I am writing this from the Florida Keys right now waiting for the wind to die down so I can go fishing offshore. Generally, when that happens, the only thing that brings solace is a cold bottleneck. Unfortunately, the bottlenecks that we will be focusing on today can bring a lot of pain to oil and g…Read More
I am not an optimist, but hopefully one day I will be. With West Texas gas prices still under pressure, the timing of new natural gas pipelines from the Permian remains critical. This increased take away gives the optimist hope. However, questions remain if this will be enough to offset the increase…Read More
Advance Royalty Payment (ARP) and Volumetric Production Payment (VPP) These products give a royalty owner (ARP) or a working interest owner (VPP) a payment upfront for a specific amount of production that will be produced in the future. These products have been designed for those who need a large am…Read More
Jose the Magician was doing his act when he tells the audience, “I will disappear on the count of three!” “Uno!” “Dos!” …and he disappeared…without a “Tres." This reminds us of current spring weather natural gas demands — it has disappeared without a trace. Energy trading …Read More
Q. Why did the man fall into the well? A. He didn’t see that well. Makes us laugh every time. On the theme of wells, as you have read in our recent posts, oil producers continue to drill, baby, drill. That brings online the usually valuable, but sometimes nuisance issue of natural gas and how to…Read More
I watched the movie No Country for Old Men last week for the second time. At first, it made me think about gas prices in West Texas, but then I was reminded of an old Texas oilman joke: Oilman: "Well, I have some good news and bad news." Banker: "Well, what is it?" Oilman: "The bad news is we …Read More
When trying to understand how a commodity is priced, the best foundation is from a fundamental perspective. Simply stated, when supply is above demand, prices fall and when the inverse occurs, prices rise. However, this equation gets exponentially more complex for natural gas when attempting to pars…Read More
Waha daily cash prices (Permian Nat. Gas Pricing Hub) traded down to $-.75 today. How can prices trade negative? The producer is paying the buyer to take the gas off their hands so that they can continue to produce more valuable production (Oil and NGLs). There may be relief in the near future as GX…Read More
Both Chevron and Exxon announced that they are seeing plus-30% returns at the current strip in the Permian. Exxon announced that they can profitably drill at $15 oil, making their operation cost-competitive with some of the lowest cost supply regions globally. A major driver behind this activity is …Read More
In the recent history of the shale revolution, the Appalachian basin has been associated with huge amounts of natural gas production, and along with that, the need for interstate pipelines to get the gas to major demand regions (these regions primarily being the Northeast urban corridor, the southea…Read More
