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GasBuddy News Article

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Natural gas producers are being forced to scale back as prices fall, storage caverns fill up

Washington Post -- The U.S. natural gas market is bursting at the seams.

So much natural gas is being produced that soon there may be nowhere left to put the country’s swelling surplus. After years of explosive growth, natural gas producers are retrenching.

The underground salt caverns, depleted oil fields and aquifers that store natural gas are rapidly filling up after a balmy winter depressed demand for home heating.

The glut has benefited businesses and homeowners that use natural gas. But with natural gas prices at a 10-year low — and falling — companies that produce the fuel are becoming victims of their drilling successes. Their stock prices are falling in anticipation of declining profits and scaled-back growth plans.


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Submitted Apr 09, 2012 By: eromitlab
Category: Daily News Article Discussions > Topics Add to favorite topics  
Author Topic: Natural gas producers are being forced to scale back as prices fall, storage caverns fill up Back to Topics
REPLIES (newest first) Post a Reply
DrCashFlow
Champion Author Massachusetts

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Message Posted: Apr 16, 2012 10:29:27 AM

high prices lead to tons of exploration and drilling. low prices lead to low or no capex
dave27johnson
Champion Author Chicago

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Points:1,110,245
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Message Posted: Apr 15, 2012 12:48:11 PM

Overproduction leads to storage costs. However, a glut should lead to more use at this price.
sparky808
Champion Author Honolulu

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Message Posted: Apr 10, 2012 1:29:18 PM

Thank you for posting.
A2J
Champion Author Richmond

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Message Posted: Apr 10, 2012 9:51:34 AM

OK
Furrykids
Veteran Author Gainesville

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Message Posted: Apr 10, 2012 9:21:21 AM

Time to buy futures in natural gas?
Ray_10589
Champion Author New York

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Message Posted: Apr 10, 2012 6:41:44 AM

OK
tomok
Champion Author Portland

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Message Posted: Apr 10, 2012 6:03:00 AM

So much natural gas being produced, more fracking harming ground and surface waters, more waste water injected into the ground and no where to sell that NG. Need more uses for natural gas and many more vehicles to use that fuel.
Whatever the size or shape of the vehicle, Produce and ‘Drive’ vehicles with high MPG, are very reliable, have a ‘reasonable’ cost and a good ‘value’ for the money. Consider using other forms of less expensive transportation to lower your cost, if possible.
The price of fuel at the pump is too high!
12/22/2012
MattieDale
Sophomore Author Cincinnati

Posts:236
Points:207,275
Joined:Mar 2003
Message Posted: Apr 10, 2012 12:13:46 AM

Cars yes. Tractor-trailers no. They make one already with a 120 gal cryo tank for LNG. The truck has the same range as a truck with a 50 gal tank. Given that an over the road rig makes an average of 6 miles to the gallon that would give the rig a max range of 300 miles to empty. The average over the road rig by a single driver puts in 500 to 700 miles per day. that would mean at least 2 refuels which would shorten the milage he could travel due to hours of service laws.

The only one bigger than a car that could carry the fuel needed easily would be a train.
yakstar
Champion Author Montreal

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Message Posted: Apr 10, 2012 12:11:57 AM

ya, but my pockets are not bursting with money!
tedjm1
Champion Author New York

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Message Posted: Apr 10, 2012 12:11:41 AM

No balance.
vegboy
All-Star Author Massachusetts

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Points:106,700
Joined:Feb 2012
Message Posted: Apr 10, 2012 12:11:07 AM

all the underground natural gas pipes are antiquated and leaking. heck, in Ma they have lost track of where they are located.
heartbroken2010
Champion Author Ottawa

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Message Posted: Apr 10, 2012 12:10:51 AM

as far as i know , you cant suck and blow at the same time , so i guess this is a small relief.
rtw777
Champion Author Florida

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Message Posted: Apr 10, 2012 12:10:06 AM

Too much of anything is not good.
cmsense
Champion Author Columbus

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Message Posted: Apr 10, 2012 12:09:05 AM

Enjoy the low price while it lasts.
Z06KY
Champion Author Louisville

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Message Posted: Apr 10, 2012 12:07:40 AM

Obama need to push for more natural gas usage in manufacturing, tractor trailers, cars and heating large building, factories and homes and schools.
NOW!!!!!!!!!!!!!
regout
Champion Author Quebec

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Message Posted: Apr 10, 2012 12:07:15 AM

Good.
mcmonsta
Champion Author Honolulu

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Message Posted: Apr 10, 2012 12:07:03 AM

again we get screwed now because of oversupply
Colts13
Champion Author Indiana

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Message Posted: Apr 10, 2012 12:06:02 AM

Ok.
joel27nc
Champion Author Raleigh

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Message Posted: Apr 10, 2012 12:04:52 AM

