AmericaCNG to Roll Out Solution to Associated Gas Production
"The approach is so simple and it can save and make the producer so much money," Farley commented. "However, change is a hard thing for a lot of people."
But Farley believes the pure economics – with oil trading at $90 or more a barrel and natural gas selling for $4.20/Mcf, will win them over.
"So the question for the producer is, do you want to buy diesel at $4 per gallon or do you want to buy natural gas at $2 a gallon? The answer is usually diesel is more readily available, but with the mobile LNG machines you basically have a refinery out in the field."
The company will retain a portion of the NGLs and natural gas sales if any to recoup capital. The percentage of production retained is based on how the well will perform. AmericaCNG determines the percentage through an analysis process that takes around 60 days.
"We are always willing to horsetrade," said Farley. "We will even take publicly traded stock." Farley noted that most oil and gas producers are stock rich and cash poor, especially the ones that are heavy in the natural gas market.
"The United States of America is one of the last countries in the world that has caught on to natural gas," Farley commented. "We have been given an amazing gift of low natural gas prices, and now it's time to take technology from different parts of the globe and implement it here in America."
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