There have been huge negative prices for gas from the Spur Trudy wells the past few months. Makes the total revenue very low. Gas prices have not been terribly low. With the surge in oil prices I was expecting at least a modest gain in revenue. In stead the total revenue keeps dropping. Anyone understand what’s going on?
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Please post this in the correct state and county, so that local folks can answer the question.
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We really do need the state and county. There are many Trudy wells in the US. Are these the ones in Eddy Co, NM?
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Well production declines as the well ages, so revenues follow accordingly. If by saying that gas prices have not been terribly low, you are referring to gas prices at the pump for vehicles, there is a lag of sometimes a year or more between production & refining; and pricing at the wellhead can fluctuate a lot in that time. If this is not what you mean, you need to give the wells location and ask a more specific question.
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Just for clarity, gasoline for cars is refined out of oil and so fluctuates with the price of oil. It is unrelated to natural gas prices.
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