Also, you have to build the infrastructure (stations and delivery to those stations). NG is not as easily stored or transported as oil. Also, NG will continue to make gains in Electric Generation as we go as NG plants replace coal plants. I am not sure that they want to make a big commitment to NG as a transportation fuel. I could see having some NG vehicles and puming stations in some bigger cities maybe, but it will always be hard to get people to commit to NG unless there is an allout blitz of stations (people want the convenience of being able to pump anywhere), and politicians probably arent sure we can handle that from a supply standpoint.
However, I am all for diversifying our energy supply, and NG vehicles would be great if possible. Of course, I would say NG will become a larger part of transportation through secondary source as electric cars become more popular and NG become a larger part fo the power/electricity grid.
So, what would prompt this? I am somewhat familiar with the activity in and around western Union Parish and the stateline area, and this kind of activity hasn't occurred since the 40's and 50's. There has been a smatterings of activities since then, but nothing of this magnitude.
In your estimation, what is the sudden interests in this area? I can't see them blowing this kind of change on a whim.
Last edited by JAMROB; 12-20-2010 at 09:00 AM.
Someone from CA posted on the Go Haynesville Shale website that he has received 9 offers for his property in Union Parish. Any thoughts?
Not guarenteed information, but I believe the production in Union parish is going to be called an oil well. Not sure what the level of associated gasses and NGL's will be, but that could answer some of your transportaion issues for the rural field. And while $4.00 nat gas isn't that great to offset the cost of producing in the Haynesville Shale, $90.57 oil (near the 1year hi) should cover that cost.
Anyone care to speculate about the ex-Shell Oil Company President's prediction about $5-a-gallon gas? Personally, I happen to believe, as Dr. Thomas Sowell once said that the solution to high prices is high prices, but I do believe it will spur activity in the stateline area, and give impetus to the idea of viable alternatives, such as LNG.
As long as oil trades as a alternative to the dollar and the market as a hole, yeah it could keep going higher, but this price surge is not supply and demand driven.
So, is it short-term profit taking? For my part, I just don't see how prices can continue to rise in the long-term, given the vagaries of the market. Yeah, QE2 and the deficit spending of our government isn't helping the situation, but at a certain point, price dictates a change in behavior.
The word on the street is that Pine Belt filed 1800 leases the other day at the courthouse in Union Parish. Any thoughts about what's going on?
Could this be the nat gas storage that they're planning on? I've read about it before, but not sure who's doing it. I know they were talking about the downsville area for it.
Here's some info on it.
http://www.rustonleader.com/node/5709
http://www.sawgrassgas.com/
Sawgrass Storage representatives held two Open House meetings to discuss the prospective project. The first meeting was held on July 27th at the Downsville Memorial Hall. A second meeting was held in Sterlington on Wednesday, July 28th at the Sterlington Town Hall. Over one hundred and fifty landowners and interested parties were in attendance to hear about topics such as land use, environmental compliance, the FERC approval process, and to become familiar with the project sponsors. The project as proposed consists of a storage field on the border of Lincoln and Union Parishes with an associated pipeline continuing eastward into Ouachita Parish and the Sterlington area. Area residents in attendance appeared to be supportive of the proposed project during the two meetings.