New England consists of six states in the US Northeast, Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont. The states have been warned by regional ISO electricity providers for several years about their vulnerability if the winter weather is harsh and there is a significant increase in demand for home heating. Those warnings are now multiplied by the massive price increases for natural gas.
Keep in mind as all these natural gas and LNG issues surface, the U.S. has been exporting natural gas to Europe as part of the Biden effort to subsidize the NATO effort against Russia. Prices for natural gas have skyrocketed, and now shortages of the fuel source for energy production may create even bigger problems for New England.
[Via Zero Hedge] – […] The region’s power mix changes have left it increasingly reliant on international NatGas spot markets. State governors have asked US Energy Secretary Jennifer Graholm to waive the Jones Act and allow foreign-owned tankers to ship LNG from the US Gulf region.
All of this has led to New England residents facing some of the highest electricity bills in years. Heating season is already underway.
New England ISO expects the grid will be stable if there’s a mild-to-moderate winter. However, if there’s an extreme cold spell across the Northeast, then grid chaos could unfold: “The grid overall is in a much tighter position.
“If we get a sustained cold period in New England this winter, we’ll be in a very similar position as California was this summer,” Nathan Hanson, a senior vice president of energy and commercial management of LS Power Development LLC, which has two NatGas power plants in New England, warned. (more)
According to the U.S. Energy Information Association (IEA), U.S. storage of Liquified Natural Gas (LNG) is 12% below the five-year average (LINK). Additionally, the IEA is expecting the U.S. to export 11.7 billion cubic feet of LNG per day during the fourth quarter of 2022 — up 17% from the third quarter. The destination of that export is Europe.
Consider that 43% of U.S. households use natural gas for home heating, and power suppliers use natural gas to create electricity. With the massive 2022 exports of LNG to Europe (+17% in fourth quarter alone), that means lower domestic supplies and increased prices here in the United States for electricity and home heating. We are seeing and feeling these massive price increases right now.
Barrons – […] If you need more evidence of the impact of natural gas exports on prices, just compare supply and demand fundamentals for the year leading up to February 2020 (the last pre-pandemic month) versus the year leading up to this May (the most recent month with full federal data). Annualized production rose over the period, while domestic consumption remained roughly flat. Yet LNG exports almost doubled—a surge that tightened U.S. gas markets and doubled the price that U.S. consumers pay for the fuel.
The growth of global demand for U.S. LNG can be tied to many market forces, including the shortfalls in Europe due to Russia’s manipulation of European Union gas markets. Sustained high demand in wealthy Asian nations has contributed to export growth as well. And so has the U.S. gas industry’s dogged determination to ship its wares to the highest bidder, foreign or domestic.
Russia’s role has been particularly critical in the rise of global LNG demand. As Russia choked off gas shipments to Europe, EU buyers have turned to global LNG markets to make up the shortfall. Global LNG prices rose in response, and U.S. LNG companies ramped up output, shipping more cargoes to Europe. But Russia responded by further clamping down on gas supplies to the EU—a vicious circle that has hurt Europe’s economy even more severely than it has harmed America’s.
There’s little sign that U.S. gas prices will ease in the coming years. Freeport’s demand will be back online soon enough, and there are three other massive LNG export projects under construction, with more than a dozen of others waiting for financing.
[…] Curiously, federal regulators have consistently found that the gas export projects are in the public interest—meaning they were in the economic interest of LNG companies and gas drillers. But now, exports are creating sky-high costs for U.S. consumers, and drillers are reluctant to boost gas output lest prices fall back to earth. So, it’s high time to consider whether soaring U.S. LNG exports are actually in America’s interest—or if, instead, runaway LNG exports are fueling energy inflation and undermining the nation’s economic competitiveness. (read more)
Not only are U.S. taxpayers directly paying for the majority of costs in Ukraine, but we are also subsidizing the European Union by exporting LNG and driving up the price for energy here at home. Here’s the Wall Street Journal talking about the risks to New England:
[Via Wall Street Journal] – New England power producers are preparing for potential strain on the grid this winter as a surge in natural-gas demand abroad threatens to reduce supplies they need to generate electricity.
New England, which relies on natural-gas imports to bridge winter supply gaps, is now competing with European countries for shipments of liquefied natural gas, following Russia’s halt of most pipeline gas to the continent. Severe cold spells in the Northeast could reduce the amount of gas available to generate electricity as more of it is burned to heat homes.
The region’s power-grid operator, ISO New England Inc., has warned that an extremely cold winter could strain the reliability of the grid and potentially result in the need for rolling blackouts to keep electricity supply and demand in balance. The warning comes as executives and analysts predict power producers could have to pay as much as several times more than last year for gas deliveries if severe weather creates urgent need for spot-market purchases.
