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Permalink Reply by Hopeful About Natural Gas on November 20, 2014 at 7:33

Skip, thanks for posting this. I was looking at one of the graphics and I do not see the Haynesville Shale listed at all.The Brown Dense and TMS both look very good on these charts.

The Haynesville boom really kickstarted the fracking and yet I don't find it even mentioned in the article. Have we become irrelevant in the big picture? The Brown Dense and TMS both come out looking good.

http://www.bloomberg.com/infographics/2014-11-19/shale-profits-at-r...

I'm still Hopeful about Natural Gas - but some days it sure ain't easy.

HANG

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Permalink Reply by Skip Peel - Mineral Consultant on November 20, 2014 at 7:38

You're welcome, HANG. The Brown Dense is in limbo from a development perspective.  It has bigger challenges than the price per barrel break even.  The TMS looks more risky every day owing to high well costs and weak crude prices.  It had the misfortune to be in the early delineation/HBP  phase when the price dropped.  And the Haynesville Shale is not mentioned because this is an article about the price of a barrel of oil and therefore only covers plays that produce oil.

Here is a recent discussion on NG supply/price that gives some idea of what's ahead - it's good for consumers but not so good for energy companies, stockholders or royalty recipients.

http://www.gohaynesvilleshale.com/forum/topics/r-i-p-henry-hub-marc...

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Permalink Reply by P.G. on November 20, 2014 at 10:17

Too bad they don't push NG for transportation.
Seems like that would be one way for drillers to bypass the Arabs influence.

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Permalink Reply by Hopeful About Natural Gas on November 20, 2014 at 19:08

for example, we could convert our fleets of public transit buses to run on natural gas. Maybe that would draw protests today, but it would be smart for many reasons.

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Permalink Reply by Skip Peel - Mineral Consultant on November 21, 2014 at 2:15

Many municipalities where natural gas production exists have already begun transitioning their fleets.  Not just buses but garbage trucks and other maintenance vehicles.  Shreveport/Bossier where I live being a good example.  In moving to NG fueled vehicles they have built re-fueling stations that are available to the public.  Although the fuel savings for the municipalities is significant there are few private vehicles to use those facilities.  It will be a long time before vehicle use moves the demand needle and even then it won't move it far.  The key to balancing NC supply to demand is increased demand through the phase out of coal.  It's a no brainer except for the politics of those who  make enough money from coal to ignore the health hazards.

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