Jan 14, 2010
| about stocks: CHK, DVN, EOG, APC, APA, XTO, XOM, CVX, OXY, MRO
If you are short natural gas thinking all is calm, you probably won't sleep well tonight and through the upcoming weekend.
Mr.Miller opined today that in his opinion the very sizable reported withdrawal from natural gas of 266 Bcf was understated by approximately 15Bcf when you factor in the demand curtailments on the mainline pipelines, force majeure provisions that were declared last week, and freeze offs, the actual number should be approximately 280 Bcf. To see the full article go to:
Believing that risk had subsided, and volatility had gone away, traders got very short natural gas and natural gas producers today. Then along comes another monster storm of a different variety which is going to hit the gulf coast and the primary natural gas producing regions.
As we all know, the Gulf coast of Texas and Louisana are major production and gathering regions for natural gas and oil. Guess where the storm is going to hit right in the middle of peak winter season, after an understated gas withdrawal and with producers and pipelines still reeling from last weeks massive snow storm whichhit both producing and consuming regions.
Joe Bastardi, thesenior expert meteorologist for AccuWeather.com, in State College,Pennsylvania, compared the system to a “minimal tropical storm,”forecasting waves of 10 to 15 feet and winds up to 50 miles per hour(80 kilometers per hour).
Bastardi said yesterday that oil and natural gas operations in the Gulf may be “disturbed.” The waters are home to 27 percent of U.S. oil production and 15 percent of natural gas output, according to the U.S. Energy Department. To see the full article go to:
Disclosure: Long Energy Companies