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Gas Supply Surge

Increased use of natural gas for power generation, pipeline sales to Mexico, and LNG (Liquefied Natural Gas) exports have all helped firm up natural gas prices. Investors responded by increasing drilling for gas and adding pipeline capacity in the Marcellus shale of Pennsylvania, Ohio and West Virginia, thereby increasing supply.  Meanwhile, the oil boom in… Read More

Why Producers Hedge

A hedge takes place when one party agrees to sell a volume of future production at a specified price and the other party agrees to buy it. Every party to every agreement has its own reasons for doing so.  However, a recent article by Mark Young in “Oil Voice”, gives a clear and concise summary… Read More

LNG Update

The liquefied natural gas (LNG) facilities built, or being built, in the U. S. were licensed to only export to nations with which we had Free Trade Agreements in place. Since no such accords existed with China, exports to that country were typically only on a spot sale basis through brokers.  While spot sales can… Read More

A 2017 Gas Forecast

In a recent article in “Oil Voice”, author Art Berman makes the case for continued strong natural gas prices for the rest of 2017. Berman is quick to point out that a year ago, the consensus among gas industry analysts was bearish, but he correctly predicted that prices would double.  Once again, pessimism prevails, and… Read More

Haynesville Revival

Not so long ago, the Haynesville shale of Louisiana and East Texas helped launch the shale revolution. Weak gas prices, and competition from the prolific Marcellus shale of Pennsylvania and West Virginia took their toll on the Haynesville.  In fact, Haynesville production dropped to a 6 year low last March.  Now, the very factors that… Read More