Natural gas is now at 4.50. Decent price for natural gas. To make a profit it needs to be around 2.75, so you'll definitely see drilling pick up fairly quickly.
Natural gas is now at 4.50. Decent price for natural gas. To make a profit it needs to be around 2.75, so you'll definitely see drilling pick up fairly quickly.
I'm telling you what I know. I worked in the business for 7 yrs. my father is a regional and international manager for a company of 400+ based out of okc. The NG companies have seen this coming for sometime and they are ramping up, not only production, but new wells, world-wide.
Sorry friend,
We own 18 gas wells in western Oklahoma. For a fact we choked 2 wells down 2 years ago with the flow capacity of almost a million cu feet per day down to 400,000. When the price gets back up to $5 we'll increase the flow. The increase in wells being drilled are for liquids rich output, not necessarily natural gas production.
On the other hand, were just little guys, a family operation.....what do we know ?
At the very least you understand enough to know the basics of what’s going on… But probably much more.
Others too have choke back their wells…..
The switch to NG by electric generators and the cold spring has helped NG prices but there are large supplies of NG that will IMHO keep prices from significant and lasting price rises for a very long time. + The economy is starting to slow.
There are large amounts of high BTU NG coming on line in some of the oil shale plays that is often considered bonus gas. In addition there are huge reserves of dry natural gas that can be drilled should the prices ever justify new drilling.
Higher NG prices would help our state’s prosperity and funding for state government… but about the only thing that could significantly change the situation any time soon is the export of NG… But the White house is moving at the speed of a snail on that issue. This is yet another example of getting exactly what we vote for and it directly impacts our prosperity.
You had to know this would happen….The switch NG from coal starts to shift back to coal because of high NG cost.
Very much of this will hold NG prices down…. This switch back and forth is likely to last for a very long time and help stabilize NG prices.
http://finance.yahoo.com/news/energy...175200866.html
The action in energy's incredible.
You get one strong day in oil and the group goes crazy. Check out the action in the most-levered-to-oil players: EOG EOG up 3 and Continental Resources CLR up $1.95 just out of nowhere. These stocks are just coiled springs and every time they come in they have to be bought. I would love to buy them in deep-in-the-money calls.
Meanwhile, the action in the coal-related rails is incredible. Last week on "Mad Money" we heard AEP CEO Nick Akinssaying that his company is actively switching to coal because natural gas has gotten too high. That's why Norfolk Southern NSC has now run 20 points. What a run. Makes you want to speculate on Peabody BTU but, alas, that's a China play and you sure don't want to play China.
Meanwhile, the natural gas stocks, led by Southwestern SWN , which bought some assets from Chesapeake CHK don't want to quit, despite the switching. The group is incredibly strong.
These moves are broad and powerful. They are dazzling because they can't be occurring with some economic strength, although one could argue that once again everything's being priced off the oil futures and the oil futures are going higher because of that old correlation to the weaker dollar.
No matter, the group, including the drillers and service companies, has been biding its time. Now it seems, at last, like it's shappening. I would not overthink it. The Philly Oil Service Sector (OSX) is the right way to play it.
Very interesting video on the link
Mighty algae could lead to biofuels breakthrough | News OK
Some of the world's toughest and tiniest organisms could hold secrets that would make processing biofuels more effective.
Gerald Schoenknecht, an Oklahoma State University associate botany professor, is part of a team that recently completed a genetic sequencing of the Galdieria sulphuraria, a particularly hearty red algae that has been found inside active volcanoes.
“The main driving force was really to understand how this organism can survive in an environment where almost every other organism simply dies in a surprisingly short time,” Schoenknecht said.
Schoenknecht's research found some surprising results: The enzymes that make the algae so tough were “stolen” from bacteria enzymes, something that is not supposed to be possible.
“That was so unexpected that when we first saw it, we thought something had gone wrong,” Schoenknecht said. “The first thing we did was ask our Ph.D. students what they did wrong. But we ran a lot of controls, and our findings hold water.”
Schoenknecht's team published the findings in Science magazine.
“It obviously can live in these volcanic areas because it somehow acquired genes, the building structure for proteins, from bacteria,” Schoenknecht said. “Bacteria swap genes across species. This is well established. This is why we have problems with antibiotic resistant bacteria in hospitals.”
The findings could help strengthen biofuels research by giving scientists access to the tough properties in the red algae.
Researchers throughout the country are trying to develop processes to better break down the thick, tough walls in corn stalks, switch grass and other nonfood biofuel
The process relies on mostly man-made organisms and enzymes to break down the sturdy, protein-rich plant parts into gasoline, diesel and other fuels.
