i could be wrong, but i think somethings is up. CWG made a call for below average temperatures starting october 16. I think they will use that to PUMP NG up to at least $2.75. we shall see...
and the moral of the story here is that your heating bill will be as high this year as last year's. just wait until you get your first heating bill before you attack me
not even the best of the best, Range Resources, who is over 70% hedged at $3.63...they lost $118 million last quarter. CHK losing billions, SWN losing over $1.5 billion this year, Talisman over $2 billion...
but don't take my word for it. take EIA's word for it:
Natural gas production across all major shale regions in EIA's Drilling Productivity Report (DPR) is projected to decrease for the first time in September. Production from these seven shale regions reached a high in May at 45.6 billion cubic feet per day (Bcf/d) and is expected to decline to 44.9 Bcf/d in September. In each region, production from new wells is not large enough to offset production declines from existing, legacy wells.
The DPR provides a month-ahead forecast of natural gas and crude oil production for the seven most significant shale formations in the United States. In order to estimate total natural gas production within a DPR region in a given month, production from both new wells and legacy wells must be taken into account. New-well production is estimated by multiplying estimated rig productivity by the number of rigs operating in the region, lagged by two months. Production from new wells is then compared to the anticipated production declines from legacy wells, which are typically based on well depletion rates, to estimate net production.
and below $3 we've seen no rigs being added. so at some point during the next three months there will be some sort of supply disruption.
instead they are increasing production and laying off employees.
companies are losing BILLIONS of dollars. the so called executives are the only ones making money. instead of cutting down production immediately they are pumping more NG.
take advantage of the worthless Wall Street Criminals
instead of jailing one criminal do called executive they let go of hundreds of people
i find this story from Bentek very interesting:
Stone Energy Corporation, a producer in the Gulf of Mexico and Utica/Marcellus basins, said in a statement September 27 that it has elected to restrict upwards of 100 MMcf/d of production in the Appalachian region. The small cap producer has voiced concerns over low commodity pricing, transportation fees, processing and gathering, and reduced operating margins to "an unacceptable level" as reasons to forgo continued production in the Mary field.
this is not good