Big Dog's Boom Boom Room Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Big Dog's Boom Boom Room

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Second_Titan who wrote (1138)	5/15/2001 1:04:58 AM
From: schrodingers_cat	Read Replies (2) of 206199

Looking at resid on an MBTU basis vs NG May 4 NY harbor price for resid was 57c/gal = $23.90 / bbl = $3.73 / MBTU = $ 3.84 / mcf of NG So it looks like resid is likely to be substituted for NG. EIA petroleum status report show resid deliveries up 29% or 202,000 bbl/day over last year. 202, 000 bbl resid = 1.3 Bcf / day of NG = 9 Bcf / week. So distillate/NG switching is not economic, but the power generation sector is still substituting resid for NG. Fuel switching does not entirely explain the large builds seen in NG stocks. IMO the stock builds are due to a drop in industrial demand, due to high NG prices and the slowdown in manufacturing. I have not seen a breakdown of the industrial demand, but I suspect that raw materials producers like plastics, fertilizers, metals and forest products companies are big users of NG. Many of these companies are complaining about slowing demand, and many may have the option of importing products from overseas plants in regions with lower NG costs.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next