天然气几年内不会过$6的原因。# Stock
a*1
1 楼
Natural gas will keep in going up, but there is no way going more than $6 in
short period of time. The reason is because we are in the middle of huge
natural gas boom.
The average cost of drilling for natural gas is between $4-$7, depend upon
where you gas well is. When the price dropped below $2 H1 2012, everybody is
losing money and the investment was shifted to oil drilling, thus supply is
in shortage and that is why we see the price going up later in the past
year.
Price will keep going up because at current rate of $4.3, most of the
company still won't invest in drilling dry gas, thus supply is still tight.
Once price hits close to $6, everybody will jump to the wagon and supply is
very easy to overwhelm.
Remember that was how the price was killed in the first place. Back in 2007-
2008, NG was around $12 and within short 5 year period, we saw $1.92 last
year.
short period of time. The reason is because we are in the middle of huge
natural gas boom.
The average cost of drilling for natural gas is between $4-$7, depend upon
where you gas well is. When the price dropped below $2 H1 2012, everybody is
losing money and the investment was shifted to oil drilling, thus supply is
in shortage and that is why we see the price going up later in the past
year.
Price will keep going up because at current rate of $4.3, most of the
company still won't invest in drilling dry gas, thus supply is still tight.
Once price hits close to $6, everybody will jump to the wagon and supply is
very easy to overwhelm.
Remember that was how the price was killed in the first place. Back in 2007-
2008, NG was around $12 and within short 5 year period, we saw $1.92 last
year.