Mmarrkk

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257 Comments

    • Thu Aug 28th 12:09 PM | Rating: 0 0
      Commented on:
      New Gas Discoveries a Boon for U.S. Energy Sector
      Brian, surely you are joking, right?

      If so, hahahaha. A cow once farted a Pelosi!

      If not, get a science book dude. Natural gas, the kind produced from underground, is a fossil fuel and has the exact same origin as crude oil.
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    • Thu Aug 28th 10:29 AM | Rating: 0 0
      Commented on:
      New Gas Discoveries a Boon for U.S. Energy Sector
      Even better: why not drill in the offshore areas for natural gas?? Does anyone realize that there are huge potential gas discoveries off the east coast and off the Florida coast in GOM? In fact, a discovery of large amounts of natural gas were found many years ago off Destin, Fl, but the companies were not allowed to develop it. Its still there. Waiting.

      Most folks don't realize that the drill here, drill now idea is not just about oil. Natural gas is an abundant resource offshore too.

      Oh, and madam speaker Pelosi, in case you haven't figured it out, natural gas is a fossil fuel! The dumbarse was quoted saying that natural gas could replace our use of fossil fuels. What a joke. You folks in California should really elect someone with an IQ over 10!!
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    • Thu Aug 28th 10:25 AM | Rating: 0 0
      Commented on:
      Oil Majors Exiting the Gas Station Business
      epoch: what's your point? what else might they exit? I'd love to see many of the big oil's exit the refining end of the business too! But they probably won't. Or at least, spin off the refining side. That's what Marathon is talking about.
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    • Thu Aug 28th 09:54 AM | Rating: 0 0
      Commented on:
      Takeover Climate in Oil and Gas
      Have you ever listened to a conference call where the so-called expert analysts give the CEO's huge amounts of grief about acquisitions? COP was villified by these analysts for their acquisition of Burlington, a move that now appears to be a huge winner. And every quarter thereafter, one of the "smart" young guns asks a question with a clear tone of "You aren't thinking about another big acquisition, are you??" as if to say we've got our finger on the trigger, baby, so just try one!!

      Unfortunately, that will really slow down the M&A market overall for the big guys. And they may be the only ones with the money to do these sized deals. But you are spot on...these are great companies and with their recent declines in price, selling at attractive values.
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    • Mon Aug 25th 09:52 AM | Rating: 0 0
      Commented on:
      Chesapeake Energy: Earnings and Shale Drama
      mkreisel: EOG has not been know as Enron for many many years now. It was spun out of Enron and taken public by Mr. Pappas and has not relation to Enron. But I agree...a top notch company with top notch people!! They also tend to grow organically rather than large M&A deals that XTO and CHK like ot do.
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    • Thu Aug 21st 16:15 PM | Rating: 0 0
      Commented on:
      Natural Gas: Clean Fuel with a Dirty Little Secret
      Why just look at Texas? Did you think to look at CHK's total company production? Across all states? They have been moving capital to other basins like the Marcellus, the Haynesville, etc. Look at their total production. It is increasing. But, if you would like, keep believing and even sell me your shares!!


      On Aug 19 06:29 AM pacito wrote:

      > Chesapeake is going to plummet. Simple reason for that: They are
      > on the verge of experiencing Peak production. Just have a look at
      > the numbers of Texas Railroad Commission.
      > Statewide monthly gas well gas production for Chesapeake Operating:
      >
      > Oct 07 32.9 Nov 07 31.5 Dec 07 31.1 Jan 08 29.9 Feb 08 27.4 Mar 08
      > 27.8 Apr 08 25.7 May 08 25.1
      > So, production plummeted by 24% within 8 months. Within these 8 months
      > NG prices surged from 6.17 (Q3 2007) to 11.34 (Q2 2008).
      > Also: According to Texas RRC, output from the Barnett Shale peaked
      > in Dec 07 with 3.07 BCF and declined to 2.61 BCF (May 08) so far.
      >
      > Shale NG is hot air, just declining too much.
      View article »
    • Thu Aug 21st 09:15 AM | Rating: 0 0
      Commented on:
      Chesapeake Energy: Earnings and Shale Drama
      huangjin: not sure what comment you are referring to "...crack about $9.25 natural gas". his comment was related to an analyst's predicition that gas would stay around $6.25. Gas is at $8 today and I believe Aubrey's comment was really directed at the analyst's prediction of $6.25 over the LONG TERM. And I'd bet a lot of money on Aubrey's knowledge of the natural gas price fundamentals...a whole lot more than the knowledge of any of Wall Street's analysts. They are generally business school grad's with ZERO experience in the oil and gas business.
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    • Wed Aug 20th 17:10 PM | Rating: 0 0
      Commented on:
      Options Trader: Tuesday Outlook
      Old: triple down on CHK at this point. If it falls a bit further, dump more in. Within the next 3 years you will have at least doubled your money if not a heck of a lot more.
      View article »
    • Wed Aug 20th 09:03 AM | Rating: 0 0
      Commented on:
      Options Trader: Tuesday Outlook
      Thanks Phil for your followup.

