Wondering Why??? Gas price up/production low, gas price down/production up

It appears that the royalities keep going lower and lower. We noticed that if the gas price is up, production is down and when the gas price is down, production is up. Doesn't make a lot of sense.

Have read on boards that Cabot is controlling the amount of gas released from the well. Is this true and why?

Why aren't the wells turned up full throttle?

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Permalink Reply by Frank Walker on May 3, 2011 at 2:57pm

Oftentimes the price for which your gas is sold is set, in advance, by contract.  Such contracts can be somewhat long term (up to a point, of course).  The gas company might enter into such contracts when they see the available term and price as being advantageous.

 

The price of gas you might be seeing, which can change daily, is more of a "spot" price.  It might, or it might not, relate to the price you, and the gas company, actually are receiving for your gas, when they sell it. 

0jw0dsu4txfuvPermalink Reply by 0jw0dsu4txfuv on May 6, 2011 at 12:39pm
Two reasons the wells are held back. 1) As you said price. 2) Pipeline can't handle the volume of gas being produced.
Permalink Reply by Jasmine on May 6, 2011 at 12:47pm

Can someone tell me how to find out the quality of gas the well is producing.

 

Thanks Frank and Homer for your replies.

Permalink Reply by William Ladd on May 14, 2011 at 12:40am

I would lived to hear what the CEO said. Dominion has expanded their pumping station at Sabinsville a great deal the last couple of years.

 

Bill L.

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