Another item in the long list of ‘thanks Joe Biden‘ stuff. Shortages in natural gas in windmill chasing Europe have driven up the prices significantly. The conflict between NATO and their targeted villain in Russia is only making matters worse.
As the EU prices jump to $33/$34 per million British thermal units (BTU’s), the U.S. natural gas selling at $6 per million BTU’s is an absolute bargain.
Liquify that stuff and send it across the pond says any smart energy capitalist.
However, that comes with a problem for us. Our supplies of natural gas are depleting quickly, our exports are now almost three times more than our production.
LONDON, April 8 (Reuters) – U.S. gas prices have climbed to their highest level in more than a decade as strong demand from overseas has emptied storage and left inventories well below average for the time of year despite a mild winter.
Front-month futures for gas delivered at Henry Hub in Louisiana have risen to $6.40 per million British thermal units, the highest in real terms since 2010. Wholesale prices in the United States are still far below those prevailing in Northeast Asia ($33 per million British thermal units) and Northwest Europe ($34).
[…] U.S. LNG exports rose 13% in the three months from November to January compared with the same period a year earlier, while gas production was up by less than 5%.
[…] Working stocks in underground storage were 316 billion cubic feet (19%) below the pre-pandemic five-year seasonal average for 2015-2019.
Because of strong exports, inventories depleted more than usual despite high prices and winter heating demand that was 8% below the long-term average.
Reflecting the low level of stocks, futures prices have moved into a strong backwardation, with nearby prices rising to reduce consumption and exports and encourage more production. (read more)
But hey, relax…. Biden is only destroying our food, fuel and energy…. I mean, it could be worse right?
The only rational thing the US and EU can do is to require Ukraine to sue for peace. The requirements for that from Russia are very clear: 1) a commitment of Ukraine to remain neutral and not join NATO, and 2) provide for autonomous governing regions in the Donbass. This war could end tomorrow, if the West wished it. Why are we war-mongering?
Because the military-industrial complex, the international banks and the Globalists want to make obscene profits on our deaths.
Ask Joe, he won’t know.
Thank you for this post. In our part of Pennsylvania we’re allowed to choose our suppliers for gas and electric (but we still pay PECO distribution charges). When Biden was elected, I locked into a long term deal on our electric, but natural gas prices have historically been more stable so I wasn’t worried about them. And, besides, our heating bills are normally nothing compared to our A/C costs. After reading this post, I just now locked in a 32 month rate for our natural gas that’s a little worse than what we’re currently paying – for instance, in January and February (typically our two highest gas usage months) we’ll end up paying about 20 dollars more. We can live with that. All the rates comparable to our current supply rate were only guaranteed for 3 months. I’m thinking our 20 dollar increase may end up being a bargain. But even if it isn’t, the peace of mind will be worth the slight extra cost.
I never would have been thinking about the gas prices as we’re approaching the dog days of summer here. So again, Thank you. Thank you. Thank you.
Thank Biden’s crew that capital is afraid to invest in energy exploration due to permitting resistance and everything else the Biden/Obama Administration is doing to destroy the domestic energy industry in order to allow the feds to nationalize it as soon as possible.
Henry Hub gas prices as of today for May delivery are at $7.267, Europe at $33.167 and Japan, Korea are at $25.145.
Given the arbitrage available selling to the European market or the Japan/Korea market is it no wonder the LNG is going overseas?
So, sales are 3X production.
This is meaningless unless you know the consumption.
Of I had a buyer for my 100 gallons of gas at near 5X the going price, and I had to wait a month to replace it, I’d shore nuff sell 80 of it.