While few gas market observers would disagree that the recent gas price spikes have been significantly overdone, this does not rule out the possibility that there has been a legitimate tightening in the market, according to energy consultant Stephen Smith of Natchez, MS-based Stephen Smith Energy Associates.
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Rockies Plays Difficult, But Have ‘Enormous’ Potential
The experts disagree on how much recoverable gas there is in the Rocky Mountains, but economists, E&P and pipeline executives working in the area do agree it is “under explored and under exploited,” with extremely complex geology requiring new technologies that are continuously under development, as well as increased land access and investment in infrastructure.
Rockies Plays Difficult, But Have ‘Enormous’ Potential
The experts disagree on how much recoverable gas there is in the Rocky Mountains, but economists and E&P and pipeline executives working in the area do agree it is “under explored and under exploited,” with extremely complex geology requiring new technologies that are continuously under development, as well as increased land access and investment in infrastructure.
Futures Slip Lower Tuesday as Bulls Disagree on Timing of Next Rally
After failing to reach Monday’s high despite an early-morning Access session rally, the natural gas futures market ground lower Tuesday as the midweek doldrums again favored bears. The May contract closed at $5.108 down 2.6 cents in a session that only saw only 47,344 contracts change hands.
Gas Futures Spike on Expectations for Colder Weather, But Some Forecasters Disagree
Bullied by sudden and seldom-seen agreement between private and governmental weather forecasting agencies last week, natural gas futures spiked 40-50 cents higher Wednesday evening and Thursday as traders initiated long positions that they had liquidated over the past several weeks.
Market Experts Disagree on Future Direction of Gas Prices
Few if any market observers a month ago predicted near-month futures prices would be approaching $3.50/MMBtu in March given the large surplus of natural gas in the nation’s storage fields and the weak economy. But it happened, and now consultants and analysts are battling over which path prices will take in the next few months. In one corner, Houston-based Simmons & Company International believes the puzzling spurt in natural gas prices is over, while in the other corner analysts at Raymond James & Associates say it’s here to stay.
Raymond James Predicts Another ‘Gas Crisis’ Ahead; Some Disagree
Analysts at Raymond James & Associates predicted last week in a research note that “the U.S. will be in the midst of another full-blown natural gas crisis within the next 12 months” because of an economic recovery and a decline in gas drilling. Several prominent industry consultants, however, quickly labeled the remarks sensationalism designed to grab headlines and sell energy stocks.
Raymond James Predicts ‘Gas Crisis’ Ahead; Some Disagree
Spot prices continue to languish below $2.20 with some speculators predicting another dip below $2 because of the warm winter and the resulting oversupply situation in storage, but that hasn’t stopped some observers on Wall Street from predicting the sky will be falling again next winter with prices rocketing to unexpected levels and gas in short supply.
Futures Tank as Forecasters Disagree With Groundhog
Amid revised forecasts calling for warmer-than-normal weatherthrough mid-month, natural gas futures prices plunged yesterday astraders took advantage of a gap lower open and quickly pushed theMarch contract to its $1.00 lock-limit down. After being halted forthe Nymex-mandated 15 minutes, trading resumed at 11:15 a.m. (ET)yesterday with new $2.00 limits on either side of Friday’s $6.743March close. Additional selling was seen at the close, demoting theprompt month to $5.706, a $1.037 loss for the day.
Producer, Consultant Disagree on Outlook
Producers predicting gloom and doom for gas supply based on 1997reserve replacement estimates are being way too pessimistic,according to Tom Woods, Ziff Energy Group vice president for U.S.gas services. He told attendees at GasMart/Power ’98 Wednesday inNew Orleans the reason gas prices have been so high is that themarket is spooked. “How much of what we are seeing is the substanceof what is occurring and how much of what we are seeing is reallythe form it is taking because of some change maybe in industrybooking practices? I would suggest to you that industry bookingpractices are beginning to resemble a more traditional inventoryapproach to life rather than the very long-term reserve toproduction ratios that we traditionally used to have in terms ofrecovery…”