      Why build the terminals if gas won't come here? The LNG terminal projects were initiated when we were suffering through shortfalls in NG (only 3 years ago the forecast was big shortfalls) and we didn't have the big shale gas discoveries like the Haynesville, Marcellus, etc.. Since it takes several years to finance, design and build a terminal, the work was kicked off only to find the market whipsawing the builders. Bad investments to say the least.

      Also, the LNG re-gas terminals cannot store large quantities of gas so their use as storage is not possible. And to your comment that these terminals can be used to send LNG out of the country, well Phil that is not phyically possible. The LNG terminals being built here in the US are re-gas terminals...the take LNG off of ships, decrease the pressure and re-gasify the product for pipeline use. These plants cannot reverse this process...they don't have the equipment needed and converting them to do this is a multi-billion dollar exercise that will take a few years. So, that was a misstatement. Now, there are some folks talking about export LNG as we (US) grow our natural gas business and more wells are drilled, etc. Aubrey of CHK has mentioned it, although I really don't think he's all that serious about it. But LNG export facilities are 3 year projects and require 20-year guarenteed supply contracts for 3-8 TCF gas. I seriously doubt anyone would put the money into this type of a project with US gas needs being so volatile.
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    • Wed Aug 20th 08:50 AM | Rating: 0 0
      Commented on:
      Are Oily Characters Behind Crude's Price Move?
      I'd like for the author to pursue Aceditor's point regarding US demand versus global demand. In the end, it doesn't matter what US demand is doing, it matters what overall worldwide demand is doing. A counterpoint is that US demand is a large portion of the worldwide demand, but our drop in demand was not that big. But if the US heads into a recession (or deeper into the current recession) it will probably impact other nations as well, dropping their economies and potentially causing their demand to drop as well, only delayed from US drop. Have I firmly sat on the fence on this issue??

      The US dollar strengthening is a big driver of the the drop in oil, just as it was a big driver in the rise of oil. The dollar has strengthened but there are many who believe that this is window dressing and the real foundational problems in our banking system, our money printing, the FED's inability to lower rates to stave off the recession and the outright lieing done by our government regarding inflation all point to a financial disaster. Will the dollar maintain the strengthening it has recently enjoyed should Lehman and/or another major bank go under?
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    • Tue Aug 19th 14:48 PM | Rating: 0 0
      Commented on:
      Options Trader: Tuesday Outlook
      Phil: I finally followed that LNG link you inserted in your post. I must admit, that is the most misleading, dishonest website I've seen in a long time. That Riley guy is a flake and I really am sorry to see you stooping to a point of giving him any credibility. I've disagreed with you many times on many energy related subjects but always felt that you were a reasonable, honorable person who did some good analysis, just little which I agreed to. That's healthy as there are always 2 sides to a trade. Zman speaks highly of you as well and that always made me feel that I should at least listen to your opinions. However, that link to the quack's website has me seriously re-thinking the above.

      The site links to a listing of headlines supposedly showing the corruption of LNG. When in fact, most of the links relate to bribery/corruption at a contracting/constructi... level, not the business case of the LNG plant or anything else. It is all about a contractor trying to secure a construction contract. These have occurred in the building industry, most industries located in Chicago (sorry, a small mob-related dig) and probably half of any work done with Washington DC policiticians from both parties. But to try and reach from that to a "LNG is corrupt" stance is beyond the pale. Once I finished puking over that guy's website, I decided to respectfully ask that you take that link out of your post. It is below you and your standards.
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    • Tue Aug 19th 14:35 PM | Rating: 0 0
      Commented on:
      Options Trader: Tuesday Outlook
      Phil: I'm not sure I'd characterize the current storage levels as "drifting along at the upper end of the 5-year average storage levels, a little below last year ". As I see it, the 5 year average high/low band is about 1000 BCF in width and we are currently only about 60-70% in to the range, leaving us 30-40% below the upper levels. I just can't see how that is "along at the upper end". Not even close. Above the median? Yes. just below the upper end? Not really. We are 300 BCF below the upper end. That's a lot. And to say we are "a little below last year" is again a misstatement! Last year and 2006 were at the very extreme of the range and we are far from it.

