CHK may get an opportunity in a cpl months to Hedge the rest of their 2014 Gas above 4.00
Looks like we will be getting below normal temps for the rest of nov and into Dec.. The jet stream is in a pattern where it dip into the midwest and east..Jet streams are more predictable and generally stay in a pattern for months and slowly move eastward... That usually means a deep cold for the north east and a cold spring again...
$4 NG sounds good, although $5 would be better for the NG companies and SH's.
Last year they claimed that it takes $5 to $6 NG to make it profitable to produce and ship NG, but because of increased efficiency, I'm not sure that is true anymore?
Besides, if that were true, why would they be producing NG at all?
Have you ever lived in any of those areas of the mid-west and the east?
I have always lived in So. Cal., so I'm used to NG heat, and usually NG cooking, dryers and water heaters,
I was surprised to learn that there are huge areas in the east where they still use expensive and air, water and land polluting oil for heating.
In some areas I have visited in the Pacific North West, they have electric heaters built into each room.
I was surprised to see that and assume that they have lower electric rates in those areas, possibly due to hydroelectric power generation.
Whole house, NG central forced air heat is what I am most used to, and seems to be the most efficient way to heat a home, unless you can live with using only a few rooms eacj day, and heating only those rooms.
I live in North East Pa.. They Have a mixture of everything around here.. Coal ,Oil,Propane,wood and nat gas where available... Most people in the sticks have 2 systems and use 1 as back up..Oil being high forces them to use the back up as the main.. My neighbor switched last yr to gas from oil and is giddy with the savings.. I am sure he is one of many and it will show up in usage.. Exporting wont kick in till 2016,but I am sure the market will look ahead.. The State wants to build out the infrastructure so that more can take advantage of Nat Gas .As of now I have a line down the street and they want 15,000.00 to extend it to me... Not going to happen..That's why the state might get involved.. You wont get many in the North on central air as we get on avg 2 weeks of uncomfortable summer temps and most shut the windows during the day and open them up at nite...
I share you enthusiasm about prices going to 5.00 ,but realistically they need to take advantage of anything above 4.00 and hedge for 1 more year... Cabot has an ad on TV claiming Nat Gas will be avg out at 6.00 for the next 20 years and according to the EIA they may be correct.. So in reality it's better to buy the rips and sell the dips and a cold start to the winter is just what the doctor ordered...