http://www.bloomberg.com/video/oil-prices-how-low-could-it-fall-TUyu2fCGQA2pO3v~ESHy~w.html

In regards to nat gas:

When, if ever, do we see a concentrated effort to convert American cars to run on nat gas?

I know GE & Eaton have been working to develop cheaper in-home charging stations. Distribution is but one piece of the puzzle of course, but that's a pretty major hurdle.

Retrofitting cars or policy changes to light duty vehicles being required to use nat gas is a different can of worms.

Thoughts?

It will take decades at best to build the infrastructure. This is a HUGE country and it will run on gasoline and diesel for the lifetimes of everyone alive today.

On Natgas, I think if they ever force all Semis to run on Natgas, or you see a move that way. Then infrastructure will quickly follow. I for one am surprised the so called environmentalist have not pushed for this if they are really for cleaner air.


Also, I totally agree: Coal plants are just getting older, and with all the regs and CASPR/EPA regs are only making them more expensive. Also, Solar/Wind power (especially in TX) are only coming more and more online (Check ERCOT's latest releases), at cheaper and cheaper prices. Also, local battery storage will also be the wave of the future as well.

Oil Tycoon Harold Hamm Has Lost More Than Half His Fortune In 3 Months..


I guess unwinding 100% of those hedges may not have been a good thing...

"Meanwhile, November was the strongest month in nearly 30 years for US crude oil output. US oil fields produced 8,864 barrels per day last month, the highest average since May 1986"

They really should proof read their articles... They're missing 000 on the end of that number and forgot to mention that was 1000s in the chart. Hamm is an idiot. That's evident in his divorce proceedings.

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In regards to nat gas:

When, if ever, do we see a concentrated effort to convert American cars to run on nat gas?

I know GE & Eaton have been working to develop cheaper in-home charging stations. Distribution is but one piece of the puzzle of course, but that's a pretty major hurdle.

Retrofitting cars or policy changes to light duty vehicles being required to use nat gas is a different can of worms.

Thoughts?

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I've been working with the Pennsylvania legislature to develop "Energy Corridors" around the state to encourage the development of infrastructure for alternative fuel sources (Primarily CNG fueling stations). In these corridors, you will eventually see natural gas fueling stations in the same facility as traditional gas pumps. There is certainly a chicken vs. egg scenario playing out with CNG vehicles but we've been somewhat successful at getting producers, transporters, fleet owners, and retailers in the same room with key government officials to make something positive happen. Also, distribution companies, especially in the northeast, are upgrading their old cast iron pipelines and replacing these lines with modern pipe with cathodic protection. Many of these projects are being financed by Private Equity firms. There will be lots of opportunity in the midstream and downstream markets when prices of oil and gas drop.

At this time, the low price of natural gas is a driver (pun intended) for the creation of a diverse portfolio of new demand centers. As I mentioned on the previous page, transmission and distribution are the areas where these low oil and gas prices will encourage growth. Manufacturers (think DOW, Bayer CropScience, PPG, US Steel) are looking at these lower prices and will look to lock-in these lower rates. This means this gas will need to be stored somewhere or be sent somewhere for further processing. Quite frankly, and I know this is not a popular answer for us Texans, but Detroit is a great place for these things to happen. Detroit sits atop massive salt domes that make for great gas storage and they have a number of logistical hubs to allow for transportation of NGLs.

I would also look into MLPs and Royalty Trusts as potential vehicles for investment. These come with a bit more risk than most investment vehicles. Last year and 2015 look to be the year of the MLP especially with the number of interstate pipelines undergoing the FERC review right now. On the Royalty Trust side, there are some opportunities there if you hit a trust early enough in the term. Most of these are term limited so you want to get in on one earlier rather than later.

Just think of this as food for thought. There are a number on here much smarter than me on the subject but these are just my two cents.

Cars won't run on nat gas as long as oil is cheap. Cheap oil and abundant nat gas will make wind and solar even less competitive and bigger money losers. The laws of thermodynamics can't be arbitrarily ignored by Obama like he can ignore other laws. But the envionmentalists with Obama's EPA are successfully killing coal. Nuclear gets a bum wrap but people are genually deathly afraid of it so plan on oil and nat gas fueling this country and the world for a very long time.

It's not about substituting one over the other but about finding complementary uses. I have a wind energy client that leased their land for gas production and use that gas to help them during the down cycles. I never understood vilifying one fuel over another when they could be quite complementary when combined. This would make energy production and distribution much more efficient. I will tell you this, there's lots of oil coming up in Ohio. These prices are still encouraging quite a bit of activity there. They just need the infrastructure to get it to market. MarkWest has most of the gathering and transmission there but Blue Racer was catching up.

the issue we are going to see if oil remains low for awhile is consolidation. a bunch of small and medium companies will sell out of their acreage positions. that means a lot of redundant positions and people losing jobs.

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the issue we are going to see if oil remains low for awhile is consolidation. a bunch of small and medium companies will sell out of their acreage positions. that means a lot of redundant positions and people losing jobs.

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How much of this downturn do we think is the Majors flexing a little muscle to force out some of the competition that can't limp along for as long as they can?

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the issue we are going to see if oil remains low for awhile is consolidation. a bunch of small and medium companies will sell out of their acreage positions. that means a lot of redundant positions and people losing jobs.

