Friday, January 29, 2010

This is Why you don't Get Short Natural Gas in Winter: Extreme Cold and Snow Hitting U.S. Production Zones

This is Why you don't Get Short Natural Gas in Winter: Extreme Cold and Snow Hitting U.S. Production Zones

Jan 29, 2010

Natural Gas: Extreme Cold and Snow Hitting U.S. Production Zones from Permian Basin New Mexico) to East Coast

Let's hope you are not short and are following the weather closely. Also, merger rumors abound natural gas market, and you run risk of walking in on a combination of weather bounce and anounced acquisition, and find yourself in a major hole trying to cover.

Accuweather Update: Extreme Cold and Snow Hitting U.S. Production Zones from Permian Basin (New Mexico) to East Coast; Bigger Artic Storm To Push Down Next Week; No Let up in extreme winter weather, Artic air will sit over Midwest and northeast well into late February.

Expect natural gas production to be curtailed due to well freeze offs, difficulty pulling gas from storage in producing regions and more mainline pipe curtailments. Net result, US is pulling size volumes of Natural gas for the next 4-5 weeks and will have difficulty with any meaningful injections, especially in horizontal wells, as they freeze off very quickly.

Don't forget, the forecast is for the worst winter in 15 years, and is expected to carry well into March.

Watch the Attached Video Link: www.accuweather.com/video-on-demand.asp

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