<DrumBeat: September 26, 2006 The Oil Drum DrumBeat: September 27, 2006>

169 comments on Natural Gas - A Tale of Two Markets

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oilmanbob on September 26, 2006 - 12:15pm Permalink | Subthread | Parent | Comments top
  The extraction rate of natural gas can be regulated by either changing to a smaller orifice on the wellhead (hole that lets the gas out) or by shutting in the production. Since Natural Gas has almost always been in oversupply in the US, all oil and gas leases-the contract with the mineral owners-allow for shut-in periods by the producers
   Flaring ended as a normal practice in the 1960'sn the US, but some producers flare gas overseas because no market exists and they lack the wells and equipment for reinjection.

Lots of the new gas wells are unconventional gas from shale and coal bed methane. They produce a lot of water because of the huge frac jobs. Does anybody know whether the watre will cause formation damage on a shut-in well?  

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geewiz on September 26, 2006 - 1:37pm Permalink | Subthread | Parent | Comments top
thank you both for your inputs. I just learned yesterday, i will be getting a well put on my property in north west Louisiana. (Hence my curiosity about NG) There is mostly natural gas wells around that area, so i imagine the drilling co will be extracting natural gas. needless to say, i am smiling!
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oilmanbob on September 26, 2006 - 2:04pm Permalink | Subthread | Parent | Comments top
That's really great news for you. With modern geophysics, about 2/3rds of wells are economic successes And, what kind of money is better than royalty? It arrives in yourmailbox without having to work for it, and its tax-advantaged. I hope they make a real barn-burner!
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geewiz on September 26, 2006 - 6:35pm Permalink | Subthread | Parent | Comments top
thanks, and the royalties will pay for my daughters' college, she's studying Geology.
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elwoodelmore on September 26, 2006 - 8:25pm Permalink | Subthread | Parent | Comments top
typical coalbed methane wells produce water because the coal is saturated with water   the water is produced to allow a pressure decline in the coal and allow desorption of the gas from the coal  if a coal well is shut in the desorption will stop and water will need to be produced so that desorption can again take place   so no it is not practical to shut in a coal bed methane well
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oilmanbob on September 26, 2006 - 8:55pm Permalink | Subthread | Parent | Comments top
Thanks elwoodelmore, thats what I figured. I'm guessing  that the shale gas wells will also have problems if any of the frac water is left in the reservoir. It will be a real problem for producers because the pipelines don't generally allow a producer to decide which wells to shut in, its based on market conditions.
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169 comments on Natural Gas - A Tale of Two Markets

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