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Why is natural gas going down?

  • Post #1
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  • First Post: Feb 5, 2015 3:16pm Feb 5, 2015 3:16pm
The price of Natural Gas is going down in parallel with Crude Oil. I understand that the price of Crude Oil is going down due to less demand for production in industrial countries. The demand for raw material has been reduced. Natural Gas is used as a source of energy. The demand for heating houses in winter has been reduced?

Why the price of energy is falling down?

I understand that part of these energy resources are used for industrial applications which are in recession, but public demand for energy should not be affected by the economic recession.
Quoting etrade
The price of Natural Gas is going down in parallel with Crude Oil. I understand that the price of Crude Oil is going down due to less demand for production in industrial countries. The demand for raw material has been reduced. Natural Gas is used as a source of energy. The demand for heating houses in winter has been reduced? Why the price of energy is falling down? I understand that part of these energy resources are used for industrial applications which are in recession, but public demand for energy should not be affected...
More nat. gas is being used all the time due to power plants being converted from coal to NG and more fleet vehicles are using NG. The problem though is the abundant supply & the ease in finding more. Fracking has been such a boom to production that just in the Bakken Shale the oil drilling & fracking is producing such a large amount of NG as a byproduct(of oil wells) that drillers are burning off $100 million of NG every month. Lack of pipelines & recovery equipment makes it cheaper to burn it off into the air than capture it. Rules are being discussed now to prevent the burn-offs so even more available supply eventually hitting the market.
Quoting etrade
I understand that part of these energy resources are used for industrial applications which are in recession, but public demand for energy should not be affected by the economic recession.
I am not experienced in this kind of trade but wouldn't a recession in industries play a very major role in the falling of it's demand? I mean,industries are like half of the market,right?
Quoting jing
{quote} I am not experienced in this kind of trade but wouldn't a recession in industries play a very major role in the falling of it's demand? I mean,industries are like half of the market,right?
Do you know what is the recession? Where do you see it?
Well T. Boone Pickens isnt thinking bearish about natural gas prices unlike others and he predicts for the natural gas prices to reach $3.00 by this years winter.
He says “Challenges with supply and demand and geopolitical tensions are to send oil and natural gas prices higher by the end of this year.”
I like EIA outlooks...
  • Post #7
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  • Last Post: Jun 4, 2015 7:22am Jun 4, 2015 7:22am
lol, i dont see the recession as well, the industry might have smaller consumption mostly because of implementation of new technologies into their production
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