The Mercury and Air Toxic Standards (MATS), the EPA rule mandating new environmental standards for coal-fired power plants, took effect on April 16. EIA expects 13 gigawatts (GW) of coal-fired generation capacity to retire this year, much of it occurring this month as MATS takes effect. Most scheduled capacity additions this year are either wind (9.8 GW) or natural gas (4.3 MW). Coal-fired generation capacity accounts for 81% of all planned retirements in 2015.
It's important to note that retiring coal-fired capacity does not necessarily result in a significant change in generation; many of the retiring plants are old and not used much.
Volume drying up because they have stop shorting. Let's see some buyers step up.
I see, so it is logical we use up our oil at a $7-10 discount???? Not logical !.
They only give it a 50% chance. The refineries will be greasing the palms of every politician to prevent it from happening.
The enemy may be CHK !!!!!! The specialist may be shaking the tree to get shares for their big customer, "Chesapeake". Sounds crazy, but is a valid argument.
People investing in a 2 billion short position are not stupid. Even if they manage to cover under $17, it was a successful strategy.
We have had a 3-8% increase in demand, depending on the country, for a few months. There was only a 2% surplus originally. If the Saud's didn't increase their production 1 million barrels per day the shortage would have been apparent by now.
IMO, the Saudi's are carving out market share for the Iranians.
Made .22, which is in the middle of the estimates. We will be lucky to post a profit at all if you believe our earnings estimate. They kept things looking nicely with good hedges, however, they only have about one qtr of production hedged for the year as of 4/15. Maybe less hedges are good for the industry. They will think about shutting in production if they really have to sell at $2.50 !!!!!!!!
Dollar dropped .64 today. That is always bullish for oil. Also, the uptrend for the dollar is still intact but there is a double head that looks concerning. Currently at $97.29
The industry really could drop ALL of the Nat Gas in the USA and still have plenty of supply for 2015.
......Drilling efficiency has increased phenomenally in the Utica Shale. From March 2007 to March 2015, natural gas production per rig increased to 4.8 million cubic feet per day (or MMcf/d) from 0.1 MMcf/d, an increase of 40 times........................
The ground can give it up for this price but is it worth it to deplete the reservoirs for this price?
Shut in IN !!!!!!!!!!
The smooth landing scenario is off the table if the Arabs start blowing up oil fields. I don't see that happening. Thousands have been killed in Iraq but very few well fields damaged. Sadly, they protect the wells better than the people. Given this scenario, I don't anticipate damage to their production.
If they play this right, they can produce the same, if not more, product next year with the same reduced cap ex spending. Reduced cost will also prevent oil from rising past $80 but it will also keep the demand from crashing in 2016.
Below is a comment I posted on a news story:
Production is the USA is flat. We don't have a production problem. We have an import problem. Yes, we are producing 1 million barrels per day more in 2015 vs 2014, yet imports have not declined. If we have a storage problem then why do we continue to import 7 million barrels per day? One only needs to ask, "Who benefits"? High storage levels keep the price of WTI ( American oil) low, because we can't export it. The difference between WTI and Brent, called the spread has been between $7-12. This absolutely helps the refineries.
So, now we know who the enemy is, what are we going to do about it? We should support bills to allow exports. People freak out when they hear this because they immediately think the price of gasoline will go up. Fact is, you already pay the global price of gasoline, because that is allowed to be exported. What will happen is some of the huge profits that the refineries are making will shift to the drillers that are getting killed with low oil prices.. Refinery stocks such as Valero have gone from $20- to $60, while drillers have lost half their values and hundreds of thousands have lost their jobs.
I tried to repost, and it was previously deleted. Will try again.