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Guyana Oil Saga

 
DirtyDan 2018-02-25 08:45:14 

EXXON take out AD to help out with perceptions

 
DirtyDan 2018-02-25 08:51:58 

ok, inexperienced Guyana signs a heavily-in-favor-of EXXON contract. Chalk that up to big corp taking advantage. No significant benefit to Guyana.

Time to call out EXXON, to get at least an agreement similar to Ghana's or better. Ghana is getting 10% royalty and is not responsible for exploration costs. Guyana gets 2% royalty and is on hook for $500 million exploration expenses.

Guyana Govt feels embarrassed to pressure EXXON to re-do contract as likely, the people that did the contract for GT have a great relationship with the EXXON negotiators.

Well, time to change up the dynamics and bring in the bulldogs for the good of the GT peeps. Do it now rather than looking back for generations only to see another major fcuk-up for the country.

 
cricketest 2018-02-25 09:34:33 

at least is not their caricom brothers that has taken advantage of them.

so it should be easier to accept.

 
DirtyDan 2018-02-25 09:43:28 

In reply to cricketest

You mean Trinis? They don't particularly care. They looking a dollar.

 
DirtyDan 2018-02-25 10:37:58 

Chris Ram comments on Guyana's contract

Nigel Hind's take on contract

 
bravos 2018-02-25 10:44:57 

Told ya'll Guyana getting royally f@cked in this prescription for Dutch Disease,but the pseudo experts here again was quick to shoot down my opinion,you know how they go.

Full circle again here.

 
bravos 2018-02-25 10:46:39 

In reply to DirtyDan

Bout time we get a dollar from Guyana nuh so?? We do care...better deal for you more money for us (all)..

T&T made deals and parallel arrangements for a share of production for the manufacture of other products such as CNG ,all toll we get over 50% of proceeds plus other business opportunities for further income generation,despite the current rot,because of this companies such as NGC and Petrotrin had some great years and generated great amounts of money..

Even BP admits it paid T&T over 50% of historical earnings...


You guys need to negotiate better,because when you no longer useful they will drop you like a hot Exxon Valdez scorched potato .

 
DirtyDan 2018-02-25 13:59:02 

In reply to bravos

Govt is a bit overwhelmed, need help to renegotiate

 
Chrissy 2018-02-25 15:16:31 

Stupid idiots. Dat is all.

 
DukeStreet 2018-02-25 15:23:30 

In reply to bravos

Told ya'll Guyana getting royally f@cked in this prescription for Dutch Disease,but the pseudo experts here again was quick to shoot down my opinion,you know how they go.

Full circle again here.

Sooo where is Mr. Courtesy and sgtjones to extrapolate and formulate theorems that explain the fuzzy math behind your claims?

lol

 
sgtdjones 2018-02-25 15:42:16 

In reply to DukeStreet

You love bacchanal huh ..smile

Please this individual used a 300 billion dollars cash flow by a foreign national Oil company and divided over 60 years to note that T&T was paid 5 billion per year.

Ironically T&T budget wasn't 5 billion in the early years.He cannot read a fiscal statement, he pays others to explain it to him. shock

He regards himself as an expert on T&T.

All the infracture and plants in T&T except PetroTrin are owned by Foreign entities paid for by the T&T taxpayers.
They can move such plants when the gas reserves dry up.

Notice PetroTrin is on life support, but they know how to run businesses in this sector.

I see courtesy making him look so chupid, that at times I am embarrassed to be classified as a Trini.

It wise to put this character on ignore.I am staying out this one

lol lol

 
ray 2018-02-25 16:14:32 

In reply to Chrissy

WHile I don't disagree with you that they are stupid, it is easy to sit on the outside and throw stones

 
POINT 2018-02-25 17:16:30 

I hope that the Governments of Trinidad & Tobago & Guyana are going to hold conversations regarding this
matter , so that They both can learn from each other .

 
DirtyDan 2018-02-25 17:35:45 

In reply to POINT

That would have been ideal. But Caricom leaders tend to be more myopic. Shame really. Everybody reinventing the wheel.

This would have been a perfect time to learn from a similar experience with benefits to both parties.

 
TheTrail 2018-02-25 17:36:18 

In reply to DirtyDan

Time to call out EXXON, to get at least an agreement similar to Ghana's or better. Ghana is getting 10% royalty and is not responsible for exploration costs. Guyana gets 2% royalty and is on hook for $500 million exploration expenses.


