15 Jun Got Gas?
Most fossil fuel investors are strictly oil. Those that invested in lease production programs early in the year are seeing big gains from buying in on cheap costs. West Texas Intermediate as gone from $48 to $70…a 45% jump in price.
But finding undervalued deals on oil development is getting tougher. Simply put…supply is shrinking and break-even is pushing out.
You know what else has gone up in price this year? Natural Gas! It’s up 33% this year.
I’m keen on natural gas right now for many reasons:
· Natural gas is used for both electrical generation – year-round demand
· Very reliable heating fuel source in cold months (unlike renewables) demanding higher prices
· A great deal of workover and lease improvement inventory compared to oil leases
· Infrastructure in many areas is very solid for quick delivery
· Condensate can add a little extra $$ without additional costs
I’m predicting a higher ceiling percentage on natural gas in the upcoming year. Lights are already flickering throughout Texas due to burdens on the grid. Renewables cannot simply keep up.
Now I get it…calling yourself a “Gas Man” is a lot less boastful than “Oil Man”…but your significant other won’t mind too much if your monthly revenue checks are bigger!
So, if you don’t have natural gas in your working interest portfolio, now’s the time to seriously consider investing.
Check out our opportunities at KnikEnergy.com. We have flexibility on production and upside combination programs for all budget considerations.