Hedge funds increased bullish bets on natural gas to the highest level in more than two years as a heat wave crimped electricity output from nuclear plants and spurred fuel consumption from gas-fired power generators. Money managers raised net-long positions, or wagers prices will climb, to 225,180 futures equivalents in the seven days ended July 24, according to the Commodity Futures Trading Commission’s Commitments of Traders report on July 27. It was the highest level since Feb. 19, 2010.
I really hope for more solar and wind generation power plants.They always have to be backed up by something and the best back up is natural gas.We need so much energy developed in the next 30 years that it really doesn't matter if nuclear,solar ,wind and even coal excel,natural gas will excel with them or without them.
According to my calculations from last year, new requirements will take an additional 20 GW of coal-fired electricity off line by 2020, adding to an already major shift to natural gas underway.
This is a significant development.
We already expected about 90 GW to be closed by 2020 for a host of reasons unrelated to EPA emission standards (mostly resulting from age). For each 10 GW replaced, we will need 1.2 billion cubic feet of gas a day.
Forgetting any additional generation needed to meet rising demand, if only half of the capacity removed is replaced by natural gas, the American market would eliminate almost three times the current gas surplus in storage.
Despite languishing prices, this was a reason why, at least until recently - operators were still opening new fields. They know a big boost in demand for power generation is coming.
Now we should expect some of this need could be handled by renewables. There are some large solar and wind projects underway, especially in Arizona (solar) and Texas (wind). Yet they are still coming in as less cost effective than low-price, widely available gas projects. In addition, they will have an even greater problem should the federal government cut renewable subsidies.
We need to fully exploit the potential of natural gas. It's true that converting power plants from coal to NG and using as a fleet fuel in the form of CNG makes sense but the greatest financial use, in my opinion would be the export of it through natural gas conversion facilities.
We can do it all.I've only read 1 article that says the amount of natural gas in the U.S. and ,Canada is less than the perception . I really don't buy it. There is so much out there .As far as projects for development ,I think it's important to have necessary infrastructure near by. Pipelines or facilities like power plants that will readily take on your supply.
As a long-term investment (5 years), I don't think there is a better bet to make than on nat gas. While there are currently major issues with over-supply, nat gas' affordability make it very attractive for major energy projects and government initiatives. Good blog to post Stargazer.
Community Talk
Re: Funds bullish on natural gas
I really hope for more solar and wind generation power plants.They always have to be backed up by something and the best back up is natural gas.We need so much energy developed in the next 30 years that it really doesn't matter if nuclear,solar ,wind and even coal excel,natural gas will excel with them or without them.
Re: Funds bullish on natural gas
July 31, 2012
by Dr. Kent Moors
The Big Shift to Natural Gas
According to my calculations from last year, new requirements will take an additional 20 GW of coal-fired electricity off line by 2020, adding to an already major shift to natural gas underway.
This is a significant development.
We already expected about 90 GW to be closed by 2020 for a host of reasons unrelated to EPA emission standards (mostly resulting from age). For each 10 GW replaced, we will need 1.2 billion cubic feet of gas a day.
Forgetting any additional generation needed to meet rising demand, if only half of the capacity removed is replaced by natural gas, the American market would eliminate almost three times the current gas surplus in storage.
Despite languishing prices, this was a reason why, at least until recently - operators were still opening new fields. They know a big boost in demand for power generation is coming.
Now we should expect some of this need could be handled by renewables. There are some large solar and wind projects underway, especially in Arizona (solar) and Texas (wind). Yet they are still coming in as less cost effective than low-price, widely available gas projects. In addition, they will have an even greater problem should the federal government cut renewable subsidies.
Re: Funds bullish on natural gas
We need to fully exploit the potential of natural gas. It's true that converting power plants from coal to NG and using as a fleet fuel in the form of CNG makes sense but the greatest financial use, in my opinion would be the export of it through natural gas conversion facilities.
We can do it all.I've only read 1 article that says the amount of natural gas in the U.S. and ,Canada is less than the perception . I really don't buy it. There is so much out there .As far as projects for development ,I think it's important to have necessary infrastructure near by. Pipelines or facilities like power plants that will readily take on your supply.
Re: Funds bullish on natural gas
As a long-term investment (5 years), I don't think there is a better bet to make than on nat gas. While there are currently major issues with over-supply, nat gas' affordability make it very attractive for major energy projects and government initiatives. Good blog to post Stargazer.
Re: Funds bullish on natural gas
The rebound in natural gas may have some big long term legs.
http://seekingalpha.com/article/719841-the-rebound-in-natural-gas-may-have-some-big-long-term-legs
copy and paste the link to get to the article