In the seven major ISO regions, electricity generation has fallen slightly this month compared to April 2014. Excluding BPA, generation has increased for natural gas, nuclear and wind generation. For the seven regions, natural gas generation is up 13% and nuclear generation 13% higher, pushing coal generation down 11% compared to last year. Most regions had an increase in natural gas generation, pushing natural gas demand higher. PJM and MISO had the largest increases in natural gas generation. For coal, generation has fallen in every region except ERCOT.
"Power Burn Analytic Report
Gas generation up in April, pushing down coal generation"
With the rig count dropping and power burn going up and LNG coming on line soon I can see some logic for Pickens call for $6 gas next winter............
Below are five stocks that could triple if Pickens is right about natural gas:
1) Exco Resouces (XCO) – Billionaires Wilbur Ross, Howard Marks and Prem Watsa own more than 40% of this stock. When natural gas was last $6, XCO was trading at $6 or 215% higher than current levels.
2) SandRidge Energy (SD)- Billionaire hedge fund managers, Leon Cooperman and Prem Watsa own almost 17% of SandRidge. This stock traded above around $7 in April of 2014, when natural gas was $6. That’s 266% higher than its current share price today.
3) Stone Energy (SGY) – SGY was around $40, or 150% higher than current levels, last time natural gas was $6.
4) Halcon Resources (HK) – If natural gas prices go back to $6, HK should be worth almost $4.50 a share. That’s a triple from its current price of $1.44.
5) Chesapeake Energy (CHK) – Billionaire Carl Icahn owns nearly 20% of Chesapeake, after buying more of the stock last month, when the stock dipped to $13 a share. Chesapeake is one of the biggest natural gas producers in the United States and therefore the purest play of any stock on rising natural gas prices. Chesapeake also has over $4 billion in cash, after selling assets late last year. Chesapeake could double on natural gas prices returning to $6.
" Drilled and completed first operated Buda well with results above expectations, including a maximum 24-hour rate of 580 Bbls of oil. "
Low cost Buda's may save the day.............
Take The Bakken formation in South Dakota for instance , the drillers are primarily targeting oil and NG liquids , not dry gas. They do not enough infrastructure [ YET] to capture the by-product gas in the drilling process so they are flaring off [ burning] 300Mcf of gas a day. What do you think will happen when the pipelines are hook up…………….LNG exports will help support pricing once it starts but NG pricing will be low for years to come…………………
For the most part yes , Mid-Stream companies like Kinder Morgan and Enterprise Products Partners are the landlords of storage. KMI has a backlog of $17 billion for infrastructure projects including storage. Every time a new NG power plant comes on line new infrastructure and storage has to be built to guarantee delivery. We are still in that build out stage as far as storage is concerned , Our total storage capacity must be north of 4Tcf by a couple hundred billion by now…………
Storage capacity is going to go up every year to stay on pace with rising demand, in fact since 2000 we’ve added on average about 100 bcf to our storage each year according to FERC. I would suggest a better indicator of our storage situation would be rather than compare our current storage number to the gross 5 year average of overall storage , it would be more telling to take into account this new capacity and compare the percentage of storage capacity filled.
A much better metric would be to compare the 5 year average on the demand side…………
With all the stocks in the universe to pick from to short you choose KMI with a very predictable and stable business model , what planet are you from…………….
Good move , interest savings would be 45 million a year.................
This slowdown in production, coupled with a significant increase in refining capacity will alleviate one of the largest gluts of crude oil in U.S. history. The good news for U.S. consumers is that they have enjoyed sharply lower fuel costs. However and more importantly, the specter of $100/bbl fuel in the future is nearly non-existent, as a result of the enormous proven energy assets in several key formations, Eagle Ford, Bakken, Permian and others. The rigs that have been turned off line can be put back into production if prices merit it. In addition there are nearly 3,000 uncompleted wells that could supply energy well into the future if need be.
In short, the United States is not only on the verge of energy independence it is also assured of an uninterrupted supply of domestic crude oil for generations. For the first time in many Americans’ lives the price of crude will virtually immediately trigger online production and in the process place a ceiling on the price of that crude.
Will we ever see crude (WTI) oil above $80./bbl. again? If we do it won’t be for long. That is for certain.
Wow , 3K incompleted wells waiting for improved pricing...........
Crude oil is filling up in storage tanks around the country, but natural gas follows more of a seasonal pattern. Between the warmer months of April through October, natural gas producers build up inventories. Then in the colder months, U.S. businesses and consumers burn through some of that storage to keep warm.
Low natural gas prices could be here to stay. Who are the winners? Consumers and utilities that own natural gas power plants. The losers? Natural gas drillers that will fetch less revenue for their product, as well as coal mining companies and coal plant owners who will increasingly see themselves undercut by cheap gas.
Coal and NG are tied at the hip and all I see looking forward is cheep gas , beware..........
I sold BTU last year for the tax loss mostly due to all the gains I had last year. I have considered buying back now that it’s dropped 50% from my sale price but to be honest with you there are better opportunities out there.
Not all are short of course but shorts do help make a market................
orvex adds new stake in Level 3 Communications
Corvex Management added new stake in Level 3 Communications (LVLT). The position accounted for 2.72% of the total portfolio in the fourth quarter.
Swiss energy giant Advanced Power has successfully closed a $899 million project financing a new power plant in Northeastern Ohio.
Advanced Power partner's TIAA-CREF,Chubu Electric Power Company, Ullico and Prudential Capital Group provided $411 million in equity commitments and BNP Paribas, Credit Agricole and eight other commercial banks provided $488 million in senior secured credit facilities for construction of the Carroll County Energy project.
Carroll County Energy will be a state-of-the-art 700-megawatt combined-cycle natural gas electric generating facility that will sell energy, capacity and ancillary services into the PJM market. The project is proximate to the Utica and Marcellus natural gas production, as well as AEP’s 345 kV transmission lines and Kinder Morgan’sTennessee Gas Pipeline system. This strategic location is an important competitive advantage of Carroll County Energy.
The facility will feature two GE 7F.05 gas turbines and a D602 steam turbine which have the capacity to generate electricity for approximately 750,000 homes. Bechtel is building the project under a turnkey construction contract. EthosEnergy will operate the facility and Advanced Power will remain as the construction and asset manager.
“The project has received strong support from Carroll County and other key stakeholders in Ohio,” said Advanced Power CEO Thomas Spang. “From the beginning it was the project’s goal to work closely with the community and to bring in the strongest partners in the industry -- this milestone demonstrates the success of that strategy.”
Approximately 700 construction jobs will be created during peak construction as well as 20 to 30 permanent jobs during operation. In addition to economic, socioeconomic and environmental benefits, the project will provide critical electric generation capacity in a region that has experienced significant facility retirements.
So the opposite must also be true , companies like Apple that have huge cash hordes should be forced to pay dividends
" Saudi Arabia, the world’s largest crude exporter, raised pricing for all May sales to Asia, after the country’s oil minister said global demand was improving.
State-owned Saudi Arabian Oil Co. narrowed the discount for its Arab Light grade to Asia to the least since December, setting the crude at a discount of 60 cents a barrel to the regional benchmark, the company said in an e-mailed statement. The May pricing is 30 cents higher than in April. The company known as Saudi Aramco also increased the pricing of the other four grades it ships to Asia."
Pricing will improve once the Saudi's clear out all the week hands , CHK is not one of them, better days are around the corner. Follow Ican's lead here , you will not be disappointed.......