Posted on 12/15/2015 6:06:53 AM PST by thackney
Natural-gas prices plunged to a 14-year low, as the warmest start to winter on record in the U.S. saps demand for the heating fuel and deals another blow to struggling energy companies.
A weather pattern known as El Niño has pushed temperatures to records for this time of year across North America. The unseasonable warmth has cut consumption and raised concerns that the current gas supply glut will linger for years. Monday's 4.8% decline brings year-to-date losses to 34%, making natural gas the third-worst-performing commodity so far in 2015.
"This level of inventories and a super-El Niño is unprecedented," said Jonathan Berland, senior managing director at Gresham Investment Management LLC, which oversees $8.2 billion.
January natural-gas futures closed 9.6 cents lower at $1.894 a million British thermal units. Contracts for future delivery of gas are at all-time lows as far out as 2028.
On an inflation-adjusted basis, Monday's settlement price for natural gas was the lowest since February 1992 and was within 10 cents of the inflation-adjusted record low from January 1992 of $1.80 per million BTUs.
While the latest leg down in natural-gas prices is a boon for consumers in the form of lower heating bills, it is hammering stock and bond prices of energy companies already crippled by a broad decline in commodities. Bonds issued by Chesapeake Energy Corp., a benchmark for the junk-debt market, tumbled again Monday, to about 30 cents on the dollar ahead of a debt-swap deadline. The No. 2 gas producer in the U.S. is working with Evercore Partners Inc. to shore up its balance sheet, The Wall Street Journal reported. Chesapeake's shares are down 80% so far this year after falling 3.9% on Monday.
U.S. heating demand..., or "heating-degree days," is on track to be among the lowest on record this winter
(Excerpt) Read more at wsj.com ...
Propane is still selling at less than 90 cents a gal!
Well, Jumpin’ Jack Flash. Thanks for posting. Good news BUMP!
Locked in just yesterday at 34.9 per therm. That was the best price here in metro ATL.
I know a number of people who get revenue from gas wells on their property. They are deeply saddened.
Propane tracks oil in price.
Natural gas is cheaper by unit of energy.
The American economy is in very SERIOUS TROUBLE.
But the leftist, marxist, socialist, Democratic..MSM will never tell us that,
“Propane tracks oil in price.”
Not really. Propane is selling at less than 1/3 of the price it was a couple years ago.
My electric bill, linked to the closing month end futures gas price, was only $66.00 last month and my water/home heating bill was $23.00. But living in Texas “Awl country” I wish it was higher.
In the same time oil has gone from the 90’s to the 30’s. Or about 1/3 of what it was a couple of years ago.
Yes, that is quite true :(
“But the leftist, marxist, socialist, Democratic..MSM will never tell us that,”
“It’s not rocket science.”
So true.
https://www.youtube.com/watch?v=1GAKOLOnfV4
No problem. My electric provider locked in at the higher prices for the current billing cycle.
Gee, I'm sure this situation will last forever. /s
Driving by a local gas station is a.m. and noting the 30% price premium for Diesel it makes you wonder.
The wonder would be IMHO Diesels are boat anchors for over the road trucks, a dual fueled Otto Cycle that is Direct Injected that can handle Natural Gas and Gasoline would give far more margins for trucking firms. And no Cow P!$$ Emission systems to clean up the Diesels, a variant of the Turbo-DI's we are seeing in autos either boosted into the stratosphere or adding more cylinders would do the trick, some of these engines have gobs of torque...
90 cents! Propane is $2.15 here in rural Oregon, far from the source of supply.
There has been a growing market for Methane fueled Trucks, mostly LNG in the tanks.
But it is still a small fraction of the market. Most interstates now have LNG fueling stations making long haul trucking feasible invavlit of areas.
Cummings / Westport is one of the largest engine manufactures.
Yes I am aware of all you noted, I am not sure we have a dual fuel injector ( yet ) for Gasoline / and the Gaseous Fuel of your choice aka, LNG, or CNG....
Gasoline dual fuel with Nat Gas or propane has been available for many years. I see them more in F150s.
My last fill in Sept I paid......80 cents a Gal! ( I own my tank.)
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