That is a horrible deal. Are you sure about that?

Are they on the hook for spillage and abandon wells cleanup? What if the waterways are polluted, who pays for the cleanup?

 
DirtyDan 2018-02-25 17:36:45 

In reply to Chrissy

Naive instead of stupid?

 
sgtdjones 2018-02-25 23:49:34 

In reply to TheTrail

Oil companies stipulate that all exploration costs and infrastructure cost be borne by the host country .

They own such .... shock shock

Any spills are borne by the host unless specified.

Exxon will out maneuver Guyana in this deal.

Guyana has no options.

Look at T&T over 30 ships are parked in its waters ,
they dont know who own them and some are leaking
chemicals.

I was in T&T for Carnival 2018 and went out to see such.
PetroTrin has numerous old pipelines in the water that needs to be replaced. It gats no money just a matter of time before a problem surfaces.

 
dayne 2018-02-26 09:14:20 

Another abuse of the resources and the people of Guyana is on the horizon. This seems like History will be repeating itself, with monetary powerful companies taking advantage of poor countries. I would not be surprise if there is a further moral decline in Guyana, because of this oil extraction project, corruption, prostitution, robberies could become more common.

 
Jumpstart 2018-02-26 09:53:31 

In reply to DirtyDan

payna, is not us who tel Janet Jaggan to requisition the world's most advantageous oil company to engage in exploration for her country. We are guilty of many things: skulduggery, entitlement. But that wasn't us de boss. Hoss ExxonMobil don't even pretend to have any kind of social conscience. They're in it for the money and the money alone and they will try to squeeze every single cent possible of out the countries they deal with.

 
BeatDball 2018-02-26 10:21:14 

In reply to POINT Precisely my point all along & im not joking. The jackrasses in Guyana are probably 'playing big' & is not asking for assistance of any kind.

evil

 
bravos 2018-02-26 12:46:37 

In reply to DukeStreet

Usually smell them before you see them..

Picked up the scent a while now.. cool

 
runout 2018-02-26 13:05:41 

These guys are way over their heads.

Exxon took them to Texas, smooze them up a bit, and them feel pon top of the world. When they come home Exxon sent them the bill for $500mm. I hear the Prezzie got sick after that.Go figure!

On top of that, Exxon paid them $18mm and they hid it into an account that no one else knew about. When questioned, they denied, and denied and denied, until they were pressured to expose the truth. Now tell me, are these people the ones who should be holding the purse-string for anything?

 
CITYBOY 2018-02-26 13:39:11 

Hola...seem to recall saying something about the texas feed and screw...
guyana has lost big time in terms of its resources...gold/diamonds/bauxite...just never had an accountable government...rice gone...sugar gone...coconut oil gone...now oil gone and they have not even see or smell that...
who you gonna blame???unfortunately Uncle Forbes not taking blame for this....

MR and Mrs CORRUPTION...no matter what race or color or party must take the blame....be hunted down and dealt with...its the only way.
ADIOS
CB

 
sgtdjones 2018-02-26 13:40:05 

In reply to POINT

What can T&T teach them?

In the last 25 years T&T received 90 billion dollars
from foreign companies . It was less that 10%,
do the math see what shareholders of these corporations
got.

The individuals who signed such were deemed to be
energy czars as the citizens of T&T gats ripped off.

One example. Urea manufactured by a Canadian conglomerate
was sold to Saskatchewan Farmers. It was shipped from T&T to Hamilton, Ontario , loaded on to rail cars, then sent
to Saskatchewan. The cost involved for such.

It was sold cheaper than urea made in Alberta, a plant
less than 200 kms away?

In Alberta one pays at the wellhead world prices,
see how the locals are getting ripped off.

All one has to do is own 5 shares in such companies, as a shareholder they must disclosed any agreements signed.
You will be surprised the price such conglomerates pay for T&T gas.

lol lol lol

 
bravos 2018-02-26 13:59:44 

In reply to POINT

Well there you have it bro,I have to say no more,even from the most pessimistic view and unreliable agenda driven source T&T averaged almost 4 billion a year and there were years when we collected up to 8 billion and also billions the decades before..no comparison..

If we had this current deal Guyana has we would've collected less than 4 billion over the last 25.

And that was my point last discussion and idiots thought Guyana did well at less than 200 million a year..we know its still money but its robbery and set up ting.