“The most challenging aspect of this winter is what’s happening around the world and the extreme volatility in the markets,” said Vamsi Chadalavada, the grid operator’s chief operating officer. “If you are in the commercial sector, at what point do you buy fuel?”
Power producers in New England are limited in their ability to store fuel on site and face challenges in contracting for gas supplies, as most pipeline capacity is reserved by gas utilities serving homes and businesses. Most generators tend to procure only a portion of imports with fixed-price agreements and instead rely on the spot market, where gas prices have been volatile, to fill shortfalls. (more)
.
How many of them are against both fracking and pipelines? They should be proud to freeze in the dark as the highest form of green virus signaling
Virus vs Virtue, what a Freudian Slip!
I’m MAGA, and I live in New England.
There are millions of us.
Most assuredly. I’ve no plans to go along peacefully with all this craziness either.
No, I will find ways to be unruly to those that intend to rule. Sand in the gears. Getting inside the wire for intel. Someone has to do it.
I’m not much of a conformist either.
No “coexist” bumper stickers on my vehicles, or Biden/Harris.
I’m MAGA here in California, and it’s excruciating. I’m sorry you have to suffer the consequences failed public policy like we do here.
Hopefully the red wave will bring some change.
There is a huge MAGA contingency here in MA.
We’re outnumbered for sure, but we’re ornery!
Will they have another “brown out” on Martha’s Vineyard?
Well Done.
Ouch!
I see what you did there, Edink.
Shasta county?
Red: I grew up in Redding in Shasta County. I now live and work in Santa Barbara. After our mom passed away, we lost our foothold in Northern California.
Because of abundant blessings, Mount Shasta is my new adopted home town where we have a second home. One of my brothers relocated to Mount Shasta, and he is a 5 min walk from my home up there.
Hopefully Dahle will knock out Newsom next month. That would be a joy as he is from my neck of the woods.
I raised my children in Redding. Landed there in 1978. Left in 2006.
Came back in 2008 and spent a year in Mt. Shasta. To much snow for me.
, but absolutely beautiful country.
We probably know each other.
WM: We might know some people in common. I graduated from Shasta High School in 1980
When I read the article, you folks in Cali immediately came to mind.
Never give up,never give in.
The difference being ~60°F.
MAGA and MAD-DA.
Me too…Boston born, raised….and still here. Maybe not for too much longer though….
Hang in there Joey and everyone….
Ditto, but I fled in 1977 and have no regrets.
Also hanging in in blueMA…
Please get out and vote for Geoff Diehl!
I keep encountering more quietly angry independents every day…
Also, vote for MAGA James McMahon Attorney General. Very important. Democrats have held this office since the late 60’s. We have a great chance to win this if we get out the vote.
Yes!
And don’t forget the woman running for Lieutenant Governor with Geoff Diehl – Leah Cole Allen is a former nurse who was thrown out for refusing to be jabbed with the bioweapon.
This year I would like to be in the district for Caroline Colarusso, running for Congress, and who was the representative on machine fraud at Mike Lindell’s August symposium this summer.
However, the gentleman running in my district, Dean Tran, is solid – and has been targeted with bogus lawfare.
My sister is MAGA in Vermont, bless her hear.
I’ve got MAGA friends in VT., too.
Poor things.
I live in Washington with my beautiful MAGA family which includes a couple of little angelic grandbabies. I feel you. I am praying for all conservatives.
Apparently not enough as you never win elections. Everyone I know and am related to who lives in Massachusetts is far left/socialist- though they call themselves progressives. They no longer speak to me because Trump and MAGA.
There was at least one NG pipeline proposed to go through Western Massachusetts.
That has been stonewalled and opposed for several years now.
The Boston area relies heavily on LNG.
Before more American LNG capacity came online in the past few years, believe it or not, a lot of that LNG came from Russia. I don’t know the recent mix of LNG sources to Boston.
I wonder how much of that American production is spoken for at this point?
It sounds like a lot of that is going to Europe to make up for the loss of Russian NG.
I find it ironic that New England utilities have actively been shutting down coal fired generating capacity.
Yet they continue to be wed to the idea of wind and solar. A power plant in Boston, coal fired, was recently demolished with much fanfare celebrating the glorious future of renewables.
They also turn their collective noses up at hydro-power.
There are a lot of small mill dams in New England that were converted to make electricity for the grid. People are actively campaigning to get rid of those too. What’s more renewable than the run off from rain?
So folks in New England, when your lights dim and your heat goes out this winter, remember to thank the local “white wine spritzer crowd” (h/t Sundance), and the sprout eatin’, tree huggin’, dirt worshipers too.
In other words,the Martha’s Vineyard moonbats.
But, they’re sophisticated you know.
