Production kissed 104 bcf over the weekend , ouch .. Freeport LNG has been NOT taking much gas the last few days ,
Why do gas companies continue to produce so much gas? What is the strategy of gas companies to affect gas pricing levels or do they really have any influence? Is high gas production needed to sustain their business health? Is high gas production needed to match existing supply contracts and they don`t have a choice now?
Pure greed . I have posted in the past bout the 'old farmer " ...... What the cure for high prices ? High prices .. What is the cure for low prices ? Low prices .. Eggs locally were recently over $4 , now in the low to mid dollar range .. Chicken Farmers are no different from gas producers
there was a scarcity of eggs because chicken farmers had to slaughter whole flocks due to disease. NOT the same thing.
Thanks for the correction Deb . Using eggs as the example was a poor choice . That being said , The Ole Farmer theory is on page one when investing in Materials and commodities
When will gas storage begin to be used as heating season starts soon? Will current production match draw? Any projection when prices will begin to increase?
Futures show gas averaging $3.20 / $3.30 for most of 2024 , the bounce begins in Dec and carries over thru next summer . Looking out to 2025 , gas prices in the $4 range are available . Opened a position just yesterday in Liquidy Marcellus player ... Tricky time , Dow in my opinion is poised to show some weakness .
It seems that different gas companies use many different gas prices for calculating royalty payments. What goes into these calculations? Do they charge different prices from well to well or pad to pad in the same area?
We seem to be in the deepest bust period I have seen in the past 15 years. What`s causing it and when will it be over?
Deepest bust recently was 2020 covid .. Quality energy stocks could be bought for pennies on the dollar . I remain and have even expanded the Ralph portfolio firewall ... T bills over 5.5 % less than a year .... A sinking DOW takes no prisoners.... Even left leaning Bloomberg news has been flashing a warning on recession , the flashing was loud and often today ....
Gassers taken to the woodshed yesterday
What market changes are needed to change the pattern going forward other then the obvious cold weather factor?