Natural Gas Prices likely to go much higher - Aug 9

[dan_s]

The FEAR of the Covid Delta Variant keeps putting pressure on oil prices, but natural gas is not going to be impacted by travel restrictions. It is more important than ever to know the production mix of the upstream companies in your portfolio. AR, CRK, EQT, RRC and XEC look very attractive at their current share prices. I show production mix at the bottom of each forecast/valuation model.

Reuters: Winter is coming: temperature extremes fuel global natural gas rally
Global gas prices are expected to break records this winter as a hot northern hemisphere summer leaves inventories low in key markets, just as green energy drives ramp up in new regions. Benchmark Dutch natural gas prices in northwest Europe have surged 80% in the past three months to all-time highs, while spot liquefied natural gas (LNG) in Asia is at an eight-year seasonal high, Reuters data showed.

Bloomberg: Natural gas prices surge as energy transition-driven demand outstrips supply
The era of cheap natural gas is over, giving way to an age of far more costly energy that will create ripple effects across the global economy. Natural gas, used to generate electricity and heat homes, was abundant and cheap during much of the last decade amid a boom in supply from the U.S. to Australia. That came crashing to a halt this year as demand drastically outpaced new supply. European gas rates reached a record this week, while deliveries of the liquefied fuel to Asia are near an all-time high for this time of year.

Read more: https://www.reuters.com/business/energy ... 021-08-06/

[dan_s]

U.S. natural gas futures surged to a 31-month high this week, with Timera Energy expecting above-average temperatures until September and storage levels below the five year average. The current futures market forward curve suggests prices will hold above $4 per MMBtu through March 2022.