So yes T&T doing much better,even at our lowest, year before last the income for that year was much more than what Guyana will get per year with their deal and with larger reserves.

Exxon looking to suck Guyana dry and leave them for dead..

Oh full circle is really easy here..big grin

 
dayne 2018-02-27 12:12:31 

An investigation should be done on the people who signed those contract papers to see if money was deposited into private accounts. An article was posted on the Website Huffingtonpost.com about two weeks ago about the unfairness of the Oil contract, the author labelled it a " Shithole contract" .

 
Kay 2018-02-27 12:23:18 

In reply to dayne

An investigation should be done on the people who signed those contract papers to see if money was deposited into private accounts.

But is dem people time now ... why alyuh vex? cool

 
DirtyDan 2018-02-27 18:23:31 

If oil prices go up when oil is flowing in Guyana, there is no additional revenue

That’s what Guyana will be getting if international oil prices rise, thanks to the Production Sharing Agreement (PSA) the Government has signed with ExxonMobil.
That agreement prevents the Government from taxing “higher than expected profits”, which is likely to occur when international oil prices are high.
The contract’s ‘stabilization clause’ is what prevents Guyana from securing such “windfall profits” in the future. This clause insulates ExxonMobil from any new taxes or laws or fees not agreed to in the contract.
But while the nation is prevented from fully benefitting from higher than expected revenues, ExxonMobil gets to profit from favourable changing conditions in the oil market. This was also confirmed by Chartered Accountant and anticorruption advocate, Chris Ram.

 
DirtyDan 2018-02-27 18:29:06 

Ram in his recent writings has also deemed the Stability Clause to be a ‘Strangulation Clause’. The columnist said it is unthinkable that any government would sign on to an agreement which insulates an operator from any new law or tax that the Parliament approves. He also noted that the clause can even be deemed as anti-Constitution.


what rass is this I reading?

what could make for such a favorable contract?

Minister Joseph Harmon announced last week that the government is not reviewing the contract. rolleyes rolleyes rolleyes

 
DirtyDan 2018-02-27 18:32:27 

Dem Boys Seh's take

 
bravos 2018-02-27 19:00:47 

Dyamn...sad.

Idiot Sgtmsjones and Discourtesy say allyuh get a good deal..just to contradict bravos,but bravos is de trute..,cant stop de trute with semantics...

I'm angry about this and I'm not Guyanese,fucking robbery and plenty never see come see and full pocket it look like..

This has to be one of the biggest scandals in this sector...rape robbery buggery and murder..

 
dayne 2018-02-28 08:18:28 

In reply to bravos

It is very sad indeed, but these contracts have been around for the last four hundred years, that's why many countries never develop and remain what the President of America call " shithole countries ". Africa, which is the continent that is richest in natural resources, is the poorest in commercial wealth, because of abusive contracts.

 
bravos 2018-02-28 11:39:50 

In reply to dayne

Yes that's an old story but we in 2018 now,national interest is a big thing now,especially in such an industry with so many other implications and components.

It seems they just wanna get it all out of Guyana as fast as possible like dey steal it,no plans for relevant associated infrastructural development like refineries and downstream plants etc

People get 'big' money in that hollow deal,sell out the country for a few greenbacks..

 
jala 2018-02-28 14:48:16 

In reply to DirtyDan

some of you have your axe to gring...you lack an ounce of patriotism...the contention that we will not receive additional revenue if oil prices go up is as irresponsible as the nonsense that passes for journalism in kaieteur news..

Guyana will obviously obtain additional revenue

 
jala 2018-02-28 14:57:05 

In reply to DirtyDan

and tell ythe people here who signed the original contract in 2009 that had 0% royalties and almost no local content.....tell them who fought hard to get the contract negotiated and got 50% share of profits and 2% royalties from day one, coupled with additional taxes, and a other local investments, specifically the trainin centre which is already operational

tell them about the cgx DEAL THAT your ppp govt also signed that is a horrendous deal...(google it)- they got 25% tax concessions, with the same conditons of the initial exxon contract-

fool the folks here who just gobble up your inaccuracies.....

I am Guyanese, and I do my own research every day, because this resource will benefit the poor in my country, and i must know thr facts, not media fiction-
while u are at it, go check the saidi arabia model of oil and gas exploration....

reading is fundamental...

 
jala 2018-02-28 14:59:14 

1999 contract VS 2016 Contract

 
rockstarxxx 2018-02-28 16:23:16 

In reply to jala

1999 contract VS 2016 Contract


How much oil was found in 1999?

