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Nat gas is a commodity that is same price today as 60 years ago and half of 2000s price
Posted on 1/31/24 at 10:49 pm
Posted on 1/31/24 at 10:49 pm
Nat gas in early 2000's was $5 an mcf. Besides the 2022 jump, it mainly stays between $2-$3.30. That's the same price as the 1960s and 70s. It's almost half of what it used to be in early 2000s. This I realize is due to monster wells/frac optimization in the Haynesville and Marcellus where 25 MMcfd (25 million cubic ft a day of nat gas) is possible in first couple months of recent wells. 10 BCF EUR (estimated ultimate reserves) is now pretty easily attained on 1 mile laterals in the Haynesville. Same for Marcellus. Additionally, a good amount of US nat gas is being exported via LNG which would only raises nat gas prices as supply is leaving US. Still it stays low.
Why is oil not following suit? It has same advances in frac optimization. I'm not sure if oil is exporting at same rate as LNG is elsewhere from US. Additionally, nat gas is supposed to be cleaner than oil, so as we transition greener, the market is supposed to favor nat gas over oil creating more demand/higher price for nat gas.
Don't understand why nat gas is 50% what it used to be decades ago where as oil increases at a very very rough increase over time with inflation if averaged out.
I think nat gas might actually be same prices as even the 1940's and 50's as it is today.
Why is oil not following suit? It has same advances in frac optimization. I'm not sure if oil is exporting at same rate as LNG is elsewhere from US. Additionally, nat gas is supposed to be cleaner than oil, so as we transition greener, the market is supposed to favor nat gas over oil creating more demand/higher price for nat gas.
Don't understand why nat gas is 50% what it used to be decades ago where as oil increases at a very very rough increase over time with inflation if averaged out.
I think nat gas might actually be same prices as even the 1940's and 50's as it is today.
This post was edited on 1/31/24 at 10:55 pm
Posted on 1/31/24 at 11:05 pm to Saunson69
Storage. It seems like it could really be as simple as storage, or the lack thereof.
Posted on 1/31/24 at 11:07 pm to Saunson69
I don't know anything about it other than fracking has caused a wild amount of earthquakes all over Oklahoma. That's my only guess.
Posted on 1/31/24 at 11:08 pm to Saunson69
I could go into a long response….but I’ll save everyone the pain.
What I can do it guide you away from natural gas.
I have made a small fortune trading natural gas.
I have lost a fortune trading natural gas.
My counsel is to walk away and focus elsewhere. Avoid the pain I endured.
All that said, I expect a pop soon and will play the leveraged arena hoping to catch the wave!!
What I can do it guide you away from natural gas.
I have made a small fortune trading natural gas.
I have lost a fortune trading natural gas.
My counsel is to walk away and focus elsewhere. Avoid the pain I endured.
All that said, I expect a pop soon and will play the leveraged arena hoping to catch the wave!!
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