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That can be scary but as many on here have said, be prepare for the boom and bust cycle. Best way to do that is to diversify your background to move into other areas. I was with a pipeline construction company, engineering company and now I'm back to practicing law. Each step was a complement to the next and it expanded my sphere of influence. Many folks are scared to leave Texas or Houston so they see losing their job as a huge blow. Be flexible enough to seek greener pastures in other regions. That's what brought me to Pittsburgh from my beloved home in Texas.

Talon thanks for the insight on Markwest. I need to take a second look at them.

Texpert - none.

The majors, independents, and small fry's with good balance sheets will take advantage of buying opportunities, and those with weak balance sheets will either weather the storm, get bought out, or go bankrupt.

Pittsburgh was rated pretty high on affordability and economic mobility. I think they might have been #1 overall... with that said, it is ****ing cold up there. I'll stay in Houston for a while!

As i mentioned before, if you want any Intel on the goings on here in Marcellus/Utica, let me know. I'm the only Aggie lawyer I know of up here.

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As i mentioned before, if you want any Intel on the goings on here in Marcellus/Utica, let me know. I'm the only Aggie lawyer I know of up here.

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Thanks Talon. I buy a meaningful amount of minerals (10 million plus in the last 6 years) and have looked at a few good looking deals in Pa. but I was the visiting team and it's a disadvantage. I would certainly be willing to look at anything you may come across with your background and location. I am particularly interested in far western Pa. I am a Pete "78" and our son moved there to work for NOV. He is going through his first winter so we aren't renting his room out. Ha!!

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It's a stop-gap energy solution

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I work in pipeline construction, how worried should I be by all this doom and gloom? This thread has me freaking out.

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Same here. I see the comments about how there aren't as many RFP's coming out, but my company hasn't seen any sort of slow down in jobs to bid right now. Also, I'm hearing a lot of projects are about to crack open in West Texas, where 2015 will be huge. I haven't been in this industry very long (3-4 months), so is there reason for concern on my end?

There's only a few on this thread that are in the industry, the rest are investors. Take it with a grain of salt.

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I work in pipeline construction, how worried should I be by all this doom and gloom? This thread has me freaking out.

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Same here. I see the comments about how there aren't as many RFP's coming out, but my company hasn't seen any sort of slow down in jobs to bid right now. Also, I'm hearing a lot of projects are about to crack open in West Texas, where 2015 will be huge. I haven't been in this industry very long (3-4 months), so is there reason for concern on my end?

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If I were doing business development for your company, the first thing I would do is seek to diversify across the supply chain. If you have all of your eggs in the gathering line 'basket', I'd start looking further down the supply chain towards transmission and distribution companies. Many distribution companies (Columbia Pipeline Group, as an example) are replacing up towards 21,000 miles of cast iron and bare steel pipe around the country. There could be utilities in Texas seeking to do the same thing. I would look for legislation similar to the Pennsylvania DSIC that allows utilities to charge a small fee to finance these capital improvements without having to go before the Public Utility Commission. This is on a state by state basis so you'll need to do your research (note: be sure to have a license to operate in that state, not just a Certificate of Authority, I'll be happy to expand on this if needed).

I wouldn't fret. Make sure your decision makers have the ability to see the market strategically so they can start developing relationships in other parts of the O&G supply chain. Another thing to investigate would be manufacturers looking to replace their old pipelines for new ones with added capacity so they can take on more natural gas. Here in Pennsylvania, steel manufacturers are increasing their gas capacity as a solution for their coke facilities. This means they will likely build a 12-20 inch gas line for xxx amount of miles to service their facility. These deals usually happen at the LDC (Local Distribution Company) level, so I would start there.

Talon - Giving great insight, but I think the newb was asking more about an overall projection of the energy sector & job stability in the near to mid-term. Most folks who aren't in the know (lack of experience, whatever) can get a bit spooked when they hear the negative outlook that has permeated this specific thread.

Understood. I guess my point is every negative has silver lining. Immediate doom and gloom could be an opening for other opportunity if you can visualize the industry at 50,000 feet.

When did I become a cliche...

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Understood. I guess my point is every negative has silver lining. Immediate doom and gloom could be an opening for other opportunity if you can visualize the industry at 50,000 feet.

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Do you haz newsletter?

Relax, US producers are still well above their profitability floor: http://www.msn.com/en-us/money/other/opec-is-wrong-to-think-it-can-outlast-us-on-oil-prices/ar-BBgej5T?ocid=DELLDHP

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I quit my job due to the price of oil and am now selling Plexus, Scentsy, advocare, jamberry, essential oils, and Mary Kay. Let me know if you want to follow me on the road to independent prosperity and business ownership.

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Not sure if serious... Pyramid schemes are not prosperous...

duuude......dude.....

I'm in the market for scentsy.

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duuude......dude.....

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Plenty of trolls around here. Plenty of retards that sell that crap with the belief they will make a killing. You can't infer tone with a keyboard.

Sorry to hijack the thread a little bit, but I've always been amazed at how smart people can get duped into that multi-level bull****.

I can't tell you how many aggie friends and wives of aggie friends I've got who are constantly bombarding facebook trying to throw nail-wrap parties, sell advocare, or whatever. It's insane.. I think i read somewhere that Mary Kay has the highest level of "distributors" who turn an overall profit, and that's like .3% or something.

I have a friend that has branched off into some energy drinks with acai berries... He's never made a dime off of it yet he still tries to get others to use it.

great work Talon. Looks like you have moved on from your previous position the last time we met. Hope you are doing well.