The Price of Natural Gas Dr Thomas Chaize March 6th, 2012 Email: dani2989@voila.fr www.dani2989.com The Henry Hub is a major hub of trade between different natural gas pipelines located in Louisiana. The price of Henry Hub is used as reference for the price of natural gas in North America by the contracts of NYMEX (New York Mercantile Exchange). The unit is in dollars per million BTU (Brithish Thermal Unit). The price of natural gas and oil have known for three years a strange divergence. The price of oil has a high level while the price of natural gas is very low. If we divide the price of oil by natural gas prices we get a ratio. This ratio indicates that this divergence is rare because it must go back to the first two oil shock, 30 years ago, to find a similar situation.
The price of natural gas dropped below $ 2.4, which is a major low point occurred only twice in 10 years. In the short term and a statistical point of view, the first quarter is the peak period for natural gas and the last quarter of the period for the high price of natural gas. A very long term, with the growth of NGL production and peak oil, natural gas is destined for much higher price levels. Dr Thomas Chaize
This analysis is available for members of the mailing list free site Dr.Thomas Chaize. |
Home :: Archives :: Contact |
SUNDAY EDITION June 4th, 2023 © 2023 321energy.com |