It’s those and the refugees from metropolitan utopias who have set up shop in the Berkshires.
Their motto,”We’re smarter than your!”
Meanwhile, a lot of good folks will be put into a bind.
Now you know why Obama was stocking up on LNG at his MV home
You mean that wasn’t to keep all the Martha’s Vineyard newcomers warm and cozy (so they’ll vote democrat it 3 weeks)? I’m shocked…shocked (not really)!
wasn’t lng obama put in propane tanks.
“All for me, none for thee”.
It’s truly amazing that you live less than a few hundred miles from the largest known NG reserve in the world, isn’t it..?
Yet we seemingly go out of our collective way to get our energy from people who hate us.
If they only screwed themselves who cares. However as this thread demonstrates be it Califonia or New England lot of good people caught in the cross fire.
My home state of oHIo with our wonderful republican gov’na was the FIRST to shut down the schools cause covid we’re all gonna die.
How the heck does that happen?
(he says rhetorically)
O-H
Fellow buck here!
That little dwarf has to go!
I don’t like him either, but the alternative is out of the question.
New England has shut down nuclear plants in Massachusetts, Connecticut, Vermont and Maine. And now they worry about the electrical grid?
Or splitting firewood..
The new reply… “You first”! Set the example…YOU FIRST…Sell your jets, your limos, your three houses, move into a 3BR apt, take a bus to work.
SET THE EXAMPLE!
“Cold Snaps” have never effected the power grid in this country and you can bet this will be deliberate
How can there be a “cold snap” when there is just so much unstoppable Globull Warming?
“Cold Snap” sounds like the result of a week at the gallows with Globalist demons trying to kill the world.
This has been an interesting weather year for us in East Texas. We are under a freeze warning tonight which is 4-6 weeks ahead of our usual 1st frost. Of course this is also following a couple of months of drought. But to top it all… I have pear trees in bloom in my orchard. Not all of the pear trees only 2 of them. So figure that out. Oh, and it will be back in the mid-high 80s starting Friday.
A few years back I had locate to Houston (Spring) for a couple years. To say the weather was interesting is being nice. Would go from over 100 in summer to 20 in winter, dry as a bone then flash floods.
Was very happy to get back to FL.
HAHAHA! Good one!!!
did you not get the message? The global warming moniker was made fun of
when it was below zero, etc. so the wokesters changed it to”climate change”.
No so fast.. Texas had a once in 50 year “cold snap” that froze our butts off with lots of property damage when the grid went down.. of course this was also partially the result of operators executive decision not to do annual maintenance on the grid.. Do you really think the folks that manage other grids don’t have the same work ethics…?
Wasn’t mostly do to the eagle choppers and solar panels not working?
“Eagle choppers”
Funny/not funny…….made me think of “slap-chop” (as seen on T.V) for some unknown reason.
Yep, the wind wouldn’t blow and the sun wasn’t shining. Of course those ERCOT boneheads didn’t think of that in their planning.
Stupid windmills in part, but it was largely due to failure to weatherize natural gas production facilities iirc.
They skimped across the board as if they were a lean and mean merchantilist and not a critical life sustaining public utility that needed to function most especially in worst case scenarios.
I hear decorating lampposts suggested a lot here, but I think these towering migratory-macerator abominations stand in much greater need of such a cleansing sacrifice.
Lean management?
Not once in 50 years. Happened in 2011. More like once in 10 years, very predictable
I read that the back up plan was based on windmills, solar, etc. which, of course,
were not operational during the severe cold.
That may have been only a joke, however, it is fully believable because of the
lack of critical thinking skills on display with our officials, both public and private.
And didn’t the majority of the Board live out of State?
It is.. And it took the Greens and their pols years to set it up!
Sure they have. See Texas 2 winters ago.
Why are the experts blaming the Russians when the West put the sanctions on them and said we don’t want your energy?
The English take on it
They aren’t experts they’re democrat activists disguised as experts . Why do they blame Russia ? That’s because democrat voters are actually stupid enough to believe them that’s why .
Notice not a word about blowing up NS 1&2.
Seems there was a video released today, believe it said 15 meters of pipe missing.
Another nice touch is the french frog pols are wearing turtle necks telling the countrymen that the way to stay warm.
Instead, I recommend Mike Lindell’s excellent weighted blankets.
My advice is to go to a used clothing store and try to find a real fur
coat. They are toasty warm and can be used as a blanket.
Because they are experts in Gaslighting and hiding the truth.
Federal take over of energy companies in 3,2,1 !
In jolly olde England
Gee, cold snaps are rare in New England aren’t they? Oh that’s right, global warming.
So now “rolling blackouts” is a “thing” beyond California.
Across Europe, they are having 100,000+ person protests, in all their major cities.
