• The move to the new server is done. There are some software and database maintenance updates in process. This has us passing the hat around to help out. We appreciate any donations. Seriously, even a dollar helps. The payment page may be found here - https://www.audiokarma.org/support.html

Natural Gas Prices Fall Below Zero

Archguy

Archguy

Official Roiurama Factory Rep
Subscriber
So far it's not a widespread phenomenon, but it is happening. Oil companies will pay you to cart off their natural gas now. Anything wrong with this picture?
gas-flaring.jpg


The glut has become so bad that next-day prices for gas at the Waha hub in the Permian have plunged to a record low, falling to as low as 25 cents per MMBtu. In some instances, producers have actually sold some gas at negative prices. That means that a company is paying someone else to take the gas off of their hands. On Tuesday, the lowest price recorded was -25 cents/MMBtu (to be clear, that is negative 25 cents), according to Natural Gas Intelligence (NGI). It was the second consecutive day that prices were in negative territory.

“That’s right, someone was paid to buy gas in the Permian on Monday,” RBN Energy LLC analyst Jason Ferguson said, referring to NGI’s pricing data. “While we’d like to tell you this was some sort of transient, one-off event that led to a day of dramatically low gas prices, that isn’t likely the truth of the matter.

https://oilprice.com/Energy/Gas-Prices/Natural-Gas-Prices-Fall-Below-Zero-In-Texas.html
Click to expand...

Anyone who's lived near a 'petroleum' zone is probably quite used to the sight of oil companies flaring off their natural-gas supplies. Not cost-effective to capture, transport, and sell. But I wonder, is there really no fix for this? Natural gas certainly isn't free where I live.
 
Register to hide this ad
I'll take all they got this winter if it's free. Probably have to pay to have it shipped through the pipe I bet.
 
parman said:
Probably have to pay to have it shipped through the pipe I bet.
Click to expand...

Yep, I have PG&E here, another company came by and put me on a plan to pay less for gas. The pips are owned by PG&E, and they charged me more for deliver service of the cheaper gas. In the long run it cost me more.
 
Worldwide expanded oil exploration has also uncovered vast fields of natural gas that is inherently tied to oil - lighter warmer fractions that are low molecular weight that have not been polymerized or converted by time, heat, pressure into longer chain hydrocarbons we know as petroleum. Every time oil is produced, natural gas can be a significant byproduct. Unfortunately, because it is a large volume gas, it isn't easy to capture, condense or liquefy for easy transport to far off areas. For local use or transport via gas pipeline, you have to already have that in place as it is in many areas of the US. The problem is the gas storage at the user end isn't so easy either. Out here in LA we used to have those huge cylindrical domes that rose and fell with storage - but many located in industrial areas where residential crept into and became a huge hazard - so now all gone. The infamous Aliso Canyon underground storage facility had a massive gas leak that has now curtailed use of the storage facility - so now SoCal gas has issued an alert to use less gas during the winter (because they cannot store enough to guarantee everyone sufficient supply during times of peak demand. There's plenty of gas to go around, just not enough storage to handle the demands currently.

Huge numbers of formerly coal fired power plants are converting over to Natural Gas as primary fuel precisely because 1) Natural gas prices have tumbled hugely because of the major over supply, 2) it burns much much cleaner than coal ever did or could, 3) Coal requires so much more scrubbing and has major waste products (mercury, slag) to deal with so much more expensive, 4) is much more environmentally useful than coal (still puts out CO2 and H20 eventually), and 5) is so cheap comparatively, and will be for decades to come. This is the best case for Natural gas to be used as a fuel for the next 20-50 years until we have much more extensive solar power conversion.

IMO, coal should just be shut down entirely. The costs associated with coal (especially in terms of mining, accidents, super huge long term health problems, costs and deaths due to coal) and its attendant damage to the earth is just not worth the energy put into it, and taken out of it. Yes, its a hydrocarbon fuel, and yes, it is abundant in many parts of the world, but its a very complex and at best, difficult fuel compared to natural gas, and eventually solar. Environmentally, there is, IMO, no contest regarding Coal - it is just too dirty and too costly in all costs to be used anymore.
 
You must log in or register to reply here.
Back
Top Bottom