Steelmakers are among those profiting from the crashing natural gas prices triggered by the U.S....


Steelmakers are among those profiting from the crashing natural gas prices triggered by the U.S. shale gas boom. By relying on gas instead of coal to purify the iron ore used to create steel, manufacturers are able to lower production costs for the first stage of steelmaking by about 20%. Nucor (NUE) plans to start work on a gas-powered $750M Louisiana plant in mid-2013, and could announce plans for a second plant in the coming year.

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Comments (10)
  • wigit5
    , contributor
    Comments (4365) | Send Message
     
    and yet... $ANR is about to hit $10.
    31 Dec 2012, 02:57 PM Reply Like
  • HoldAndBuyInvestor
    , contributor
    Comments (146) | Send Message
     
    Soon 20+. It is delusional to think that NG will be below $6-$7 for long. last year, 50B got invested in NG export.
    31 Dec 2012, 06:12 PM Reply Like
  • davidbdc
    , contributor
    Comments (3194) | Send Message
     
    Well, while I believe that NG can see $4-$5 as the new normal - keep in mind there are tons of wells not producing that will get back to pumping as the price inches up. The amounts of gas we can get over the next 20-30 years is massive. There will have to be a lot of new demand to hit the $6-$7 level - all IMO of course.
    31 Dec 2012, 06:15 PM Reply Like
  • HoldAndBuyInvestor
    , contributor
    Comments (146) | Send Message
     
    Please check the well output. It is declining. Shell gas is nothing more than a political propaganda. Ask some executive from NG company, they will tell you the story. They are trying for wet wells. US does not have NG to the amount Obama claimed.
    31 Dec 2012, 06:32 PM Reply Like
  • davidbdc
    , contributor
    Comments (3194) | Send Message
     
    Do you mean per well? or do you mean overall drilling/production?

     

    I'm not an expert in this area. I have some investments in E&P and pipelines. And I do pay close attention to those companies drilling results and from what I have seen the lateral fracking technology is producing results higher than what was anticipated just a year ago. Perhaps its just the area, but from what I have read the drilling technology is getting better and better and the drilling costs are coming down - which means we'll retrieve even more than what was expected just two to three years ago.

     

    If you some article or report you could share it would be appreciated.
    31 Dec 2012, 07:15 PM Reply Like
  • Mike Maher
    , contributor
    Comments (2862) | Send Message
     
    Natural gas output will continue to grow as midstream and processing infrastructure is built out in the Marcellus and the Bakken. $7 is not a sustainable level for nat gas for the next 4-5 years, until new uses for the gas, and export facilities, are completed.
    31 Dec 2012, 07:46 PM Reply Like
  • HoldAndBuyInvestor
    , contributor
    Comments (146) | Send Message
     
    Mike, please check how many shell gas players did huge writedown on loss. SD sold NG assets for 2+B. UPL is low cost producer, did writedown for 2B. It is crashing at these levels.
    31 Dec 2012, 08:11 PM Reply Like
  • Mike Maher
    , contributor
    Comments (2862) | Send Message
     
    Every sale has a buyer, and with high BTU gas and the infrastructure in place drilling is profitable in the Marcellus. New natural gas pipelines from Oneok mean that gas that is currently being flared in North Dakota will find its way into storage. All shale's are not the same.
    1 Jan 2013, 09:34 PM Reply Like
  • Mike Maher
    , contributor
    Comments (2862) | Send Message
     
    The US will be a low cost producer of chemicals and steel for the next decade. Hopefully manufacturing jobs start migrating back to the US.
    31 Dec 2012, 03:04 PM Reply Like
  • davidbdc
    , contributor
    Comments (3194) | Send Message
     
    Thats some good news. Increased demand for NG will keep the shale growth chugging along and is an actual job creator.

     

    Not sure where the facility will be but XTXI/XTEX is a small MLP with pipelines in LA. Could be a very good thing for them if its in their geography.
    31 Dec 2012, 06:10 PM Reply Like
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