Natural Gas Supplies Continue to Build Despite Price Rally
September 07 2012 - 7:20AM
Marketwired
Natural gas prices have been in a long slump as production has
grown dramatically in recent years as advances in technology have
unlocked vast new reserves. According to data from the U.S. Energy
Information Administration Gross, gas output hit a record high of
72.74 bcf per day in January. The United States Natural Gas Fund
(UNG) is down roughly 25 percent year-to-date. The Paragon Report
examines investing opportunities in the Natural Gas Industry and
provides equity research on Cheniere Energy, Inc. (NYSE: LNG) and
Quicksilver Resources Inc. (NYSE: KWK).
Access to the full company reports can be found at:
www.ParagonReport.com/LNG
www.ParagonReport.com/KWK
Since hitting a decade low of $1.90 per million British thermal
units in April natural gas prices have rallied approximately 47
percent. While prices have rallied sharply, natural gas supplies
have also continued to grow despite producers slashing the number
of natural gas rigs. Data from Baker Hughes shows that the number
of rigs drilling for natural gas has fallen to 473 from 895 a year
ago. At the same time oil drilling rigs have surged by 355 from a
year ago, this is key factor as roughly a quarter of natural gas
production in the U.S. is a byproduct of oil drilling according to
the EIA. Natural gas stocks are currently 14.6 percent higher than
last year, and 12 percent higher than the five-year average.
"You're not going to permanently fix the gas market unless oil
prices are meaningfully lower," said Pearce Hammond, an analyst
with Houston investment bank Simmons.
Paragon Report releases regular market updates on the Natural
Gas Industry so investors can stay ahead of the crowd and make the
best investment decisions to maximize their returns. Take a few
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Cheniere Energy is a Houston-based energy company primarily
engaged in LNG related businesses, and owns and operates the Sabine
Pass LNG terminal and Creole Trail pipeline in Louisiana. LNG
exports from the Sabine Pass LNG terminal are anticipated to
commence as early as 2015, with the second liquefaction train
commencing operations approximately six to nine months
thereafter.
Quicksilver Resources is an independent oil and gas company
engaged in the exploration, development and acquisition of oil and
gas, primarily from unconventional reservoirs including gas from
shales and coal beds in North America. Production averaged 359
million cubic feet of natural gas equivalent (MMcfe) per day during
the second quarter, down from 417 MMcfe per day in the prior-year
quarter.
The Paragon Report has not been compensated by any of the
above-mentioned publicly traded companies. Paragon Report is
compensated by other third party organizations for advertising
services. We act as an independent research portal and are aware
that all investment entails inherent risks. Please view the full
disclaimer at:
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