Posted on 06/06/2022 6:30:03 AM PDT by Browns Ultra Fan
You better hope it doesn’t get Cold Outside. Because the cost of heating your house just rose 5.74% this morning (natural gas futures). To $9.01.
Between Biden’s anti-fossil fuel policies and the war in Ukraine, natural gas futures are up 255% under Biden.
With rising natural gas prices, one would think American consumers and American home builders would start building higher-density housing like duplexes.
But The Federal Reserve has helped America build BIGGER houses (as in greater square footage).
Note that following the financial crisis and the takeover of the US economy by The Fed, median square footage of US housing starts rose with Fed easing. Median square footage started falling as The Fed leveled-off its asset purchases (green line). But when Covid struck and The Fed really went to town (aka, monetary stimulypto), median square footage started rising again.
The above chart demonstrate the conflict that can arise between a Presidential Administration and The Federal Reserve.
But with alleged Fed monetary tightening, we should should see the demand for larger homes decline relative to smaller homes.
Mortgage rates have been climbing rapidly, making housing acquisition relatively less affordable.
Black Knight’s monthly P&I payment to average purchase price says it all.
My version of the Black Knight chart is slightly different, but tells the same story: home prices and mortgage rates are rising FAST with Fed stimulus, but should slow down.
I guess we can call both Biden and Fed Chair Powell jointly “Mr Freeze” for housing.
The Fed has helped make housing not only more expensive, but larger in size. And the Biden Administration and war has helped make heating those large houses more costly.
(Excerpt) Read more at confoundedinterest.net ...
My statement is correct from the standpoint that they are not touching the Marcellus shale formation. Hydraulic fracturing is required to extract gas out of shale. It is always temporary and requires repeated fracturing to continue to extract gas. By the way, below the Marcellus shale formation is Utica shale. There lies yet another enormous source of energy which is completely untouched.
“The Market Has Exploded”: LNG Charter Rates Soar As Traders Rush To Secure Tankers
Yep, Henry Hub was at 8.79 yesterday.
If some pols ended up where they belong, that would introduce movement in the system.
Browns Ultra Fan :" Biden and Powell = disaster "
See post #22 for a graphic which explains the rise in Natural gas prices
and the timeline for price relevance.
Post #22 is accurately titled :" What Build Back "Better" means....."
The only thing that should be "transitional" is this current administration since it no longer cares about you, despite their press releases.
Your comments to follow:
It’s not just Biden. It’s ESG. The corporate lenders, following ESG, are restricting lending to oil companies.
Natural Gas prices do not get the attention like crude oil and gasoline.
"Your money is not going to save you as what was societal function is going to be smashed."
-Unknown
There are reports trickling out of places like Germany, that energy prices have already climbed so high people can’t afford to cook on their own stoves anymore.
When winter comes, people are going to be hurting.
Glad we added solar power to our home.
The real trick will be gas cellphone
Please enlighten me.
What depth is the Marcellus Shale ?
What depth is the Utica Shale?
So, these wells that were drilled in the 1970s and 1980s were not fracked or were they just not deep enough to get into the Marcellus Shale formation?
I thought the all wells were fracked. Even water wells.
That the real revolution came about when the drillers were able to drill down from a relatively small land plot(say 5 acres) and then drill horizontally once they hit the shale layer. This is what a customer in NW ND explained to me regarding the Bakken formation. He also explained how mineral rights worked. His mom owns two sections.
It's gonna get worse...
up 200% for the year https://tradingeconomics.com/commodity/propane
Liberals hate Americans too...
Nice site - thanks Old Pro... lithium’s up 426% - that can’t be good for car battery production. This is starting to feel worse than the Carter years.
https://tradingeconomics.com/commodities
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