End in Sight for U.S. Natural Gas Glut…. WSJ

September 5, 2016 by Jim Colburn Leave a Comment

Keep this 25 year price chart of natural gas (from barchart.com) in mind when reading Spencer Jakob’s piece in the Wall Street Journal:

Here is the link: http://www.wsj.com/articles/end-in-sight-for-u-s-natural-gas-glut-1472830203

The commodity cycle at work:

“… the historic cheapness of gas has stoked demand for it as a power generation fuel. Two decades ago, the U.S. electricity sector used over 4½ times as much coal by energy value as natural gas. Last year, it was 1.4 times and the shift has continued. The EIA said in March that this year should see gas use overtake coal for the first time ever. U.S. power producers consumed a seasonal record amount of gas in June, up 9% from a year earlier, while coal shipments by rail are down by over 25% year-to-date, according to the Association of American Railroads.”

Early comments are good too….

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