Wednesday, April 22, 2009

Chart of the Day: Natural Gas Prices at 6.5 Yr. Low

According to new data released today from the NYMEX via the EIA, the price for natural gas futures hit a 6.5 year low of $3.51 (per Mil. BTUs) yesterday, the lowest level since mid-September 2002 (see chart above).

14 Comments:

At 4/22/2009 1:26 PM, Blogger Bloggin' Brewskie said...

This comment has been removed by the author.

 
At 4/22/2009 1:28 PM, Blogger Bloggin' Brewskie said...

Dimethyl sulfide never smelt soo sweet...

 
At 4/22/2009 2:14 PM, Anonymous G. Ullable said...

Oil prices and Natural gas Prices are only falling because I spent $26000 on retrofiting my house with Geo Exchange heating instead of propane....

 
At 4/22/2009 2:23 PM, Blogger David said...

Gullible...just wait, the nat gas prices will head up again.

The energy polities of this administration & Congress will suppress the building of new coal plants and result in the closing of many existing ones, while waffling on nuclear. Although lots of $ will be spent on wind and solar, much generation capacity will in real life be swung over to natural-gas-fired. Some of these plants will be the highly-efficient combined-cycle type, but due to environmental litigation, many of them will be less-efficient peaking turbines, deployed on a near-emergency basis. In any event, lots more nat gas will be used for power generation, and this will likely drive prices considerably higher.

 
At 4/22/2009 2:38 PM, Blogger BxCapricorn said...

Since natural gas is one of the purest economic indicators, that is not good news for those thinking we're coming out of the recession.

 
At 4/22/2009 3:05 PM, Blogger Bloggin' Brewskie said...

BxCapricorn,

The abundant supplies of cheap natural gas through the latter-half 1980s, and throughout the 1990s, was a boon for the U.S. economy.

It's better argued that abundant supplies of cheap oil and gas were a detriment to the Middle East gas industry. Because both were in excessive supply, particularly oil in the late '90s, much Middle East-produced gas was flared off because it wasn't worth the beans to sell - not when the Asian Financial Crisis was drowning it with $10 a barrel oil.

 
At 4/22/2009 8:24 PM, Blogger gadfly said...

This winter, during the global warming crisis, I paid the highest gas bills ever. This 40% drop in rates did me no good.

 
At 4/22/2009 9:39 PM, Anonymous Anonymous said...

Where is the Balic dry index ?

 
At 4/23/2009 3:02 AM, Blogger Tiger Coach said...

During the energy boon of Summer 2008, there was a scramble to put natural gas wells ANYWHERE...

Does this low number suggest that we are dealing with over-production or a huge diminished need for natural gas?

Last, is there any way Obama's future energy policies are putting additional stress on the industry?

usmegatrends.blogspot.com

 
At 4/23/2009 8:50 AM, Anonymous Anonymous said...

Get real people.....There is a new natural gas pipeline from Wyoming to Ohio...There are more plans for pipelines to California and the Pacific Northwest...Supply-side at work...What is Alaska doing??

Does anyone read the Internet????

 
At 4/23/2009 3:31 PM, Anonymous diz said...

Does this low number suggest that we are dealing with over-production or a huge diminished need for natural gas?Both.

Demand has actually held up pretty well due to colder than normal weather offsetting industrial decline.

Supply has been humming, but rig count is now half of what it was at peak.

Current rig count is not enough to offset decline/sustain supply. Ergo, current prices are unsustainably low.

Unless one assumes we get a flood of foreign LNG...

 
At 4/23/2009 10:32 PM, Anonymous Anonymous said...

I don't think prices will fall much further if environmental regulations get stricter. Businesses, especially power companies, will be forced to switch to gas from coal.

 
At 4/26/2009 10:59 AM, Anonymous Adam Young said...

Prices are going to 1997 levels and will stay there for a while: 1. the rig-lay down supply driven price scenario is fallacious, 2. LNG is coming and is dirt cheap and will flood the US market, 3. Demand is oh so weak and getting weaker, 4. Regulation of CO2 and other emissions and other gov programs will not manifest in increased usage of NG anytime soon. Full analysis here: http://www.thebarricadeblog.com/?p=837

 
At 8/12/2009 12:16 PM, Anonymous Anonymous said...

My electric utility bill is based on the Natural Gas Price. How can I hedge against a steep rise in the Natural Gas Price? Suggestions would be welcome.

 

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