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Natural gas prices have been the Bane of testers -- while it's becoming a great American energy story natural -- rise but investors wonder when prices will turn up.
Our next guest says in short order natural gas will please both investors and producer.
Jerry Evans is the chairman and CEO Magnum hunter resources is joining us now in a Fox Business it was a we will heart palpitations today up maybe we have natural gas at about three dollars twelve cents intraday pull back from there but.
With so much.
I could believe and -- just came from Europe where natural gas is expensive what are you doing to capitalize on.
Exception disparate price change between the -- We'll American citizens are very fortunate that we're in a country where there's a vast supplies and natural gas and what's created this overabundance -- -- our ability to find it.
In the shale places -- developed over the last five years and we have.
One of the largest shale plays of any feel the world in the Marcellus.
-- Pennsylvania West Virginia and Ohio and we had demolished winner in US history last year so the natural gas -- -- -- was -- ever -- but if you look at the store's numbers every single week.
We're whittling it down.
And that's what's calls -- gas prices to rally today the consensus was a much higher injection than what really act happened in when you have cheap gas.
Chief -- because people use more.
-- can't you do both oil and natural gas and and with the with the oil back up and -- ninety's I I I can understand you shifting some resources more to.
To oil you can -- natural gas wells and and save them for later when the price goes up but you have budgeted a lot more money in for natural gas for next year why have you done that.
Well you make -- great point we're fortunate to have.
Number of different fields that are both oil and gas so we're one of the few companies that can redirect our capital budget.
To where the commodity prices and commodity prices drive our industry completely so.
This earlier this year when -- was rally in over hundred dollars a barrel we -- directed our capital from natural gas projects.
Up and appellation to the Wilson basin up in the Bakken and three forks.
And down here in south Texas come in the eagle for place so.
That enabled us to change our production mix from early in the year Tony.
Oil certainly 5% crude -- to today were over 50%.
-- and headed to 60% by the end of the year.
But as you mention with gas prices moving back we will re direct that capital next year into more gas projects -- one of the reasons that we've delayed that.
Is that we have a large gas processing plant that's under construction up in West Virginia.
And when that goes live in November the price that we receive goes up dramatically because we can strip the liquids out of the gestured.
Well you guys are Smart you're lucky you can shifted around depending on what prices are -- really kind of -- hitting the market but.
In the -- you know we talked to Waste Management we talked a FedEx we -- to UPS they're trying to switch their fleets of trucks over to natural gas.
It how important is it that this country moves to that obviously would help your company I would imagine but.
What is your thought on that.
This country has an unbelievable resource.
That could last 2300 years and we're great at finding that we have infrastructure with pipelines.
We have the ability to use natural gas and many other ways than we're currently use in -- today.
In all we need is a little federal government support and this could be a tremendous resource for all consumers -- we can reduce the the need for imported oil which makes gasoline.
And use natural gas a homegrown clean product with a vast supplies to put in perspective today.
We're so on our natural gas for as you mentioned 3310 and MCF.
If you're over in Asia today you're paying 1213.
Dollars thanks for MC here in Europe so it's a huge disconnect.
And we had this great supply and we need to use more of it.
Gary Evans Magnum hunter resources CO by the way we should mention the stock was up over 5% today so congratulations on that very good to see -- thank you for being here appreciate -- --
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