Hello 2009?

On January 19, 2009 — No comments

The New Year is in full swing and while many U.S. citizens said goodbye and good riddance to 2008, I can’t help but wonder what 2009 has in store for mineral and royalty owners and the natural gas industry in general. Last year brought new fortunes of “Jed Clampett” proportions to mineral owners in the Haynesville Shale of Louisiana and parts of East Texas. Mineral owners in the Marcellus and Barnett Shales were also taking large bonus monies to the bank as landmen scoured the rich formations and scooped up as much property as they could get their hands on. Oil and gas producers cheered with every new rig and dollar signs flashed everywhere you could think of the phrase “unconventional shale play.”

Then, nearly as quickly as mineral owners were cashing in their bonus checks demand plummeted and Judy Holliday started crooning The Party’s Over. Prices fell and oil and gas companies were left with a glut of production. Mineral owners who were holding out for bigger deals may be stood-up for the time being.

But for how long?

Even oil and gas industry experts around the country who’ve seen the highs and lows of supply and demand roller coaster for decades are perplexed at what the future has in store. With the new administration a day away from taking office, many industry experts are hoping that Obama and his team realize the potential of the glut of natural gas that exists in our country. Perhaps it’s time to cramp on coal’s style and leave the earth a little cleaner with more natural gas use. It doesn’t look like we’ll be running out of it anytime soon. One consulting firm estimated that America’s potential gas resources may total 2,200 trillion cubic feet (Bryce, Energy Tribune).

Perhaps it’s time for a brainstorming session with the new guys in the Oval Office?