I think sooner or later this price divergence will have to close, either
by natural gas prices rising, oil prices falling or a combination of the two.
Not exact matches
Our energy sector has been hurt partly
by low
natural gas prices and the discount placed on Canadian oil compared to world benchmarks, but
gas and oil
prices have generally been flat or on the rise.
Nevertheless, new regulations recently proposed
by the Obama administration governing methane
gas could hinder a recovery in
natural gas production as
prices begin to strengthen over the coming months.
So we asked in our research: What would happen if current low
natural gas prices or pollution control policies caused all US coal - burning power plants to be replaced
by natural gas generators?
An independent panel has endorsed the proposed development of a liquefied
natural gas precinct at James
Price Point near Broome, but the recommendation may have little impact as project developers led
by Woodside Petroleum have shifted their focus to floating LNG developments.
One of his biggest deals — the $ 41 billion buyout of XTO Energy in 2009 — was called
by Tillerson himself ill - timed because it was done before
natural gas prices bottomed out.
A recent survey
by the National Association for Business Economics showed that 18 percent of businesses expect a negative impact from declining oil
prices — reflecting the percentage of industries that directly benefit from oil and
natural gas sales.
«While asset monetizations enhance our liquidity, sales of producing
natural gas and oil properties adversely affect the amount of cash flow we generate and reduce the amount and value of collateral available to secure our obligations, both of which are exacerbated
by low
natural gas prices..
(3) regulatory policy to keep the
prices charged
by natural monopolies such a railroads, power and
gas companies in line with actual production costs plus normal profit.
Analysts excited about the company's exposure to the rapidly growing
natural gas sector were pumping up the stock, ignoring its low and declining return on invested capital (ROIC), significant write - downs indicating poor capital allocation, and the high expectations implied
by its stock
price.
(Reuters)- U.S. power producer Calpine Corp CPN.N said it would sell itself to a group of investors led
by Energy Capital Partners for $ 5.6 billion, as the debt - laden company struggles with depressed
natural gas prices.
The profitability of oil and
natural gas development activity depends on both the
prices realized
by producers and the cost and productivity of newly developed wells.
China's
natural gas demand has been boosted
by price cuts aimed at switching users from coal to the cleaner - burning fuel, according to one of the country's biggest
gas distributors.
UNG's investment objective is for the daily changes in percentage terms of its shares» net asset value to reflect the daily changes in percentage terms of the
natural gas price delivered at the Henry Hub, La., as measured
by the daily changes in the benchmark futures contract minus expenses.
Energy company Royal Dutch Shell says first - quarter earnings rose 67 percent, boosted
by a rebound in oil
prices and growth in its
natural gas business.
These include warm summer weather, which drives up use of air conditioners and electricity, the increased popularity of
natural gas (versus coal) among power producers (partly reflecting the low
price of the former), and cutbacks in production
by some players in the
natural -
gas industry.
The report also looks at the opportunity for
natural gas in transportation, now in its infancy, and notes that never before has oil's dominance in vehicles been challenged
by such low
gas prices.
Let's start
by taking a look at what
Natural Gas prices have done over the last few years.
Prices for electricity would be 4 percent lower
by 2033 with a transition to more wind, solar and hydroelectric power than a persistent reliance on coal and
natural gas, according to a report
by Calgary - based environmental research firm Pembina Institute and Clean Energy Canada, a Vancouver - based organization that promotes renewable energy.
The
price tag for a
natural -
gas project in Australia, called Gorgon and jointly owned
by the three companies, has ballooned 45 % to $ 54 billion.
The US glass packaging sector is also being hit
by higher
natural gas prices and increased soda ash
prices.
We suffer a 30 - 40 % energy
price disadvantage
by not having access to
natural gas.
FitzPatrick has been hurt
by Central New York's low wholesale power
prices, which have fallen along with the
price of
natural gas, a common fuel for power plants.
The Kinder Morgan
natural gas pipeline project is dead — a victim of low energy
prices and a lack of interest
by natural gas shippers and buyers.
The protests, which were led
by Buddhist monks, were sparked
by a 500 per cent increase in the
price of
natural gas, announced
by the government in August last year.
The Petroleum and
Natural Gas Senior Staff Association of Nigeria, PENGASSAN, and the National Union of Petroleum and
Natural Gas workers, NUPENG have endorsed the
price modulation mechanism adopted
by the Federal Government which pegged the pump
price for premium motor spirit, popularly known as petrol at N145 per litre.
FitzPatrick struggles to make money because wholesale electric
prices in Central New York have been depressed
by plentiful
natural gas, which fuels many power plants.
NEW ROCHELLE, NY — Con Edison expects residential winter heating bills to be approximately 10 percent lower than last year due to lower
natural gas prices, and reminds customers they can save even more money
by using energy wisely and making sure their heating systems work efficiently.
The nuclear industry's decline was hastened
by the cheap
price of
natural gas and costly repairs to aging power plants.
Walker said he would emphasize that pipeline with Obama, as well as the state's need to extract
natural gas resources and address financial challenges caused
by low oil
prices.
Further, there are hopes for relatively low - cost
natural gas to revive U.S. industries — from steel to plastics — that could take advantage of current
prices, which
by world standards are cheap.
Solar panels could produce electricity at the same
price as coal - and
natural gas - burning power plants
by the end of this decade if countries direct resources at this rapidly advancing corner of the energy industry, according to the Paris - based International Energy Agency.
