Natural Gas News – May 21, 2018
Natural Gas News – May 21, 2018
Thank Goodness for U.S. Natural Gas Exports
Forbes reported: A recent article caught my attention and hopefully yours, “Trump’s Iran Move May Kick Worst U.S. Gas Market While It’s Down.” There is indeed logic to the simplified idea: rising oil prices mean rising rig counts and rising oil production, which means rising associated natural gas production and thus falling natural gas prices. The notion stems from the booming Permian basin in West Texas, our largest oil field and second largest gas field, the latter in spite of having no gas-directed rigs. But logic doesn’t always suffice in the increasingly complex energy markets that we love to talk about. In the more than week’s time since the Iran decision, for instance, gas prices are up 4-5%, and we’ve seen the highest prompt month settles since the end of January (prompt month has been jostling in a tight $2.60 to $2.85 range for months now). Indeed, there are a number of factors that won’t allow our gas prices to go “too low.” Increasingly, it will be our rising export complex that won’t let U.S. gas prices to drop too much. For more on this story visit forbes.com or click https://bit.ly/2IzHXju
A Natural Gas Tax Will Work in Pennsylvania
Post Gazette reported: Pennsylvania is fortunate to have one of the world’s most prolific sources of natural gas right under our feet in the Marcellus and Utica shales. Gov. Tom Wolf has strategically positioned the commonwealth to take advantage of these resources, including his proposal for a commonsense severance tax on extracted gas. Though some groups are fighting hard to spread false claims that a severance tax will kill jobs and overtax the gas industry, that is simply not the case. Mr. Wolf’s track record in the private sector shows that he understands business. And, he also understands when companies aren’t paying their fair share to extract the abundant natural gas here in Pennsylvania For more on this story visit post-gazette.com or click https://bit.ly/2LlhTGe
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