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The cure for low prices is low prices. Left for dead a few months back, natural gas soars today...

The cure for low prices is low prices. Left for dead a few months back, natural gas soars today to its highest price this year as the multi-year collapse in working rig counts looks to finally be taking effect. UNG +3%. The double-levered oil & gas ETF (DIG), +30.1% in Q3.
Comments (12)
  • wapiti
    , contributor
    Comments (703) | Send Message
     
    That's free market capitalism at work! Maybe Ben and the FED should take notice!! QE Infinity hasn't done much good has it!
    27 Sep 2012, 03:39 PM Reply Like
  • wigit5
    , contributor
    Comments (4014) | Send Message
     
    It has to happen... NG isn't profitable and isn't sustainable at these levels.

     

    I expect rig counts to continue to decline over the next 2-3 quarters baring an over correction to any price north of $4.
    27 Sep 2012, 03:50 PM Reply Like
  • ronwagn
    , contributor
    Comments (924) | Send Message
     
    Will not some companies, that are cash starved, jump on this though? Some have lower production costs than others. We will see?
    27 Sep 2012, 04:02 PM Reply Like
  • Mark Anthony
    , contributor
    Comments (3601) | Send Message
     
    Ronwagn:

     

    If a producer is cash starved, then they have much more incentive to STOP DRILLING. Because drillings spend a lot up-front money with much less product sales revenue to speak for the money spent.
    27 Sep 2012, 04:18 PM Reply Like
  • ronwagn
    , contributor
    Comments (924) | Send Message
     
    But cannot some make a small profit at prices that would cause others to lose money?
    29 Sep 2012, 08:42 AM Reply Like
  • The Patriot
    , contributor
    Comments (323) | Send Message
     
    The beauty of capitalism and competition, It will work itself out the
    quickest and most efficient way.
    27 Sep 2012, 06:12 PM Reply Like
  • Night Heron
    , contributor
    Comments (333) | Send Message
     
    It's not true that "natural gas soars today to its highest price this year." UNG's price today is $21. Two months ago is was $22, and a the start of 2012 it was $26. Trends for the spot price are similar: http://bit.ly/SInZC9
    28 Sep 2012, 11:14 AM Reply Like
  • PalmDesertRat
    , contributor
    Comments (2679) | Send Message
     
    bot some iez today at 51.84
    28 Sep 2012, 11:33 AM Reply Like
  • wapiti
    , contributor
    Comments (703) | Send Message
     
    The cure for low prices is a new President!
    28 Sep 2012, 11:37 AM Reply Like
  • wigit5
    , contributor
    Comments (4014) | Send Message
     
    maybe wapiti, one can only hope that Romney is much better at improving the economy then he is at running a campaign... which thus far has been pretty inept...

     

    I'm voting for him but I give him maybe a 40% chance to win, and I'm being generous I think.
    28 Sep 2012, 12:16 PM Reply Like
  • ronwagn
    , contributor
    Comments (924) | Send Message
     
    The debates will probably be the determining factor. Oh I forgot. Most will be watching Honey Boo Boo!
    29 Sep 2012, 08:43 AM Reply Like
  • johnniewalker51
    , contributor
    Comments (4) | Send Message
     
    Obama is trying to sink the US and should be impeached and imprisoned!!!
    2 Oct 2012, 10:07 PM Reply Like
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