re: BOIL has become predictable

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shite I bulked up to 6000 shares of ugaz pps of 11.49....1st sell point 1k @ 17.49

If ugaz hits 24 I will have almost tripled my money since we first created this thread just trading boil, kold and ugaz.

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In 2008-10, the newly completed Rockies Express (REX) pipeline into Ohio displaced gas from Louisiana and Texas with cheap and abundant Rockies production. At the same time, pipelines from the growing Haynesville and Fayetteville shale plays elbowed their way into the Southeast/Gulf market. The convergence of those surpluses crushed the Henry Hub price, resulting in significant ramifications for the gas market across North America, and, by obliterating the need for LNG imports, ultimately, global natural gas markets.

Now history is repeating itself. Those same market dynamics are headed toward the Southeast/Gulf, beginning in 2015-16. But this time there is an important difference in the economic profile of those surplus supplies. In that earlier battle for market share, the opponents (Rockies gas versus Southeast gas) were armed with breakeven prices in the $4 to $5/MMbtu range. Most of the production was dry, and producers had yet to realize the significant productivity improvements in drilling and completion technologies seen over the past five years. (For more on those productivity improvements, see Higher and Higher – Drilling Rig Productivity in the Marcellus.)

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