Working gas in storage was 3,323 Bcf as of Friday, August 28, 2009, according to EIA estimates. This represents a net increase of 65 Bcf from the previous week. Stocks were 489 Bcf higher than last year at this time and 501 Bcf above the 5-year average of 2,822 Bcf. In the East Region, stocks were 156 Bcf above the 5-year average following net injections of 52 Bcf. Stocks in the Producing Region were 268 Bcf above the 5-year average of 818 Bcf after a net injection of 7 Bcf. Stocks in the West Region were 77 Bcf above the 5-year average after a net addition of 6 Bcf. At 3,323 Bcf, total working gas is above the 5-year historical range.
I doubt it. I think we will see the bottom in the last quarter of "09. And I think there will be incremental increases in each quarter of 2010. As shale gas increases as a percentage of total national natural gas production, extreme swings in price will become a thing of the past. Improving national and global economics with the industry's increasing ability to balance supply to demand will usher in an era of relatively stable natural gas prices. IMO, we will never see $13.50/mcf again but the bottom will never again be within $3.00/mcf of the bottom established later this year. It will be interesting to look back at this conversation nine months from now.
We will see $13.50 again, albeit not anytime soon. My teeth will be kept in a jar by that point. I just worry that when demand does pick up and prices strenghten a new shale discovery or two will be made and drop kick prices again.
As exciting as this is, we know that we have a responsibility to do this thing correctly. After all, we want the farm to remain a place where the family can gather for another 80 years and beyond. This site was born out of these desires. Before we started this site, googling "shale' brought up little information. Certainly nothing that was useful as we negotiated a lease. Read More