Search Results for: gas price

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Why are North American natural gas prices so much lower than rest of world?

ByRod Adams

…/RSSFeedDetailedNews/RSSFeed/ElectricPower/8935475 Note the sensitivity of gas prices to nuclear output, and the fact that $8 gas was just seen in New England. Of all Llindsey’s arguments, I found the stuff about gas produced from oil wells to be most (potentially) compelling. In a recent post at the ANS Nuclear Cafe, I listed four reasons why current low gas prices won’t last. They are 1) the fact that oil costs ~6 times what gas does on an energ…

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John Hanger Credits Low Natural Gas Prices For Helping US Reduce CO2 Emissions in 2012

ByRod Adams

…e shale gas production. Nothing has cut US emissions more than low natural gas prices made possible by the shale gas boom. And the US has lead the world in cutting carbon emissions since 2006. Indeed, in Europe and Asia, where there is still no shale gas production, natural gas prices are 3 to 5 times US levels, and coal consumption and carbon emissions are soaring. The rest of the world so far has said no to shale gas and keeps saying yes to more…

If Natural Gas Producers Are Shifting Resources to Produce More Oil and Electricity Producers Are Burning More Natural Gas, What Will Happen to Natural Gas Prices?

ByRod Adams

…as producer, for a total of $41 billion. (See ExxonMobil Bets That Natural Gas Prices Will Rise – Making a Similar Bet is Like Betting With the House) Here is a quote from XTO Energy and Exxon Mobil: The Natural Gas Price Question that includes an intriguing denial: In a conference call with analysts Exxon officials downplayed the notion that snapping up XTO represents a bet on price movements. Neil McMahon, an analyst with Sanford Bernstein, put…

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Look out – natural gas prices in North America will skyrocket by end of 2014

ByRod Adams

…that there are some enormous bets being placed on the premise that natural gas prices in North America will remain at levels that are between 1/3 and 1/6th of the world price. Despite all words to the contrary, those prices are not the result of some kind of incredible technical innovation that has fundamentally reduced the cost of finding and extracting natural gas; they are the result of a temporary imbalance in the market that makes available s…

Nuclear Energy Growth Might Turn Promises of Low Natural Gas Prices Into a Reality

ByRod Adams

…the last rapid build out of nuclear power plants. From 1985-2000, natural gas prices all over the world were quite low – Russia was selling gas to favored customers for about $50 per 1000 cubic meters (roughly $1.40 per thousand cubic feet) while US prices hovered around $2 per million BTU (which is also very close to $2 per thousand cubic feet). Though some might disagree, it is hard to overlook the fact that those low prices followed an era whe…

Natural gas price spikes: More than “pipeline capacity”

ByRod Adams

…e.” John T Tucker Boy, bad day for stocks. One thing that could bring down gas prices perhaps is a economic downturn and changes in coal supplies. I dont quite understand the problems Chinese coal is facing (how it got so involved in derivatives ). I imagine as this plays out, along with what is looking like a downturn in the Chinese economy, it will affect gas supplies and prices somehow. China Bank Regulator Said to Issue Alert on Coal Loans “Th…

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Kewaunee needs a “deus ex machina”; rising natural gas prices not quite enough

ByRod Adams

…maker a reason to worry when her analysts tell her that they know what the price of natural gas is going to be at any time in the future beyond a few months. Daily price of natural gas at Henry Hub The second factor stressing Kewaunee continues unabated; wind power capacity continues to grow and new wind turbine projects continue to receive federal subsidies for every kilowatt hour they generate – at a projected cost to the budget of $12 billion f…

ExxonMobil Bets That Natural Gas Prices Will Rise – Placing A Similar Bet Is Like Betting With The House

ByRod Adams

…5% premium over the market price for a gas producer at a time when natural gas prices are lower than they have been in recent history and storage volumes look high enough to keep them low for the foreseeable future. Here are some samples of those kind of comments from a Wall Street Journal blog entry titled Collins Stewart: “Given the size of the XTO acquisition, the relative weakness in the North American natural gas market, and the fact that it…

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Brief summary of recent natural gas price history

ByRod Adams

…here are power generators who are isolated from the risk of rising natural gas prices by the fact that they operate in markets where all of their competitors have the same issue, or by the fact that they operate in states where there is an almost automatic electricity price protection mechanism that adjusts for variations in fuel price. In those states, the consumers who do not have a big say in the choice of power generation facilities are the on…

Shale Gas Is Not a Game Changer – It is Simply Another Period in a Long Running Game

ByRod Adams

…ither shut down or moved their operations to places with far lower natural gas prices. The high prices encouraged innovations like horizontal drilling and hydraulic fracturing – especially in areas where there was an already developed, nearby infrastructure for gathering, processing and transporting gas to market. As a stockholder in one of the biggest domestic players in natural gas exploration and extraction, I did a lot of reading about the opt…

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Do Natural Gas Interests Create Or Amplify Bad News About Nuclear Energy? Will They Continue To Push?

ByRod Adams

…es of conventional gas caused an inevitable market price response. Natural gas prices for commercial power generators rose from less than $2.00 per MMBTU in the late 1990s to more than $12 per MMBTU in the summer of 2008 but that rise was a ratchet, not a straight line. Periodic shortages or demand spikes were often caused by normal variations in weather patterns. Hurricanes disrupted supplies from the Gulf of Mexico while cold weather waves incre…

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Stanford’s University’s New Natural Gas Initiative

ByRod Adams

…ofitability of their existing nuclear plants are threatened by low natural gas prices. Kewaunee and Vermont Yankee have already been permanently removed from service, despite the fact that both of them had already extended their operating licenses and could have been producing the equivalent of 150-200 million cubic feet of natural gas every day for the next 18-20 years. As many as 20 more plants might be prematurely shutdown if the natural gas in…

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