And I thought $2.50 nat gas was bad
Have you seen the nat gas futures price? Down to $1.58 right now. Unreal.
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Replies to This Discussion
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Permalink Reply by Skip Peel - Mineral Consultant on -
You'll go crazy following the future's price. It bounces around all over the place daily. Always has. The only natural gas price of relevance is the monthly settlement price. Yes, supply outstrips demand - again! How many times in 16 years??!!
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Permalink Reply by Bill R on -
I find the fact that our selling price of Natural Gas continues to plumet and yet... out here in the Pacific Northwest, our Utilities are continuing to increase our home and business use cost stating that it is due to the 'High Cost' and 'lack of supply' of Natural Gas???
It continues to blow my mind as I try to figure this out as I am so confused(?)
Can anyone explain this to me?
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Permalink Reply by Skip Peel - Mineral Consultant on
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Bill, I suspect that you are just on the wrong side of the Rocky Mountains. The major natural gas producing basins are east and south of the Rockies and it is too expensive to build pipelines through the mountains. It is a function of geology that you are cut off from the majority of North American production. I suspect that the natural gas you do have comes from Canada - where there are more mountains.
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Permalink Reply by Skip Peel - Mineral Consultant on
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Here is a good example of why following the natural gas future prices will give you a case of whiplash. From $1.30 to >$3.50 in six months of projections. The future price is super volatile over short periods of time. And none of those prices will end up being the monthly settlement price. That's the one that counts, as in the numbers behind the dollar sign on a revenue statement.
https://www.naturalgasintel.com/sparked-by-chesapeake-cuts-natural-...
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