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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

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DrCashFlow Champion Author Massachusetts Posts:7,064 Points:1,626,250 Joined:Jun 2008	Message Posted: Apr 16, 2012 10:29:27 AM Ignore DrCashFlow Report Abuse high prices lead to tons of exploration and drilling. low prices lead to low or no capex
dave27johnson Champion Author Chicago Posts:1,787 Points:407,575 Joined:Feb 2012	Message Posted: Apr 15, 2012 12:48:11 PM Ignore dave27johnson Report Abuse Overproduction leads to storage costs. However, a glut should lead to more use at this price.
sparky808 Champion Author Honolulu Posts:2,998 Points:597,735 Joined:Sep 2011	Message Posted: Apr 10, 2012 1:29:18 PM Ignore sparky808 Report Abuse Thank you for posting.
A2J Champion Author Richmond Posts:3,070 Points:601,975 Joined:Aug 2011	Message Posted: Apr 10, 2012 9:51:34 AM Ignore A2J Report Abuse OK
Furrykids Sophomore Author Gainesville Posts:230 Points:555,615 Joined:Mar 2011	Message Posted: Apr 10, 2012 9:21:21 AM Ignore Furrykids Report Abuse Time to buy futures in natural gas?
Ray_10589 Champion Author New York Posts:4,946 Points:1,182,985 Joined:May 2009	Message Posted: Apr 10, 2012 6:41:44 AM Ignore Ray_10589 Report Abuse OK
tomok Champion Author Portland Posts:32,995 Points:2,345,510 Joined:Aug 2006	Message Posted: Apr 10, 2012 6:03:00 AM Ignore tomok Report Abuse 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 Ignore MattieDale Report Abuse 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 Posts:2,415 Points:479,070 Joined:Jan 2012	Message Posted: Apr 10, 2012 12:11:57 AM Ignore yakstar Report Abuse ya, but my pockets are not bursting with money!
tedjm1 Champion Author New York Posts:5,609 Points:800,300 Joined:Dec 2006	Message Posted: Apr 10, 2012 12:11:41 AM Ignore tedjm1 Report Abuse No balance.
vegboy All-Star Author Massachusetts Posts:550 Points:106,700 Joined:Feb 2012	Message Posted: Apr 10, 2012 12:11:07 AM Ignore vegboy Report Abuse 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 Posts:4,344 Points:897,235 Joined:Aug 2010	Message Posted: Apr 10, 2012 12:10:51 AM Ignore heartbroken2010 Report Abuse 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 Posts:9,391 Points:1,841,020 Joined:Jan 2008	Message Posted: Apr 10, 2012 12:10:06 AM Ignore rtw777 Report Abuse Too much of anything is not good.
cmsense Champion Author Columbus Posts:1,358 Points:165,345 Joined:Jan 2012	Message Posted: Apr 10, 2012 12:09:05 AM Ignore cmsense Report Abuse Enjoy the low price while it lasts.
Z06KY Champion Author Louisville Posts:5,140 Points:904,740 Joined:Nov 2010	Message Posted: Apr 10, 2012 12:07:40 AM Ignore Z06KY Report Abuse 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 Posts:2,950 Points:831,730 Joined:May 2010	Message Posted: Apr 10, 2012 12:07:15 AM Ignore regout Report Abuse Good.
mcmonsta Champion Author Honolulu Posts:3,227 Points:817,795 Joined:Sep 2009	Message Posted: Apr 10, 2012 12:07:03 AM Ignore mcmonsta Report Abuse again we get screwed now because of oversupply
Colts13 Champion Author Indiana Posts:1,571 Points:548,285 Joined:Mar 2011	Message Posted: Apr 10, 2012 12:06:02 AM Ignore Colts13 Report Abuse Ok.
joel27nc Champion Author Raleigh Posts:10,532 Points:1,857,395 Joined:Mar 2008	Message Posted: Apr 10, 2012 12:04:52 AM Ignore joel27nc Report Abuse Wish I could use NG
69Bonne Champion Author Gary Posts:1,150 Points:473,150 Joined:Sep 2005	Message Posted: Apr 10, 2012 12:02:41 AM Ignore 69Bonne Report Abuse Maybe I won't have to spend $3k now for a new furnace and just let my old one run.
TheBusStopsHere Champion Author Oklahoma Posts:12,485 Points:2,465,910 Joined:Jun 2006	Message Posted: Apr 10, 2012 12:02:08 AM Ignore TheBusStopsHere Report Abuse yawn...
bvrbill Champion Author Eugene Posts:3,217 Points:517,775 Joined:Jul 2011	Message Posted: Apr 10, 2012 12:01:59 AM Ignore bvrbill Report Abuse I agree with jessek. We need more CNG vehicles.
DandyDapple All-Star Author North Dakota Posts:715 Points:310,070 Joined:Sep 2008	Message Posted: Apr 9, 2012 11:58:19 PM Ignore DandyDapple Report Abuse OMG 2012
Ray_10589 Champion Author New York Posts:4,946 Points:1,182,985 Joined:May 2009	Message Posted: Apr 9, 2012 11:55:40 PM Ignore Ray_10589 Report Abuse OK
mdskier Champion Author Maryland Posts:9,935 Points:1,782,610 Joined:Aug 2005	Message Posted: Apr 9, 2012 11:55:27 PM Ignore mdskier Report Abuse good, we'll keep our gas fired boiler with hot water radiators.
