From AP today:
""In addition, industry officials learned Friday that the final phase of the Rockies Express Pipeline could be delayed six months due to regulatory permitting scheduling with the Federal Energy Regulatory Commission��Bruce Hinchey, president of the Petroleum Association of Wyoming, said there were 75 active conventional drilling rigs in Wyoming last week, compared with 109 this time last year��Hinchey said he's concerned about how the temporary price depression may affect longer-term investments.
"I've talked to some (producers) who flat told me they're moving their dollars to other states," Hinchey said.
Mark Doelger, chairman of the Wyoming Pipeline Authority, said the rate of production increase in the Rockies requires a major pipeline export expansion about every four years. But the rate of investment to build a major pipeline expansion is currently at six-year intervals.""
Here are excerpts from CHK's 9/4/07 press release:
"...this production reduction will amount to roughly 125 mmcf per day net to Chesapeake, or about 6% of the company's current net production, and will be focused in the Fort Worth Barnett Shale, South Texas, Deep Haley and the Anadarko Basin areas where many of the company's most prolific wells are located..."
"...Chesapeake Energy Corporation is the largest independent producer and third-largest overall producer of natural gas in the United States. Headquartered in Oklahoma City, the company's operations are focused on exploratory and developmental drilling and corporate and property acquisitions in the Mid-Continent, Fort Worth Barnett Shale, Fayetteville Shale, Permian Basin, Delaware Basin, South Texas, Texas Gulf Coast, Ark-La-Tex and Appalachian Basin regions of the United States..."
Read it and weep, dumbass.
<<Chesapeake shut in 50 MMCFD production in the Rockies beeecaause???>>
They also shut in production in other areas outside of the Rockies that were not facing pipeline issues. Furthermore, their shutting in of production has largely backfired since prices never really fell off much and are now at a pretty good level in the areas they shut in.
Face it dude, you are beating a dead horse and that horse will be coming back to life soon.
elmo:"when demand exceeds supply the price goes up. This is true even if the supply cannot go up any more due to a bottleneck and even if there is more supply behind the bottleneck looking for a home."
Elmo, answer this:
Chesapeake shut in 50 MMCFD production in the Rockies beeecaause??? The gas prices for producers in the Rockies went UP or DOWN? They shut in production because prices were LOWER or HIGHER than expected? I'll help you..."Down" and "Lower". Now, prices were "Down" in the Rockies and "Lower" than they wanted to see becasue CHK HAD or DID NOT HAVE enough firm capacity on PL's leaving the Rockies? I'll help again...."DID NOT HAVE". Good, you're doing well. Now last one (I know this is getting complicated, but bear with me): Gas Prices at city gate, when prices are DOWN for Rockies, and LOWER than expectations, these prices are MUCH HIGHER or MUCH LOWER at City Gate than vs wellhead net-back????
Well, we'll connect the dots. Prices are relatively decent at City Gate, yet capacity constraints have caused those with firm capacities to bid down producer's gas to under $2/MMBTU in the Rockies. Prudent Companies, such as CHK, have shut in production rather than lose money. How does this real-world mmodel fit into your concocted supply-demand-all-things-are-equal world? It prolly skews it.
Bshart, you're a Kerr McGee idiot.
<<What do you think explains the current situation dude? You really are stupid!>>
The current situation (i.e., lack of takeaway capacity, high basis differentials and low prices to producers) has happened before and will happen again in the Rockies. I would be more worried if the price of gas nationally was low, but in fact it is high - very high for this time of the year and in light of near record storage.
These are short-term issues and they lead to mysterious things being done like building pipelines (e.g., Kern River expansion, REX, etc.).
I know I am right since stock prices for some - not all - Rockies E&P firms that are facing this situation are doing fine. Wall Street understands that this situation will come and go and come again later on. Good time to buy them, not to sell them. Good time to buy assets for the long-term, like those potentially being sold by IFNY.
I don't know what else to say. You are dumber than a sack of hammers.
"...with name like econrealist, understands that when demand exceeds supply the price goes up. This is true even if the supply cannot go up any more due to a bottleneck and even if there is more supply behind the bottleneck looking for a home."
Absolutely, the price goes up but!
Demand can exceed supply but not benefit the supplier but the middle-man!!!!!!
Producer at inlet has gas but no firm transportation.
Marketers / End Users have 100% firm transportation.
Pipe capacity equals 1 BCFD.
Collective producers' production behind pipe = 1.3 BCFD.
Downstream pipeline price(the end for ELMO's education) = $7.00.
1.3 BCFD of producers trying to get into a 1 BCFD pipe.
Marketer's who own the transportation say I'll pay you $1.00 to get into my pipe and get sold because otherwise you won't get sold!
Marketer with capacity makes the spread!
Producers have no alternative but to shut in or sell at a $1.00. Wow thatswhat they are doing right now!
Cannot find a home if you can't get to market.
What do you think explains the current situation dude? You really are stupid!
Hmmm, I think you are a bit deranged old man. Posting at all hours under endless aliases with posts that are basically pointless wastes of webspace. I like your desperation call to Moo, who hopefully understands what a bunch of lying jackasses you and your cohorts are.
As I suspected, just another alias for an IFNY basher that obviously has something personal against Stan. I have no other alias that I use and find it interesting that you are convinced I am someone else. Perhaps BShaef's (your?) shrink could help you?
The main question is whether this alias (Dr. Jekyl? WTF?) with name like econrealist, understands that when demand exceeds supply the price goes up. This is true even if the supply cannot go up any more due to a bottleneck and even if there is more supply behind the bottleneck looking for a home.
This is basic economics and common sense.
Wrong player New Mexico's village idiot. Whiney's has always been Hyde to my Jeckyl. Moo knows my Jeckyl well from years' past.
I am out of the laboratory! (not out of the closet, since we know who that is on this board).
Hey man facts or facts and you guys in all probability are toast!