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 April 15, 2024 at 8:34pm

Gas price in the Permian WAHA hub is NEGATIVE $5 recently ... That means producers are PAYING $5 to get rid of their gas .

Permalink Reply by farmgas on April 17, 2024 at 9:37am

Being from Pennsylvania I do not understand why this happens.  I understand about associated gas but isn`t it being transmitted to the gulf for LNG?  Are there no other outlets for it`s use  in Texas?   How is their electricity fueled?

Permalink Reply by Ralph cramdon on April 17, 2024 at 1:55pm

Gas is a national product ,, if its oversupplied in some regions it will effect prices somewhat nationally .. Permian wells continue to get gassier , its also shoulder season wich can lower prices as well .. Much of Permian is in the wilderness ,,, a fair amount of electric for the wells is run by diesel generators... Some have told me that untreated gas from wells is tough on generators .  

Permalink Reply by paleface on April 17, 2024 at 4:05pm

The deeper they drill for oil more gas will be found.

Permalink Reply by Ralph cramdon on April 17, 2024 at 6:50pm

The money is in the oil , gas used to get flared , now must be piped ... As the top areas get mopped up, secondary regions [ more gassy ] are getting attention ..  Also as a well declines it tends to get a higher gas to oil ratio ... Water is another issue . Some wells in the Delaware get 6 barrels of water for every barrel of oil ... 

Permalink Reply by farmgas on April 17, 2024 at 9:17pm

I was questioning how the State of Texas fuels their electricity for the grid.  Surely there are other uses then just LNG.  Sounds like a bottomless pit for this associated gas.  The more oil is produced the more gas is produced too. 

It`s like natural gas produced from shallow wells here in PA that hasn`t been cleaned prior to distribution.  Gas exiting the well will contain water which causes corrosion and sand grit which causes abrasive wear.  In our camp house there are signs of corrosion on some metal light fixtures caused by burning gas from shallow wells on our property.

So natural gas produced in Appalachia and consumed in Appalachia is priced as same as associated gas produce in the Permian gas fields.  Doesn`t seem right.

Permalink Reply by Ralph cramdon on April 18, 2024 at 7:51am

Every part of the country has its own pricing depending on supply and demand .. The spot price most often quoted is Henry Hub .. Even with EQT and others reducing production , prices remain low .... Forward looking futures predict higher prices next year ... We shall see .... Interesting chat on your experience with usage of gas from your wells 

Permalink Reply by paleface on April 18, 2024 at 8:58am

Farm gas do your lights get a little brighter in your camp house during shoulder season?

Permalink Reply by farmgas on April 19, 2024 at 3:40pm

Ha...burning the well gas in our house heaters cause more moisture in the air in our house.  An attempt to remove as much water as possible is done at the yard gas meter.

Permalink Reply by paleface on April 20, 2024 at 8:52am

I was wondering if the shoulder gas was migrating into your shallow wells.

Permalink Reply by farmgas on April 21, 2024 at 12:00pm

No storage areas near me.

Permalink Reply by farmgas on April 23, 2024 at 7:04am

Is associated gas also abundant in the Ohio oil fields as it is in the Permian Basin?  If so, does it have an impact on local gas prices in Appalachia? 

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