Investor Buying Brings Gas Futures Up
The Wall Street Journal reported that natural gas futures rose on investor buying ahead of the US Energy Information Administration's upcoming gas inventories report.
Articles Tagged "EIA"
Natural Gas Trumps Coal as Fuel for Electricity Generation
Bloomberg reported that a statement from the US Energy Information Administration indicates that coal's contribution to electricity generation will drop 37 percent this year. Further, coal will not recover the bulk of the share of electricity generation that it has lost to natural gas, according to Moody's Investors Service.
2011 Gas Market Trends
The ‘shale revolution’ drove US natural gas prices lower in 2011, but oil-indexed contracts and the March earthquake in Japan meant pricier gas for the rest of the world.
States Push For Disclosure Over Hydrofracking
State governments are increasingly flexing their regulatory muscle and mandating increased transparency around hydrofracking to allay public fears.
Gas Market Q4 Outlook
Gas prices maintain their stubborn streak, but drillers remain active with the US winter heating season set to begin late in Q4.
2011 Gas Market Trends
Compared to oil, gas has been rather low-key so far in 2011.
China Continuing to Obtain Gas Resources
The recent deal represents the biggest investment to date by a Chinese company in the North American energy sector, appearing to balance demand to develop gas fields at a time when low commodity prices are not providing companies with enough cash flow efficiently. The agreement could underscore greater exposure for resource companies to eventually export shipments to offshore markets.
Polish Shale Gas
Poland’s reserves of shale gas may be as much as 3 trillion cubic meters, according to estimates by geologists and energy consultants, potentially making the country a net exporter of gas and reducing Europe’s dependence on Russia.
Gas Price Trends
In recent history, gas prices have generally followed a relatively seasonal pattern with prices rising during the summer driving season and falling after Labor Day. However, 2010 has seen a reversal in this pattern; the national average price has risen by 30 cents per gallon since Labor Day, the largest increase over that period since the 1990 inception of Energy Information Agency (EIA) weekly published retail gasoline price data. The current average price range in the US for the third week of December of approximately $2.98 per gallon is the second highest on record, eclipsed only by the 2007 average price reaching $3.00 per gallon.
Analysts’ Forecasts Positive for Gas Investors
On Tuesday, Richard Bernstein, Chief Executive Officer at Richard Bernstein Advisors LLC (RBA) offered bullish commentary for the broader energy sector for 2011: “if the economy is indeed beginning to enter the mid-phase of the cycle, then energy and materials stocks begin to take leadership positions. We expect both global sectors to outperform in 2011.”
