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Permalink Reply by Steve P on September 29, 2015 at 19:10

There is more than enough bleak news to go around right now. But there are several things we all need to remember - there are new users of natural gas emerging every month, from huge chemical plants (good paying jobs) and power plants switching to natural gas. these users reflect large investments, and are in it for the long haul.

Yes, there is a glut. But the low prices and availability attract new users, and those plants, once operating, will be around for many years, even if prices rise.

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Permalink Reply by Skip Peel - Mineral Consultant on September 30, 2015 at 1:19

I agree, Steve.  The electric generation industry has never fully embraced natural gas because of a long history of price volatility and the abundance of cheap coal.  Just as coal is ceasing to be a viable option the industry has become confident in the supply and stable price range of natural gas over the life span of new plants.  The advent of LNG export will help lift demand but the upside for volumes greater than that of the first wave of new plants seems uncertain.  The electrical generation industry will be the big demand driver and will cause natural gas use to increase annually for many years to come.

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