another comment to add to my storage postAnother thing I should have added to that post. As we ease out of winter, NG prices generally have retreated from their earlier highs. Current Henry Hub spot prices are a case in point and the outlying hubs even more so. It’s a buyers’ market and attractive prices promote consumption. Nobody wants to get caught holding gobs of gas heading into warm weather where prices could even go lower. Everybody knows things are winding down. The upper ends of the band are a no-no for buyers and prices are generally on the defensive. That should also help deliver those end-of-winter storage numbers to the finish line as the second best low since 2014.
But ah… preparation for the summer A/C season and replenishing those low storage levels, -that’s a whole new ball game! And to think that for 2 years in a row we’re scraping the bottom of storage at winter’s end without either year being anywhere close to the severity of winter 2013-14. That’s gotta tell you something about creeping demand and the cost of producing NG to sell into a sub three cent market…..- even if you do run those wells wide open.