Whats Wrong With Natural Gas

From my trolling the internet, it appears these are the likely suspects driving down the price of natural gas:
1. oversupply
2. distortion of the futures market from the effects of the UNG ETF "negative roll" in the spot price due to the contango market
3. No hurricannes
4. Storage is now approaching full on a nationwide basis
5. Industrial production is down 12%
6. Going into a "shoulder" period of the year
7. Natural gas is locally produced and locally consumed, oil is a global commodity, so while China maybe rebounding and spurring industrial production, that is not true in the U.S., nor it will be in the future

I have read reports where there have been cases that producers give natural gas away free to avoid shutting in

Whatelse could be impacting the natural gas market and what is the major driver, more importantly how long will this last?

Could wind and alternative energy be impacting the energy industry? I have read a report put out recently where in Texas wind is now impacting the pricing of the electricity market as a whole. Wind in Texas is actually displacing natural gas as a fuel, it does not displace the baseload generation producers such as nuclear or coal, could this be a sign of things to come?

I have looking at this market and have a few thoughts, if you look back at the last decade we have seen a great energy boom. The boom consisted of a huge investment, based on the response by industry to the rising prices. This occurred in both the oil and natural gas sectors, as we would expect we would see, the fruits of free market capitalism working and therefore bringing more product to market.

If you look at graphs of reserves, you see a huge increase in supply in natural gas, but not in the oil market, one reason why I believe in peak oil. Looking at these curves over 10 years does not lie.

The natural gas industry needs to find more customers other than power plants. The natural gas industry has done nothing to encourage the use of CNG vehicles. To me this would be a natural investment to encourage natural gas usage.



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