      Basic premise is probably okay...we are seeing supply running higher than last year and demand falling, but our storage is still about average...which is good. The storage is there to help ensure we can get through a severe winter and/or a supply disruption. Like, a hurricaine in the GOM or some other disaster.

      I don't see the storage as a way to game the system nor do I see LNG as a dirty scheme. But you have a basic distrust of my industry so I've grown to expect it. Truth of the matter is that no one will be able to attract large quantities of LNG to the shores of the U.S. due to pricing differentials with the Far East. Why send gas to the U.S. ofr $7, $8, or even $12/mmBTU when it can go the the Far East for $15??

      My read on pricing/supply: prices will probably drop a bit more; when they hit $6-7, new drilling for expensive gas will stop. When it stops, you'll see supply drop as our new plays can only sustain production levels with intensive new drilling. As the supply drops, you'll see prices start to go back up again. As they reach $12-13, drilling will accellerate and the supply will go back up and the whole cycle will repeat itself. All of this assuming no large scale disasters that take GOM supply offline or that pull the remaining LNG out of the US market.
      View article »
    • Sun Aug 17th 00:26 AM | Rating: 0 0
      Commented on:
      Natural Gas: Clean Fuel with a Dirty Little Secret
      Did you do a bit of research as to why LNG imports have fallen so low this year?? If you did you would understand a simple fact: even when gas prices in the US were $13/mmBtu, they were still lower than gas prices in the Far East (at $15 +). So why would a LNG shipper supply US markets with LNG for $13 when they could send it to Japan for $15?? That's the big secret (?). Until prices in the Far East drop or prices in the US rise, LNG imports will be severely reduced. Look at all of the new LNG import facilities that just opened this year. They aren't getting any LNG sent to them!!
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    • Tue Aug 12th 13:26 PM | Rating: 0 0
      Commented on:
      While Natural Gas Production Increases, Company Stock Prices May Not
      Cheniere only owns an IMPORT facility, not an EXPORT facility. The sunk BILLIONS into this facility and no gas is coming to the facility. You cannot just "reverse the process" and turn it into an EXPORT facility. 2 years ago, the big buzz was bringing more LNG into the U.S. So all of the companies went out and spent billions to get the IMPORT facilities built and now we want to EXPORT!! A good lesson on risks and exposure in the oil/gas business.

      Pls be careful with this type of advice. Based on above post if you went out and got some Cheniere you'd probably be watching your money go buh buy! Understand the LNG process. "...they have all that near the border of Texas and Lousisiana...". NO THEY DON'T!!!!!
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    • Tue Aug 12th 12:06 PM | Rating: 0 0
      Commented on:
      While Natural Gas Production Increases, Company Stock Prices May Not
      LNG: another poster answered this for the most part. The cost to build a gasification facility and the ships is outrageous. Plus you need to get an export license from the US government. Not too easy in that we were just saying we were close to a shortage (a few years ago). Plus you have to find a community that would let you build it...not too easy as we are a country run by greenie weenies who whine about everything. And, we have been building several LNG IMPORT facilities to bring LNG into the country, not export it!!!!

      Water: yes, it takes a lot of water to frac a well to get it to produce. However, that water eventually ends up back in the water system. Contorted path, maybe, but it doesn't get destroyed! But YES, water is a big big issue in many areas. 2 years ago a drought in east texas severely hampered the ability to complete wells in the Barnett Shale area. Plus, the produced water needs to be treated before it gets put back in the supply. All of this adds to the cost of drilling and producing the gas. Another reason why if prices drop too low, all of this drilling will come to a halt, our gas supply will quickly decline below our demand and prices will go right back up! About a 6 month elasticity period, give or take a couple of months!
      View article »
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