MSM ignoring, you have to LOOK to find it.
In the U.S., OUR protest comes on Nov. 8, and its going to be a doozy!
I really hope so. BTW the demographics in Europe are so different with large numbers of middle and upper class citizens living right in center of safe cities so its easier to bring together protesters of political economic issues.
I read that some countries are so broke they are reducing government payments
to seniors – or, at least threatening to.
I mention it only because for decades I have thought the US follows what
western Europe does in many respects.
90 countries are currently protesting the fuel crisis.
All a result f the election steal, aided and abetted by Mitch, Kevin and other numerous Uniparty sellouts.
100% correct .
JUDASpence knowingly certified a stolen election.
There are some people in certain parts of the country that just never learn they vote democrat no matter what so I’m very pleased that many will be suffering the consequences of that asinine choice.
My mother in RI is on oxygen 24/7, looked into getting a Generac whole house generator but there is like a 9 month backorder due to supply chain issues, plus $10k
I dont know the draw of the oxygen system, and therefore requirements, but you could build a solar generator – pure sine wave inverter, # of solar panels commensurate to elextrical needs (assuming 4 hours direct sunlight it would take 400w of solar to charge a 100ah lithium battery), charge controller, and battery. You could build an 800 watt, 200ah LiFEP04, 2000 watt pure sine wave inverter system for less then $2500. PSW inverters produce electricity like a wall outlet. Just a thought if it helps
If it is an Oxygen concentrator, then they typically run in the 300 to 500 watt range.
An outage for “mains power” is unpredictable in duration, but typically 8 hrs or less.
Plan for 12 hrs outage and have an action plan to moderate the event.
At 500 watts, a 200ah lithium battery with constant draw would drain in 5 hours assuming no other power. 300 watts would last a little over 8 hours. For this particular situation I would imagine a 200ah battery would be plenty assuming rolling blackouts. Another option is to just get the batteries, a lithium charger, and PSW inverter. That would save about $1000 on panels/charge controller if the above poster is really cost sensitive.
Does she have a portable oxygen unit? If so, they can plug into a car to work. My Mom had one – it fit into a little backpack.
They also have batteries that can be charged up and ready to use with the portable oxygen.
Also….the oxygen tanks as a back up.
My recommendation is a duel fuel generator/inverter. Propane doesn’t go bad, and a 2500 watt generator will go 30 hours off of a tank of propane. If you want to go full house, you can get a 12k generator for about 1200.00 and have it wired in. The generacs are so expensive because they auto switch with all the bells and wistles. I wired in 6 houses to run off a 5k duel fuel generator (smallest 220 generator I could find)…..it’ll power everything in the house that’s under 30 amp for 12 hours. Mine is a resource issue, taking care of 6 houses takes a lot of resources, but if the SHTF, we can consolidate houses since we are all family and live blocks from each other.
Wool. Wool blankets, wool socks, wool sweaters, wool gloves, wool hats, etc.
The whole thing makes me angry. And sad. Sad that an Administration can take us back to the stone ages so quickly.
Silk – get silk socks and long johns to put under the wool and everything else. They are amazing for retaining body heat.
Layers..
As long as it’s not New Zealand wool..
Fur hats and boots.
And FLANNEL Sheets.
Mike Lindell also sells good flannel sheets.
Don’t forget your promo codes!
I love buying from My Pillow because so much of it is a donation to fight the election steal.
His products are awesome, but I can’t stand the yelling and the constant bizarre gesticuting of his hands.
I understand that, he’s definitely over the top.
But I have come so far from any consideration of personal style that I can’t even see it in the rearview mirror.
Substance is all I care about, and if there’s anybody around who could possibly love this country and We the People as much as PDJT does, it’s Mike.
I now see their flamboyance as endearing.
Half of the time, he doesn’t have the authority to do what he does.
Do we have a Declaration of War for Ukraine? Any authorization to give them BIG MONEY, OUR MONEY? No.
Can he break the contractual obligations of the student loans? No.
Can he change the status of the border unilaterally? No.
Ad nauseum.
All those tree huggers better pay a last visit. If it gets cold and the power goes out sane people will do what they need to survive….count on it.
Germany loves their trees … first thing they did once we defeated and occupied the county – replant their forests … now … due to ENDLESS liberal stupidity – they are cutting them down for fuel … living, breathing example of Educated Idiots.
According to the report, the surging LNG demand across the ocean amid dwindling gas flow from Russia puts the supplies needed to provide electricity to the US’ northeastern region – including Maine, Vermont, New Hampshire, Massachusetts, Connecticut, and Rhode Island – in jeopardy. These states have limited pipeline capacity and rely on LNG imports from abroad for more than a third of their gas supply during periods of peak demand, according to the Energy Information Administration. They also cannot buy US-produced LNG due to the Jones Act, which bans the movement of ships between US ports.