Was Guyana considered to be a country of oil in 99?

Was inflation considered when you made that Facebook account?

Anyone can make a FB account. You sir, is a fraud!



SMH

 
rockstarxxx 2018-02-28 16:24:35 

In reply to bravos


Yes that's an old story but we in 2018 now,national interest is a big thing now,especially in such an industry with so many other implications and components.

It seems they just wanna get it all out of Guyana as fast as possible like dey steal it,no plans for relevant associated infrastructural development like refineries and downstream plants etc

People get 'big' money in that hollow deal,sell out the country for a few greenbacks..


I haven't agreed with you much in the past... but this post is bang on.

The government is selling out the people and country so they can full their pockets.

 
DirtyDan 2018-02-28 18:19:57 

In reply to jala

Timing is everything, Sir. Big difference between a contract that's drafted when you are not sure there is oil and you need companies to prospect, and one that's made when it is discovered there are millions of barrels of oil.

This is not about politics. This is about the people's oil.

So you're good with the contract?

 
DirtyDan 2018-02-28 18:34:08 

In reply to jala

So if all is great, why do you think they move the oil portfolio from Trotman?

 
Kay 2018-02-28 19:02:26 

In reply to jala

Forget the 1999 contract. There was no oil hence no real leverage in negotiations. Are you ok with the recent 2016 contract when they could actually see and smell the oil?

 
bravos 2018-02-28 20:47:36 

In reply to rockstarxxx

I haven't agreed with you much in the past... but this post is bang on.


And I've haven't heard you sing in the past...now you write me a song..ok tenks..

 
TheTrail 2018-02-28 21:53:07 

In reply to sgtdjones


In Alberta one pays at the wellhead world prices,
see how the locals are getting ripped off.





What do you mean by the above?

 
DirtyDan 2018-03-03 14:56:55 

C'mon Guyana challenge that contract. Nothing to do with politics.

Link Text

 
sgtdjones 2018-03-03 17:21:27 

In reply to TheTrail

Will explain

Natural gas in Alberta has a market to sell it to in New York City .

After company ABC drills a successful gas well producing 1 million cubic feet per day (1 mmcf/d) in Alberta .

That day at the Edmonton gas terminal, AECO, is CAD$3.40.
AECO stands for Alberta Energy Company

The gas from that well needs to get, at the end of the day, to the natural gas pipeline grid, which in Alberta is the Nova pipeline system.Cost: $0.30 per mcf.

Then it is transported on another pipeline (cost: $0.50 per mcf)

The gas must be processed (to get the gas to pipeline spec – remove water, carbon dioxide, hydrogen sulfide etc. – cost: $0.90 per mcf) and to compress the gas to get it up to pipeline operating pressures.

Now the company sell its to a marketer or middle man.

Pricing varies, but it is based on AECO spot prices . Each basin has its own spot prices, based on NYMEX with adjustments for transportation cost (to get the gas to New York) and currency exchange (in the case of AECO).

There is a lot of gas fighting for pipeline space. NYMEX spot prices currently are about US$3.60, which is about C$4.50 but current AECO spot prices are $3.40, showing a $1.10 differential – that difference is the transportation for the cost per mcf to get the gas from Edmonton to New York.

Ok, so transportation and processing costs are now 30 + 90 + 50 = $1.70 per mcf – half of the wellhead price.

In Alberta this 1 mmcf/d well has a royalty of $0.70 per mcf, so Company ABC now has $1/mcf left. Company ABC’s operating cost to maintain their own well would likely be $0.20 per mcf, leaving them with about $0.80 netback, or profit per mcf.

Administration – G&A – and interest on debt could be as low as $0.50/mcf for a good producer (but many are more like $0.70/mcf). We are now down to $0.30/mcf cash flow.

The visual math is $3.40-(30+90+50+20+70+50)=$0.30/mcf cash flow. And we’re not done yet.

We have not yet factored the cost of exploring for and drilling the well.The best-of-breed natural gas producers have $2/mcf FD&A.

We are now at CAD$5.25/mcf breakeven price for natural gas producers.

