Commodity Price 52 - Marcellus Drilling News

Is the Shale Rush Almost Over? One Analyst Says Yes

January 16, 2012January 16, 2012

Jack Barnes, writing for Money Morning, analyzes the price of natural gas and why it’s so low—and what it ultimately means. He says that numerous shale plays in the U.S. do contribute to an overabundance of supply. But the real culprit, according to Barnes, is that major drillers are going after natural gas liquids (NGL), which can be used in a variety of ways. NGL are closely aligned with the higher price of oil and more valuable. In the process of going after NGL, “dry gas” (or methane) is recovered in the process too. It is the scramble for NGL that leads to an oversupply of methane, and that oversupply keeps natural gas prices low.

Commodity Price | Economic Impact | Hydraulic Fracturing | Industrywide Issues

Marcellus Shale Means NJ Residents Heating Bills Vastly Lower

December 19, 2011December 19, 2011

Even though there is no fracking of natural gas wells in New Jersey, residents of that state are enjoying much lower heating bills this winter because of fracking. In fact, according to the AARP, using natural gas for heating costs about one-fifth of what it costs using oil. Why? The Marcellus Shale.

Commodity Price | Industrywide Issues

Natural Gas Rig Numbers Down, Oil Rig Numbers Up in U.S.

December 13, 2011March 24, 2012

Kent Moors, writing on the Seeking Alpha website, comments on his observation from Baker Hughes well rig data for the U.S. that the number of rigs used to drill for natural gas has gone down over the same period last year, but that the number of rigs drilling for oil has skyrocketed.

Commodity Price | Economic Impact | Industrywide Issues

Natural Gas Now Least Expensive Way to Generate Electricity

November 2, 2011November 2, 2011

Jack Kelly had an excellent column in Sunday’s Pittsburgh Post-Gazette. It starts out with a brief history of the discovery of oil in the U.S. and moves to shale gas and points out that shale gas is an even bigger game changer than oil was. Did you know that natural gas is now the cheapest way of generating electricity?! Renewable sources like wind cost 1.5 times more, and solar costs 3.3 times more to produce the same megawatt of electricity as natural gas.

Among Jack’s observations:

Commodity Price | Economic Impact | Industrywide Issues | Pennsylvania | Statewide PA

Marcellus Shale Gas Leads to Lower Prices for PA Consumers

November 1, 2011November 1, 2011

falling prices One of the arguments in favor of shale gas drilling is that it will create more supply leading to lower prices for consumers (that’s Economics 101 for the Occupy economic illiterates). Those opposed to drilling scoff and say it won’t happen, that the big, bad energy companies will rig the system to keep prices, and profits, high. Here’s a dose of reality for those who scoff:

Commodity Price | Hydraulic Fracturing | Industrywide Issues

What Those Opposed to Gas Drilling Really Fear

September 21, 2011September 21, 2011

Dave McCurdy is president and CEO of the American Gas Association. He’s also a former congressman (Democrat) from Oklahoma. In an interview with the Washington Times, he minces no words and says what MDN has been saying all along: Those opposed to shale gas drilling are motivated by an ideology, a preference for renewable energy. McCurdy points out what they really fear is that renewables can’t compete with natural gas based on economics. So that ideology and fear leads them to oppose natural gas.

Commodity Price | Economic Impact | Industrywide Issues | New York | Statewide NY

Wind Farm Project Canceled Due to Cheap Marcellus Gas

September 19, 2011September 19, 2011

Those who oppose natural gas drilling do so because it threatens their ideology that renewable energy should be the only available option. Renewable energy supporters don’t seem to care that it costs 3-5 times more (that’s 300-500 percent more) for electricity from renewable sources than from fossil fuel sources. Rather than celebrate our good fortune in finding a cheap, abundant source of something that pollutes far less than other sources—shale gas—they attack it and claim it’s just as bad as the dirtiest coal. It’s sad, really.

Here’s yet another example of so-called renewables failing the economic test, an example sure to push some of the antis over the edge. It looks like the $1 billion Great Lakes offshore wind farm is yes, out of wind (bad pun intended). And the reason why it’s being canceled? Marcellus Shale gas—abundant, and cheap.

Commodity Price | Hydraulic Fracturing | Industrywide Issues

Fracking Creates an Oil Boom – Now More Oil than Gas Rigs

August 18, 2011August 18, 2011

Turns out that horizontal hydraulic fracturing, the process used to get natural gas from shale layers, is also a renaissance for oil production as well. According to the latest figures, the number of rigs drilling for oil in the U.S. has just surpassed the number of rigs drilling for natural gas—for the first time in 18 years—thanks to fracking.

Marcellus Shale Gas May Soon be Exported – To California

July 7, 2011July 7, 2011

In an astonishing reversal, the operator of a natural gas pipeline that spans the United States is proposing to change the direction the gas flows through the pipeline in order to sell shale gas from the Eastern U.S., particularly the Marcellus, to the Midwest and Western U.S.

Commodity Price | Industrywide Issues

The Prospects for Continued Expansion of Marcellus Drilling – Some Companies Cooling on Shale Gas Drilling

May 4, 2011May 4, 2011

Will drilling in the Marcellus Shale, or other shale plays for that matter, continue its red-hot growth? The honest answer is, who knows? It depends on whether or not it’s profitable for energy companies to continue their shale gas drilling expansion. Right now, it appears that at least some companies are leaning away from further expansion in shale gas drilling because the commodity price of natural gas is low compared with oil. Many (most?) of the companies who drill for natural gas also drill for oil. If the price you get for gas is only barely covering your costs to drill, as it is right now for natural gas, you take a close look at the alternatives, like oil.

Some of the factors that will continue to affect the price of natural gas in the coming few years, and hence drillers’ willingness to drill:

Chesapeake Energy Paying $2,500 per Acre to Lease Utica Shale

April 11, 2011April 11, 2011

An article on the Forbes website covers a recent energy conference held by Yale alumni. The focus of the article is on how America’s shale gas has turned around chemical companies. But MDN found this interesting paragraph talking about the Utica Shale:

Commodity Price | Industrywide Issues

Shale Gas Keeps Heating Prices Low for Homeowners

March 28, 2011March 28, 2011

Is it time for homeowners to switch from heating with oil to heating with natural gas? More and more are doing just that.

CNX Resources | Commodity Price | Energy Companies | Industrywide Issues

CNX Gas Corp. chief: Slow down or stop gas drilling

October 4, 2009February 26, 2010

Pittsburgh Tribune-Review (Oct 3):
CNX Gas Corp. chief: Slow down or stop gas drilling

Gas prices are depressed right now. The question is, how long will it go on? While prices are low, CNX Gas CEO Nick DeIuliis says drillers have to remember to be good business people and slow down or stop drilling to reign in costs. What does that mean for landowners? Will drilling slow down or stop any time soon? Good questions to ponder. A good article to read to give you an update on gas prices on the commodities market and the overall drilling landscape.