It was a good week at NAPE and participation was very strong. Thanks to everyone who came by the booth to hear more about the Advance Royalty Payment!
As winter comes to a close, all eyes again are on the supply-demand dynamics. Many regional variables look to add to the volatility as natural gas demand declines with warmer weather and “summer” storage injections begin.
Concerns of distress in Texas and Southwest is weighing on the market. There is still too much gas in the region and not enough pipeline to move it out.
And, the Waha/Permian basin still has a large inventory of wells shut in, ready to come on line given any improvement in price.
If local oil prices stay strong, producers will likely increase crude production, inadvertently bringing along more gas production as well.
To add further issues, U.S. exports to Mexico are waiting for the Mexico downstream pipeline to get completed, which seems to constantly get pushed back. Prices in this region are low for the summer, but the further weakness is a real possibility in the coming months.
With these concerns and crude rising, it is a good time to consider using an ARP™ to mitigate possible price declines. Take control of your mineral rights ownership today!