This boom, driven
by low
prices for
natural gas — the main ingredient in ammonia production — will drive a corresponding surge in the industry's already substantial carbon footprint.
EIA predicts «much brighter prospects» for
natural gas supply, keeping
prices at about $ 8 per million British thermal units
by 2030, compared with the International Energy Agency's outlook, which predicts $ 16 per million Btu
by 2030, Gruenspecht said.
The company claims its technology can produce steam at a cost of $ 3 per million BTUs, based on U.S. National Renewable Laboratory calculations;
natural gas currently costs some $ 4 per million BTUs, though that
price may continue to fall as
natural gas freed up
by fracking floods the market.
Its U.S. mining operation saw pretax earnings decline
by $ 44.3 million «primarily due to a volume reduction of 2.5 million tons largely driven
by lower
natural gas prices and a longwall move in Colorado,» the company said.
$ 8 billion) over first ten years for deficit reductionObeys PAYGO; Starting in 2026, 25 % of auction revenues for deficit reductionFuels and TransportationIncrease biofuels to 60 million gallons
by 2030, low - carbon fuel standard of 10 %
by 2010, 1 million plug» in hybrid cars
by 2025, raise fuel economy standards, smart growth funding, end oil subsidies, promote
natural gas drilling, enhanced oil recoverySmart growth funding, plug - in hybrids, raise fuel economy standards $ 7 billion a year for smart growth funding, plug - in hybrids,
natural gas vehicles, raise fuel economy standards; offshore drilling with revenue sharing and oil spill veto,
natural gas fracking disclosureCost ContainmentInternational offsetsOffset pool, banking and borrowing flexibility, soft
price collar using permit reserve auction at $ 28 per ton going to 60 % above three - year - average market
price» Hard»
price collar between $ 12 and $ 25 per ton, floor increases at 3 % + CPI, ceiling at 5 % + CPI, plus permit reserve auction, offsets like W - MClean Air Act And StatesNot discussedOnly polluters above 25,000 tons of carbon dioxide equivalent a year, regional cap and trade suspended until 2017, EPA to set stationary source performance standards in 2016, some Clean Air Act provisions excludedOnly polluters above 25,000 tons of carbon dioxide equivalent a year, regional cap and trade pre-empted, establishes coal - fired plant performance standards, some Clean Air Act provisions excludedInternational CompetitivenessTax incentives for domestic auto industryFree allowances for trade - exposed industries, 2020 carbon tariff on importsCarbon tariff on importsReferences: Barack Obama, 2007; Barack Obama, 8/3/08; Pew Center, 6/26/09; leaked drafts of American Power Act, 5/11/10.
We believe we have entered a sustained period of elevated crude oil and
natural gas prices which we believe is driven in part
by increasing demand for industrial fuels.
What is means is that an investor could be right that the
price of
natural gas is going higher, but wrong on the timing and completely miss out on the rebound as this energy ETF's value is eaten away
by rolling costs.
Filed Under: Investing Tagged With: energy
prices, LNG,
natural gas, propane
prices, Summer LNG Editorial Disclaimer: Opinions expressed here are author's alone, not those of any bank, credit card issuer, airlines or hotel chain, or other advertiser and have not been reviewed, approved or otherwise endorsed
by any of these entities.
So even without the most positive of outcomes for my investment thesis, a sale of the company or a significant jump in
natural gas prices, the company has been revalued upward
by some 42 %.
Filed Under: Investing Tagged With: CVX, Dividends, MNVND,
natural gas, Oil, stock
prices, UNG, USO, XOM Editorial Disclaimer: Opinions expressed here are author's alone, not those of any bank, credit card issuer, airlines or hotel chain, or other advertiser and have not been reviewed, approved or otherwise endorsed
by any of these entities.
A monthly cash settled Exchange Futures Contract based upon the mathematical result of subtracting the
price of the NYMEX Henry Hub Natural Gas Futures Contract, as defined in Reference Price B, from the monthly price published by NGI for the location specified in Reference Pri
price of the NYMEX Henry Hub
Natural Gas Futures Contract, as defined in Reference
Price B, from the monthly price published by NGI for the location specified in Reference Pri
Price B, from the monthly
price published by NGI for the location specified in Reference Pri
price published
by NGI for the location specified in Reference
PricePrice A.
The decline of that industry and related employment has been caused
by technological changes in mining, and competition from low -
priced natural gas for electricity generation, not
by environmental regulations.
This puts pressure on the national system of
natural gas pricing, and the resulting effect is that power operators in other states seek to avoid paying higher
prices by shifting more to coal.
Ethanol makers experienced improved financial performance because of changes out of their control - as in the case of
natural gas prices falling drastically in response to increased fracking for
natural gas production - but lost money because of increased corn
prices caused
by escalating Chinese grain demand.
He added that 2012 emissions cuts could turn out to be temporary — EIA projects energy - related carbon emissions to tick up 2.4 percent this year, driven mainly
by coal, Lindstrom explained, since
natural gas prices have risen recently.
The pass - through of lower wholesale
prices for
natural gas into rates paid
by retail customers may also be reducing expenditures.
Rising production, record end - of - winter storage inventories, and mild weather contributed to spot
natural gas prices nearing their lowest levels in a decade until
prices rebounded at most trading points to the high $ 2 / MMBtu range
by the end of June.
The analysis comes on the heels of widespread speculation that the reactors will be carefully mothballed
by their builder and could eventually be revived
by Southern Company or Duke, two neighboring electric utilities, when
natural gas prices rise in the future.