From WSJ: Natural gas prices drop 4% to close at $2.1850/mmBtu, the lowest closing price since May 27, 2016 and the largest one-day decline this month, after the EIA reported a larger-than-forecast 115-billion-cubic-feet rise in storage for the week ended June 14.
“For the sixth consecutive week, the EIA has reported a triple-digit injection. This is the first time this has happened since 2014,” says Austin, Texas-based Drillinginfo. “With the summer’s peak demand season just around the corner, don’t expect the triple-digit injections to hang around much longer. As power burn ramps up in July and August, some of the gas that is currently being injected into storage will need to be used to meet power burn demand.”
This explains why BP has pulled out of Angelina, San Augustine, and Nacogdoches Counties, i should have taken Black Stones offer to purchase my mineral rights.
lee, as of Friday, BP was running 2 rigs in Nacogdoches and 1 in San Augustine.
no new permits believe me they will be gone
It doesn't take long to get permits. As long as BP has rigs under contract they will be drilling somewhere in E TX and NW LA. BP has had a lot on its plate since the acquisition of the LA Haynesville acreage. I don't think they are going anywhere.
They laid off all of their Haynesville land crews Friday effective immediately over 150+ landmen unemployed now. 2021 expected to return.
Sounds like BP is through with their leasing, for now. The company landmen can handle most of the land work required for a drilling program.
Building on Skip's comments, attached are two PDF's - BP leases filed in Angelina Co over past 60 months (some as recent as a couple of months ago) and 25 Haynesville permits filed in the past year.
BP isn't walking away from this deep gas asset. They may not be drilling right now, but their plate is full. They will not let this opportunity expire and blow away in my opinion.