Read this: https://www.investorvillage.com/groups. ... d=17829984
The U.S. natural gas market is going to be VERY TIGHT by the end of January. Read the article above to see why.
In addition to demand for space heating, demand for LNG exports is going to spike in Q1 as the Cove Point LNG facility is coming on-line soon.
For an update on how natural gas exports will be ramping up BIG TIME in 2018 read this: https://instituteforenergyresearch.org/ ... -exporter/
Within three year (by end of 2020) the U.S. will have total natural gas export capacity of 18 to 19 Bcf per day. This is just from LNG and pipeline facilities that we know are going to be completed within two years.
Natural Gas price - Dec 29
Natural Gas price - Dec 29
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Natural Gas price - Dec 29
Total U.S. gas consumption jumped 31 percent to 115.7 billion cubic feet on Tuesday from Friday. That’s the most ever for this time of year in PointLogic Energy data back to 2007.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Natural Gas price - Dec 29
Gas for next-day delivery on Enbridge’s Algonquin city gate in New England, including Boston, settled at $35.35 per million British thermal units on the Intercontinental Exchange on Tuesday. Algonquin gas last rose that high in February 2014 during the polar vortex.
BIG SPIKES in the price of natural gas occur when the utility companies are forced to compete in the physical market for short-term supply. It has begun and will get a lot worse (or better for natural gas investors), next week.
When I was at Hess, we actual sold gas in New York for $60/mcf one winter on a spot market trade.
BIG SPIKES in the price of natural gas occur when the utility companies are forced to compete in the physical market for short-term supply. It has begun and will get a lot worse (or better for natural gas investors), next week.
When I was at Hess, we actual sold gas in New York for $60/mcf one winter on a spot market trade.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Natural Gas price - Dec 29
For those of you that are concerned about "Global Warming", "Climate Change" or whatever it is called these day; Joe's daily update on 12/29 is a must listen to.
Go here https://www.weatherbell.com/premium/ and click on Daily Updates.
Here is the simple answer. When God created the Earth, he was wise enough to cover 70% of it with water. It is the oceans that control the world's temperature, not man. CO2 emissions have a tiny impact on global temperatures, but the oceans have 1000X more impact.
Also, that big bright light in the sky we call the Sun has something to do with the Earth's temperature as well.
Go here https://www.weatherbell.com/premium/ and click on Daily Updates.
Here is the simple answer. When God created the Earth, he was wise enough to cover 70% of it with water. It is the oceans that control the world's temperature, not man. CO2 emissions have a tiny impact on global temperatures, but the oceans have 1000X more impact.
Also, that big bright light in the sky we call the Sun has something to do with the Earth's temperature as well.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Natural Gas price - Dec 29
Another opinion from a very sharp group: Gelber & Associates Daily Report
As mentioned in yesterday's note, prices hit $3 today. Frigid temperatures, freeze offs, and coming mega withdrawals have given the market enough juice to return to $3 for the first time since December 4. On the topic of withdrawals the next one will be around 215 Bcf and the one afterwards could be a new record near 300 Bcf thanks to the extreme cold over the next seven days. The natural gas infrastructure network will get tested and expect more cash spikes above $50 in the Northeast. There will be fierce competition between power companies and utilities as to who gets the gas. However, the physical caps on gas consumption and transportation is will cap withdrawal amounts to not much above 300 Bcf. Recent consumption data suggests
Typically prices dip post holiday so the best bet would be some sort of sell off after New Years Day. In a week's time the weather warms a bit but stays colder than normal until mid January. Nonetheless expect prices to pull back further when the market gets news of warm up coming. Warmer temperatures means less demand and more supply as producers recover from freeze-offs and new pipeline capacity gets added.
As mentioned in yesterday's note, prices hit $3 today. Frigid temperatures, freeze offs, and coming mega withdrawals have given the market enough juice to return to $3 for the first time since December 4. On the topic of withdrawals the next one will be around 215 Bcf and the one afterwards could be a new record near 300 Bcf thanks to the extreme cold over the next seven days. The natural gas infrastructure network will get tested and expect more cash spikes above $50 in the Northeast. There will be fierce competition between power companies and utilities as to who gets the gas. However, the physical caps on gas consumption and transportation is will cap withdrawal amounts to not much above 300 Bcf. Recent consumption data suggests
Typically prices dip post holiday so the best bet would be some sort of sell off after New Years Day. In a week's time the weather warms a bit but stays colder than normal until mid January. Nonetheless expect prices to pull back further when the market gets news of warm up coming. Warmer temperatures means less demand and more supply as producers recover from freeze-offs and new pipeline capacity gets added.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group