Natural Gas News – February 23, 2018
Cleaner And Cheaper: The Future of Natural Gas
Oilprice.com reported: Natural gas is the bridge fuel of the future that will carry the world until renewables take over. It is much cleaner than coal and oil, and it’s cheap. Natural gas is the best of the fossil fuels. Amid all this praise, it’s no wonder that the gas industry was surprised this week when the Energy Insti-tute reminded us that while natural gas is cleaner than coal and oil, it is not a clean fuel per se. But, the EI said, a lot can be done cost-efficiently to make it cleaner than it currently is. Cutting 40– 50 percent of the current level of methane emissions from the production and distribution of natural gas would carry no additional net cost for the industry players, the institute said. As much as 75 percent of emissions in the gas industry can be cut, the International Energy Agency said in its 2017 World Energy Outlook.
Will U.S. Natural Gas Prices Rise in Spring?
Forbes reported: Even though many cities across the nation hit record high temps yesterday, it’s still hard to imagine that the Winter natural gas market is slipping away. As the last Winter contract, prompt month March expires on February 26. Prices have been at their lowest levels since June 2016. And now at 77-78 Bcf/d, record dry production is the lid on the market, with more pipelines to encourage more output this year. The ~$2.55 price is proving to be a very strong support level, the floor for now. EIA has production outpacing domestic demand by about 3 Bcf/d both this year and next, compared to a 1 Bcf/d deficit last year (note: domestic demand doesn’t include exports, which is why they are the true wildcard in the gas market going forward).Yet, an upside correct seems plausible. Prices were up 6 cents yesterday to $2.61. At this low price, fuel switching from coal to gas in the power sector becomes very attractive. And technical indicators have the market closer to the 30 oversold threshold, with RSI below 40 since February 2.