Field guys, does this report ring true or false?

[BlackArcher101]

http://www.nickles.com/rig/activedrilling.asp

[badatusrnames]

Originally posted by 7thgenvic


Enbridge has already started investing in their CC programs. I agree with not seeing huge amounts of money being invested in the near future, but I do believe once companies start earning ridiculous profits that CC will be a huge asset for Alberta's oil sands. Given our extraction methods already.

Haha I know all about it, I worked in the pipeline industry. And how are companies going to earn these ridiculous profits? Who's going to pay them to stick CO2 into the ground? Companies are working on these things so they can be ready if carbon markets come around, but trust me, they aren't holding their breath, it's going to take a lot of political will to get anything done on that front. Besides, carbon markets will be artificial and created as a result of government regulation, how much profit will there really be to be made? Definitely not as much as in a commodity traded on open markets like oil and gas.

All work being done is very, very much drawing board, no one's going to be putting any physical capital into it anytime soon.

Largely it's also being done to put this type of stuff into their Environmental Stewardship, CSR reports, etc.

[TorqueDog]

Originally posted by atgilchrist
And natural gas. Sub-$4 NYMEX? That can't and won't last.

I know where my income tax return is going.

[CokerRat]

Can't quote sources but continental gas production is expected to drop by 15% next winter while demand will drop only 2%. Do the math.

[Supa Dexta]

Originally posted by atgilchrist


The Shale plays in NE BC are going to be gushers, but spring break-up is a HUGE issue. It's muskeg up there and equipment sinks.

I'm sitting in the middle of muskeg right now. As are most of the other heavy oil projects.. That doesn't stop those who want to drill.

[ExtraSlow]

Originally posted by TorqueDog
I'd be investing in natural gas, personally. It's been so devalued for such a long time, I have a feeling she'll start going up soon enough.

Interestingly, crude has gone back up in the past couple months by about $15 a barrel (currently sitting around $50/barrel).

Originally posted by TorqueDog
Then the time to invest in crude is now.

Originally posted by atgilchrist


And natural gas. Sub-$4 NYMEX? That can't and won't last.

One of the reasons that Natural gas remains so low is that there is no difficulty identifying where the supply will come from. Shale gas in the US, like Barnett, Woodford, Haynesville etc has the ability to produce tremendous amounts in relatively short order. This means that another serious supply shortage is unlikely in the next twenty years or so.
However, all of these plays have steep initial declines, which means that if you stop drilling, as they have now, the reduction in supply shows up relatively quickly.

I'm predicting a 30-50% price increase in natural gas around the end of 2009, and then relatively stable prices for a couple years at least. I'm heavily invested in it, and I plan on unwinding my positions at the first spike.