GasBuddy Blog

GasBuddy News Article

votes

After the Boom in Natural Gas

NY Times -- THE crew of workers fought off the blistering Louisiana sun, jerking their wrenches to tighten the fat hoses that would connect their cement trucks to the Chesapeake Energy drill rig — one of the last two rigs the company is still using to drill for natural gas here in the Haynesville Shale.

At its peak, Chesapeake ran 38 rigs in the region. All told, it has sunk more than 1,200 wells into the Haynesville, a gas-rich vein of dense rock that straddles Louisiana and Texas. Fed by a gold-rush mentality and easy money from Wall Street, Chesapeake and its competitors have done the same in other shale fields from Oklahoma to Pennsylvania.

For most of the country, the result has been cheaper energy. The nation is awash in so much natural gas that electric utilities, which burn the fuel in many

Read the Full Article

Submitted Oct 21, 2012 By: skb69sa

Back To News

Category: Daily News Article Discussions > Topics	Add to favorite topics

Author	Topic: After the Boom in Natural Gas	Post a Reply Back to Topics

REPLIES (newest first)Ignore Short Messages

First

Next Last

honda0105 Champion Author Tallahassee Posts:18,590 Points:1,606,595 Joined:Nov 2008	Message Posted: Oct 24, 2012 9:01:02 PM Ignore honda0105 Report Abuse after boom comes usually bust...
jrs4125 Champion Author Indiana Posts:2,743 Points:588,820 Joined:Sep 2011	Message Posted: Oct 23, 2012 1:13:10 AM Ignore jrs4125 Report Abuse After the boom.... what then?
LetemEatCake Champion Author Oklahoma City Posts:5,596 Points:1,202,855 Joined:Mar 2008	Message Posted: Oct 22, 2012 4:31:16 PM Ignore LetemEatCake Report Abuse Besides a salary and perks worth many millions, McClendon spent money in this town like a drunken sailor. Chesapeake built a luxury corporate campus on some highly desirable (read expensive) land in NW. OKC of about 600 acres. They sponsored many sports teams and company salaries were comparative to the West Coast. To do that a company should have a big cushion of $$$ in the bank. Remember other Oil/Gas companies didn't go belly up like Chesapeake.
RitaVespa Champion Author Oregon Posts:2,966 Points:789,335 Joined:Jan 2011	Message Posted: Oct 22, 2012 1:38:41 PM Ignore RitaVespa Report Abuse ?
stockpro Veteran Author New Hampshire Posts:316 Points:379,680 Joined:Jun 2006	Message Posted: Oct 22, 2012 5:08:58 AM Ignore stockpro Report Abuse ok
aega7 Rookie Author Ventura Posts:97 Points:43,885 Joined:Jul 2011	Message Posted: Oct 21, 2012 9:08:23 PM Ignore aega7 Report Abuse ok
jrschl Champion Author Louisville Posts:2,952 Points:678,140 Joined:Jun 2011	Message Posted: Oct 21, 2012 9:06:07 PM Ignore jrschl Report Abuse Just let the market decide.
TFowler513 Champion Author Memphis Posts:3,824 Points:1,411,485 Joined:Mar 2008	Message Posted: Oct 21, 2012 9:04:28 PM Ignore TFowler513 Report Abuse There are other alternatives!!!
jrsva Champion Author Virginia Posts:9,840 Points:1,610,300 Joined:Jan 2006	Message Posted: Oct 21, 2012 9:03:49 PM Ignore jrsva Report Abuse “Its [sic] great for home heating.” I would never have a gas line into my home. I’ve seen the craters left when a house has exploded from a gas leak. A nearby store burned down from a gas leak just a couple of years ago.
rahcat Champion Author Grand Rapids Posts:2,458 Points:660,250 Joined:Jan 2010	Message Posted: Oct 21, 2012 9:02:31 PM Ignore rahcat Report Abuse Old News
