The Permian Gas Problem Is Just Getting Worse - GoHaynesvilleShale.com2024-03-29T13:13:29Zhttps://gohaynesvilleshale.com/forum/topics/the-permian-gas-problem-is-just-getting-worse?feed=yes&xn_auth=noNot at the moment. Hopefully…tag:gohaynesvilleshale.com,2019-12-30:2117179:Comment:38740062019-12-30T23:58:35.898ZSkip Peel - Mineral Consultanthttps://gohaynesvilleshale.com/profile/ilandman
<p>Not at the moment. Hopefully that will change in the near future. The methane gets burned off in flaring but the process does release CO2. Of course the entire system leaks methane at multiple points and excepting a few companies, there appears to be little in the way of efforts to cut fugitive emissions.</p>
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<p>Not at the moment. Hopefully that will change in the near future. The methane gets burned off in flaring but the process does release CO2. Of course the entire system leaks methane at multiple points and excepting a few companies, there appears to be little in the way of efforts to cut fugitive emissions.</p>
<p></p> These days, I am more focused…tag:gohaynesvilleshale.com,2019-12-30:2117179:Comment:38738352019-12-30T23:49:44.240ZHenryhttps://gohaynesvilleshale.com/profile/Henry48
<p>These days, I am more focused on the climate than the gas market. Are there no costs or penalties to these producers for dumping tons of carbon dioxide and methane into the atmosphere?</p>
<p>These days, I am more focused on the climate than the gas market. Are there no costs or penalties to these producers for dumping tons of carbon dioxide and methane into the atmosphere?</p> I think we would do well to r…tag:gohaynesvilleshale.com,2019-12-25:2117179:Comment:38726982019-12-25T18:01:53.170ZSkip Peel - Mineral Consultanthttps://gohaynesvilleshale.com/profile/ilandman
<p>I think we would do well to remember that the modern horizontal wells in the Permian are producing a majority of oil of a lighter API gravity than the standard, West Texas Intermediate (WTI). WTI is a light, sweet oil with a gravity of ~39.6. So much of current production is lighter so a new category has been created, "West Texas Light Sweet" from 44.1˚-49.9˚API gravity. This range covers the gravity range between WTI and "condensate" which is >50.0. Many here in NW LA and E TX are…</p>
<p>I think we would do well to remember that the modern horizontal wells in the Permian are producing a majority of oil of a lighter API gravity than the standard, West Texas Intermediate (WTI). WTI is a light, sweet oil with a gravity of ~39.6. So much of current production is lighter so a new category has been created, "West Texas Light Sweet" from 44.1˚-49.9˚API gravity. This range covers the gravity range between WTI and "condensate" which is >50.0. Many here in NW LA and E TX are familiar with historic producing gasy formations which are classified as "wet gas", Hosston/Travis Peak, Cotton Valley, etc. The liquid production from those wells, condensate and Natural Gas Liquids (NGLs), declines much faster than the gas volume. After a number of months, the liquids are depleted but the gas production can go on for many years. This is similar to the production mix described in the article.</p>
<p>So, for those of us focused on the gas market, this is more negative news. It's not just the "associated gas" that comes with new oil wells but an observable trend of high gas oil ratios in those wells entering their second and subsequent years of productive life. If the OPEC+ reduction in production targets becomes a reality and supports the price of crude to the point that domestic US oil operators crank the rig count back up, the glut of natural gas that has persisted for the last few years will likely last well into the next decade. Also the request to flare Permian gas will continue to climb well past the 6,000 granted in 2019.</p>
<p></p> Maybe I'm wrong, but I interp…tag:gohaynesvilleshale.com,2019-12-24:2117179:Comment:38726632019-12-24T21:08:18.026ZJesse Joynerhttps://gohaynesvilleshale.com/profile/JesseJoyner
<p><span style="font-size: 14pt;">Maybe I'm wrong, but I interpret this to mean that oil production is dropping and NG is increasing way, way too much. And if some of the Wall Street pundits are correct and if Opec continues to keep its thumb on oil production, then the price of oil could stabilize toward the upside. Could be that's why there's a bit of aciviity beginning to sneak into the leasing in LA per year's end, which is somewhat unusual, the way I read the tea leaves. It must be the…</span></p>
<p><span style="font-size: 14pt;">Maybe I'm wrong, but I interpret this to mean that oil production is dropping and NG is increasing way, way too much. And if some of the Wall Street pundits are correct and if Opec continues to keep its thumb on oil production, then the price of oil could stabilize toward the upside. Could be that's why there's a bit of aciviity beginning to sneak into the leasing in LA per year's end, which is somewhat unusual, the way I read the tea leaves. It must be the operators are smelling higher oil prices and feel confident to drill some new oil wells. They can't be thinking about drilling new NG wells. In other words, with the price of NG cratering, along with this article's insight into even more NG coming out of the PB and with even more pipelines coming online in Texas, such seems to be the only thing that halfway makes any sense. So if this hypothesis is, indeed, correct, then us NG mineral owners are truly in for a very tough row to hoe, maybe for years to come. Personally, I don't see LNG being able to move the needle enough to change the rather bleak short-term future for NG. I only hope I'm missing something. And that something might be the quick depletion of so many shale wells in the HA, which might mean even more new horizontals will have to be drilled by BPX, etc., to uphold pipeline contracts.</span></p>