After sinking anew overnight to nearly $2.20, natural gas futures have reversed, spiking violently in the past few minutes, now +6.4% at $2.55. There's no specific news at the moment, but earlier word Chesapeake Energy (CHK) is cutting production may have been enough of a catalyst to toast some greedy shorts. [View news story]
They've pretty much announced a shut-in of almost a full percentage point in total US output. This is the single biggest news event to hit the nat gas futures market since the Hurricane Gustav in 2008. Funds have got to be loading up on some 2013-2015 contracts with CHK threatening to up the output curtailments to 1.5%+ if the markets don't react like they should.
Shorting Student Loans: The Next Major Credit Bubble [View article]
If you think Asian companies can go out and start trading internationally and thereby create markets that don't currently exist in their country by not hiring Americans and other foreigners who are fluent in economic liberty as well as English among other languages, then you are taking a very narrow approach at what the author is trying to say. I would also say your views might also be a little out of touch with the younger generation and how much different our the job market and the average college graduate look today as opposed to when older generations were graduating college.
Chesapeake Energy's New Liquids Play Worth as Much as Entire Current Share Price [View article]
@chuckXX Everytime they've come through with a JV, not only does there stock price get an automatic 5% jump that day, but they've continually shown that they can pay back all of their land costs, most times at a multiple, and in turn making shoring up their balance sheet and lowering F&D costs. The key function other than putting an actual quantitative value to the assets is that they prove to the financial community that other extremely sophisticated geologists and engineers with an independent self interest have looked at the science and validated CHK claims that you can make a solid return on all the leases they've taken.
Execs from the oil industry’s Big Five are pilloried by Democrats at a Senate hearing, asking why big oil needs $4B-plus a year in tax breaks while raking in enormous profits. Republicans say that removing incentives would drive production out of the U.S. Political posturing abounded, of course, but the debate is real: Are tax breaks for big oil a consumer ripoff or smart energy policy? [View news story]
We can't be picking winners in losers by raising one industry's taxes and leaving another ones the same. This, especially when one industry already overpays in taxes in the first place. If this happens they'll for sure have to strike compromises on cutting red tape in GOM, Alaska, and other federal lands, and agree to keep frac regulation to the states.
Chesapeake's McClendon: Searching for 'Holy Grail' on Behalf of Natural Gas Producers [View article]
Good article. 2 points though
Mr. McClendon has to cheerlead his company in public as that is his main role as CEO. So of course he has to maintain the mantra that prices will eventually going to go up. That's what he has based his entire business off of.
Your assertions that he has lost credibility on predicting the future prices on natural gas are flawed though. If he thinks that gas is going to drop by $1 rather than screaming from the rafters about it he puts his money where his mouth is. I believe that's the best way to track someone's price predictions and CHK has been the industry leader in predicting what price movements are going to be in the foreseeable future and hedging their production accordingly. Aubrey has hedged a large profit in natural gas supplies every quarter but two since 1Q 2006. This being about the time in which their production started occupying a noticeable chunk of the market. The two quarters in question were 2Q and 3Q in 2008 when he was making his "$10 is gas here to stay" proclamation. In regards to those predictions, Mr. McClendon is an energy specialist. Are we being so bold as to say that he should have predicted the housing bubble that caused the financial crisis in 2008 and the corresponding recession? That is asking a little much.
Wall Street Breakfast: Must-Know News [View article]
Think you meant to say Saudi production CAPACITY is currently at 12.5 mbpd, not just production. They're not producing close to capacity yet, but then again are probably overstating what their true capacity is.
A Solution for North America’s Natural Gas Surplus [View article]
Maybe in the futures market for 2012 and beyond, but just the passing of a bill that allows subsidies for use down the road won't have any affect on the current spot market.
Also T. Boone's been claiming and making very public wagers that this bill would have been passed by this summer.
A Solution for North America’s Natural Gas Surplus [View article]
"Five to Ten years from now, LNG will be a much smaller part of the market."
I don't believe this to be true. Even though there have been and will continue to be huge shale finds all over the world. They simply will not be able to ramp up production on the scale that we have over the past 5 years (Free markets and independent Nat Gas companies). There's no way that the NOC's have the capability or the know how to ramp up new international shale production to keep pace with the emerging markets demand for the cleanest most efficient energy. The foreign gas markets just do not run as smoothly as ours and are no where near liberalized enough to encourage that much development.
A Solution for North America’s Natural Gas Surplus [View article]
Little more than a dollar per mcf. The big variable is the shipping rates, which can be as much as $4 per mcf for the longest hauls across the ocean. Average transport is probably going to be $2-3 per mcf though. The longer you transport the gas, the more money you pay for the ship and the more gas you lose to heat, and energy to keep the gas cold. Right now it's ridiculous to be importing any gas in the spot market in America when the UK is sitting at a $3 premium.
I say forget exporting the stuff. There's too much risk in what the domestic market will look like in 5 years when we actually get an export facility operational (other than a miniscule Alaska facility ). We'll have probably adopted a decent transportation and coal to gas switching policy by then that would have sapped up the extra production from the shales. If we're smart at least.
