On December 1, Bloomberg ran an interesting story about the possible impacts of sunspots on the natural gas business. Apparently, these blemishes on the face of the sun come and go in 11-year cycles and some analysts think there is an advantage in tracking them.
It is not as simple as the sun getting hotter. The sun has a magnetic field that acts as an umbrella protecting the earth from some rays. Sunspots build up the magnetic field, and as it weakens, more rays hit the earth and cause artic air to come down and settle over North America. Or so the theory goes. Many experts think it is nonsense.
If you believe the theory, though, right now the sun is going through a low sunspot period and that suggests an especially cold winter. The market seems to agree, as natural gas prices are currently up and gas stockpiles are down.
Regardless of price fluctuations explained by complicated theories, the business fundamentals for the Marcellus Shale region are strong. Range Resources, a leading producer in the area, recently gave a presentation detailing the untapped potential in the region. Infrastructure is improving and opening new markets to drillers in the area. Worldwide demand seems set to continue growing. In short, it remains a good time to be producing gas in Pennsylvania, West Virginia, or Ohio.
The experts at Cimmaron Land have worked in 38 counties and completed over 3,000 abstracts for dozens of clients. We utilize the latest technology and allow you to easily and quickly access our work through our online “Cimmaron Smartsheets” portal. We recently opened a new office in Canonsburg, Pennsylvania, to expand our footprint beyond our Bridgeville, Pennsylvania base and we are ready to serve clients all throughout Appalachia. Call us at (412) 212-7517 for more information.