Reuters predicts a sharp increase in U.S. LNG exports to European destinations “in the coming weeks.” Why? Because “the price spread between domestic natural gas and Europe’s main gas pricing hub hit one-year highs.” What the heck does that mean? We will explain it below. To view this content, log into your member account. (Not…
Read More...EIA price-picking dart board The U.S. Energy Information issued its latest monthly Short-Term Energy Outlook last week, the agency’s monthly best guess about where energy prices and production will go in the next 12 months. In October, the EIA predicted the average spot price for natural gas will be $3.10/MMBtu in 2025 (see Oct. STEO…
Read More...Yesterday, the NYMEX natural gas futures price for the “front month” (November) contract and the next contract in line to take over after today (the December contract) both dropped like a rock. The November contract (called the prompt month) dropped 25.1 cents to close at $2.309/MMBtu. The December contract, which becomes the prompt month tomorrow,…
Read More...Once a month, the U.S. Energy Information Administration (EIA) analysts issue the agency’s Short-Term Energy Outlook (STEO), their best guess about where energy prices and production will go in the next 12 months. What did the October 2024 STEO, issued yesterday, show? EIA’s analysts believe U.S. natural gas production will decline in 2024 while demand…
Read More...Colder weather and increased demand will place slight upward pressure on natural gas prices compared to last winter, the Natural Gas Supply Association (NGSA) said last Thursday in its 24th annual Winter Outlook forecast of the wholesale winter natural gas market. NGSA also projected higher-than-average storage, record production and supply, and modest GDP growth this…
Read More...While there are a number of interstate pipelines that crisscross the Marcellus/Utica, there is one pipeline system that is key to moving molecules out of our region to other markets, particularly in the southeast and the Gulf Coast: Transcontinental Gas Pipeline LLC (Transco), owned by Williams. Transco stretches from the Gulf Coast to New York…
Read More...Toby Rice, CEO of EQT Corporation, currently the largest natural gas producer in the U.S., spoke yesterday at the Gastech event in Houston. Rice expressed his view that the Henry Hub price for natural gas will remain below $3/MMBtu “in the short term.” He also had thoughts on how long companies like his will continue…
Read More...In yet another attempt to deflect attention away from Kamala Harris’ extreme position on fracking (she wanted to ban it completely everywhere in 2019), mainstream news continues to publish stories on other Pennsylvania energy topics. For example, yesterday, the New York Times published a story with this headline: “Big Energy Issue in Pennsylvania Is Low…
Read More...Once a month, the U.S. Energy Information Administration (EIA) analysts issue the agency’s Short-Term Energy Outlook (STEO), their best guess about where energy prices and production will go in the next 12 months. Starting in June, the EIA axed its monthly Drilling Productivity Report that focused on shale plays and instead rolled it into the…
Read More...The price of natural gas is the foundation for our entire industry. If the price is too low, as it is right now, drilling falls off (see today’s lead story about Coterra doing NO new drilling in the Marcellus). If there’s no (or little) new drilling, everything else suffers. Landowners’ royalty checks shrivel, oilfield services…
Read More...There’s just no way to sugarcoat the fact that the low low price for natural gas is having an impact on shale drillers in the Marcellus/Utica. According to an analyst with RBN Energy, a price plunge to near the $2/MMBtu level in early 2023 “crippled” financial results for the companies RBN monitors that are gas-focused…
Read More...Yesterday, the “front month” NYMEX natural gas contract for Sept. delivery gained 4.60 cents per million British thermal units (MMBtu), rising 2.15% to $2.1890/MMBtu. Hey! Above $2 for five consecutive trading sessions! How long will the price stay above $2? Zacks.com took a stab at answering that question. To view this content, log into your…
Read More...Once a month, the U.S. Energy Information Administration (EIA) analysts issue the agency’s Short-Term Energy Outlook (STEO), their best guess about where energy prices and production will go in the next 12 months. Starting in June, the EIA axed its monthly Drilling Productivity Report that focused on shale plays and instead rolled it into the…
Read More...It pains us to write these kinds of posts, but we can’t ignore the bad news that the futures price for natural gas (NYMEX Henry Hub, front-month) is once again crashing. It closed down just above $2.00 yesterday. Will the price actually sink below $2 once again? It’s possible. The question is, why? What is…
Read More...Yes, we’ve been keeping an eye on the (pathetic) price of natural gas as it flounders and flops. The NYMEX Henry Hub front-month contract briefly went above $3/MMBtu earlier this year, but since that time, it’s had a hard time staying above $2. It’s depressing. From time to time, we bring you predictions from various…
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