How does this figure into the mix?

http://beta.fool.com/maholder/2013/04/05/as-natural-gas-inventories...

Based on the reaction of natural gas and coal stocks on Thursday, it appears that the market ignored the very bullish natural gas weekly inventory report. In fact, the report was hardly mentioned in financial media. For those that originally missed it as well, the weekly inventories for the last full week of March plunged 94 Bcf. In fact, the plunge was so significant that the inventory level dropped below the 5-year average. Normally this time of the year the inventories flat line during the transition season from the heavy usage in the winter to the heavy drilling in the summer. On top of the plunging inventory scenario, the lack of an energy policy in the US actually has the amount of rigs drilling for natural gas at historically low levels right at the time the numbers should be ramping up. Even worse, the desire to drill for natural gas is also compromised, as oil is more profitable at the current levels. The question is whether coal stocks are an attractive addition to a portfolio as natural gas is set to rise and drilling isn’t going to fill the demand equation.

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Permalink Reply by wyalusing jim on April 11, 2013 at 8:17am

" Reply by Brooks Purdy

Jim,

Obviously the figures must not be accurate. We all know how good of a job our government does...So efficient and accurate 100% of the time."

thanks brooks, it's always good to start the day off with a laugh.

wj

Permalink Reply by The Crude Oil Trader on April 11, 2013 at 11:53am

Today.....another 14 billion cubic feet. CNBC reported it of course but it's prove positive that mainstream media won't have respect for nat gas for some time.

Permalink Reply by wyalusing jim on April 11, 2013 at 12:59pm

trader, another 14 bcf drop in storage?

if so, very very cool!

maybe 5 bucks this year!

wj

http://www.reuters.com/article/2013/04/10/markets-nymex-natgas-idUS...

Permalink Reply by The Crude Oil Trader on April 12, 2013 at 10:48am

Yes W.J.....another drop. Here's a great post from the CME Group' Dominick Chirichella.

Dominick Chirichella: Natural Gas Prices Remain Firm

Permalink Reply by wyalusing jim on April 12, 2013 at 2:57pm

thanks trader, i had a senior moment yesterday and totally forgot that it was thursday and so missed the storage report.

i'm laughing at myself now, but i was thinking at the time that you had the inside track on what was gonna come out the following day.

sorta like the fed slipping their minutes out by accident the other day, lol.

anyway, thanks for the heads up, it was great news for sure!

wj

Permalink Reply by Kathleen on April 11, 2013 at 9:25pm
I read last week I think it was, that the drop happened due to a longer heating season than expected and that's why the NG went below the 5 yr inventory level. A few economist feel we will see the price of NG drop below 4 again soon. One thought the drop would start this week but even I thought it would stay around 4 a while longer.
I know I haven't provided any facts, I'm just too tired tonight to look it back up.
0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on April 11, 2013 at 9:27pm

There's still an oversupply despite the fact that so many rigs have been moved to liquids.  That's a bad sign.

Permalink Reply by wyalusing jim on April 12, 2013 at 8:00am

liquids wells also produce dry gas. they contribute to the oversupply too.

wj

Permalink Reply by PA roughneck on April 11, 2013 at 10:31pm

Interestingly, my employer, today on a state wide conference call, was asking us front line employees to reach out to any experienced roughnecks we might know, it seems there are 3-4 more rigs headed to NEPA and they are currently needing staff!
  Not sure what is actually bringing this uptick in the rig count to the dry gas regions of NEPA, maybe the $4 gas? Maybe leases nearing expiration? All I know is that we're looking for another 75-100 qualified people to help drill some dry gas wells in NEPA!

                                                                                                     Roughneck

Permalink Reply by wyalusing jim on April 12, 2013 at 3:14pm

ya know roughneck, there is a persistent rumor that chk is gonna add a bunch of rigs in nepa soon too. not just a landowner rumor, but within the industry too.

i'll believe it when i see it get started, but there are quite a few development wells already permitted in all directions from my place. remember, many of those wells are around 2 yrs old now and starting to decline.

and another curious thing. have you noticed a tendency lately for wells to be drilled mostly to the north? i dont think there is a development well within miles of me that is permitted to the south. all north ones. and it isnt just chk either.

wj

Permalink Reply by PA roughneck on April 12, 2013 at 8:51pm

ya know Jim,
  come to think of it, the last 4 wells we drilled up here were headed north! Spud another tomorrow, have to poke around and see if it's another north leg! Can't see any real reason to it, heck, it's easier to drill those south wells, it's a lot harder trying to keep a hole CLIMBING when ya go north!
                                      roughneck

Permalink Reply by wyalusing jim on April 13, 2013 at 12:32am

this oughta add to the curiosity a bit...

remember that quarry we sat in a coupla years ago? the wellpad site?

the wells in those units north and south went into production about 3 weeks ago, but even before they started shipping, about 3 months ago, they permitted a development well for the north side, but not the south.

also...the other unit i'm in, the south side of the split unit to my north has no development well permitted, but the north side of it does.

maybe it's nothin', but it sure seems like an odd coincidence to me.

wj

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