Trending much better for natural gas than oil. The rise in nat gas pricing is largely seasonal. The fall in oil pricing is market driven, meaning supply and demand related. Natural gas weighted companies have been making a slim profit and this will help at least temporarily. The big loser here is oil basins with marginal profit margins. In other words, very bad news for the TMS Play.
It seems like only days ago WTI was flirting with $70/barrel. Today it is $55.69/barrel. For companies with marginal economics such as Australis in the TMS, this is indeed very bad news.
You are right Skip. Things are always changing. I am sure there is an untouched play somewhere that will be a very active play in a few years.
It will be interesting to watch if this is going to be another big drop in the oil prices or if the prices will recover.
I subscribe to NatGasWeather.com and they indicate colder than normal weather forecasts and average to lower builds in storage. The nat gas storage level is already below the (5-year?) average and it might be difficult to build storage levels due to demand caused by colder weather. I'm only guessing increasing exports are a factor too. Prices go up and then they go down... then they go up again. Ride the wave.