Gas companies cutting back - The HuntingPA.com Outdoor Community
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post #1 of 24 (permalink) Old 01-25-2012, 12:19 AM Thread Starter
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Gas companies cutting back

Saw an article in the Wellsboro paper about the impending cutbacks in the number of gas drilling rigs in the state. To much supply and low prices are making it unprofitable to keep drilling.

Drill rigs are pulling out of the "dry gas" areas and moving to areas with "wet gas".

Looks like drill rig numbers will be cut in half.

Was reading online today that one company will now turn more of it's focus towards drilling for oil in the U.S.



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post #2 of 24 (permalink) Old 01-25-2012, 12:29 AM
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Re: Gas companies cutting back

On a related note, the DOE has just cut back estimates of recoverable Marcellus Shale gas from 410 TCF to 141 TCF.

http://pittsburghlive.com/x/pittsbur.../s_778033.html
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post #3 of 24 (permalink) Old 01-25-2012, 12:45 AM
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Re: Gas companies cutting back

Quote:
Originally Posted by Dutch
Saw an article in the Wellsboro paper about the impending cutbacks in the number of gas drilling rigs in the state. To much supply and low prices are making it unprofitable to keep drilling.

Drill rigs are pulling out of the "dry gas" areas and moving to areas with "wet gas".

Looks like drill rig numbers will be cut in half.

Was reading online today that one company will now turn more of it's focus towards drilling for oil in the U.S.
That company would be Chesepeake Energy. They are shutting down about 50% of their Dry Gas wells and going wet. The low price of gas is exactly why they made the decision. Instantly, their stock went up and the price of natural gas moved up. They are that big of a company.

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post #4 of 24 (permalink) Old 01-25-2012, 12:47 AM
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Re: Gas companies cutting back

Is that the same DOE that awards loans to Solyndra?

Does this mean the US will have to rely on firms like Solyndra in the future so we must loan them more money since the NG resources won't cover as much of our energy needs? Amazing!

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post #5 of 24 (permalink) Old 01-25-2012, 01:34 AM Thread Starter
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Re: Gas companies cutting back

You responded to me, why?



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post #6 of 24 (permalink) Old 01-25-2012, 01:40 AM Thread Starter
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Re: Gas companies cutting back

Talisman cutting back as well.

http://www.vancouversun.com/business...038/story.html



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post #7 of 24 (permalink) Old 01-25-2012, 01:44 AM
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Re: Gas companies cutting back

my response was meant to Esox's post don't know how you came up ???

Not a great market to be sinking a whole bunch of money in for little return...is it?

However a bright spot for some of the landowners who signed old leases for little in the way of signing bonuses and minimum royalty amounts will be afforded time for the old leases to expire and to re- negotiate perhaps a better lease.

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post #8 of 24 (permalink) Old 01-25-2012, 09:24 AM Thread Starter
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Re: Gas companies cutting back

My guess is that the lucrative lease rates of the past, are just that, past....



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post #9 of 24 (permalink) Old 01-25-2012, 09:31 AM
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Re: Gas companies cutting back

The older the play the more lucrative the new leases will be.

As the prime areas are identified and exploited any remaining lands will be worth that much more... Now some of the more marginal areas will be worth less..a lot less, until a price increase makes the drilling more profitable.

As new markets develop demand will rise to take up some of the surplus we are experiencing now... And new markets will be developed..this is all just starting.

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post #10 of 24 (permalink) Old 01-25-2012, 11:38 AM
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Re: Gas companies cutting back

Watch the Utica Shale. If it is as wet(ngl) and oily as CHK claims, it will dwarf the Marcellus in importance. Methane will be a by-product of the ngl and oil wells and will further supply the dry gas market.
CHK and their CEO rely alot on hype. The state of Ohio is supposed to release well data in March. Then, we will know more.
I have a small investment in CHK and have done pretty good because I got in real low. The company has issues for sure. But, they could strike it big with the Utica.

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