The price of NG is dropping. But the energy stocks are up?

Permalink Reply by farmgas on February 9, 2024 at 12:37pm

Cold weather & snow returning to Pennsylvania next week.  Will natural gas prices rise?  Any projections?

Permalink Reply by Ralph cramdon on February 9, 2024 at 4:20pm

Possibly a bounce , but over production is a big long term issue ...PS. N Gas drilling rig count INCREASED by 2 this week 

Permalink Reply by farmgas on February 10, 2024 at 8:53am

What motivates the drilling companies to not manage their production differently?  Are their operating costs so high that  they must continue drilling?

Permalink Reply by paleface on February 10, 2024 at 12:34pm

From what I hear the wells pay off pretty quick than there running expenses are cut signifyingly.

Permalink Reply by farmgas on February 10, 2024 at 12:43pm

That sounds like their "return on investment" is so quick from high production rates initially that operating expense afterwards is manageable and low.  So the more they drill & produce the higher their revenue stream is.  Not much incentive to cut back on production. 

Permalink Reply by Nancy Mosley on February 10, 2024 at 12:44pm

Also remember the associated gas from the oil wells in Texas, adding to the supply.

Permalink Reply by paleface on February 11, 2024 at 3:05am

Farmgas that sounds spot on to me, but I don't know their agreement with investors.

Permalink Reply by Ralph cramdon on February 11, 2024 at 1:52am

Multiple factors play into why producers dont often cut back on production . Once a well is in production , they want / need the cash flow to pay the bills . Transportation is expensive and if a producer does  not fill the pipe acording to the agreement with the pipeliner , the producer still is responsible for payment . 

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