| Why Now Is The Time For Investors To Pick Up Positions In NatGas | |
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The U.S. EIA recently found that production from seven major shale basins in the U.S. should start to drop quickly after reaching an all-time production high in May. The seven basins produced a total of 45.6 billion cubic feet per day of gas in May, but that figure should drop 1.5 percent by September. Of the seven basins, only Utica will post an increase in production. The drop in supply is largely a result of slow depletion from legacy wells combined with a decline in new wells being drilled. With natural gas prices and oil prices still at very low levels even after the small rebound last week, producers simply do not have much of an incentive to drill new wells. The volatility around energy prices is also playing a role, as it makes it harder for companies to plan and properly hedge production. Related:We Could See An Economic Collapse As Debt Defaults Pile Up This is good news for the markets though. To the extent that demand growth is weak, and there has been a glut of gas recently, the EIA data suggests that the markets are starting to sort themselves out. As production falls, prices should rise a bit until producers can make a profit by drilling new wells. Despite the prospect of falling production, natural gas prices and stocks have yet to really respond. Even the EIA is starting to revise its price expectations upward. Of course no one is expecting natural gas prices to come back to $4 per million Btu (MMBtu) anytime soon, but for stock market investors, the price trend is starting to head in the right direction. If producers continue to throttle back on production, stock prices should start to see appreciable gains before the end of the year from current levels. |
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Cheniere Energy Inc.
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CODE : LNG |
ISIN : US16411R2085 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Cheniere Energy is a exploration company based in United states of america. Cheniere Energy is listed in United States of America. Its market capitalisation is US$ 42.9 billions as of today (€ 38.6 billions). Its stock quote reached its lowest recent point on December 31, 2001 at US$ 0.75, and its highest recent level on September 06, 2024 at US$ 180.64. Cheniere Energy has 237 656 695 shares outstanding. |