Weather turning BULLISH for oil and gas

[dan_s]

You should all watch Joe Bastardi's 12/26 and 12/29 weather updates at http://www.weatherbell.com/

Weather patterns in North American have a BIG impact on U.S. natural gas supply/demand and therefore the price. Weather also has an impact on oil prices, to a lesser extent.

Much colder air is going to push eastward in the U.S. When the cold air moves into the Southeast quarter of the U.S. we will see a BIG increase in natural gas demand. Cold and wet winters in the West Texas Permian Basin and the Ohio River Valley will also have an impact on production.

Cold moving into eastern U.S. and Europe at the same time will increase demand for heating oil.

[prince_jake_33]

Seems to me that the potential from Marcellus and the other field there is so great that cost will stay down. But I don't know how much.

[dan_s]

Marcellus gas production has been falling. Utica production going up, primarily because midstream systems are just catching up.

See: http://www.eia.gov/petroleum/drilling/#tabs-summary-2

Associated gas from the Bakken and Eagle Ford are now on steady decline. Onshore gas production from regions outside of those shown on the chart at the link above are on decline. Some increase in Gulf of Mexico gas, but it is now a much smaller percentage of U.S. gas supply than it was a few years ago. No one is drilling for gas offshore.

Yes, there is a lot of potential in the Marcellus & Utica, but we will not see an uptick in drilling & completions until gas prices are much higher.

[bearcatbob]

You should all watch Joe Bastardi's 12/26 and 12/29 weather updates at http://www.weatherbell.com/

Weather patterns in North American have a BIG impact on U.S. natural gas supply/demand and therefore the price. Weather also has an impact on oil prices, to a lesser extent.

Much colder air is going to push eastward in the U.S. When the cold air moves into the Southeast quarter of the U.S. we will see a BIG increase in natural gas demand. Cold and wet winters in the West Texas Permian Basin and the Ohio River Valley will also have an impact on production.

Cold moving into eastern U.S. and Europe at the same time will increase demand for heating oil.

http://www.intellicast.com/National/Tem ... ure10.aspx