OGW Champion Author London Posts:5,324 Points:1,529,650 Joined:Sep 2005	Message Posted: Oct 21, 2012 9:02:21 PM Ignore OGW Report Abuse NG will go the way of oil, Wall Street will insist on world pricing to keep their investment making money and consumer paying more. The priciple of supply and demand is no longer the standard by which prices are based. The greed of investors will always rule in the end while the consumer lives in near poverty.
JamesCalvin Champion Author Lancaster Posts:3,176 Points:516,755 Joined:Nov 2011	Message Posted: Oct 21, 2012 9:01:59 PM Ignore JamesCalvin Report Abuse Life returns to "NoRMAL?"
veemotors All-Star Author Alberta Posts:700 Points:65,870 Joined:Jun 2008	Message Posted: Oct 21, 2012 9:00:42 PM Ignore veemotors Report Abuse so sad
LanguageMan1 Champion Author Tampa Posts:11,707 Points:1,658,865 Joined:Apr 2008	Message Posted: Oct 21, 2012 9:00:42 PM Ignore LanguageMan1 Report Abuse Glad we've had the boom.
Shakleelady31 All-Star Author Fort Wayne Posts:571 Points:399,350 Joined:Jan 2012	Message Posted: Oct 21, 2012 9:00:24 PM Ignore Shakleelady31 Report Abuse Okay.
Melven Champion Author Utah Posts:4,083 Points:1,485,790 Joined:Jul 2005	Message Posted: Oct 21, 2012 8:59:44 PM Ignore Melven Report Abuse Very interesting and well research article!
NemoIL Champion Author Illinois Posts:3,010 Points:1,310,195 Joined:Aug 2008	Message Posted: Oct 21, 2012 8:59:15 PM Ignore NemoIL Report Abuse Too bad our deal leader is trying to regulate and tax NG to death.
Dodge_Me Champion Author Atlanta Posts:2,214 Points:553,980 Joined:Mar 2006	Message Posted: Oct 21, 2012 8:54:09 PM Ignore Dodge_Me Report Abuse Good maybe NG will be cheaper this winter
seahawks Champion Author Washington Posts:3,217 Points:1,961,795 Joined:Sep 2005	Message Posted: Oct 21, 2012 8:49:21 PM Ignore seahawks Report Abuse keep on drilling!!!
Buffalo Joe Champion Author Alberta Posts:8,581 Points:2,505,950 Joined:Feb 2003	Message Posted: Oct 21, 2012 8:47:59 PM Ignore Buffalo Joe Report Abuse Its great for home heating.
defiancegasman Champion Author Ohio Posts:7,080 Points:1,323,260 Joined:May 2006	Message Posted: Oct 21, 2012 8:46:29 PM Ignore defiancegasman Report Abuse Time to get FRACKING!
TxPDawg All-Star Author Austin Posts:651 Points:377,525 Joined:Mar 2011	Message Posted: Oct 21, 2012 8:44:47 PM Ignore TxPDawg Report Abuse ok
kcboy Champion Author Utah Posts:3,958 Points:1,505,850 Joined:Jun 2005	Message Posted: Oct 21, 2012 8:44:11 PM Ignore kcboy Report Abuse ok
texasvet Champion Author Texas Posts:3,823 Points:360,120 Joined:Jul 2009	Message Posted: Oct 21, 2012 8:43:15 PM Ignore texasvet Report Abuse They're in the process of taking the excess production off line. Sooner or later demand will increase or supply will fall off and the price will rise enough to make it worth while to drill for gas. Meanwhile, there are plenty of oil plays out there and that's where the smart money is already invested.
DustyHorse Champion Author Virginia Posts:6,072 Points:1,388,920 Joined:Oct 2008	Message Posted: Oct 21, 2012 8:41:48 PM Ignore DustyHorse Report Abuse Very long tedious article. I got bored a quarter way through it.
abcdMA Champion Author Worcester Posts:7,912 Points:1,573,030 Joined:Nov 2008	Message Posted: Oct 21, 2012 8:40:38 PM Ignore abcdMA Report Abuse interesting
Jeeputtputt Champion Author Ohio Posts:3,002 Points:677,465 Joined:Aug 2009	Message Posted: Oct 21, 2012 8:37:35 PM Ignore Jeeputtputt Report Abuse next
