As many of you are aware or have experienced, natural gasA naturally occurring mixture of hydrocarbon and non-hydrocarbon gases beneath the earth’s surface – often in association with petroleum. prices have literally bottomed from the all time highs that occurred back in 2009. The futures strip is trading at 10 year lows and there are a number of companies that are taking advantage of the pricing opportunities by locking up natural gasA naturally occurring mixture of hydrocarbon and non-hydrocarbon gases beneath the earth’s surface – often in association with petroleum. pricing for a number of years going forward.
According to recent market analysis as shared by the Department of Revenue, locking natural gasA naturally occurring mixture of hydrocarbon and non-hydrocarbon gases beneath the earth’s surface – often in association with petroleum. prices now is a good move which positions companies to establish a fixed price for a number of months going forward. There are a number of analysts who believe that locking natural gasA naturally occurring mixture of hydrocarbon and non-hydrocarbon gases beneath the earth’s surface – often in association with petroleum. futures now could jeopardize risks of catching additional savings opportunities as a result of the Marcellus ShaleA fine grained sedimentary rock composed mostly of consolidated clay or mud. Shale is the most frequently occurring sedimentary rock.ShaleA fine grained sedimentary rock composed mostly of consolidated clay or mud. Shale is the most frequently occurring sedimentary rock. is one of the most highly productive types of sedimentary rock whose density provides tight stores forhydrocarbon reserves below. Marcellus ShaleA fine grained sedimentary rock composed mostly of consolidated clay or mud. Shale is the most frequently occurring sedimentary rock. is a rock formationA body of earth material with distinctive and characteristic properties. running through about two-thirds of Pennsylvania, and areas of New York and West Virginia. Geologists estimate that there is a large enough natural gas reserve within the shaleA fine grained sedimentary rock composed mostly of consolidated clay or mud. Shale is the most frequently occurring sedimentary rock. to power the United States for one to eight years. initiatives. Some analysts believe that there is still additional “bottom” to the natural gasA naturally occurring mixture of hydrocarbon and non-hydrocarbon gases beneath the earth’s surface – often in association with petroleum. futures pricing and that companies should stay on a month-to-month pricing model going forward. Other analysts feel differently.
Bruce Scroxton, president of Tru Gas Inc., says that the Marcellus ShaleA fine grained sedimentary rock composed mostly of consolidated clay or mud. Shale is the most frequently occurring sedimentary rock.ShaleA fine grained sedimentary rock composed mostly of consolidated clay or mud. Shale is the most frequently occurring sedimentary rock. is one of the most highly productive types of sedimentary rock whose density provides tight stores forhydrocarbon reserves below. Marcellus ShaleA fine grained sedimentary rock composed mostly of consolidated clay or mud. Shale is the most frequently occurring sedimentary rock. is a rock formationA body of earth material with distinctive and characteristic properties. running through about two-thirds of Pennsylvania, and areas of New York and West Virginia. Geologists estimate that there is a large enough natural gas reserve within the shaleA fine grained sedimentary rock composed mostly of consolidated clay or mud. Shale is the most frequently occurring sedimentary rock. to power the United States for one to eight years. impact will actually drive prices higher in the long term months. “We believe that short term the Marcellus ShaleA fine grained sedimentary rock composed mostly of consolidated clay or mud. Shale is the most frequently occurring sedimentary rock.ShaleA fine grained sedimentary rock composed mostly of consolidated clay or mud. Shale is the most frequently occurring sedimentary rock. is one of the most highly productive types of sedimentary rock whose density provides tight stores forhydrocarbon reserves below. Marcellus ShaleA fine grained sedimentary rock composed mostly of consolidated clay or mud. Shale is the most frequently occurring sedimentary rock. is a rock formationA body of earth material with distinctive and characteristic properties. running through about two-thirds of Pennsylvania, and areas of New York and West Virginia. Geologists estimate that there is a large enough natural gas reserve within the shaleA fine grained sedimentary rock composed mostly of consolidated clay or mud. Shale is the most frequently occurring sedimentary rock. to power the United States for one to eight years. impact will keep prices low but drillers and suppliers aren’t going to tolerate that position for a long period of time,” Scroxton said. “They will begin to shut wells and production down thus causing the ‘supply and demand’ impact to take effect and drive prices to a higher level in the 1st quarter of 2013.”
Natural gasA naturally occurring mixture of hydrocarbon and non-hydrocarbon gases beneath the earth’s surface – often in association with petroleum. companies and supporters aren’t ignorant to what is taking place and will do what is necessary to ensure that prices move northward in the coming months. Contrary to what Bullish analysts believe, bearish analysts believe that gas prices will remain low and continue to move lower as the shaleA fine grained sedimentary rock composed mostly of consolidated clay or mud. Shale is the most frequently occurring sedimentary rock. drilling initiatives take place.
“The supply that is being generated as a result of the initiatives set forth in the Marcellus ShaleA fine grained sedimentary rock composed mostly of consolidated clay or mud. Shale is the most frequently occurring sedimentary rock.ShaleA fine grained sedimentary rock composed mostly of consolidated clay or mud. Shale is the most frequently occurring sedimentary rock. is one of the most highly productive types of sedimentary rock whose density provides tight stores forhydrocarbon reserves below. Marcellus ShaleA fine grained sedimentary rock composed mostly of consolidated clay or mud. Shale is the most frequently occurring sedimentary rock. is a rock formationA body of earth material with distinctive and characteristic properties. running through about two-thirds of Pennsylvania, and areas of New York and West Virginia. Geologists estimate that there is a large enough natural gas reserve within the shaleA fine grained sedimentary rock composed mostly of consolidated clay or mud. Shale is the most frequently occurring sedimentary rock. to power the United States for one to eight years. project can only continue to keep prices low and drive them lower during 3rd and 4th quarter 2012,” cites Jeff Poborsky of JRyan Consulting. The market has nowhere to move but to run lower due to excess supply and continuing drilling efforts in the region.”
As with the stock market, depending on how “bullish” or “bearish” you are, taking proper position and executing proper buys depending on your companies risk tolerance is critical given what the market is offering at this time. Conservative buyers should lock pricing now and do it for a two or three year period to establish budget certainty. Risk takers should take a “hold” position and float the market until market indicators show otherwise. In either instance, it is a “great day to make a move.”
Provided By: Keith Venezie, CEO of The Eric Ryan Corporation
