Forward gas market pricing indicating gas prices in the Permian may go from $1.70 back to .30/mcf by Spring. The infrastructure just built getting overwhelmed again.
Desert Peak/Kimmeridge press release about acquisition of royalty interests. Note most were 1/8th leases apparently. To juice their returns, expect efforts to terminate old leases to try to get to 25%.
All 92 Jagged Peak employees in Denver lost their jobs after the Parsley acquisition. If you have JP wells expect disruption and less responsiveness, but maybe Parsley will surprise us.
Dallas Morning News interpretation of the SMU earthquake study, which said that fracing, in addition to salt water disposal, may be a cause, but it was far from a conclusion and basically said it needed more study.
Article in todays WSJ about people coming into the gas market trying to get deals on acreage, betting on a turnaround about 2023. I wonât post a link because it always requires a subscription.
Article from Yahoo Finance says Permian wells are producing more gas. Not the most knowledgeable source.
Thanks for the literature review!
Wall Street Journal 1/1/20 article âEnergy Producersâ New Year Resolution: Pay the Tab for the Shale Drilling Bonanzaâ. Sorry, canât reproduce vz copyright limits.
E&P companies face $200 bn debt maturities next four years, $40 bn in 2020. The readersâ comments on WSJ Online are better than the article itself if you can access.
Revenues into the Permanent School Fund topped $1 billion in 2019 for the first time ever.
Do you know much about Parsley Energy? I have wells with Jagged peak and I know they sold to Parsley. Would this be a good thing?
In my opinion, Jagged Peak was better to deal with than Parsley.
Ok, thank you, but for what reason? Is Parsley a good company?
Iâve heard theyâre slow to respond to mineral owners. Sounds like Parsley is very busy and spread thin. Parsley also laid off over 90 people who worked for Jagged Peak in Denver, so that was a bummer too.
While we have never dealt with Jagged Peak, we are a mineral owner in several TX fields now run by Parsley and for what itâs worth, weâve not had an issue with them since we started dealing with them 1-2yrs ago.
They have proactively sent us division orders for new and acquired wells and have been very responsive when weâve had a question. Our royalties are direct deposited without issue and reporting has been clear. While, they may not be as good as smaller shops with more limited holdings, weâve found them to be better than many of the other large-scale operators in the Permian. Of course, this may change as they continue to acquire and expand but so far so good in our experienceâŚ
Sad day. Apache closing its San Antonio office. A lot of good people there, and hoping they choose to offer transfers to many. This is the office that developed and runs Alpine High.
Study about what would happen economically if fracing of wells was banned. Not pretty (understatement).
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Wall Street Journal 1/10/20 Heard on the Street column, âOil Producers are Setting Billions of Dollars on Fireâ, by Spence Jakab. Sorry, cannot reproduce for fear of copyright cops. Here is a recap:
Theme: need innovation and subsidies to reduce flaring and monetize the waste gas.
U.S. is fourth largest gas flarer, after Iran, Iraq, Russia. Global flaring 5.1 trillion CF could supply Germany, France Belgium. Iraq desperately needs gas to alleviate power outages but lacks regulatory market framework.
North Dakota: It will never be economical to lay gas pipelines to remote areas like Bakken.
Texas: When Waha hub prices went negative (2019), RRC alleviated the inverted prices by expanding flaring, according to the writer.
Colorado: stringent anti-flaring rules, Questor Technology sells equipment there to (sanitize) waste gas.
New Mexico: No mention of possible changes in NM flaring rules.
Gas depletion curve is more gradual than oil depletion curve, therefore gas glut worsens as E&P producers drill horizontal shale wells.
Microturbines promise to convert waste gas to economic benefits.
Permian Basin christened large solar plant built by German company RWE, but no explanation how this solar farm alleviates gas waste.
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All of the oil wells become gas wells in a few years. That is why we have an over abundance of natural gas & prices wonât go up.
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