Energy Prospectus

Working gas in storage was 3,759 Bcf as of Friday, October 7, 2016, according to EIA estimates. This represents a net increase of 79 Bcf from the previous week. Stocks were 56 Bcf higher than last year at this time and 192 Bcf above the five-year average of 3,567 Bcf. At 3,759 Bcf, total working gas is above the five-year historical range.

This is the 23rd week in a row that the net increase in storage has been SIGNIFICANTLY BELOW the 5-year average.
> Over this 161 day period (23 X 7), the net increases in storage have been 648 Bcf
> That is 4.02 Bcf per day (648 Bcf / 161 days)
> I have NEVER seen the difference to the 5-year average this large for such an extended period.

By the end of October: Ngas in storage should be BELOW where it was a year ago
By the end of November: Ngas in storage should be BELOW the 5-year average.

This is EXTREMELY BULLISH because U.S. natural gas demand is now 8 Bcf ABOVE where it was five years ago and a colder than normal winter is forecast.

My favorite "gassers" are AR, GPOR and RRC. I am going to take a hard look at EQT today and may add it to the Sweet 16 in the next newsletter.

This is also bullish for NGL prices.

Natural gas futures contracts for Jan - Mar are now all over $3.60/MMBtu.

When the natural gas storage levels dips under last year's level, which I forecast will happen by the end of October, these contracts should move over $4.00.
The January contract will be the "front month" on December 1.

Wall Street is just beginning to figure out what I have been telling you for months. This is why you pay "Big Bucks" for your EPG membership.

AR, GPOR, RRC and EQT all up today. BTW higher gas prices are also very good news for SM Energy, XEC, DVN, EOG and NFX.

It is extremely important that you know the production mix of each company you invest in. I show the production mix at the bottom of each company's forecast model.

Cheniere Energy given OK to double LNG --

http://splash247.com/cheniere-energy-gi ... bine-pass/

Houston-based Cheniere Energy was given the go-ahead on Wednesday to double its quantity of liquefied natural gas (LNG) exports from its Sabine Pass terminal in Louisiana, according to Bloomberg.

Approval was granted by the Federal Energy Regulatory Commission (FERC) for Cheniere to begin exporting LNG from a second liquefaction plant (known as Train 2) at the $11bn terminal.

Back in February Cheniere dispatched out of Sabine Pass the first export shipment of US-produced LNG from the lower 48 states. Previously there had been shipments from Alaska to Japan.

The company plans to bring a third plant online next year and to commission a fourth.