Tucker1961 Champion Author Seattle Posts:2,157 Points:363,170 Joined:Jun 2009	Message Posted: Apr 9, 2012 11:52:26 PM Ignore Tucker1961 Report Abuse price fixing
USCCRN Sophomore Author Long Island Posts:145 Points:104,240 Joined:Mar 2012	Message Posted: Apr 9, 2012 11:52:18 PM Ignore USCCRN Report Abuse 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 Posts:1,756 Points:693,325 Joined:Oct 2008	Message Posted: Apr 9, 2012 11:51:30 PM Ignore aggietim Report Abuse Good
jessek Champion Author Detroit Posts:2,657 Points:1,280,490 Joined:Sep 2008	Message Posted: Apr 9, 2012 11:51:25 PM Ignore jessek Report Abuse Definitely time for CNG vehicles.
Holly123 Champion Author Charlotte Posts:3,197 Points:789,235 Joined:Dec 2010	Message Posted: Apr 9, 2012 11:50:24 PM Ignore Holly123 Report Abuse All this is waiting to be debated at election time. Thank God!
regout Champion Author Quebec Posts:2,950 Points:831,730 Joined:May 2010	Message Posted: Apr 9, 2012 11:49:43 PM Ignore regout Report Abuse Good.
flghtmedic All-Star Author Pensacola Posts:517 Points:383,955 Joined:Apr 2006	Message Posted: Apr 9, 2012 11:48:05 PM Ignore flghtmedic Report Abuse 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 Posts:3,337 Points:691,725 Joined:Jun 2011	Message Posted: Apr 9, 2012 11:45:56 PM Ignore carman11 Report Abuse INTERESTING
OGW Champion Author London Posts:5,324 Points:1,531,150 Joined:Sep 2005	Message Posted: Apr 9, 2012 11:43:13 PM Ignore OGW Report Abuse Good business plans require good planning.
LaVonneK Champion Author Iowa Posts:2,940 Points:625,775 Joined:Jul 2011	Message Posted: Apr 9, 2012 11:43:06 PM Ignore LaVonneK Report Abuse Oh.
rayla36 Sophomore Author Columbus Posts:118 Points:39,410 Joined:Mar 2012	Message Posted: Apr 9, 2012 11:42:29 PM Ignore rayla36 Report Abuse Why aren't we using it?
miiike572 All-Star Author Phoenix Posts:798 Points:524,915 Joined:Apr 2009	Message Posted: Apr 9, 2012 11:38:00 PM Ignore miiike572 Report Abuse yep
puinsai808 Champion Author Honolulu Posts:3,539 Points:726,330 Joined:May 2011	Message Posted: Apr 9, 2012 11:37:45 PM Ignore puinsai808 Report Abuse Okay.
nwsynthetics Champion Author Oregon Posts:1,014 Points:345,675 Joined:Dec 2011	Message Posted: Apr 9, 2012 11:36:03 PM Ignore nwsynthetics Report Abuse Its always something
blazerbob91 Champion Author Milwaukee Posts:6,140 Points:1,882,695 Joined:Aug 2005	Message Posted: Apr 9, 2012 11:35:24 PM Ignore blazerbob91 Report Abuse They brought it on themselves.
tes283 All-Star Author Tampa Posts:865 Points:368,850 Joined:Dec 2011	Message Posted: Apr 9, 2012 11:31:09 PM Ignore tes283 Report Abuse Then lets us find green ways to use it.
skyking19 Champion Author Little Rock Posts:1,996 Points:1,698,715 Joined:Jan 2007	Message Posted: Apr 9, 2012 11:31:07 PM Ignore skyking19 Report Abuse Need a hard push to change class 8 commerical vehicles to CNG, let's use it. Come on man!
gmcgas Champion Author Atlanta Posts:5,948 Points:1,713,195 Joined:Mar 2004	Message Posted: Apr 9, 2012 11:26:36 PM Ignore gmcgas Report Abuse 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 Posts:8,066 Points:1,731,235 Joined:Jan 2008	Message Posted: Apr 9, 2012 11:19:25 PM Ignore mstearno Report Abuse drill oil
Ken2OD Champion Author Grand Rapids Posts:9,067 Points:1,970,965 Joined:Dec 2005	Message Posted: Apr 9, 2012 11:18:16 PM Ignore Ken2OD Report Abuse SIMPLE! Start making more car engines ready to burn natural gas.
Taurus1 Champion Author Ohio Posts:3,125 Points:1,673,500 Joined:Apr 2006	Message Posted: Apr 9, 2012 11:16:59 PM Ignore Taurus1 Report Abuse Need more options
eric2theem Sophomore Author Riverside Posts:105 Points:30,155 Joined:Mar 2012	Message Posted: Apr 9, 2012 11:15:16 PM Ignore eric2theem Report Abuse 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 Posts:1,355 Points:423,640 Joined:Jan 2012	Message Posted: Apr 9, 2012 11:14:54 PM Ignore chillyman3 Report Abuse ok
abcdMA Champion Author Worcester Posts:7,922 Points:1,574,980 Joined:Nov 2008	Message Posted: Apr 9, 2012 11:11:40 PM Ignore abcdMA Report Abuse we need to sue more natural gas
tippybuddy Champion Author Ontario Posts:1,523 Points:207,740 Joined:Feb 2011	Message Posted: Apr 9, 2012 11:11:12 PM Ignore tippybuddy Report Abuse I wish I could cash in on the natural gas lower prices but I can't get natural gas in my area...