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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: pbd007 who wrote (72249)	9/4/2000 3:07:43 PM
From: upanddown	Read Replies (1) \| Respond to of 95453

Thanks for the Simmons link. This excerpt certainly says that working gas does not include system fill. Does anyone else find it funny that "top" oil analyst Charley Maxwell doesn't know this? The guy is a loser anyway. He totally missed the bottom and then went wildly bullish to catch up. He has been right so far but I expect him to also miss the top. Simmons really does great O&G research, much more thoughtful and thorough than anything else I have seen. The power of specialization? A lot of the current research on OS is just coming from momentum-chasers. John Working Gas: This is the gas that is available to produce and sell during the withdrawal period and inject during the fill period. The amount of working gas available in a given storage reservoir is a function of the reservoir quality, number of wells and degree of stimulation, gas withdrawal schedule and field operating parameters. Base Gas (Cushion Gas): This is the volume of gas required to maintain adequate pressure to ensure the deliverability of the working gas. Base gas is rarely, if ever, produced. The amount of base gas required is dependent upon the reservoir quality, number of wells and degree of stimulation, gas withdrawal schedule and field operating parameters. Since base gas is rarely produced, the ratio of base gas to working gas has a significant impact on the economics of greenfield gas storage (i.e., the base gas can be a large upfront capital cost that is not recovered until the storage field is blowndown).