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Today's natural gas inventory report comes as major companies show signs of scaling back their...

Today's natural gas inventory report comes as major companies show signs of scaling back their U.S. production. Announcements in recent days from XOM, ECA and COP highlighting reduced Q1 production and pledges of continued reductions - coinciding with a spike in demand from users - could be the start of a trend that would help alleviate the oversupply of natural gas.
Comments (6)
  • dlewis3232
    , contributor
    Comments (6) | Send Message
     
    Gas will not be a steal forever
    3 May 2012, 03:46 PM Reply Like
  • jeb101
    , contributor
    Comments (33) | Send Message
     
    Nat gas is americas great energy hope it will only go ^^...
    3 May 2012, 05:49 PM Reply Like
  • RM13
    , contributor
    Comments (712) | Send Message
     
    I actually think nat gas will be a steal for a long time.. It will be drilled and pumped for net loss if needed, if it means NGL and oil comes with it... I think it's a trend that will last much longer than anticipated.
    3 May 2012, 06:02 PM Reply Like
  • Mike4911
    , contributor
    Comments (100) | Send Message
     
    CHK, the # 2 U.S. nat gas producer behind XOM also announced sharply curtailed production. They said they would have cut back faster, but like many others, had to start production to avoid lease issues.

     

    Don't forget that nat gas low in the U.S. is far below what most consuming companies are paying. It is at $10 to $15 in most of the rest of the world. LNG export facilites are going to come on line in the U.S. and Canada in 2015.

     

    I don't think they will all be built, but enough will to have an effect. In the U.S. **sustainable** nat gas at below $4 makes it cost effective vs. coal for electricity production. Some utilities have switched what they can, but there is lead time for new plants.

     

    Also, at $4 and below, it is competitive for transportation -- and has been proven successful for years. CLNE is leading the way, WM is onboard and othe fleets are to follow. I'll bet Obama wakes up before the election and announces the federal fleet will switch.

     

    So, I don't think we will get full world prices for a long time, but I don't see very long before $4 becomes the floor.
    4 May 2012, 12:15 AM Reply Like
  • dividend_growth
    , contributor
    Comments (2878) | Send Message
     
    If a well yields 20% crude and 80% NG, the driller will make a bundle.
    4 May 2012, 03:29 AM Reply Like
  • gene carle
    , contributor
    Comments (8) | Send Message
     
    NGL has to go up you can't drill at a loss for year after year.
    Any comment on jrcc coal. Need some help sell or hold.
    4 May 2012, 04:30 AM Reply Like
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