Posted on 04/10/2010 3:04:45 PM PDT by thackney
Natural gas futures dropped 16 US cents to $3.857 US per million British thermal units on opening trades in New York this morning after a larger than expected injection into storage was announced by the U.S. Energy Information Administration.
Natural gas on the New York Mercantile Exchange had closed at $4.019 US Wednesday.
The slide below $4 US was not completely unexpected on a resource that has lost 30 per cent of its value this year on soft demand and high inventories, boding ill for an industry dealing with growing supply as well.
...
Later trades on Thursday saw May natural gas futures rebounded slightly to around $3.944 US.
(Excerpt) Read more at communities.canada.com ...
From an earlier Article talking about the cost of producing different Shale Gas fields.
Marcellus is estimated to have the lowest break-even price ($3.17)
The next-closest break-even price was $4.73 in the Haynesville
Economics of Marcellus Shale well and fracture design completions
http://www.freerepublic.com/focus/f-news/2486859/posts
Signs of hope. Bam Bam will need to throw a monkey wrench into it.
Don’t worry, they will be back up by Winter.
I just wonder if an bad news from the Middle east will make this pop? Whenever it looks like the only direction is down, it is usually a good time to buy a few.
Part of the over production problems is the price producers paid for leases in the Haynesville Shale. Most new leases have a 3 year drill or lose the lease. These producers paid as much as $16,000 dollars per acer for the lease. They do not want to lose the leases so they are drilling them and this is contributing to the supply glut.
I bet if the price were in the $2.00 range where it belongs the demand would go up.
Good time to convert to a gas stove and dryer.
You can always count on greed.
shale gas, only exists in the US.
why is that?
See #21-23.
http://www.321gold.com/editorials/thomson_s/thomson_s_040610.html
Just supplying an opinion. Have no position........yet.
Shale gas exists in many countries.
Add Jim Cramer (*) poor-mouthing NG literally one hour later here http://www.cnbc.com/id/15840232?video=1463615202&play=1 (BTW if Erin Burnett isn't reading her accompanying slams off a script, I need a new TV and RK surgery in both eyes), and I'd say cover those NG shorts ASAP.
(*) His characteristically self-parodic bullish call on gold on January 8 marked the very highest price of gold for four months, see here http://www.freerepublic.com/focus/news/2425555/posts?page=10#10
We don’t have natural gas down here in the country, only propane, and propane is not cheap.
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