Check it out. The Jones Act makes Americans export LNG and then have to import it again. Imagine the cost. The Law as passed in 1920. Still exists.
It requires any cargo shipped between U.S. ports to be carried by U.S. ships, with American crews.
We don’t gave any LNG tankers.
have
I find it somewhat amusing that all the ails of the world rest on Russia’s shoulders.
Who knew they were that powerful?
Are we being fed a ton of manure? I suspect so.
No. The Jones Act says that only US flagged ships with a US crew can go direct from port to port.
A notable exception is between Baltimore and Philadelphia, because a local pilot is on board the entire way up the Chesapeake, thru the C&D Canal, then up the Delaware to Philadelphia.
All we have to do is turn the energy back on and everything is fixed.
That takes time we don’t have
While I feel for those in New England who don’t support this U.S Govt. program of self-destruction, and do implore them to move to a warmer geological and political part of America,
THE REST OF THEM CAN EMBRACE THE SUK!
No, I will not cede more territory to the leftists without a fight.
Some of us are counting on that winter climate to keep the vibrants away. We have wood stoves and lots of cordwood at the ready. A massive , self inflicted, green, fuel emergency here and in Europe this winter should shake some sense into the salvageable fence sitters who make it through. With any luck it will spark a large scale revolution against the elite establishment and turn the population against the green agenda. If not, I am still counting on the cold to prod the barbarian invaders that may be dropped off here to start wandering in a southern direction in their quest for free stuff.
I don’t know … if they are still wearing masks and lining up for the latest booster – then no, the facts of their reality will not register … liberals are insane.
How is NYC going to keep all their illegals warm ?
It’s for the common good, i.e., good enough for the commoners.
As House of the Dragon’s woke executive produce Sara Hess said, “Civilians don’t count.”
Where is John Galt?
Anyone that voted democrat in 2020 should be ashamed of themselves and the mess they helped create..
Anybody who voted democrat in 2008 should be ashamed of themselves because if we hadn’t had obama, we wouldn’t have biden.
I KNOW Slo Joe was not legally elected and I am pretty certain Ozero was not either in 2008 but for sure in 2012…..I do KNOW he is an ILLEGAL POTUS as he is not constitutionally eligble for the office
In 2010 CIA Brennan gave the Hammer&Scorecard Computer Program to the RATS … I think they used it in 2012 to steal Florida from Romney and re-elect Obama – his rallies were almost as empty as Biden’s … the 2020 Trump landslide was so huge the ballot stuffing and Dominion rigged votes wasn’t enough … the RATS had to use Hammer&Scorecard in the 6 states that simultaneously stopped the count – to flip and disappear enough Trump votes to steal the election for Biden.
McConnell will likely tell the RATS which states to use it in so he stays Minority “leader”.
Truth!
Worthless bush43 lost Congress … decimated the GOP … and then lost the Country to the Soros Puppet Obama … JUDASpence certified a stolen election and gave it to a braindead Soros Prop Biden.
RATS are evil.
RINOS are their enablers.
Shame and admitting that they are wrong is not in their vocabulary
They are all dead or illegal.
Coming from Taxachusetts I can tell you you’re sure to see two law signs dotting the neighborhood. Black Lives Matter and No new pipelines. I’ve left that dem hellhole behind but I must tell you there’s many Patriots and conservatives that don’t have funding to leave.
NY banned fracking and nixed a gas pipeline. NY sits on top of two shale formations and denies property owners to exploit their resources. Meanwhile, south of the state line, PA residents have made a lot of money from royalties from gas.
Everything Demonrats touch turns to shit. The people up there deserve the consequences of their politics.
Believe me, my Fuehrer Tom Wolf made sure that Harrisburg got its cut.
This was bound to happen eventually in New England, if it was not the current level of exports of LNG it would be something else. New England states are closing nuclear powerplants and denying rights of way for powerlines to bring power from Hydro Quebec. New York bans fracking and denies permits for pipelines across NY to supply New England with gas from Pennsylvania, Ohio, and West Virginia. Boston is a large LNG port but New England politicians oppose repeal of the Jones Act, currently there are not enough qualifying carriers to transit LNG to US ports. Repealing Jones or at least waiving it would open up capacity. Boston has been importing LNG from Europe for years because European shippers do not fall under the Jones Act. New England’s policy choices make them vulnerable to blizzards, polar vortex cold snaps, nor’easters, and world events. But those consequences follow from their policy choices.
I could pray for a warm Election Day, but my prayers are better spent asking for a sweep by Bolduc, Burns and Leavitt.
