Natural gas price has slowly started to rise. Any predictions on what to look for in the 1st quarter of 2011?

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Yeap over the 20+ years we've had wells the weather is the driving force, of course I stated this last week and basically was wacked with a wet noodle, but oh well I know what my checks have done over the years. I pray for a arctic blast to last for 6 months of the yr and 100+ the other 6 months. It's busy unlike any another money making venture. So freeze please!!!
Oops that's business not busy. LOL
An arctic freeze is coming cried Jack Blake!!!!!!!!!!!!!!!!!!!!!!!!!!!1 Gas rises above $5.00 in Feb of 2011!!!!!!!!!
Gas above $5? I'm already paying Centerpoint $10!
We're talking price at the wellhead, not what CenterPoint charges you on your residential gas bill. No one here is getting paid royalty on $10/mcf gas.
Why not?
Someone is pocketing that money!
Just a shame it isn't mineral owners..

Centerpoint claims they don't mark it up but someone certainly has.
It's the handling and delivery fee that raises the consumer price.
if you believe that i have a bridge to sell you.
Baron,

The handling and delivery is how CenterPoint turns a profit.
Baron, obviously you have never run a gas distribution business. The insurance costs alone are enough to break a company.
I am sort of with the Baron on this one... Perhaps the utilities are allowed a rate based on some assumed wellhead cost to them, and when the wellhead cost goes below that, they can just pocket the profit? In the current environment, they would have to be doing rather well I would think... If it costs 2 to 3x as much to insure against disasters and distribute as it costs to get this stuff out of the ground, then I would think there must be an awful lot of expensive disasters (or rich insurers) and substantial upkeep costs on the distribution system...
Robert, the consumer price is based on the purchase price paid by the utility plus the cost of transportation thru the distribution network (and interstate pipelines) and operation of the consumer meter.

By the way, the utility typically is purchasing gas off the interstate (or intrastate) network rather than in the field or at the wellhead.

You are correct that it is very costly to operate and maintain distribution systems. It is not as much about rich insurers but rather our litigation happy society.

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