Southwestern Energy in the US, a major gas producer, says that their large horizontal wells at their US shale operations do break even at US$3.60 gas – finding costs of $1.60 and operating costs of $2/mcf. They added that at current prices, drilling might be declining a bit but they see nobody shutting in production in the big US shale plays. Depending on the hub, natural gas is in the $3.20 range at NYMEX and under $3 in some interior hubs.

This is a very simplistic version of a natural gas company’s cost structure, with conventional vertical wells.

When all of the costs are added up we get the wellhead price.Small companies are losing money based on to much gas on the market.

 
sgtdjones 2018-03-03 17:32:59 

Countries that do not have storage capacity sells such on the spot market

Henry Hub Natural Gas Spot Price (Dollars per Million Btu) is $3.69

West Texas Intermediate (WTI) is a Texas light sweet grade of crude oil used as a standard in oil pricing.WTI is lighter and sweeter than Brent, and by far lighter and sweeter than Dubai or Oman. WTI is selling at $61.25

Lighter and sweeter means few contaminants to poison the catalyst beds

Galeota Mix ..Trinidad get approx $45.00

 
Runs 2018-03-03 17:34:57 

In reply to sgtdjones

What type did they find off of Guyana, WTI?

 
sgtdjones 2018-03-03 17:51:33 

In reply to Runs

They are running Test in Houston Texas at Exxon Research
at the moment.

Watch those thieves will claim it's like Venezuela heavy oil, so they pay a lower royalty.

T&T and Guyana dont have the testing facilities .

 
Runs 2018-03-03 18:22:24 

In reply to sgtdjones

Read a report sometime ago that did say it was light.

 
Kay 2018-03-03 22:30:02 

In reply to sgtdjones

T&T and Guyana dont have the testing facilities .

You got to be joking. The mighty Titty don't have a testing facility after all these years in the business?

 
bravos 2018-03-04 06:29:21 

In reply to Kay

That's MsJones for you...

Lies..

There are many even private establishments that carry out every imaginable petroleum test,so much so they can determine the quality of the oil by the samples of other materials/minerals in close proximity,and on the spot as well..

Think about what that man really asking you to believe...like dey havta put de oil in de Alamo or Texas dirt in de desert to test it ah wah?

The man's a clown...

 
bravos 2018-03-04 06:40:54 

In reply to Runs

This man mad,he talking about they now testing the oil,after the contract,really?? The test is a basic chemical test to show levels of different elements/minerals etc like sulfur etc,it's not rocket science.

"Houston have the test results come back yet,do we have a problem"??

 
DirtyDan 2018-03-04 19:53:27 

In reply to bravos

So you figure Exxon assisted the negotiators to finalize the deal?

 
sgtdjones 2018-03-04 23:17:17 

In reply to Runs

Exxon has taken it to Houston for analysis.

 
sgtdjones 2018-03-04 23:39:16 

Listening to this illiterate bravos is laughable

He knows nothing about the oil industry .

Exxon is testing it in Pilot plants in Houston to see which is the best catalyst to use to get the maximum benefit .

The first test in on a Lab scale model.... about 100cc

Then a bench scale model about ..... a gallon

Then a PDU about 50 barrels a day plant

Then a 1000 barrel per day plant

It can take up to a year plus .

They just dont have one of these Pilot Plants
They have various models depending on the process
and what they end product will be .

Desalter Plant
Hydrotreater Upscale or downscale
Hydrotreating is an established refinery process for reducing sulphur, nitrogen , enhancing cetane number, density and smoke point.
Hydrocracker
Distillation Unit
Coke Unit
Fluid catalytic cracking (FCC) is one of the most important conversion processes used in petroleum refineries.

ASME has specification for each of the tests
and will provide samples.
Exxon and Chevron will run hundreds of test to get an average of what to expect.

Trinidad at PetroTrin do not have the plants required to test such .I am a Chemical Engineer not a dunce as bravos.

I have been to Exxon Houston Research facility.
They have the best process for turning natural gas to
any fuel a country needs and the only working plant in China.
Thye take the natural gas turn it into SYNGAS ...then to what ever they require .

TRinidad is building one now with a Japanese Company
to turn Natural gas into DME to run trucks, but a lot
of questions are unanswered about the process.

Ask PetroTrin they bought an old plant missing loops now
a billion dollars later its all junk. A couple of Jewish
boys bamboozed PetroTrin.

 
bravos 2018-03-05 15:09:51 

Copy and paste fuckery as usual.

 
bravos 2018-03-05 15:10:53 

In reply to DirtyDan

I know Exxon robbing Guyana big time..

