Natural Gas Closes at Five-Month High on Bigger-Than-Forecast Supply Drop

Full article here.

 

Natural gas futures rose to the highest price in more than five months after a government report showed that U.S. inventories fell more than forecast last week as cold weather boosted demand for the heating fuel.

<snip>

Natural gas for February delivery advanced 13.4 cents to $4.695 per million British thermal on the New York Mercantile Exchange, the highest settlement price since Aug. 4.

<snip>

Last week’s storage drop was bigger than the five-year average decline of 133 billion cubic feet, department data showed. A surplus to the five-year average fell to 1.9 percent from 5.8 percent the previous week. A surplus to year-earlier supplies widened to 2.8 percent from 2.4 percent.

Gas inventories may fall to 1.7 trillion cubic feet by the end of the winter heating season, down from the previous estimate of 2 trillion, Barclays Capital said in the report yesterday.

<snip>

“With more cold weather still in the forecast for the eastern U.S., we continue to see potential for nearby natural gas futures to run to $5,” said Tim Evans, an energy analyst at Citi Futures Perspective in New York.


Views: 649

Reply to This

Replies to This Discussion

PG, heavy duty trucks cannot utilize CNG for long haul service.  They would need access to LNG instead.

 

By the way, it will probably also take some government subsidies to help foot the cost of replacing all those diesel trucks.

heavy duty trucks cannot utilize CNG for long haul service.  They would need access to LNG instead.

 

Not so. 

Okay, so where is the rest of the answer.
Les B--- where you get data that diesel trucks would require LNG??????? If that where true how is it possible to refuel on road??????
Adubu, that is the reason you have only seen return to base operations.  Because a network of LNG refuelling stations is required along key transport corridors.  Eventually maybe we will see such infrastructure built.
I believe Les is driving at the energy density issue, for a truly "long-haul" service with vehicles getting only a few miles to the GGE equivalent, to work with CNG you'd need enormous fuel tanks, likely too large to be practicable.  Read that somewhere.  YMMV.  /grin

Essay, thanks - I was in a hurry and couldn't provide a longer response.

 

LNG has ~ three times the energy density of CNG and diesel has an energy density 63% higher than LNG.  It is hard enough to get big trucks to consider LNG and there is no way they would go for CNG.  Even trash trucks want LNG because they can run all day on one fill-up.  With CNG they would have to return to base in the middle of the day for a refill.

True about the energy density of LNG -vs- CNG but CNG can be a huge money-saver for medium to long haul vehicles anyway. CNG and gasoline (or diesel) can be used in a BI-Fuel capacity just by flipping a switch. http://en.wikipedia.org/wiki/Bi-fuel_vehicle

You get the best of both worlds...low cost for a majority of your journey and the ability to go longer distances if needed.
AWH, if you notice the article only discusses light duty vehicles and specifically mentions that it primarily addresses local use such as taxicabs, etc.  So this is not relevant to long haul heavy duty trucks that require the higher energy density of LNG. 
we're headed south despite continued cold forecasts, some said it was going to $5 but now are calling for a correction back to around $4
I'm surprised China hasn't jumped in and promoted CNG for fuel here in this country. Think of all the cars they could make and sell here and with us using less petroleum because of it, it would lower the prices they have to pay for it...

RSS

Support GoHaynesvilleShale.com

Not a member? Get our email.

Groups



© 2024   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service