09 Aug August 2022 – “Natty Gas”
I pay daily attention to the price of West TX Intermediate and Natural Gas market prices. I also pay attention to the news coming from the Big Boys.
I’ve been noticing that the price of oil has gone down but natural gas has been relatively higher and steady. I was wondering if anyone else was paying attention then I read an article about Chesapeake going full bore into natural gas.
Ever since the last boom-bust cycle of natural gas from last decade, natural gas has been relatively treated like the beer your cheap friend brought to the tailgate. Worse, if you unexpectedly ran into gas on your oil lease with no pipeline nor market, you’re spending more $$ by having to flare or set up surface equipment to sell at a major discount. This has happened a few times with some of operators in the past 4 years.
Natural Gas is now the US domestic energy driver!
Let’s skip the +10 reasons why natural gas prices are where they are…let’s cut to the conclusion…natural gas prices will remain higher, now that governments and the general public understands its true value to how they conduct their daily lives (as long as the industry doesn’t flood the market). This allows for producers to chase larger and smaller plays as the economies of scale favor development throughout the spectrum. The real gems are legacy fields with remaining reserves with surface equipment already in place.
Your best bet? Get some natty gas on your books! For operators, I have gas production for sale ([1217](https://knikpetro.com/tx-multiple-producing-lease-package-id-1217/)) and for working interest participants, I have a few points left in a well to be re-entered this week that has a combination of oil and gas with infrastructure in place ([1219A](https://knikpetro.com/tx-re-frac-single-well-id-1219a/)).
As long as you like waking up and not having to stoke a wood stove or tying an ice block on your head, Natty Gas prices are here to stay.