De whole ah town saying so not me alone..

 
doosra 2018-03-05 16:00:21 

credibility is one helluva thing eh

big grin

 
DirtyDan 2018-03-05 18:45:58 

Another accountant - Guyanese will be seen as idiots of the world

ok, weigh in Big Stagers - how to handle this?

 
Kay 2018-03-05 20:16:23 

In reply to DirtyDan

Well he is not adding anything new to the conversation but it is better to be late than ever.

In other news, all the smart Guyanese now live in foreign and are consumed in all matters Trump. I think they know too much American politics for their own good, while a bona fide American is robbing their country blind....

MAGA!!!! smile big grin

 
DirtyDan 2018-03-07 18:53:05 

In reply to Kay

If anything, it's the overseas Guyanese that should be milking the land lol

 
DirtyDan 2018-03-11 13:38:04 

Link Text

So we letting the ripoff proceed?

No concern from the population?

Jala already suggested the issue is political, which explains the lack of concern from supporters of present gov't who feel it might make gov't look bad. It is not political at all. Exxon taking advantage is the real problem.

 
Kay 2018-03-11 19:22:49 

Big men doan walk back on their decisions ... or it's probably too late to catch dat horse

 
DirtyDan 2018-03-15 17:52:36 

Geez, who looked at this contract? Exxon even deducting transportation costs from 2% royalty

..so says Nigel Hinds

 
POINT 2018-03-15 23:27:41 

In reply to bravos

I expected that the Guyana PM would have had a Chat with PM Rowley et al .
regarding dealing with Negotiations with EXXON .

It is in my opinion this lack of Solidarity & CoOperation why the English Speaking Countries in the Region are Running Fast , and find themselves in the same Freaking Place.

The Barriers of Mistrust in the Region is why Countries in the Region aint getting anywhere Individually or Collectively .

 
bravos 2018-03-15 23:37:11 

In reply to POINT

Listen to Rowley on that subject as it relates to T&T!! cool

 
DirtyDan 2018-03-18 13:55:02 

Questioning the $460 M costs for exploration that EXXON is raising

 
DirtyDan 2018-03-25 09:47:47 

What shyte. Trotman was advised to sign.

Link Text

 
Curtis 2018-03-25 15:27:14 

Caribbean people so messed up - why isn't there an outcry from Guyanese?

I understand the sensitivites, race/party politics but crap man!!! Let's move past that, both of your major parties are lacking.

 
Kay 2018-03-25 15:33:51 

In reply to Curtis

Who is de baccoo?

 
Curtis 2018-03-28 19:46:42 

Guyana continues with low-balling contracts with other oil companies

some time soon people will start believing money passing for contracts to sign

 
bravos 2018-03-28 22:15:50 

In reply to Curtis

WDMC!!! And right now we talking bout getting even more from them and even changing contracts when price goes up etc!! And dais wah allyuh doing??? shock

 
DirtyDan 2018-04-10 07:26:15 

Even the dreaded IMF sees fault with the ridiculous oil deal with Guyana and proposes re-do

 
DirtyDan 2018-04-11 18:22:35 

here's a great David Hinds article on the woes of Guyana politics

 
Kay 2018-04-11 20:33:13 

In reply to sgtdjones

Will explain


Natural gas in Alberta has a market to sell it to in New York City .

After company ABC drills a successful gas well producing 1 million cubic feet per day (1 mmcf/d) in Alberta .

That day at the Edmonton gas terminal, AECO, is CAD$3.40.
AECO stands for Alberta Energy Company

The gas from that well needs to get, at the end of the day, to the natural gas pipeline grid, which in Alberta is the Nova pipeline system.Cost: $0.30 per mcf.

Then it is transported on another pipeline (cost: $0.50 per mcf)

The gas must be processed (to get the gas to pipeline spec – remove water, carbon dioxide, hydrogen sulfide etc. – cost: $0.90 per mcf) and to compress the gas to get it up to pipeline operating pressures.

Now the company sell its to a marketer or middle man.

Pricing varies, but it is based on AECO spot prices . Each basin has its own spot prices, based on NYMEX with adjustments for transportation cost (to get the gas to New York) and currency exchange (in the case of AECO).

There is a lot of gas fighting for pipeline space. NYMEX spot prices currently are about US$3.60, which is about C$4.50 but current AECO spot prices are $3.40, showing a $1.10 differential – that difference is the transportation for the cost per mcf to get the gas from Edmonton to New York.

