Increasing Gas prices

I am loving the increasing gas prices and the fact that we are getting more pipelines, electric plants, trucks,buses,boats,etc using it, and exporting it as well as letting the storage go down has helped but what am I missing?? Supply n demand could not have canged over night and the prices usually trend down during the summer.

Last night over night the market for NG increased by$.05+|- in closed market conditions????

Would love to see prices @ $10.00 any ideas would be greatly appreciated.

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Permalink Reply by Zack Jameson on June 29, 2016 at 5:01am

I hope the price continues to climb. It will be a big boost for the industry. 

Permalink Reply by Moldyoak on June 29, 2016 at 10:54pm

The absolute biggest and most necessary thing that could happen for the Marcellus regions is increased takeaway.  The demand in New England and New York, as well as other population centers on the east coast, is already there.  The problem is the fierce resistance to pipelines.

People use the gas and want the gas, but only if it can be transported magically by the unicorns and fairies on magic carpets.  Apparently, this is how many believe it is currently transported...

Permalink Reply by Jon on June 30, 2016 at 4:25am
hahahaha. WOW! That's hilarious, but probably true. Don't forget green energy is produced by fairies and unicorns too.
Permalink Reply by Frank Walker on June 30, 2016 at 10:53am

Many of the people holding up our pipelines are doing so in the name of (non-existent) man-caused global warming.  They are relatively small in number but they are obnoxious and louder than hell.

Mike MurphyPermalink Reply by Mike Murphy on June 29, 2016 at 1:17pm

more demand everyday as LNG exporting increases and more big users like power plants come online and as more trucks buses and trains start running on NG....and a slow down in drilling too a total of less then 40 rigs running in the three state area of the Marcellus and Utica and pipelines carrying NG to areas that are starving for gas ....the northeast and east coast

Permalink Reply by Brian Woodcock on June 29, 2016 at 10:01pm

It is a lot like when WWII started, once you get American industry moving in the right direction for a noble cause, it is like a glacier, slow but unstoppable.

Permalink Reply by Terrylynn Lincoln on June 30, 2016 at 10:55am

Is the 2.86, shown above as Nat Gas Price, the Henry Hub price or for Marcellus Shale price?

Permalink Reply by Frank Walker on June 30, 2016 at 11:25am

It's the NYMEX front month price.

Mike MurphyPermalink Reply by Mike Murphy on June 30, 2016 at 2:09pm

Henry Hub Marcellus and Utica are much lower

Permalink Reply by Albert Russell on June 30, 2016 at 2:23pm

Mike,

I don't understand your reply. Are you referring to the well head price?

Permalink Reply by Bluflame on July 1, 2016 at 1:23am
Mike,
The "basis price" in the Utica/Marcellus region is much lower for the reasons you note. However, it seems to me that the basis should increase dollar for dollar (or more correctly cent for cent) as the Nymex price increases, while retaining the differential. Do you agree?
BluFlame
Permalink Reply by Albert Russell on June 30, 2016 at 11:57am

I think with prices moving in the right direction, activity should start to increase in Belmont county.

If you have price at the well head in your lease, is the Henry Hub spot price used to calculate your natural gas royalties?

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