GoghGoner wrote:Record spot prices and future prices drop. Traders are looking ahead to warmer weather. Can't wait to see next week's inventory drop.
http://247wallst.com/energy-economy/2018/01/05/natural-gas-sets-new-price-record-ahead-of-northeast-storm/At the major pipeline feeding New York City, Transco’s Zone 6, natural gas prices averaged $140.06 per million BTUs on Thursday, a jump of more than $91 per million BTUs in a single day. Thursday’s national average spot price rose by about $6 to $16.78.
According to Natural Gas Intelligence (NGI), Wednesday’s was the highest price spot price ever recorded in the United States. Before then, the highest price paid for a million BTUs was $125 in the “polar-vortex” winter of 2013–2014.
The US withdrew a record volume of natural gas from storage last week as extreme cold froze cities from Chicago to Boston.
Gas inventories fell by 359bn cubic feet to 2.767tn cu ft in the week to last Friday, the Energy Information Administration said in a report. The weekly decline was a quarter larger than the previous record drop of 288bn cu ft in January 2014.
Tanada wrote:-snip-
The reason so many thousands of gas burning electric plants have been built is mostly economic, directly from the cost of the fuel and indirectly from the ease of permitting a gas burner compared to a coal burner.
Take away the permitting obstacles and bring the price of natural gas above the 2000 price on a long term consistent basis and there is zero economic incentive to not build new coal burners. Thus IMO the decline in coal burning is fully dependent on Natural Gas remaining cheap on the BTU basis.
Alfred Tennyson wrote:We are not now that strength which in old days
Moved earth and heaven, that which we are, we are;
One equal temper of heroic hearts,
Made weak by time and fate, but strong in will
To strive, to seek, to find, and not to yield.
Alfred Tennyson wrote:We are not now that strength which in old days
Moved earth and heaven, that which we are, we are;
One equal temper of heroic hearts,
Made weak by time and fate, but strong in will
To strive, to seek, to find, and not to yield.
It is as if the price projections that Natural Gas will remain both cheap and abundant in North America are accepted as word from on high and can not be wrong, which may turn out to be a tragic error in judgement.
rockdoc123 wrote:It is as if the price projections that Natural Gas will remain both cheap and abundant in North America are accepted as word from on high and can not be wrong, which may turn out to be a tragic error in judgement.
I believe a while ago I posted a study by the EIA that indicates natural gas prices in the US will rise as it becomes a net exporter over the next few years mainly due to all of the LNG terminals that are in the various commissioning stages. I also mentioned that years ago one of the companies I was with did a global inventory analysis of discovered gas and gas that was known to exist along with global demand based on various regions. The outcome was that once LNG shipping became a standard means of egress the world would migrate to a global natural gas price of about $6.00 per MCF. That will take some time of course but in the short term increased gas exports from the US will have an upwards pressure on domestic prices.
Alfred Tennyson wrote:We are not now that strength which in old days
Moved earth and heaven, that which we are, we are;
One equal temper of heroic hearts,
Made weak by time and fate, but strong in will
To strive, to seek, to find, and not to yield.
Tanada wrote:Good graph, I think it demonstrates the continuing boom in natural gas burning power stations across North America. It is as if the price projections that Natural Gas will remain both cheap and abundant in North America are accepted as word from on high and can not be wrong, which may turn out to be a tragic error in judgement. Those duel fueled plants KaiserJeep points to are becoming less and less of the overall mix so if prices go to say $5/therm from the current low for any reason long term a few plants can switch back to coal, but the growing majority are gas or nothing. Well that isn't quite true, they can also burn jet fuel, but that is hardly a lower cost option than gas even at $5/therm.
Users browsing this forum: No registered users and 15 guests