Clean Energy Fuels on Auto-'Pilot': New Agreement Looks Promising [View article]
Ton of other reasons as well. Not just Republicans are rich jerks who hate people who aren't, and Democrats are trying to help everyone out who isn't rich but the Republicans are always standing in the way. Both parties are standing in the way of a free market system that creates job through the extration and manipulation of natural resources that people want and need on a daily basis.
Clean Energy Fuels on Auto-'Pilot': New Agreement Looks Promising [View article]
Very naive assessment for why nothing got passed before the Mid Terms. Instead of one party protecting big business like you say, I would rebut with that that party was actually trying to protect jobs done by the small guy, because if that bill would have passed as is the industry around the coast would have been decimated even more due to lack of future investment.
Clean Energy Fuels on Auto-'Pilot': New Agreement Looks Promising [View article]
The internationals are the one thing that has kept a lid on market forces curtailing the drilling. Without all that extra cash and free rigs there's no way we would have this much supply with the current prices. I think the JV will probably go by the way side in 2011 and we'll finally get back to a normal pricing enviornment where all these companies can make money on the shales without foreign subsidies.
Should $10 a Barrel Be the Real Price of Oil? [View article]
Industrial consumption in June was the exact same as before the financial crisis in June of 2008 and the highest they've been since 2005 when the economy was really humming. Also the uptick in Electric power generated by nat gas vs. coal will far outweigh any demand loss by the industrial complex throughout 2010.
After sinking anew overnight to nearly $2.20, natural gas futures have reversed, spiking violently in the past few minutes, now +6.4% at $2.55. There's no specific news at the moment, but earlier word Chesapeake Energy (CHK) is cutting production may have been enough of a catalyst to toast some greedy shorts. [View news story]
Shorting Student Loans: The Next Major Credit Bubble [View article]
Chesapeake Energy's New Liquids Play Worth as Much as Entire Current Share Price [View article]
Execs from the oil industry’s Big Five are pilloried by Democrats at a Senate hearing, asking why big oil needs $4B-plus a year in tax breaks while raking in enormous profits. Republicans say that removing incentives would drive production out of the U.S. Political posturing abounded, of course, but the debate is real: Are tax breaks for big oil a consumer ripoff or smart energy policy? [View news story]
Chesapeake's McClendon: Searching for 'Holy Grail' on Behalf of Natural Gas Producers [View article]
Chesapeake's McClendon: Searching for 'Holy Grail' on Behalf of Natural Gas Producers [View article]
Mr. McClendon has to cheerlead his company in public as that is his main role as CEO. So of course he has to maintain the mantra that prices will eventually going to go up. That's what he has based his entire business off of.
Your assertions that he has lost credibility on predicting the future prices on natural gas are flawed though. If he thinks that gas is going to drop by $1 rather than screaming from the rafters about it he puts his money where his mouth is. I believe that's the best way to track someone's price predictions and CHK has been the industry leader in predicting what price movements are going to be in the foreseeable future and hedging their production accordingly. Aubrey has hedged a large profit in natural gas supplies every quarter but two since 1Q 2006. This being about the time in which their production started occupying a noticeable chunk of the market. The two quarters in question were 2Q and 3Q in 2008 when he was making his "$10 is gas here to stay" proclamation. In regards to those predictions, Mr. McClendon is an energy specialist. Are we being so bold as to say that he should have predicted the housing bubble that caused the financial crisis in 2008 and the corresponding recession? That is asking a little much.
Wall Street Breakfast: Must-Know News [View article]
Why American Oil Companies Passed on Shale Gas [View article]
A Solution for North America’s Natural Gas Surplus [View article]
Also T. Boone's been claiming and making very public wagers that this bill would have been passed by this summer.
A Solution for North America’s Natural Gas Surplus [View article]
I don't believe this to be true. Even though there have been and will continue to be huge shale finds all over the world. They simply will not be able to ramp up production on the scale that we have over the past 5 years (Free markets and independent Nat Gas companies). There's no way that the NOC's have the capability or the know how to ramp up new international shale production to keep pace with the emerging markets demand for the cleanest most efficient energy. The foreign gas markets just do not run as smoothly as ours and are no where near liberalized enough to encourage that much development.
A Solution for North America’s Natural Gas Surplus [View article]
I say forget exporting the stuff. There's too much risk in what the domestic market will look like in 5 years when we actually get an export facility operational (other than a miniscule Alaska facility ). We'll have probably adopted a decent transportation and coal to gas switching policy by then that would have sapped up the extra production from the shales. If we're smart at least.
Clean Energy Fuels on Auto-'Pilot': New Agreement Looks Promising [View article]
Clean Energy Fuels on Auto-'Pilot': New Agreement Looks Promising [View article]
Clean Energy Fuels on Auto-'Pilot': New Agreement Looks Promising [View article]
Should $10 a Barrel Be the Real Price of Oil? [View article]