Ok, so transportation and processing costs are now 30 + 90 + 50 = $1.70 per mcf – half of the wellhead price.

In Alberta this 1 mmcf/d well has a royalty of $0.70 per mcf, so Company ABC now has $1/mcf left. Company ABC’s operating cost to maintain their own well would likely be $0.20 per mcf, leaving them with about $0.80 netback, or profit per mcf.

Administration – G&A – and interest on debt could be as low as $0.50/mcf for a good producer (but many are more like $0.70/mcf). We are now down to $0.30/mcf cash flow.

The visual math is $3.40-(30+90+50+20+70+50)=$0.30/mcf cash flow. And we’re not done yet.

We have not yet factored the cost of exploring for and drilling the well.The best-of-breed natural gas producers have $2/mcf FD&A.

We are now at CAD$5.25/mcf breakeven price for natural gas producers.

Southwestern Energy in the US, a major gas producer, says that their large horizontal wells at their US shale operations do break even at US$3.60 gas – finding costs of $1.60 and operating costs of $2/mcf. They added that at current prices, drilling might be declining a bit but they see nobody shutting in production in the big US shale plays. Depending on the hub, natural gas is in the $3.20 range at NYMEX and under $3 in some interior hubs.

This is a very simplistic version of a natural gas company’s cost structure, with conventional vertical wells.

When all of the costs are added up we get the wellhead price.Small companies are losing money based on to much gas on the market.


You trying to look smart here? Why don't you post the source you copy and paste all this from?

 
sgtdjones 2018-04-11 21:57:57 

In reply to Kay

When one gats a degree in Chemical Engineering we are taught such.These are standard when computing costs.

I am not trying to show how smart I am, this can be found at any University that teaches such degrees on computers.

It depends on the location , terrain and transportation costs to hubs, before a price per million btu are determined.
Some are cheaper than others.

Give ya another hint Oil and Gas are found in Valleys
as years of explorations have shown.

I will not post if I dont have facts, this is an area I know very well.

The Ministry in T&T, knows me very well.This is why I posted info about T&T.

 
bravos 2018-04-11 21:59:22 

In reply to Kay

s/he would copy and paste you and pretend to be you too if s/he got the chance..

 
Kay 2018-04-11 22:32:32 

In reply to sgtdjones

Ok since you pushing it ... i really don't like to do this but here goes you thief:

What is the Break-Even Price for Natural Gas Producers?

Almost everything is copied verbatim...

 
sgtdjones 2018-04-11 23:46:17 

In reply to Kay

When one gats a degree in Chemical Engineering we are taught such.These are standard when computing costs.


There are such in every University computer in Chemical Engineering World wide.

Since the above was beyond you I apologize, any books in Chemical Engineering will have such computation.Now we have about 500 of those with various permutations.
Should I link to all?

Chemical engineers are involved in many aspects of plant design and operation, including safety and hazard assessments, process design and analysis, control engineering, chemical reaction engineering, construction specification and operating instructions.

Now if I take the template and design a plant am I a thief? Am I doing disservice to some scientist in 1762
that started the process?


The individual asked for a simple analysis of how the gas price is determined at the wellhead. It obvious your intent was not aimed as such, oh did you notice I had all the info in quotation? Do you know what such means?

Now as I go and play on the piano, a composition that was written hundreds of years ago, as you phrase it I am a thief.

 
POINT 2018-04-12 02:11:05 

In reply to DirtyDan



This is precisely why the Countries in the Region are running very fast ; but
find themselves in the same Freaking Place .

The Smaller Countries recognize this fact years ago hence the formation of
the OECS , which is the acronym for
The Organization For Eastern Caribbean States .

Lost on some Countries is the fact that Unity aint only about Strength ;
it is also about have Unified Clout .
This I believe was what the defunct
Federation was about .

But I digressed , I find it is utterly Stupid that the President of
Guyana did not speak to the Prime Minister of Trinidad & Tobago .

If he did not do that, it demonstrates at least to me ,that he
aint a very bright man . I could
understand if Trinidad & Tobago were
at war with Guyana .

That in my opinion is Totally Unacceptable . It begs the following
Question :

WHAT THE HELL IS THE PURPOSE OF

HAVING A LINKAGE CALLED CARICOM ?????

