Search Results for: gas price

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John Rowe wants everyone (else) to buy natural gas

ByRod Adams

…t even a five year chart of natural Gas commodity prices. In 2008, Natural Gas prices reached $14.00, 250% more than todays price of $4.00. If he wants to call that an aberration, lets include Crude Oil. In 2008, Crude Oil reached $140.00, only 50% more than today’s price. What that says to a trader , investor (or hopefully an energy industry CEO) is – Natural Gas price changes are more volatile than even that of (US economic growth crushing) Crud…

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Is Levy County nuclear plant too expensive to compete with natural gas?

ByRod Adams

…nging in the Times report. It appears to me that their models used natural gas price assumptions that smooth out variations and spikes to result in a steady, inflation driven increase in the price. That is unrealistic based on history. Daily price of natural gas at Henry Hub Like many recent cost comparison studies, the Times report starts with the assumption that natural gas price performance during the period from 2000-2008 was an aberration tha…

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Good for ExxonMobil does not mean good for American public

ByRod Adams

…of shale gas wells does not materialize, then the financial fix of higher gas prices will, soon enough. At that point, the financial pain of the producers will be traded for the financial pain of the consumers of natural gas. Joel Riddle I was going to note the same correction. @Rod, from me seeing this posting, I get the feeling you read a few of the things I have posted on the Chesapeake facebook page. I may have just been reading your blog lon…

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Like cheap gas? Enable new supplies & stop rattling swords

ByRod Adams

…. As people often say about the weather in New England, if you do not like gas prices where they are, wait a little while. They will change. Natural gas demand is not only dependent on the weather and hard to store, but it is also hard to move from place to place. Pipelines and liquified natural gas (LNG) systems have limited capacities; moving gas from an area that is over supplied to one that needs fuel is a real challenge. That can best be illu…

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Rowe states that merchant power generators cannot make long term investments

ByRod Adams

…ven recent discoveries of enormous shale gas resources, Rowe said, natural gas prices are expected to remain below $6-$8/MMBtu for the foreseeable future. The first statement is the idea that the power plant is “utterly uneconomic.” If that was true, one would have to believe that the current backers – including EDF, one of the largest electrical power producers in the world – cannot do math and cannot build spreadsheet models. The second statemen…

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Is Rowe right? Will natural gas remain cheap for 10-20 years?

ByRod Adams

…and actual coal mining can begin. There are many temporary reasons for low gas prices. If we do not build new nuclear plants soon, I predict that natural gas prices will follow a trajectory similar to the one that existed from 1999-2008. Just as a reminder, here is a link to that graph: http://www.eia.gov/dnav/ng/hist_chart/N9190US3m.jpg Here is an even more pertinent graph – the price of natural gas for commercial customers: http://www.eia.gov/dn…

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Chesapeake Energy wants “five or six dollar” gas

ByRod Adams

…ommunications to investors and watched the share price increase as natural gas prices rose rather steadily from 2000-2008. Fortunately for me, I needed to sell to pay tuition bills before the crash of 2008 when the price of gas fell by a factor of 3-4 and the price of Chesapeake stock tanked from $60 to about $15. That personal experience is part of my knowledge base indicating how the interests of oil&gas company executives is not well aligned wi…

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How long before Wisconsin electricity customers regret loss of Kewaunee?

ByRod Adams

…ons is that it is possible for electric power companies to lock in natural gas prices on long term contracts at a favorable price. I asked Geoff if it really was possible to purchase natural gas futures more than a few years into the future. He responded with some very useful information about the structure of the futures market. It’s been a while since I was directly involved in the futures markets, but I still watch them fairly closely. It’s tru…

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ExxonMobil is betting that natural gas will NOT remain cheap

ByRod Adams

…t followed Cheniere’s stock price collapsed. Four years later U.S. natural gas prices hover around $2 per mcf due to a glut caused by a flood of new production from deep shale deposits. Domestic demand for high-cost imported LNG has evaporated. With Europeans bidding $12 for LNG cargoes and Asians bidding $16, there is simply no way for Cheniere to obtain LNG supplies that can compete with $2 natural gas. The point in mentioning Cheniere’s decisio…

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Vermont Yankee is latest victim in Big Oil’s price war against nuclear competition

ByRod Adams

…es Greenidge Queens NY JMS Rod, market forces will ultimately push natural gas prices above production cost where they belong. They can’t be kept below production cost for very long. The main reason the price of natural gas is low right now is because of fracking from shale. Before the recent price decline, most natural gas was extracted from deposits where the rock was fairly permeable (e.g, sandstone), so a natural gas well would simply bore int…

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Are natural gas suppliers purposely overproducing?

ByRod Adams

…iters like Matt Wald that there is a distinct possibility that low natural gas prices are less accidental than they seem most observers. As Wald pointed out in the conclusion to his article: It is not clear how this struggle will play out over the next few years. At the moment, according to Mr. Webber, natural gas is so cheap that it is stunting construction of even new plants that would burn natural gas. The people who operate the large, multinat…

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Should customers allow natural gas to push nuclear out of market?

ByRod Adams

…aerobics at the YMCA. donb The trick about present relatively low natural gas prices is that competitive electrical generating capacity from nuclear is one of the reasons that the gas price is as low as it is. Take away that competition, and that alone will cause gas prices to rise. The double whammy is that if nuclear should go away, the demand for gas will then increase as well. Higher prices from reduced competition and increased consumption w…

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