Today, gas prices are at about $2.13/MMBtu, and they briefly dropped below $2.00/MMBtu during the last couple weeks.
Rig counts are at 781, which is down again. That’s going to reduce production eventually.
RBN Energy’s 2019 Prognostication Results and 2020 Prognostications.
Cameron LNG has started producing LNG from Train 2. More LNG going overseas!
Every year, Mexico hedges the price of natural gas, assuring the country that it can get gas at a specific price, making it easier for the country to budget for its energy needs. This year’s hedge (which will be effective for the rest of 2020) is at $49/bbl.
The EIA expects energy demand to grow 50% in the next 30 years. That’s an enormous amount of growth. Most of the growth will be in Asia.
Over the last six years, rig counts have dropped by 50% while oil production has increased by 60%.
One trader thinks natural gas prices are unlikely to move up significantly. I agree.
The 4th Circuit rejected a permit that the Atlantic Coast Pipeline needs.
Gas prices keep going down, but demand is going up. Up 20% in the last five years. That’s a trend that’s going to continue.
EQT is saying they’ll need more help from the West Virginia legislature in order to develop natural gas in West Virginia. They don’t. The solutions that EQT proposes are only in the interest of the companies and never good for oil and gas owners. The WV legislature really needs to think more about WV oil and gas owners.
The West Virginia legislature is working on an organization that would help secure investment money from China. Some of this money would hopefully get used to build the Appalachian Natural Gas Storage Hub.
If you’d like to know more about the international LNG market than you probably need to, then read RBN Energy’s series of posts about it.
Oil prices are becoming more stable, or perhaps it’s better to say less volatile, than they used to be. Stable is not a word to use in the same sentence with the term “oil prices”.
Natural gas production from the Marcellus/Utica region declined last month, and projected production is flat for the year. My gut says production will start to decline before the end of the year.