I am fully aware that this aint the Rum Shop . But in my opinion , the very fact that all the Governments in the Region are not on the same page
Regarding the WiCBC/CWI , is another classic example . Lack of Freaking
Unity .

Some prefer to go their Own way , and
as a result the Region as a whole Suffers . It is high time that People
in the Region take their heads out the freaking Sand .

Obviously the People in Guyana who are ultimately going to Suffer , because the Government of Guyana did
not consider talking to the Prime Minister of Trinidad & Tobago . HE
should be ashamed of this Stupidity .

 
DirtyDan 2018-04-12 07:26:29 

In reply to POINT

Good valid points (pardon the pun).

If the region was united as it needs to be, one could foresee Guyana as a source of potential employment for many from across the region. There's a need for young visionary leadership across the region but it seems young people are busy on social media. Maybe we need to reach out to them there.

Politics, and the unsavory baggage it comes with, derails many promising opportunities for real people. Cricket is one of the casualties, as you well know.

 
Kay 2018-04-12 10:50:09 

In reply to sgtdjones

There are such in every University computer in Chemical Engineering World wide.

Don't try that bullshit. Your quotes, even the calculations with the exact examples were lifted directly from Keith Schaefer's article from a website of which he is the owner, publisher and editor. Keith's articles are his own and all examples and calculations used are his own and has nothing to do with any other University's computer.

Post an example of the same quotes and calculations you lifted from Keith's article on another university's database? Chemical Engineer my big foot..... you not fooling anyone. Nice try though!

ADDENDUM 1
Reposting articles from other websites in their entirety is not allowed as this has copyright implications.

The way to repost an article is to include just the first portion of the article, followed by a link to the rest of the article. This gives the source their due credit and allows them to gain the benefit of of their work in terms of web traffic.

 
pelon 2018-04-12 11:23:51 

I don't understand what the fck is going on with me fren sgtdjones.

His verbatim copy and paste in this thread is confusing without referencing and then saying:
"When one gats a degree in Chemical Engineering we are taught such. These are standard when computing costs. "

SARGE: Chill nuh. Why copy and paste from someones work and not site it as such. Comes over as "fronting". You larger than that man.

SARGE: tek a break. I only today started to read this thread today, but I can put 2+2 together and tell you: yuh running hot man.

BARMAN: Double for me fren.

 
sgtdjones 2018-04-12 12:15:12 

In reply to pelon

If I can regress

I was asked a question

I posted a response

I put in under quotation as this


Any one can see such, I didn't say it was mine. I have done such on numerous occasions. If I didn't use quotes its my words. What was asked is standard in the Oil and Gas business I could have copied it off a book with the unique similarity , it's a template that's followed when asked to describe wellhead price of Oil and Gas for decades.

You trying to look smart here? Why don't you post the source you copy and paste all this from?


I figured I would explain that such are in University Computers world wide for students in Chemical Engineering.

Please trying to look smart ? I should have ignored such
comments and just replied uh huh?

My ego isn't that big to try and look smart on a web site.
I got into a similar discussion with another poster, I was sent a WICB press release such do not have a link. I put it in quotes, tried to explain to no avail.
I no longer post such.

Peace

rolleyes rolleyes

 
Kay 2018-04-12 17:09:18 

In reply to pelon

BARMAN: Double for me fren.

I thought I was the one who needed the double!!

In the meantime the Sarge still wiggling without any room... smile big grin

 
TheTrail 2018-04-12 18:17:31 

In reply to Kay

[quote]In reply to sgtdjones

Will explain

You trying to look smart here? Why don't you post the source you copy and paste all this from?/quote]

lol lol lol


Don't believe all the gobbledegook some people paste on this MB.

 
DirtyDan 2018-04-12 18:23:26 

maybe where there's smoke....

Report on 100 deals that strongly favor contractor, suggest extra scrutiny should be applied

The Institute also cautioned that corruption is by no means the only possible reason why final terms may favour the company more than the country. It noted that other contributing factors could include the fact that the government negotiated poorly, based on limited experience, information or negotiating power.

 
DirtyDan 2018-04-14 10:09:19 

In reply to DirtyDan

IMF looking out? Link Text

 
DirtyDan 2018-04-22 17:53:36 

Come on down folks, EXXON sub-contractors get tax-free status. Locals pay tax?

Everybody but Guyanese getting through.

Locals will be busted for tax avoidance.