What the cited articles fail to note, is just why the New England region is reliant on liquified natural gas (LNG) brought in by special ships, bought on the spot market to make up for natural gas supply shortfall. It is because the pig headed Governors and legislators of the liberal region refuse to permit any natural gas pipeline expansions through their states. In the winter when gas demand is high for both heating and electricity generation, there is insufficient capacity to transport enough gas into the region via pipeline, so they have to supplement with LNG. Now that European and Asian market LNG prices are multiple times higher than U.S. gas costs, New England will have to compete with those prices in order to receive loads of LNG from TX and LA. If we get a winter anything like Jan 2014 (the so called polar vortex) the people living there will likely have rolling blackouts as well as insane electricity prices. Some New England utilities have already raised their power rates to over 32 cents/kWh and it can get much worse. So the question becomes, how bad does it have to get before the population takes to the streets with the torches and pitchforks to demand the politicians stop intentionally inflicting this harm on the citizens in the name of green?
For comparison– north Texas here, 0.10/KWh.
And the temperature difference too?
Will those that caused this, get voted in again?
YEP
I feel bad for anyone who doesn’t vote Democrat. The Democrat voters are getting exactly what they said they wanted.
Sorry, but I will be wishing for a deep freeze in the Northeast for the first week of November.
As one travels north toward Boston on Route 93, he or she will pass a large LNG storage tank.
Once upon a time drivers would have passed two LNG tanks, side by side. The missing tank was torn down in 1992, and was not replaced. However, the rainbow artwork on that tank was faithfully replicated on its remaining partner.
The artwork includes what is clearly a profile of Communist leader Ho Chi Minh. The artist, a peace activist who created the original artwork in 1972, has always denied this. Pretending not to know things is an old tradition in some corners.
A little story which reflects the priorities of those who have led us to where we are, and one reason why I convinced my aging parents to install a generator this spring.
So then, why have natural gas prices dropped nearly 30% from their peak of 3 months ago? Yes, the current price is nearly 3 times what it was when Bidan took office. But it has fallen nearly every week for the past 3 months. I’m a board member and the 2nd largest SH of a closely held natural gas and oil royalty firm. We own mineral rights on hundreds of acres in mid MI and presently have 3 oil wells and 11 natural gas wells running 12 hours per day. We paid our highest quarterly dividend in our 20 year history last quarter due to increased revenue. We have two firms that operate the wells and are in close contact with their mgt teams. They are completely baffled by the fall in prices, dramatic and unprecedented in terms of the rate of decline. Their words. So, I ask again. With all of the alleged supply issues that exist, and all the dire warnings, why are prices falling? Something is amiss that even the well operators cannot explain.
https://www.barrons.com/articles/netflix-earnings-stock-price-subscribers-51666030636
https://capital.com/natural-gas-price-goldman-sachs-europe-us
Articles are BS and give NO reason for the price swing.
Thanks for the commentary … yes something is amiss … subsidies, lies, advance notice from government to investors???? Who knows …. or even something so perverse as Russia-Ukraine sign an agreement and suddenly that “Russian caused” shortage becomes a glut of supply.
I even read an interesting article that China Inc. and other SE Asian Ship Builders have a massive set of orders for LNG Carriers.
Yes, something is amiss and it will be interesting to see what unfolds.
We have not heard much about supplies from off shore either … OPEC is cutting Oil Output but no mention of Gas.
One reason for the price drop is that natural gas storage is being filled at a higher rate than anticipated just a month ago. The production rate of natural gas has risen, and at the same time a major LNG export facility in Freeport TX has been off line due to an explosion for months, allowing storage to be restored to a level closer to the five year average than thought was possible. European LNG storage is also reaching adequate pre-winter levels. This does not mean that prices won’t spike back up if we hit below normal temps this winter and draw down hard on storage. Another reason for the gas market volatility is that prices are influenced by traders and hedge funds that never take possession of the gas, so prices on an hourly and daily basis can make wild swings due to factors that have little to do with the underlying fundamentals of supply and demand.
Thank and good lead on where to look for more detailed leads.
I forgotten the spot and speculation trading that occurs inside the BIG CASINO of “futures” trading activity.
Consider that there are also politicians willing to feed the speculators with insider tips to “hedge” (pun intended) their bets at the BIG TABLE.
Under this “sell back” scenario, the winner is NOT the Natural Gas Supplier but the Investor Speculators, Shippers and Distributors.
The best thing we could do absent restarting the oil/gas industry and nuclear power, is to force futures buyers to take possession. It would get the speculators out of the market and return it to those who need to hedge.
Vote for D-Rats and get the well deserved consequences.
When does the USA stop being an ATM machine for the rest of the world.
When Obama is not the wizard behind the curtain concocting equity for all EXCEPT he and his ilk.
More likely whomever zero represents.
