- Analysts say rising production from Pennsylvania gas wells soon will collide with growing quantities from west Texas fields, and shipments to Mexico and other foreign markets are not growing fast enough to absorb output from U.S. shale fields.
- Investors spooked by the potential of a gas glut later this year have dumped natural gas stocks over the past two weeks, slamming the likes of Southwestern Energy (SWN +0.8%), Gulfport Energy (GPOR -0.5%) and Range Resources (RRC +1.6%), which have suffered respective YTD losses of 30%, 28% and 22%.
- SWN says a "robust hedging program" and a commitment to "rigorous financial discipline" will help it through a lower commodity price environment.
- Bloomberg says more than 9B cf/day of pipelines will be added in the northeastern U.S. this year, most shipping gas southbound, and drillers in the region raised production 15% Y/Y to 26B cf/day in November; at the same time, the amount of gas produced in Texas jumped 6.7% Y/Y to 23B cf/day - all on the heels of rising oil prices, which encourage producers to pump more ad maximize profits.
- ETFs: UNG, UGAZ, DGAZ, BOIL, GASL, FCG, KOLD, UNL, GASX, DCNG, GAZB
- Now read: Groundhog Day In Natural Gas
Original article