Replies to This Discussion

Permalink Reply by Hopeful About Natural Gas on February 3, 2012 at 18:05

yep, what's lousy for us as owners or workers can be great for the consumer! 

That's why I say over and over, shale gas can bring manufacturing back to the US. It's that big of a game changer. Most of us here recognize that even if we bemoan the low prices.  It's nice to have a LOT of some kind of fuel!

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Permalink Reply by DrWAVeSport Cd1 on February 4, 2012 at 4:45

sesport II,

Perfect Question to ask the Congress/Presidential Candidates/Americans who #$#**** about gasoline prices!

 

 

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Permalink Reply by DrWAVeSport Cd1 on February 6, 2012 at 2:45

sesport II,

It seems Boehner and "The Gang Who Couldn't Shoot Straight," is missing their target again.  This is NOT an ENERGY POLICY for the U.S. This is an AGENDA.  IMHO. 

1.  Offshore drilling is $$$$$$ over Onshore drilling.  And Offshore drilling is a moot point.

2.  "Use the revenues," from what????  The O&G Industry has already "used the revenues" to build O&G Infrastructure that will pay-off for the O&G Industry.   And, O&G has done so without any help from Washington...or moneys.  Does Boehner think the O&G Boys are going to NOW fund un-named "infrastructure and repair and improvement" projects all over this Country????  He better think again.  O&G MUST FUND THE NEW U.S. OIL/GAS INFRASTRUCTURE...NOT Hwy, Bridges, Streets, and Drainage Projects.  Does Boehner not know that Funding for Roads, Hwys, Bridges, etc. is a SEPARATE Animal apart from what U.S. O&G Infrastructure Needs are? 

And, talk about LOL multiplied by 100....  The "PIONEERS' ACT...  HA! HA! HA!

And I quote: 

"The Protecting Investment in Oil Shale the Next Generation of Environmental, Energy, Resource Security Act," ...which would set clear rules for the development of U.S. Shale resources and promote shale technology research and development..."

Either The Boehner "Gang" hasn't read a newspaper in the past 5 years...Or They have been in a looooooooong COMATOSE State....  Didn't that U.S. "SHALE" Train leave the station about 5 years ago??????? 

The O&G Players have "developed" and "promoted" and done the "shale technology research development" BY THEMSELVES!!!!!!  That Ship has sailed!  And... The O&G Players don't...didn't...NEED Washington's Approvals, Acts, or Advice to do it.  Otherwise, WE WOULD STILL BE WAITING... 

Could it be that SOME in Congress are just now beginning to SMELL the "Shale Gravy Train" a comin'???? 

Again...IMHO...  Idiots!  And SLOW Idiots at that.

"American Energy & Infrastructure Jobs Act (H.R. 7)...  Nothing sounds smart in this Act...Except for its Title...

Again, with respect, just my opine...

Have a Great GHS Monday, Sesport II.   And, thanks, as always, for the read.

DrWAVeSport Cd1  2/6/2012

 

 

  

 

 

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Permalink Reply by P.G. on February 4, 2012 at 8:44

Utility companies passing the lower prices along?

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Permalink Reply by Steve P on February 4, 2012 at 16:19

Interesting article, and thanks for posting.

 

Some of us who are old enough will recall the collapse of OPEC's prices in the mid 80's, which greatly helped the US and world economies, but sent Louisiana (and Oklahoma and Texas) into a big slump.  These historic low prices for NG will have a similar but less direct impact on the US economy.  But a big effect, nonetheless.   Even if utilities don't pass on the reduced prices of NG into their rate structure and, instead, us their reduced costs to upgrade their infrastructure, those investments still flow through the economy in the form of jobs.

 

The interesting thing about NG as opposed to crude oil is how "localized" the impact is.  Frankly, if my gas bill at my house is reduced by 20% but my royalty checks are reduced by the same percent, then obviously I am waaaay worse off.  But, if the lower prices do ripple through the US economy and lead to more jobs, smaller government deficits, and a rising stock market, then maybe that's not a bad trade-off.

 

Eventually - eventually, these low prices for NG will lead to an increased demand for NG, and that increased demand will start the price trend back up.  I figure the worst thing that could happen to me would be to have 8 wells in every section in which I own minerals, maximizing production at historically low prices.  Fortunately, that is not my plight (although the balooned royalty checks are tempting).  If we ever get over the infrastructure hurdle and see NG used routinely for fueling 18 wheelers, then that will be a true "win-win."  good for the environment, good for the trade deficit, good for our national security, and, of course, good for my pocket book. 

 

What's not to like?

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Permalink Reply by Steve P on February 5, 2012 at 9:25

Several of the producers are doing just that - 8 wells drilled sequentially, all come on line once all have been completed.  Exco and Comstock seem to be the most prevalent at this practice.  So most of your royalties come in years 1 and 2.  And right now, those royalties are based on NG at $2.50 - 3.50 plus most of your income is piled into 1 or 2 tax years.

 

I suppose the upside is that maybe in 5 years, some smart people will have figured out nuclear fusion or something else that supplants NG, making the price of NG even lower or the expensive HS wells uneconomical.  If I had a say in the matter, I would take my chances on the long run value of NG.

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