SI
SI
discoversearch

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 ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
Recommended by:
dvdw©
To: Bearcatbob who wrote (180557)9/16/2013 10:08:59 AM
From: Biomaven1 Recommendation   of 206222
 
Also, could not a utility buy gas reserves in the ground and simply own the gas at cost?
I don't think many reservoirs have a 30+ year life. Also, most utilities are regulated entities. They have no particular incentive to lock-in gas prices. If gas prices go up, they get to raise the price of their electricity.

There's actually a paradox that took me a while to appreciate. Low natural gas prices actually hurt the profits of most electric utilities. I can't say I fully understand the dynamics, but to some extent overall prices seem to be related to prices for peaking plant supply, which are generally natural-gas driven.

Peter
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News