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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: teevee who wrote (183343)	4/6/2014 1:36:24 PM
From: kidl	Read Replies (1) \| Respond to of 206146

Coal supplies don't look so hot either. eia.gov

To: teevee who wrote (183343)	4/6/2014 3:14:54 PM
From: JimisJim	Read Replies (2) \| Respond to of 206146

Robry is rarely if ever wrong... he may miss some estimated future, but never by much... I think the answer to all of your questions is that the non-hedged marginal price for ng will have to rise significantly to spur producers to bring a lot more wells online... I wouldn't think it would be too big a spike for too long since there are so many wells out there waiting on better prices, but the price for the non-hedged production would likely settle at a higher price than what we've seen the last 3 years, though probably not anywhere near the ave. non-hedged prices of 10 or more years ago... but lest we forget, for decades the ave. price of ng was less than $3 until the convergence of weather and pre-shale fears of scarcity really sent ave. ng prices higher than they'd ever been. Eventually, it would not surprise me to see the ng sector settle back into something more like what we saw in the 1980s or 1990s for example, but with higher priced wells requiring a slightly higher floor. Here's the historic price data: eia.gov