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Started By
Message
Had an interesting call this morning about our products.
Posted on 4/24/20 at 12:27 pm
Posted on 4/24/20 at 12:27 pm
I have a valve company in Oil & Gas. We make a variety of gas tight valve products for Deepwater, , Topside, and Land applications. Guy called me about some applications for natural gas. Had a discussion with him.
Long story short.... Natural Gas is primarily a by-product of oil production. With oil wells starting to shut in and many many more to shut in there is going to be an expected increase in the price of Natural Gas. There really aren’t wells that just produce just natural gas... hasn’t made sense economically.
Current thinking is natural gas prices are likely to double or triple as oil production comes offline here in the states. A few companies are already working out economics of just drilling and producing natural gas without oil production.
I know there are some investors on this board....why don’t you give us some feedback or share your thoughts on this speculation?
Long story short.... Natural Gas is primarily a by-product of oil production. With oil wells starting to shut in and many many more to shut in there is going to be an expected increase in the price of Natural Gas. There really aren’t wells that just produce just natural gas... hasn’t made sense economically.
Current thinking is natural gas prices are likely to double or triple as oil production comes offline here in the states. A few companies are already working out economics of just drilling and producing natural gas without oil production.
I know there are some investors on this board....why don’t you give us some feedback or share your thoughts on this speculation?
12
Posted on 4/24/20 at 12:31 pm to Tridentds
If you want a real discussion, bring this to the money board.
Posted on 4/24/20 at 12:31 pm to Tridentds
quote:
Natural Gas is primarily a by-product of oil production.
Prices on May oil futures went negative. Of course it makes sense that natural gas, a by-product of that negatively trading commodity, would soar in cost.
Posted on 4/24/20 at 12:33 pm to notiger1997
quote:
If you want a real discussion, bring this to the money board.
Posted on 4/24/20 at 12:35 pm to Tridentds
It depends on if demand for oil dips more than demand for NG. If demand is there for NG the prices will go up until demand is met.
Posted on 4/24/20 at 12:35 pm to Tridentds
Give me enough prime rib and hummus and I'll make Kinder-Morgan look amateur in comparison.
Posted on 4/24/20 at 12:36 pm to uscpuke
quote:
Prices on May oil futures went negative.
WTI prices went negative. Not all oil futures.
Posted on 4/24/20 at 12:36 pm to Tridentds
Thanks for the heads up, I'll go reup all my propane tanks this afternoon.
Posted on 4/24/20 at 12:37 pm to BeepNode
quote:
It depends on if demand for oil dips more than demand for NG. If demand is there for NG the prices will go up until demand is met
Thanks Alan Greenspan
This post was edited on 4/24/20 at 12:41 pm
Posted on 4/24/20 at 12:38 pm to Tridentds
Hopefully for all of us, your supplied products are from the US or western Europe.
Quality isn't there from China and India.
Quality isn't there from China and India.
Posted on 4/24/20 at 12:41 pm to Tridentds
Rush was talking about this last week and trying to get people to stop cheering on falling prices because things like this are going to happen.
Posted on 4/24/20 at 12:41 pm to Tridentds
quote:
Natural Gas is primarily a by-product of oil production.
Nope. There are a bunch of just gas wells here in Pointe Coupee that have been producing natural gas from the 1980's. A shite load at that.
Posted on 4/24/20 at 12:43 pm to Tridentds
quote:There are about 10 of them on our land. They used to pay big bucks, but since fracking and new discoveries, they don't pay shite. They're coal-bed wells, so they keep on giving as long as you leave the coal down there.
There really aren’t wells that just produce just natural gas... hasn’t made sense economically.
Posted on 4/24/20 at 12:43 pm to Tridentds
Aren’t most of the natural gas companies also oil companies? Exxon and BP are two of the largest natural gas producers. Seems like it would be a wash, at best
Posted on 4/24/20 at 12:45 pm to Tridentds
Isn't natural gas more in demand in the cold months of the year? Sure supplies will be more limited, but so is the demand.
Posted on 4/24/20 at 12:48 pm to fishfighter
quote:
Nope. There are a bunch of just gas wells here in Pointe Coupee that have been producing natural gas from the 1980's. A shite load at that. ?
Nope. Most gas production comes oil producing wells, just like the OP stated
Posted on 4/24/20 at 12:49 pm to BuyloSellhi
I understand your point about gas being from oil but what you are really talking about is the carbon chain associated with the organic matter that made the hydrocarbon product
. There are lots of plays that produce “dry gas”
Which is almost pure gas as you describe...
Google the bossier play in Texas in the Franklin area.... we liked this play years ago when natural gas was going for a premium and our surface facilities were minimal cost because we just hooked the well to the pipeline with minimal surface facilities cost..
Natural gas prices came down a lot from those days and people started looking for oil or high condensate yield gas..... that said there are many dry gas play to go back to if the economics support it....
. There are lots of plays that produce “dry gas”
Which is almost pure gas as you describe...
Google the bossier play in Texas in the Franklin area.... we liked this play years ago when natural gas was going for a premium and our surface facilities were minimal cost because we just hooked the well to the pipeline with minimal surface facilities cost..
Natural gas prices came down a lot from those days and people started looking for oil or high condensate yield gas..... that said there are many dry gas play to go back to if the economics support it....
Posted on 4/24/20 at 12:51 pm to Captain Crackysack
OP was stating that all NG comes from oil wells.
Posted on 4/24/20 at 12:56 pm to Tridentds
I just install natural gas grill f my life
Posted on 4/24/20 at 12:58 pm to thelawnwranglers
Your power is probably provided by natural gas turbines, so you really can't avoid it.
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