More demand for natural gas in 2019

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dan_s
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Joined: Fri Apr 23, 2010 8:22 am

More demand for natural gas in 2019

Post by dan_s »

Read: https://www.eia.gov/todayinenergy/detail.php?id=37952

Since the wind doesn't blow and there are cloudy days, all wind and solar power generation facilities need a back up natural gas fired plant.
Dan Steffens
Energy Prospectus Group
dan_s
Posts: 37351
Joined: Fri Apr 23, 2010 8:22 am

Re: More demand for natural gas in 2019

Post by dan_s »

Look for natural gas prices to begin a steady climb back to $4.00/MMBtu as winter is returning to the eastern U.S. The major snow storm that starts in Missouri today (up to a foot of snow in St. Louis) is just the beginning of two months of much colder than normal.

Watch the daily updates here: https://www.weatherbell.com/premium/

As you watch Joe's short video, keep in mind that Illinois is the #1 one consumer of natural gas for space heating, followed by Ohio, Michigan, Minnesota, Wisconsin and Texas. If sub-freezing temp cover the Southeast all the way to the Gulf Coast, that is when we will see weekly draws from storage over 250 Bcf. Last year, we had a draw over 350 Bcf.

Next week's storage report should be the last one for awhile with draws way under the 5-year average, then they should go the other way through February if Joe's forecast is correct.
Dan Steffens
Energy Prospectus Group
dan_s
Posts: 37351
Joined: Fri Apr 23, 2010 8:22 am

Re: More demand for natural gas in 2019

Post by dan_s »

The "Emperor of the North" will arrive in Minnesota after the sun goes down on January 15th.
See: https://www.wunderground.com/forecast/u ... alwx_10day

Sub-freezing highs and low teens at night will spread across the Great Lakes Region, the area of the country that burns the most natural gas for space heating.

The coming below normal temperatures are bullish for natural gas and propane demand.
Dan Steffens
Energy Prospectus Group
dan_s
Posts: 37351
Joined: Fri Apr 23, 2010 8:22 am

Re: More demand for natural gas in 2019

Post by dan_s »

Today is a good day to add a few profitable "gassers" to your portfolio. Oil prices are down today, which is dragging the gassers down with the oil stocks. It makes no sense, but it happens all the time.

Natural gas prices are up today by more than 10 cents per mcf and probably going a lot higher because the national weather services are now coming around to Joe Bastardi's forecast that mid-January to mid-February is going to be much colder in the eastern U.S.

Check out: https://www.wunderground.com/

My favorite gassers are: AR, GPOR, RRC, SWN, CRK and GDP. You can find our recent profiles on the EPG website.

There is a good chance that this winter is going to drain U.S. natural gas in storage down to near record lows by April. If so, refilling storage will become a much larger task and put pressure on gas demand. Refilling storage before the next winter is not an option; the utility companies must do it.
Dan Steffens
Energy Prospectus Group
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