Replies to This Discussion

Permalink Reply by Jack Straw on August 10, 2012 at 4:31pm

The commonly quoted price for Natural Gas is NYMEX - Henry Hub.

Henry Hub is located in Henry, LA (a long way from the Marcellus or Utica).

The site below quotes the prices at a number of hubs/gates across the U.S. - you will note a variance (the variance tends to be much wider in the Winter months).

http://intelligencepress.com/features/intcx/gas/

 

JS

 

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Permalink Reply by melissa humphrey on August 10, 2012 at 4:52pm

Yes please share?

I hear Bradford County gas in June and July was sold at 180-230 even though NYMEX had revovered to as high as 3.20. WHY, anyone with insight?

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Permalink Reply by Jack Straw on August 10, 2012 at 6:16pm

Natural Gas prices at a particular location vary by the supply/demand situation at that particular location, on that particular day.

I did read (within the past week) that the Marcellus is now considered to be the largest gas field in the U.S..

We have the supply, but local demand has yet to catch up with the new found supply.

To ship that gas (via pipeline) to where the demand is greater costs money.

Currently Marcellus gas sells at a discount.

Weather is an element; a cold winter 2012-2013 in the North East and North Central might allow the Marcellus gas to sell for a premium over the winter months, A warm winter 2012-2013 would be a drag on prices.

Marcellus gas has displaced coal in generation of electricity; but if Marcellus gas prices rise too much, the utilities (to a large degree) will revert to coal.

As the chemical industry (that had departed the U.S.) returns due to cheap natural gas feedstock - we can hope that prices rise and are more stable.

We are in a period of transition (instability) as infrastructure develops to take advantage of the copious quantities of gas that will come out of the area. The transition period will be a period of price volatility(in an industry famous for price volatilty).

 

All IMHO,

                 JS 

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Permalink Reply by Ken on August 10, 2012 at 9:58pm

Go to the menu bar above and click on "Main". Current natural gas and crude oil prices

will be located in upper left corner of the resulting page.

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Permalink Reply by Jack Straw on August 11, 2012 at 4:32am

As an aside, it appears that  the prices quoted on the "Main" page are NYMEX (New York Mercantile Exchange).

The Quote for Oil on the "Main" page would likely be for WTI (West Texas Intermediate) located at Cushing, Oklahoma.

The oil produced in the PA/OH area is a better grade of oil and sells at a premium to quoted WTI.

Right now PA/OH oil would likely more closely follow the price of Brent crude oil (about a $20 premium to WTI).

The quote for Natural Gas on the "Main" page would likely be for Henry Hub, LA.

PA/OH/WV Natural Gas price will differ from the Henry Hub price. How much and in which direction it differs is a function of many variables, some of which are a mystery to the common man.

 

All IMHO,

                   JS

 

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Permalink Reply by Little Cougar on August 11, 2012 at 5:38am

Jack is correct re his statement regarding PA/OH/WV NG price...my royalty checks always differ from the Henry Hub price quote...usually a little higher.  I think it must depend upon the market the O&G who holds my leases sells to...just my 2 cents worth...not an expert...just grateful...

thats' all folks!

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Permalink Reply by Jack Straw on August 11, 2012 at 6:54am

Some historical prices plotted on a daily calendar basis  1/1/2009 through yesterday:

Courtsey of Pothole Dodger:

http://www.investorvillage.com/smbd.asp?mb=4288&mn=98667&pt...

 

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Permalink Reply by LMS on August 12, 2012 at 1:59am

Thanks for all of the info!  I'm always trying to educate myself on natural gas.  Thank god for this forum!

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