Wish I could use NG
69Bonne
Champion Author Gary

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Joined:Sep 2005
Message Posted: Apr 10, 2012 12:02:41 AM

Maybe I won't have to spend $3k now for a new furnace and just let my old one run.
TheBusStopsHere
Champion Author Oklahoma

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Message Posted: Apr 10, 2012 12:02:08 AM

yawn...
bvrbill
Champion Author Eugene

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Message Posted: Apr 10, 2012 12:01:59 AM

I agree with jessek. We need more CNG vehicles.
DandyDapple
All-Star Author North Dakota

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Message Posted: Apr 9, 2012 11:58:19 PM

OMG 2012
Ray_10589
Champion Author New York

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Message Posted: Apr 9, 2012 11:55:40 PM

OK
mdskier
Champion Author Sacramento

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Message Posted: Apr 9, 2012 11:55:27 PM

good, we'll keep our gas fired boiler with hot water
radiators.
Tucker1961
Champion Author Seattle

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Message Posted: Apr 9, 2012 11:52:26 PM

price fixing
USCCRN
Sophomore Author Long Island

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Joined:Mar 2012
Message Posted: Apr 9, 2012 11:52:18 PM

Now maybe this is a good sign for the average consumer. Energy prices are lowering and so is the standard of living costs.
aggietim
Champion Author Fort Worth

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Message Posted: Apr 9, 2012 11:51:30 PM

Good
jessek
Champion Author Detroit

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Message Posted: Apr 9, 2012 11:51:25 PM

Definitely time for CNG vehicles.
Holly123
Champion Author Charlotte

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Message Posted: Apr 9, 2012 11:50:24 PM

All this is waiting to be debated at election time. Thank God!
regout
Champion Author Quebec

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Message Posted: Apr 9, 2012 11:49:43 PM

Good.
flghtmedic
All-Star Author Pensacola

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Message Posted: Apr 9, 2012 11:48:05 PM

Put it in my gas tank! Oh, right it will take Detroit 30 years to decide NG is the way to go before they mass produce NG vehicles.
carman11
Champion Author North Carolina

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Message Posted: Apr 9, 2012 11:45:56 PM

INTERESTING
OGW
Champion Author London

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Message Posted: Apr 9, 2012 11:43:13 PM

Good business plans require good planning.
LaVonneK
Champion Author Iowa

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Message Posted: Apr 9, 2012 11:43:06 PM

Oh.
rayla36
Sophomore Author Columbus

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Joined:Mar 2012
Message Posted: Apr 9, 2012 11:42:29 PM

Why aren't we using it?
miiike572
All-Star Author Phoenix

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Message Posted: Apr 9, 2012 11:38:00 PM

yep
puinsai808
Champion Author Honolulu

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Message Posted: Apr 9, 2012 11:37:45 PM

Okay.
nwsynthetics
Champion Author Oregon

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Message Posted: Apr 9, 2012 11:36:03 PM

Its always something
blazerbob91
Champion Author Milwaukee

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Message Posted: Apr 9, 2012 11:35:24 PM

They brought it on themselves.
tes283
All-Star Author Tampa

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Message Posted: Apr 9, 2012 11:31:09 PM

Then lets us find green ways to use it.
skyking19
Champion Author Little Rock

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Message Posted: Apr 9, 2012 11:31:07 PM

Need a hard push to change class 8 commerical vehicles to CNG, let's use it. Come on man!
gmcgas
Champion Author Atlanta

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Message Posted: Apr 9, 2012 11:26:36 PM

make a kit to retro fit what we already have that's we can afford. don't need to take years to pay for itself.
mstearno
Champion Author Dayton

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Message Posted: Apr 9, 2012 11:19:25 PM

drill oil
Ken2OD
Champion Author Grand Rapids

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Joined:Dec 2005
Message Posted: Apr 9, 2012 11:18:16 PM

SIMPLE! Start making more car engines ready to burn natural gas.
Taurus1
Champion Author Ohio

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Message Posted: Apr 9, 2012 11:16:59 PM

Need more options
eric2theem
Sophomore Author Riverside

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Points:30,980
Joined:Mar 2012
Message Posted: Apr 9, 2012 11:15:16 PM

too bad company's like Halliburton and Shlumberger are bursting at its seems with cash it wont hurt them at, all the natural damage to the earth on the other hand..
chillyman3
Champion Author Illinois

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Message Posted: Apr 9, 2012 11:14:54 PM

ok
abcdMA
Champion Author Worcester

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Message Posted: Apr 9, 2012 11:11:40 PM

we need to sue more natural gas
tippybuddy
Champion Author Ontario

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Joined:Feb 2011
Message Posted: Apr 9, 2012 11:11:12 PM

I wish I could cash in on the natural gas lower prices but I can't get natural gas in my area...
edgarCA
Champion Author Oakland

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Joined:Jun 2009
Message Posted: Apr 9, 2012 11:09:10 PM

Thanks
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