dollarwatcher Champion Author Wisconsin Posts:7,930 Points:1,532,295 Joined:Mar 2007	Message Posted: Oct 21, 2012 8:26:08 PM Ignore dollarwatcher Report Abuse Then how come my local gas utility applied for a rate ioncrease?
ruca2012 Champion Author San Diego Posts:1,049 Points:210,265 Joined:Oct 2012	Message Posted: Oct 21, 2012 8:25:06 PM Ignore ruca2012 Report Abuse yeah
mdskier Champion Author Maryland Posts:9,930 Points:1,781,635 Joined:Aug 2005	Message Posted: Oct 21, 2012 8:24:39 PM Ignore mdskier Report Abuse " Fed by a gold-rush mentality and easy money from Wall Street" typical of boom & bust mentality of Big Oil. It's still about make-money-fast.
gabfiore Sophomore Author San Diego Posts:151 Points:86,925 Joined:Apr 2012	Message Posted: Oct 21, 2012 8:23:59 PM Ignore gabfiore Report Abuse There is an ebb and flow with every single thing in life... fuel not excluded. It all swings around sooner or later.
LetemEatCake Champion Author Oklahoma City Posts:5,596 Points:1,202,855 Joined:Mar 2008	Message Posted: Oct 21, 2012 8:23:56 PM Ignore LetemEatCake Report Abuse Listerone..."You can always depnd on the Slimes to report just how terrible this country is." When was the last time you had a kind word for anyone or anything?
lucky69 Champion Author Austin Posts:2,761 Points:1,465,740 Joined:May 2008	Message Posted: Oct 21, 2012 8:22:03 PM Ignore lucky69 Report Abuse everything settles down
nztyraider Champion Author Nevada Posts:2,268 Points:691,500 Joined:Apr 2009	Message Posted: Oct 21, 2012 8:18:12 PM Ignore nztyraider Report Abuse Downfall time.
nsdp Champion Author San Antonio Posts:1,117 Points:47,290 Joined:Jun 2012	Message Posted: Oct 21, 2012 7:56:12 PM Ignore nsdp Report Abuse Ralph we are still going to have a lot of NG added this year since 10% of Bakken and Eagle ford productions is NG (casinghead gas) and the Utica and Marcellus are 35% NG. The Niobrarra and Monterrey which are just getting started are 25% NG. Pure gas plays are having a difficult time but the oil wells also produce casinhghead gas and we will have lots of that.
Pramodsharma Champion Author Richmond Posts:1,969 Points:384,915 Joined:Feb 2012	Message Posted: Oct 21, 2012 4:59:25 PM Ignore Pramodsharma Report Abuse Floating on Natural gas, we will by flying using this resource. It's available right here.
RalphHightower Champion Author South Carolina Posts:3,289 Points:686,555 Joined:May 2011	Message Posted: Oct 21, 2012 2:43:45 PM Ignore RalphHightower Report Abuse I don't think CNG will be a viable alternate to gas. As the article states, those drilling natural gas are losing their shirts. They will probably resume drilling for natural gas once it becomes profitable for them again.
200porter Champion Author Toronto Posts:2,050 Points:539,210 Joined:Sep 2011	Message Posted: Oct 21, 2012 2:18:25 PM Ignore 200porter Report Abuse Thanks for the downer
turbodog Champion Author Mississippi Posts:6,741 Points:1,359,515 Joined:Feb 2009	Message Posted: Oct 21, 2012 1:53:23 PM Ignore turbodog Report Abuse Dirtbags
listerone Champion Author Boston Posts:3,370 Points:876,065 Joined:Aug 2008	Message Posted: Oct 21, 2012 1:36:50 PM Ignore listerone Report Abuse You can always depnd on the Slimes to report just how terrible this country is.
