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Message
Natural gas producers in TX paying people to take supply as prices sink deeper negative
Posted on 4/27/24 at 3:51 pm
Posted on 4/27/24 at 3:51 pm
quote:
Natural gas prices in West Texas under pressure from a glut in supply sank even further into negative territory after a segment of a pipeline system was shut following a fire, threatening to trap gas in the region.
Intraday cash prices at the Waha hub in the Permian Basin fell to around -$3 per million British thermal units from around -50 cents earlier in the day, according to traders. This comes after Kinder Morgan Inc. shut a part of its Natural Gas Pipeline of America system due to a natural gas release and fire.
Prices in West Texas have been negative as low demand for the heating fuel has combined with strong production. That means producers are paying someone to take gas off their hands.
US natural gas futures that have been hovering near the lowest in four years neared a 29-year low Friday. Already dismal prices are being pushed down further by a lull in weather before summer cooling needs kick in.
LINK /
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Posted on 4/27/24 at 3:58 pm to ragincajun03
Crazy that WTI is still $84 even with this. Imagine if NG was around that $6/MMBTU mark from 2022…
Posted on 4/27/24 at 4:01 pm to ragincajun03
quote:
Intraday cash prices at the Waha hub in the Permian Basin fell to around -$3 per million British thermal units from around -50 cents earlier in the day,
This really fricks up OMLandshark's prediction in 2020.
Posted on 4/27/24 at 4:57 pm to ragincajun03
Someone needs to haul a bunch of mobile bitcoin miners with some nat gas generators out to Texas and use this free energy to make money
Posted on 4/27/24 at 5:22 pm to ragincajun03
Natural gas prices are down, so basically this means Crawfish prices will skyrocket.
Posted on 4/27/24 at 5:29 pm to ragincajun03
This not a new thing, happens more often than people realize.
Posted on 4/27/24 at 5:31 pm to Sao
quote:
This really fricks up OMLandshark's prediction in 2020.
On par with his wheat price predictions in 2022.
Posted on 4/27/24 at 5:33 pm to DaBike
quote:
This not a new thing, happens more often than people realize
Explain
Posted on 4/27/24 at 5:35 pm to MoarKilometers
quote:
quote:
This really fricks up OMLandshark's prediction in 2020.
On par with his wheat price predictions in 2022.
I accused him of boiler room cold calling. He made dozens and dozens of wild predictions and you know he sat around just waiting for one to hit so he could come in and crow about being right, nevermind he was wrong 99.9% of the time.
Posted on 4/27/24 at 5:37 pm to Obtuse1
His Australian predictions were nuts. Well, that and $9.00 gas, but
Posted on 4/27/24 at 6:01 pm to TigerTatorTots
quote:
Natural gas producers in TX paying people to take supply as prices sink deeper negative
quote:
Someone needs to haul a bunch of mobile bitcoin miners with some nat gas generators out to Texas and use this free energy to make money
They already are. Apparently TX has to pay them millions to stop mining when their are power concerns.
Posted on 4/27/24 at 6:50 pm to ragincajun03
Maybe partially due to Sleepy Joe shutting down the LNG exports to exact his revenge on Texas (and collateral damage to LA) for trying to stem this open border atrocity.
Posted on 4/27/24 at 6:52 pm to TigerTatorTots
quote:
Someone needs to haul a bunch of mobile bitcoin miners with some nat gas generators out to Texas and use this free energy to make money
Already happening. DJ Basin as well in some spots too, I believe.
Posted on 4/27/24 at 6:55 pm to DaBike
quote:
This not a new thing, happens more often than people realize.
Yep.
However, in the past, operators would just light that shite on fire in the sky so the oil could keep flowing and not worry about shutting in wells if there was restrained gas takeaway.
However, New Mexico has pretty much outlawed flaring except for situations of real emergency or safety concerns, and the EPA is going its damnest to try to crack down on that method on the Texas side of the Permian border.
Posted on 4/27/24 at 6:56 pm to ragincajun03
This was happening in 2018/9 when I was a production engineering in Loving County in West TX.
The demand is so little there and the capex to run pipeline from there to either CA or East so very high.
Lot of it gets burned, but that releases a lot of CO2 in the area. I think it's gotten strict around flaring the gas. It's a deficit to E&Ps there. $84 WTI makes up for it, but otherwise they got their testes in a vice grip.
The demand is so little there and the capex to run pipeline from there to either CA or East so very high.
Lot of it gets burned, but that releases a lot of CO2 in the area. I think it's gotten strict around flaring the gas. It's a deficit to E&Ps there. $84 WTI makes up for it, but otherwise they got their testes in a vice grip.
This post was edited on 4/27/24 at 6:58 pm
Posted on 4/27/24 at 6:58 pm to Reboot
Yep. Poland is currently hurting for energy as is Germany. If we had the infrastructure to get more of it from here in Midland to Europe, those prices would be way higher (and there wouldn’t be near as many flares burning extra bright every night).
As to the bitcoin mining stuff, I’ve talked with a few mining entities that want to take advantage of it, but it the payoff doesn’t make up for the capital required to set it all up.
As to the bitcoin mining stuff, I’ve talked with a few mining entities that want to take advantage of it, but it the payoff doesn’t make up for the capital required to set it all up.
Posted on 4/27/24 at 7:05 pm to ragincajun03
Looking at the ercot website, surprisingly, anywhere from 40 to 70% of the states grid is being supplied by wind and solar. A couple of times, during the day, more than that. Nat gas needed at night and in winter.
ercot dashboard
ercot dashboard
Posted on 4/27/24 at 8:54 pm to TulaneUVA
Two totally different markets, not crazy at all
Posted on 4/27/24 at 9:27 pm to Sao
quote:
Explain
We often get natural gas as a byproduct of oil production and have to flare it off.
Posted on 4/27/24 at 9:41 pm to TigerTatorTots
quote:
Someone needs to haul a bunch of mobile bitcoin miners with some nat gas generators out to Texas and use this free energy to make money
The ROI and interconnection agreements needed to do that are prohibitive.
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