The Energy Report;
Second Week of November, 2005
A key indication of the direction of the independent oil & gas industry was provided at the Independent Oil and Gas Association of New York's 25th Annual Conference in Buffalo on November 9th and 10th 2005. An amusing and informative diatribe by the keynote speaker provided an excellent backdrop of the coming expectations for the global energy market with relation back to the domestic market.
Individual private discussions with several association members were even more revealing about the expectations of the future market. Nearly all in attendance are planning to increase revenue on the back of exploration and drilling alone, expecting market prices to hold or advance. Therefore, most in attendance appeared disinterested in the variety of presentations that IOGANY provided to usher in a broader spectrum of related energy technologies and conversion opportunities. Utilization of stranded well gas for power generation was presented by Jack Perkins, President of Jaker Engineering, PC.
While most O&G members in attendance showed only casual interest in the large group presentations for alternative energy opportunities, there was substantially more interest expressed through one-on-one discussions. Admittedly, many of the smaller companies presented concepts to recover losses or increase yield from wells that are either under-producing or past their prime. Private talks focused on conversion yield, market share and cost comparisons of alternative or conversion technologies. Interest concentrated primarily on opportunities for gas-to-liquid and electric power conversion.
The keynote speaker provided an engaging discussion of where the energy market is headed. Pointing out related political and logistical issues he forecast that the search for energy reserves will continue to escalate as a direct result of 3 billion new capitalists added to the world economy now that India, China and the former Soviet Union are venturing into the world of supply and demand. Oil prices will remain high for the US, but not necessarily as much for Europe, due to the facts that the Euro has out-valued the dollar substantially and world oil pricing remains tied to the American dollar.
Individual private discussions with several association members were even more revealing about the expectations of the future market. Nearly all in attendance are planning to increase revenue on the back of exploration and drilling alone, expecting market prices to hold or advance. Therefore, most in attendance appeared disinterested in the variety of presentations that IOGANY provided to usher in a broader spectrum of related energy technologies and conversion opportunities. Utilization of stranded well gas for power generation was presented by Jack Perkins, President of Jaker Engineering, PC.
While most O&G members in attendance showed only casual interest in the large group presentations for alternative energy opportunities, there was substantially more interest expressed through one-on-one discussions. Admittedly, many of the smaller companies presented concepts to recover losses or increase yield from wells that are either under-producing or past their prime. Private talks focused on conversion yield, market share and cost comparisons of alternative or conversion technologies. Interest concentrated primarily on opportunities for gas-to-liquid and electric power conversion.
The keynote speaker provided an engaging discussion of where the energy market is headed. Pointing out related political and logistical issues he forecast that the search for energy reserves will continue to escalate as a direct result of 3 billion new capitalists added to the world economy now that India, China and the former Soviet Union are venturing into the world of supply and demand. Oil prices will remain high for the US, but not necessarily as much for Europe, due to the facts that the Euro has out-valued the dollar substantially and world oil pricing remains tied to the American dollar.
Closing Notes:
Regional energy developers Columbia Natural Resources (in attendance w/ new owner Chesapeake Energy), Great Lakes Energy Partners, LLC (without majority owner Range Resources) and Fortuna Energy, Inc. (owned by Talisman Energy of Canada) showed up in force as an indication of the year-end results that each company will announce. These are some of the major players who will focus their exploration and delivery efforts primarily on deep-well gas throughout the Appalachian Basin.
Bottom Line:
Domestic onshore gas exploration will continue at an unbridled rate. Alternative or energy conversion concepts and technologies are getting little interest by the major explorers. As a result of this, and the unfettered thrust for new natural gas production, there are opportunities to be gleaned in the Northeast for those that can turn under-producing O&G wells into an energy form that has a growth market with seasonal price spikes. We know of one proven conversion concept for interested investors.
Jaker Engineering, PC provides engineering solutions for the energy market.
posted by Unknown at 8:11 AM
0 comments
