Natural gas has the potential to be worse
by saltwaterfarm (2022-05-25 07:15:26)
Edited on 2022-05-25 07:21:55

In reply to: Is there any end in sight for these insane gas prices?  posted by mocopdx


for those that heat their homes with natural gas and to a lesser extent propane. The 12 month strip is close to $9.00 per mcf after being at 3 ish for nearly a decde. Furthermore if we get a hot summer more will be diverted for power burn. Its almost a perfect storm and the demand is less elastic. Meanwhile the Appalachian Marcellus producers can increase production but they can't get pipelines permitted and built to get the gas out so they are forced to hold production steady. This would include the atlantic coast pipeline which was a 4 billion writeoff before construction and the Mountain Valley Pipeline which is 3-4 years behind schedule and double the construction estimate of 3.4 billion. It may or may not get finished. No chance of getting new pipelines through New York or Massachusetts it would seem. To make matters worse Natgas is the key input for fertilizer which is causing the farmers to make hard choices on what they plant. Personally I don't think the cost of food and energy are fully discounted and are likely to get worse. Could get ugly later this year. Hopefully coinciding with throwing the bums out in Washington.


Replies:
  • And, - bmef  2022-05-26 11:01:42