When members of congress and other insiders are no longer allowed to handle the accounting for where it all ends up.
Most of our power in Florida is NatGas. Get ready to pay.
https://www.shaledirectories.com/blog-1/almost-three-quarters-of-floridas-electricity-generation-comes-from-natural-gas/
If the natural gas prices don’t get them, the home heating oil prices will. I know from experience that getting your oil tank filled is a big, immediate hit when you are buying 150-200 gallons no matter what the price is. When it’s $4 or more per gallon, it’s even worse.
I’m really, really tired of all the sacrifices we have to make here and in Europe to support the Ukraine proxy war. At least we haven’t been attacked here – yet.
How often is a tank filled? Twice a month, monthy, quarterly?
Retired Magistrate here: It depends on how big the tank is. We have two 275 gallon fuel oil tanks. We get filled up in August and again in late January and then May. The tanks were filled up in June of this year and we paid $4.62 a gallon; it is now up to $4.90 per gallon and climbing. Our thermostat set at 64 and we wear a lot of extra clothes; have been doing this for years and are used to it.
By the way, we have never paid this much for fuel oil and we have been heating with it for 35 years.
So you use 1650 gallons a year??
You may want to do more insulating or downsize if you burn that much at 64 deg.
Wow!
I sold that house in Maryland and moved south. The house was built in 1939 so had radiators and the oil was used to heat the water for heat and that was the hot water tank for the house. It had an on/off switch so a couple months after moving in, I started turning it off until we needed heat or hot water. For about 8 months of the year, it was run no more that 30 minutes a day. I would get about 200 gallons in December and February, top it off with about 100 gallons in April and then 75-100 gallons in late summer. The house was 3 stories, about 1700 square feet, with a gas fireplace in the bottom level family room that we used a LOT (the cats really miss that in the winter, lol). We had space heaters in the bedrooms and kept the furnace thermostat low, around 65. My 5’6″, 110 pound daughter wore a lot of clothes but she wasn’t paying the bill. Prices ranged anywhere from a little over two dollars to over four dollars in the 11.5 years we lived there.
New England can freeze for all i care… vote stupid ways win stupid results
I would disagree with the sentiment.
New England is captive for much the same reasons as California and nearly all of the major metros. Then you can count all the creative ways for leftists to get their agenda enacted.
Just remember that 2016 electoral map showing all those islands of blue surrounded by an ocean of red.
Territory does not equal VOTES.
Those Blue Islands align with Urban areas with millions of democrat votes…legal and illegal. That is the reason all those County Maps are BS. It is voting district populations and boundaries that count.
Much of the reason why the electoral college is such a thorn in their side.
To say nothing about how the census data has been skewed.
The Electoral College and distribution of House Seats is a 2-edged sword.
That is why shipping all those illegals to democrat population centers is a an interesting political statement but it also forces redistribution if not outright creation of numbers among the states.
The one major booger of the electoral college that galls allot of people is that EVERY STATE starts with 2 before adding or subtracting for population.
Then there is fact of fraudulent handling of census data and major loss for US Citizens in the SCOTUS that requires COUNTING ALL inhabitants (legal and illegal) for purposes of establishing all of FEDERAL LEVEL AID and REPRESENTATION.
Spot on.
Could say that importing large numbers of immigrants into those cities does a lot to maintain their influence and numbers of seats in Congress. Replacement voters for ones that wiseup to them and/or leave the cities.
Reminds me of how much the language of the 14th Amendment has been abused over time as well.
On my 2010 Census form, I claimed there were 3/4 of a million illegals living in my basement and attic. I requested for my Congressional seat and my Electoral vote.
A Census worker showed up at my house and explained that she liked what I did, but that I could go to jail for providing false info on a federal government document. I took opportunity to tell her two people reside in my house.
Wait until your ox is gored!
You think they aren’t coming for you?
California’s energy program being nationalized by Der Drahtzieher (the wirepullers). They could not care less if people freeze or starve due to lack of energy.
We’re in MA, and I can assure you that even if older people start freezing to death, while many struggle to afford to utilities while putting food on the table, there is a sizeable population of mentally ill people to will continue to support the Rats without blinking an eye. Did I mention the massively corrupt Sec. of State and the pervasive election fraud?
Yes, they are cult like. I think a lot of them vote their pocket or always voted D or just misinformed, to put it mildly.
They have been stealing elections in MA for sure. There was an election where all the polling showed the conservatives leading and surprisingly all lost. I think this was around the Scott Brown time period.
Well, Biden has strong-armed Saudi Arabia, Iran, and Venezuela, so I guess he might have to stop calling Putin names and beg for a pipeline across the Atlantic.
Sure is nice the Smartest Strategist in the World likes ice cream.
