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dnpvd51

dnpvd51
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  • Divergence Of Oil And Gas Prices Offers Golden Pair Trade Opportunity [View article]
    "The first half of 2008 marked the end of the era of vertical well drilling. In 2009 and beyond, directional drilling and fracking technology made the cost of hydrocarbon production significantly cheaper."

    This statement is completely wrong. Vertical drilling is much cheaper than horizontal drilling. The problem is that we have used up most of the oil and gas that can be drilled profitably with vertical drilling leaving us left with only much more expensive oil and gas that can only be had with horizontal drilling. We have had this technology for decades but it is only until recently that we have been forced to use it.

    Further the energy ratio between oil and gas is 6 and the historical ratio is 10. The 25 ratio is an extreme outlier and we are more likely to crash below 10 than ever again reach the extreme of 25.
    Jan 23, 2015. 12:51 AM | 1 Like Like |Link to Comment
  • Surging Natural Gas Production Negates Demand Triggered By Cold Temps [View article]
    Is there any evidence at all of surging production going forward?
    Jan 22, 2015. 10:39 PM | 1 Like Like |Link to Comment
  • A Troubled Outlook For Natural Gas Prices [View article]
    This is not really true. The basic technology here has been around for a long time. They can tweak it some what but fracking is expensive.
    Jan 8, 2015. 02:57 PM | 1 Like Like |Link to Comment
  • A Troubled Outlook For Natural Gas Prices [View article]
    How are we going to have more NG production when we are losing 25 rigs each week due to low oil prices?
    Jan 8, 2015. 07:24 AM | 1 Like Like |Link to Comment
  • U.S. Natural Gas Economics: $4 Works; $3 Is Too Low [View article]
    OK,

    Then explain how NG has suddenly become less expensive to produce relative to oil.
    Jan 4, 2015. 07:12 PM | Likes Like |Link to Comment
  • U.S. Natural Gas Economics: $4 Works; $3 Is Too Low [View article]
    It seems to me that if $4 NG is viable then $40 oil should be viable and if $5 NG is viable then $50 oil should be viable. Historically the ratio has been 10 to one.
    Jan 3, 2015. 08:03 PM | 4 Likes Like |Link to Comment
  • Natural Gas: Recent Move Provides A Great Contrarian Play [View article]
    The EIA stated that 2013 production was 1% higher than 2012 production.

    2014 production grew at a greater rate apparently because we have more oil rigs out there. But now the number of oil rigs will be declining rapidly.
    Jan 2, 2015. 08:21 PM | Likes Like |Link to Comment
  • Natural Gas: Recent Move Provides A Great Contrarian Play [View article]
    The Marcellus has been growing at a constant rate for the last two years.

    If anything a slowdown in production is more likely in the Marcellus. Last year NG production grew at 1% YOY, Marcellus production was offset by decreases elsewhere. THis year NG growth rate is higher than last year and since Marcellus has constant growth rate, this must be because production outside the Marcellus is not falling as fast as last year.

    Thus with falling rig count, we will have falling NG production.
    Jan 2, 2015. 11:26 AM | Likes Like |Link to Comment
  • Natural Gas: Recent Move Provides A Great Contrarian Play [View article]
    How do you expect production to keep rising when the rig count from here on will be rapidly declining?
    Jan 1, 2015. 09:37 PM | Likes Like |Link to Comment
  • First Crude Oil, Now Natural Gas... How Low Can It Go? [View article]
    These companies must grow production to hide the huge losses that they are taking.

    If production is flat, and the company still takes on more debt, it obviously is losing money.

    If production is growing, but takes on a large amount of debt, it can be argued that the profits are in the future production.
    Dec 31, 2014. 12:53 PM | 1 Like Like |Link to Comment
  • How Much Does It Cost To Produce 1,000 Cubic Feet Of Gas? [View article]
    I don't believe for one second that Cabot can produce gas for $3.01

    So you are just taking Cabot's numbers from their financials as the true cost for their production?
    Dec 29, 2014. 07:55 PM | Likes Like |Link to Comment
  • Natural Gas: Recent Move Provides A Great Contrarian Play [View article]
    How do you figure that the margins for the Marcellus are good?

    Have you seen the cash prices for Marcellus gas? At some locations it went under a buck recently. These Marcellus NG companies are getting killed.

    Every NG company is producing massive amounts of debt. And they have been hiding behind increasing production and accounting tricks to claim illusory profits.
    Dec 25, 2014. 10:02 PM | Likes Like |Link to Comment
  • How Much Does It Cost To Produce 1,000 Cubic Feet Of Gas? [View article]
    How are you figuring depreciation for Cabot?
    Dec 24, 2014. 07:26 AM | Likes Like |Link to Comment
  • Cabot Oil & Gas: Good News On The Constitution Pipeline [View article]
    I am not understanding how anybody can buy a company which is building such a massive pile of debt.
    Dec 21, 2014. 02:11 AM | Likes Like |Link to Comment
  • Calculating A Fair Silver Price [View article]
    You have a store?
    Dec 10, 2014. 07:05 PM | Likes Like |Link to Comment
COMMENTS STATS
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