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Is anybody buying Natty Gas on the board??
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Posted 1/9/2019 10:17 (#7231906 - in reply to #7231637)
Subject: RE: Is anybody buying Natty Gas on the board??

The new discover there have caused bottlenecks in getting production to market. New oil pipelines have recently come on line. That corresponds to the recent declines in crude oil prices. Unfortunately they don't have enough natural gas pipeline capacity yet. Producers have three choices right now.

1. Flare the gas, there is some of that going on.

2. Pay a pipeline company to take your natural gas so your wells can continue to pump oil. I've heard going rate is $.25 mcf. That's sort of like selling hogs at the local auction when prices suck and the sale price doesn't even cover yardage and commissions.

3. Shut down and wait until pipeline capacity comes online. Cash flow commitments make that tough for most.
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