What is the impact?
Schoenknecht and others hope to take the knowledge from the volcanic algae and apply some of those cell properties to the organisms used with biofuels.
“Our research could be useful in having an organism that can tolerate high heat or metal contamination,” Schoenknecht said. “The idea is that if we understand how this red algae can deal with hostile environmental conditions, it may enable us by genetic modification to toughen biofuels-producing algae, to introduce this ability into biofuels algae.”
Ray Hunke, director of the Biobased Products and Energy Center at OSU, leads biofuels research concentrating on switch grass and other possible feedstock. He said more research is needed in all aspects of the biofuels process.
“We take a holistic approach at Oklahoma State,” Hunke said. “We have a team of researchers who are working together and evaluating how we can utilize our resources via the various conversion process.
“It's a feedback mechanism. Everyone is talking to each other to achieve the best possible scenario, the most efficient process available, through our research,” Hunke said.
This is a by- product of increased natural gas production and an example of how we should be doing more to add value to our oil & NG production in Oklahoma. Doing so creates wealth and jobs and often lowers cost for people in our area who buy these products.
Click link for full article.
Koch expects to add jobs at Enid fertilizer plant | News OK
ENID — Koch Nitrogen Co. is nearly done with a $20 million expansion project at its Enid fertilizer plant that is expected to allow it to add another 25 jobs over the next couple of years.
He called that center the backbone of the expansion project at the plant, which can produce up to 3,000 tons of anhydrous ammonia a day. That is about 10 percent of the nation's nitrogen fertilizer production.
Anhydrous ammonia, which is made from natural gas and other ingredients, is used in the plant's other fertilizer products: urea and urea ammonium nitrate, or UAN.
“We will be opening new well-paying, technical positions in phases as our operations ramp up in Enid over the next few months,” he said.
Koch is the world's third-largest maker and marketer of nitrogen fertilizer. The Enid plant is the company's largest.
Yo . . . Bro Z Keeper . . . Please be advised that there is no profit involved in attempting to sway rumor-mongers and drummers away from overuse of those pesky pronouns. =)
Yet feel free to continue the quest in that direction . . .
It may help to clarify the ox and the gorer (so to speak) =)
One of the things that "we" as a state do to help these companies is have little regulation. We can't even inspect these plants for safety!
Mary Fallin boasted today, regarding the Koch brothers announcement, that minimal regulations was one of the things that made Oklahoma a "business friendly" state.
“This substantial investment in Enid by Koch Nitrogen to build a new ultra-modern fertilizer production plant is further proof that our commitment to keeping business taxes low and regulations reasonable is paying dividends in the form of quality jobs for our state.”
After the Texas fertilizer plant explosion, it was widely reported about Oklahoma's extremely lax regulations on these plants. There's always another side to lack of regulations, lack of safety inspections, and all the things that stand in the way of profits for our corporate citizens. As they found out recently in that other "business friendly" state of Texas.
State has little regulatory power over fertilizer manufacturing | Tulsa World
Third world countries also have little business regulations and we criticize them. If it is OUR third world mentality, I guess it is okay. What's it matter if a few people die every once in a while?
Please understand there is a huge difference between the new Enid plant and the mom and pop plant in West in what they do and in how they operate. The Enid plant is not near residential areas and will have far stricter rules / regulations to follow. It will be perhaps the most modern up to date facility of its kind in the world…. That in its self represents a huge difference.
What will ou48A hate about the current administration now? Just kidding, man.
UPDATE 2-U.S. approves second terminal to export natural gas | Reuters
Obama and his White House have been so horrible on energy that he doesn’t deserve any break what so ever on energy…. He is without doubt the worst energy president ever, not only for the producers but also for the consumers who will increase feel the pain of his decisions in the years to come in a verity of ways.
Obama actually said he want’s higher energy prices including higher gasoline prices yet its his supporters who are always the first and loudest to complain about higher gasoline prices. You don’t get to have it both ways without being a hypocrite.
If there’s any more to say about Obama please take it to the political board.
I have been closely following the energy issues of our nation for nearly 40 years….I’m far form an expert but I retired about ten years ago at the age of 45 mostly due to what I know about energy and its trends. Something’s are more than self-evident and this is one of them.
You are a hardcore, partisan Republican, and a one-trick pony. You will argue Republican talking points until you are blue in the face.
We have had a massive oil and gas production and exploration boom under Obama, and I read stuff like this from partisan GOPers all the time.
Republicans will only be satisfied when Obama leaves office, regardless of his actual policies or their effects.
