coal is still kingThe new NG capacity that is coming online in 2017 and 2018 were planned during the time period when NG was below $3 and as low as $1.70.
Traders that are pushing up price are mistaken that utilties will need as much ng as older plants that were not combined cycle and that utilities will purchase ng at prices above the economics that the plants were built for. The utilities are still in the position that coal can easily overtake ng for Kwhrs produced if the price for ng stays high.
94 % of usa produced coal still gets burned for domestic electricity.
Nuclear is still cheap to refuel too. The sun and wind are even cheaper now that turbines and panels are amortizing nicely into the black.
NG has probably priced itself out of favour for this summer already.
Also Trumps buddy Putin is going to entice the Europeans again with long term cheap NG deals and the hoped for USA export of NG will be Putin a stop to.
Putin's deal with China for $2 NG for 30 years limits anyone else trying to export LNG there too.
Canada BC coast having a tough time getting even one LNG export facility built.
Canada has resorted to piping it down to the USA for this summer too and storage already high into injection season.
Traders ready yourselves for the big plunge in NG.
Nice chart, ever rising prices for the last six weeks, pull the rug out this weekend .
Monday morning wake up call will be too late.
This is your last half hour.
I'm here to help !