nsdp Champion Author San Antonio Posts:1,117 Points:47,290 Joined:Jun 2012	Message Posted: Oct 21, 2012 11:43:00 AM Ignore nsdp Report Abuse Right My2002m, Chesapeake's problem is the sweetheart participation the Board gave the Chairman. People won't drill for NG but we will continue to add NG suppplies. For example formations like the Bakken and Eagle Ford 10% of their production is NG. In the Marecllus and Utica it is between 25and 30%. So every time they hit oil you also get natural gas. AS to Exxon losing money on XTO, they never over pay for anything. Their profits aren't as much as they had planned on.
my2002m Champion Author Tulsa Posts:6,059 Points:1,667,375 Joined:Jul 2008	Message Posted: Oct 21, 2012 11:25:08 AM Ignore my2002m Report Abuse Chesapeake is having issues not related to natural gas. More related to poor management.
blupupher Champion Author Houston Posts:3,534 Points:745,720 Joined:Feb 2011	Message Posted: Oct 21, 2012 11:12:53 AM Ignore blupupher Report Abuse ok
northeast2 Champion Author New York Posts:3,849 Points:1,007,200 Joined:Mar 2008	Message Posted: Oct 21, 2012 11:03:04 AM Ignore northeast2 Report Abuse " Rex W. Tillerson, the chief executive of Exxon Mobil, which spent $41 billion to buy XTO Energy, a giant natural gas company, in 2010, when gas prices were almost double what they are today, minced no words about the industry’s plight during an appearance in New York this summer. “We are all losing our shirts today,” Mr. Tillerson said. “We’re making no money. It’s all in the red.” Like the recent credit bubble, the boom and bust in gas were driven in large part by tens of billions of dollars in creative financing engineered by investment banks like Goldman Sachs, Barclays and Jefferies & Company. " These three sequential paragraphs from the article prove two things. Businessmen aren't infallible and make plenty of mistakes with shareholders' money. Two, venture capitalists and investment bankers make money no matter what. Go ahead, put a Republican in the White House in November.
19sheldon43 Champion Author Los Angeles Posts:3,979 Points:843,010 Joined:Jul 2009	Message Posted: Oct 21, 2012 10:53:52 AM Ignore 19sheldon43 Report Abuse As the critics would say "A good read"
kacansas All-Star Author Twin Cities Posts:760 Points:230,585 Joined:Aug 2005	Message Posted: Oct 21, 2012 9:31:27 AM Ignore kacansas Report Abuse There is still a lot of NG in formations that have been tapped but are now shut down thanks to these exploiters. I do not loose sleep over the fate or Barclay's Bank or others.
singlemom27 Champion Author Ventura Posts:3,098 Points:637,260 Joined:Apr 2011	Message Posted: Oct 21, 2012 9:29:23 AM Ignore singlemom27 Report Abuse We need to get Wall Street out of the energy picture...it soils everything it touches!
zimowski Champion Author San Jose Posts:6,656 Points:1,581,540 Joined:Nov 2007	Message Posted: Oct 21, 2012 9:28:13 AM Ignore zimowski Report Abuse Cheaper NG is good for the cost of energy.
Ken2OD Champion Author Grand Rapids Posts:9,057 Points:1,969,015 Joined:Dec 2005	Message Posted: Oct 21, 2012 9:21:39 AM Ignore Ken2OD Report Abuse PLEASE! PLEASE! PLEASE! These trucks are called CONCRETE trucks, not CEMENT trucks. Remember this little rhyme - "Cement is to concrete like flour is to cake." Cement is the ingredient and concrete is the finished product.
CheckitoutGuy Champion Author San Diego Posts:1,311 Points:769,590 Joined:Mar 2008	Message Posted: Oct 21, 2012 9:19:01 AM Ignore CheckitoutGuy Report Abuse And?