Natural gas is at $2.76/MMBtu, but was up around $3.50 for a while and spent most of it’s time this last four weeks around the $3.00 range.
Rigs have gone up by 30 in the past month, from 282 to 312. That’s probably still a little low, and they’ll have to increase to keep up with demand.
Demand for heating will probably be up this winter, as offices are going to be open, but lots of people will be working from home resulting in more heating of residences during the day.
Here is someone else’s analysis of what a Democrat administration would mean to the oil and gas industry.
RBNenergy has a good overview article about how imports and exports of oil have changed over the decades, and how that’s affected American refineries.
The Governor has announced a methanol plant to be built in Pleasants County, WV. So a power plant that’s going to employ between 20 and 130 people (why the big range?) gets shut down because it will be in direct competition with coal, but a methanol plant that will employ about 30 people but won’t be in direct competition with coal is a boon the the state? Talk about ole boy politics. We need both plants.
EQT owns a share of the Mountain Valley Pipeline. They’re trying to sell it off.
EQT is trying to buy CNX. That’s a big deal.
Libya has reopened its fourth and final port. Soon we’ll start to see about 1 million bpd more oil added to the economy. That’s should keep prices at the pump down for a while.
SeekingAlpha analyzed CNX and determined that it’s a good buy for EQT. Mainly, CNX produces gas for a cost of $1/MMBtu, compared to most other companies at about $1.70/MMBtu. CNX also has a plan to be cash flow positive for the next seven years. That’s unheard of in the industry!
Weather, as usual, affects the price of natural gas more than any other factor.
EQT has announced that it has entered into a purchase and sales agreement with Chevron to buy all Chevron’s Marcellus/Utica assets for $735 million. Seems like a pretty good deal.
CNX says it’s not smart for them to merge with or be acquired by another company.
Antero’s earnings call can be interesting, too. Most interesting is the data about wells and production at the very beginning, but later in the call there’s a statement that Antero doesn’t expect the cracker plant in PA to be finished until 2022.
When Berkshire Hathaway bought out Dominion’s pipeline operations (including the Atlantic Coast Pipeline), they also acquired 25% of the ownership of the Cove Point LNG plant and the right to operate it.
The EIA forecasts that there will be more residential natural gas use this winter. Makes sense, with more people working from home.
If you wanted to know more about LPG than you need to, this RBNEnergy article is for you!
Libya has already ramped up to producing 1,000,000 barrels per day. That was fast!
It’s been a while since we’ve linked to an article about using LNG to fuel trucks and fleet vehicles, so here you go.
The world’s large ships are moving to LNG as their primary fuel source, which is a good thing any way you look at it.
The number of active fracking crews has jumped 50% since September as the oil industry attempts to keep production up and costs low by completing DUCs.
The United Arab Emirates has entered into the shale gas battle.
An update on the Mountain Valley Pipeline. Looks to us like the environmentalists might do the same thing to the MVP that they were able to do to the ACP. Stay tuned.
A study suggests that fracking pressures should be reduced to increase production of gas. If this is true (more testing will be done before this is adopted across the industry) then the cracks made in the process will probably not propagate outwards as far as they currently do, and we’ll see the horizontal legs pushed closer together to compensate. If.