VERY IMPORTANT: Know what each company produces
Posted: Wed Sep 14, 2016 6:02 pm
I will be opening Friday's luncheon presentation at the Hess Club with an update on why I believe we may be seeing much higher natural gas prices this winter. We should also see NGL prices ramping up into the first quarter of 2017. Remember, all upstream oil & gas companies sell a combination of oil, natural gas and NGLs. It is very important that you know the production mix of each company in your energy portfolio.
1. The weather forecast for the rest of this year is VERY BULLISH for natural gas. See 9/14 update at: http://www.weatherbell.com/premium/
2. The U.S. is the world's largest consumer of natural gas, by a wide margin. Including exports, we will consume over 30 TRILLION cubic feet of gas this year. Compare that to the global market of approximately 65 TCF per year.
3. Natural gas is the #1 fuel in the U.S. for space heating and it recently became the #1 fuel for generating electricity in the U.S.
4. Natural gas prices have nothing to do with oil prices; it is a totally different market.
5. Recent history (winter of 2013-2014) tells us that natural gas prices can move up quickly when demand exceeds supply. In the 1st quarter of 2014, natural gas spiked to $6.00/mmbtu.
If you've been listening to my weekly podcasts, you know that the natural gas market has been tightening for over two months. Come to the luncheon on Friday to hear why the "planets are coming into alignment" for the gassers.
Following me will be Glenn Mullan, CEO of Golden Valley Mines, Ltd., a publicly traded exploration company that holds multiple property interests in gold, base-metal and energy mineral projects in Canada.
Please register for the luncheon (if you haven't already done so) by going to the EPG website.
1. The weather forecast for the rest of this year is VERY BULLISH for natural gas. See 9/14 update at: http://www.weatherbell.com/premium/
2. The U.S. is the world's largest consumer of natural gas, by a wide margin. Including exports, we will consume over 30 TRILLION cubic feet of gas this year. Compare that to the global market of approximately 65 TCF per year.
3. Natural gas is the #1 fuel in the U.S. for space heating and it recently became the #1 fuel for generating electricity in the U.S.
4. Natural gas prices have nothing to do with oil prices; it is a totally different market.
5. Recent history (winter of 2013-2014) tells us that natural gas prices can move up quickly when demand exceeds supply. In the 1st quarter of 2014, natural gas spiked to $6.00/mmbtu.
If you've been listening to my weekly podcasts, you know that the natural gas market has been tightening for over two months. Come to the luncheon on Friday to hear why the "planets are coming into alignment" for the gassers.
Following me will be Glenn Mullan, CEO of Golden Valley Mines, Ltd., a publicly traded exploration company that holds multiple property interests in gold, base-metal and energy mineral projects in Canada.
Please register for the luncheon (if you haven't already done so) by going to the EPG website.