We have had a massive oil and gas production and exploration boom that been entirely on privet lands to which Obama can take zero credit for if we are being honest.
The facts are that production has dropped on the federal lands and that’s the only lands/ waters that Obama directly controls… and this is in spite of major advances in technology. Buy the way I very much like the JFK type of DEM but those are long gone and have been replaced by people who are more like you.
From February 2010 to February 2013 crude oil production in Oklahoma has grown by 51 percent.
Oklahoma crude oil production averaged over 530,000 bopd in February 2013.
RIGZONE - Five US States Help Boost US Oil Production
A bunch of talk lately about the absurd amount of money the state gives away for un-risky and common horizontal drilling. The state gave away $321million(!) of taxpayers money to drillers last fiscal year. This is hurting our state revenues to the point were we might have a reduction from the previous year. Who cares if things seem to be going well if the state isnt bringing in any more money for things like education, transportation, health, etc. Even the Oklahoman editors think so, which is saying something.
Time is right for Oklahoma policymakers to discuss merits of drilling tax credit | News OK
Tax credits for oil, gas drilling cost Okla. $321M | News OK
Oklahoma tax collections see boost despite declines | News OK
This is good stuff.
OKLAHOMA CITY--(BUSINESS WIRE)--
ExxonMobil and its employees, including those from XTO Energy, donated nearly $1.3 million to higher education institutions across Oklahoma as part of the ExxonMobil Foundation’s 2012 Educational Matching Gift Program.
ExxonMobil Foundation contributed unrestricted grants of $968,778 to match donations of $324,945 from employees, retirees, directors and surviving spouses. This investment includes gifts from employees of XTO Energy Inc., an ExxonMobil subsidiary. XTO Energy has offices in Oklahoma City, Ardmore, McAlester, Elk City, Ringwood, and Tyrone and more than 200 employees in the state of Oklahoma.
Over the past five years, ExxonMobil and its employees have given more than $5.6 million to universities and colleges in Oklahoma.
The program matches donor pledges 3:1 up to $7,500 to qualified colleges and universities in the United States along with the American Indian College Fund, Hispanic Scholarship Fund and the United Negro College Fund. Since the Educational Matching Gift Program began in 1962, more than $500 million has been donated to institutions of higher learning.
“ExxonMobil employees have a history of giving back through both their volunteerism and philanthropy. The corporation and foundation share that philosophy and are proud to join them in their generous support,” said Suzanne McCarron, president of the ExxonMobil Foundation.
Although grants are unrestricted, recipients are encouraged to designate a portion to math and science programs supporting student engagement.
Nationwide, 871 institutions received $40.2 million through the 2012 Educational Matching Gift Program.
In addition to the Educational Matching Gift Program, ExxonMobil and the ExxonMobil Foundation support and develop programs that encourage students, particularly women and minorities, toward careers in math and science fields, as well as teacher training initiatives.
About the ExxonMobil Foundation
The ExxonMobil Foundation is the primary philanthropic arm of Exxon Mobil Corporation in the United States. The foundation and the corporation engage in a range of philanthropic activities that advance education, health and science in the communities where ExxonMobil has significant operations. In the United States, ExxonMobil supports initiatives to improve math and science education at the K-12 and higher education levels. In 2012, together with its employees and retirees, Exxon Mobil Corporation (XOM), its divisions and affiliates, and the ExxonMobil Foundation provided $256 million in contributions worldwide, of which $116 million was dedicated to education. Community & development | ExxonMobil.
About XTO Energy
XTO Energy Inc., a subsidiary of ExxonMobil, is a leading natural gas and oil producer in the U.S. with expertise in developing tight gas, shale gas, coal bed methane and unconventional oil resources. XTO has operations in all major U.S. producing regions. XTO has a reputation for efficient resource development, environmental stewardship and community involvement, with a particular commitment to building job readiness to meet the growing challenges and requirements of our domestic natural gas industry.
List of Oklahoma Recipients
Cameron University Lawton
Eastern Oklahoma State College Wilburton
Northeastern State University Tahlequah
Northern Oklahoma College Tonkawa
Northwestern Oklahoma State University Alva
Oklahoma Baptist University Shawnee
Oklahoma Christian University Oklahoma City
Oklahoma State University Stillwater
Oral Roberts University Tulsa
Southeastern University Durant
Southern Nazarene University Bethany
Southwestern Oklahoma State University Weatherford
University of Central Oklahoma Edmond
University of Oklahoma Norman
University of Science & Arts of Oklahoma Chickasha
University of Tulsa Tulsa
There are currently 1 users browsing this thread. (0 members and 1 guests)
Bookmarks