falling gas prices

The price of natural is falling fast. Anyone have a idea were how low it may go? I hope it wouldn't drop below $3. I'm sure the mild summer is the culprit so I assume it will rebound soon. I also read that the east coast does not have enough in storage. I think they could help stabilize the price utilizing oversea markets.

What hurts one helps another. This may help drive oil window along with put a major emphasis on efficiency. My property is in. Wet window of Marcellus and dry Utica. I'm hoping this will motivate that window (my window at camp). Any thoughts would be welcomed.

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Permalink Reply by Brad Galbraith on July 24, 2014 at 1:18am

Several things. 

1. There needs to be more commercial usage especially in electricity production and manufacturing. Conversion from diesel and other fuels to NG for heavy transportation will help as well.

2. Exporting LNG will help once the necessary facilities are online in the Gulf. The Feds have been slow walking this process of course but politically has had a small fire lit over the Ukrainian issues and Russia's threats of cutting of NG to Ukraine and Europe in general.

3. Oil and NG don't really have an effect on each other's pricing. However, producers may shift to drilling for oil more when NG is less profitable.

4. A cold winter obviously creates more demand for NG, we can only wait and see what Old Man Winter has in store for everyone.

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