Salt increased 5 BCF from last time. In the west region it was 339 BCF . This was the same as it was last time. The storage numbers don`t show what was used but what is in storage every Thursday. They could have opened wells and added BCF but it want show up if it was used and kept those numbers down. With the coal weather I believe we used double what was shown and its just a matter of weeks before we drop below the 5 year average and NG goes to $4.25 .
Dcon there are thousands of NG wells shut . These folks are not stupid like wall street thinks. You don`t sell NG below cost. I used to drive through Texas and Wyoming and see shut oil wells. They were waiting for the price to go up and it did. The same will happen to NG. This will be another plus for Alpha Shale and our bottom line.
At last count Alpha shale had 39 wells . I have no idea how many with Rice Energy as they have not returned my email. There is also a Alpha II which I have no idea about. On top of that Massey had wells with CNX and since we bought Massey I would think we are owners in them as will.
Let me just say just because you drill a well does not mean it is producing. They have a valve at each well head and can open or shut the flow and determine the flow rate. Each well is metered and the pipes flow into a main feeder line. You sell NG based upon available use and the pressure in the lines has to stay at a constant pressure. If you opened all the wells you would blow the pipes out of the ground so you have to have a market for the gas and what ever your contract is is what you let flow out.
That 1,876 BCF is just what we have in storage in old salt mines and storage tanks. It is not what is tapped and waiting to be sold.
Storage numbers did not impress today. We are coming to end of heating season. I still don't see catalyst to get coal prices and pps going up. Macro things that would help over rest of the year are hot summer and Europe getting its act together.
I'm long but we are still far from coming home boys.Guess I'll go watch the NCAAs and drink a couple of beers. gltal