The State of Oil and Gas: December 1, 2019

Today the price of gas is about $2.33/MMBtu. That’s down a good bit from two weeks ago. Odd that it should go down so much as gas storage is right at the five year average, but that’s the way it is.

RBNEnergy analyzes the demand for natural gas and how that’s affecting prices.

And the rig count continues to fall.

Here’s an argument that the trade war between the U. S. and China is the largest factor in the price of oil.

Preliminary reports say that the North Carolina governor, Roy Cooper, improperly influenced the permitting process for the Atlantic Coast Pipeline. Stay tuned, as it seems there’s more info coming.

The last “old” EQT leadership team member has resigned, saying he’ll be taking a spot at an undisclosed company.

One fellow over at Seeking Alpha thinks that spring of 2020 will see oil prices in the $35-40/bbl price range. It’s not a long read, and I’m not convinced that the amount of oil he says will be coming online in the next couple years will make a difference in the next few months, but see what you think.

The Keytsone XL pipeline has sprung a leak, affecting about 4.8 acres. Sure hope the ACP and MVP are a little more reliable than this. Oil leaks don’t typically explode. High pressure gas does.

Harold Hamm of Continental Resources explains a little bit of why we have an oversupply and a few other things he thinks are important.

People still want a cracker plant in West Virginia.

The EIA is predicting lower natural gas prices for most regions of the United States next year.

The price of gas is staying down, but the world is demanding more and more of it.

Everything is going electric, which means that the demand for natural gas is going up. While it would be great (I really mean that) for wind, solar, and tide to provide that electricity, the tech is just not mature enough to do so yet.