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United States Natural Gas Message Board

  • ruomarap ruomarap Nov 22, 2012 8:05 PM Flag

    From Growth Stock Wire

     One of our most trusted advisors in the oil business sent us a note recently about the "massive amounts of natural gas" being produced… Right now, drillers are producing so much gas (as a byproduct of oil) that they're either flaring it off (safely burning the gas off) or venting it (releasing it into the atmosphere). There's simply nowhere to store it…  

    The price should probably be in the $2 to $3 range. I can actually see [it] in the $1 range, or even have to be vented/flared. One of my better oil finds in Foard County currently has the gas being vented. I'm also venting a lot of gas in Dickens County as well. There is neither a market nor storage facility in these areas.

    I also believe there are massive amounts of gas being vented in the Bakken areas of North Dakota because [there's] no market. Nationwide gas storage is just about full. If the U.S. has a mild winter, there'll be no place to store any more gas.

     If there truly is no market or storage facility, the cost of natural gas could go negative… There's nobody to buy the commodity (zero bid), and the producers would have to pay to have it flared or vented.

    Gas has already been crushed… But it can always go lower…

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