Wow the BeeGees knew all those years ago the lights would go out in Massachusetts
Thank a Democrat today!!!
lets cut off all the green idiots first.
Blackouts and mandatory vaccinations might be a good thing.
Maybe the sharp as a dull knife public will finally wake up?
Windmills and solar power in winter will keep them warm!!!
We had NONE of these problems when PDJT was in office – none! And yet not one MSM spokesperson can connect the dots and even worse people who claim to believe JB is doing a good job don’t even TRY to rationally make the connection. How is it possible that in less than 2 years our country is at the edge and looking to fall into the abyss? How are so many ok with this?
Let’s keep this in perspective. Most of the Liquefied Natural gas (LNG) going to Europe is produced in the Gulf states from natural gas fields in LA, TX and some, but very little from the Marcellus shale area in PA & VA. There are two sources of gas on the Northeastern states, LNG which goes to power plans to create electricity and utility companies which use natural gas to be moved in pipelines for home heating. Very little natural gas being produced in the Marcellus shale area in shipped via pipeline to the gulf to be made into LNG. Due to the Green Agenda pushed by the Biden Administration there are no LNG plants along the east coast of the USA and there is insufficient infrastructure (pipelines) to move raw natural gas to where it is needed in the eastern USA for heating.
LNG going to power plants in the Northeast is shipped back to the Northeast vis tanker ships from Europe because the Jones act will not allow foreign tankers to ship us produced LNG from an origin in the USA to a destination USA.
The capital investment in infrastructure in the energy industry sector (oil and Gas) has been lacking for many years, again due to the Government and investment banks pushing the Green Energy plan. Even today, given the EU has now labeled Natural Gas as green energy, banks are hesitant to provide financing to natural gas pipelines and LNG plants and the US Government is hesitant to approve permitting for LNG facilities.
As far as prices, the cost of raw natural gas in the US has not gone up anywhere close as to what it has in Europe because of the gas no longer being supplied to them by Russia due to the USA and Europe embargoing imports of gas from Russia. Russia was and is still willing to supple gas to Europe but due to the embargo of gas and other products from Russia to Europe the imports have dried up, Additionally the Nord Stream 1 & 2 pipelines from Russia to Germany were recently Sabotaged to keep Russia from sending gas to Europe. Now the USA is selling LNG produced in the areas of the US gulf states to Europe and as there is not enough gas to make up what Europe and lost from Russia the prices are extremely high as countries as outbidding each other for LNG cargoes. Additionally, Russia is now selling their LNG to China and India and these countries are in turn reshipping this gas to Europe at much higher prices than what they paid for this gas. The loser in this transaction is Europe who is now buying gas from China, India and the USA at prices significantly higher than what they were paying to Russia directly for their gas.
Beg to differ. The Sparrows Point LNG plant in Baltimore MD has been online since around 2019 I believe. Took 10+ years to get permits and built as I recall.
While I am sad to know that good MAGA people in New England (and probably elsewhere) may suffer the consequences of the policies of the deranged Progressive ‘leadership’ of this country, my
Schadenfreeze
for the suffering of those that believe in and desire this societal misery and economic destruction will be sincere, heartfelt and exuberant.
FJB!!
As Glenn Reynolds said so eloquently, “Biden hates Texas more than he hates Russia, Iran, Venezuela, or Saudi Arabia.
If Trump was President we would still be exporting oil and natural gas, while the price of gasoline would be $2.
Biden is intentionally destroying America.
I hadn’t read Barron’s in many years.. This reminded me as to why!
If you are in the south and use natural gas for heating you are in the same boat come winter. If it’s a cold one you’ll probably see some of the highest power bills ever. Here in SC we can’t get the gas to us because the pipelines aren’t being built because of all the lawsuits..
If Venezuelan President Hugo Chavez was still around he’d provide cheap heating oil.
I have no pity. This is what they voted for and continue to vote for.
ps,,, I lived in Maine for 30 years….most locals have woodstoves.
I am just waiting for Karens to start agitating for banning wood stoves more broadly.
By “they” I presume you mean people who are dead, moved, or illegal, and voting machines to harvest their votes.
I believe New England states shut down hydro Quebec’s new transit lines through their states several years ago. The reason as I seem to remember were eco-alarmist worried about the tree clearing of said corridor. Could have had it but caved in to the eco radicals.
bverwey
Yet they will chop down old growth forests to build eagle-choppers. SMH
Time to get out the Plastic and start sealing all those windows, among other things.
I thought that you were breaking out into a Gallagher routine. Sorry. 😀
Sledge-O-Matic!
And how many Republicans are in the Senate representing CT, RI, MA, VT, NH, and ME? A grand total of one, if you wish to consider Collins a Republican.
Elections have consequences.