• 12 hours Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 13 hours Oil Gains Spur Growth In Canada’s Oil Cities
  • 14 hours China To Take 5% Of Rosneft’s Output In New Deal
  • 14 hours UAE Oil Giant Seeks Partnership For Possible IPO
  • 15 hours Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 16 hours VW Fails To Secure Critical Commodity For EVs
  • 17 hours Enbridge Pipeline Expansion Finally Approved
  • 18 hours Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 19 hours OPEC Oil Deal Compliance Falls To 86%
  • 1 day U.S. Oil Production To Increase in November As Rig Count Falls
  • 2 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 2 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 2 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 2 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 2 days Aramco Says No Plans To Shelve IPO
  • 4 days Trump Passes Iran Nuclear Deal Back to Congress
  • 4 days Texas Shutters More Coal-Fired Plants
  • 5 days Oil Trading Firm Expects Unprecedented U.S. Crude Exports
  • 5 days UK’s FCA Met With Aramco Prior To Proposing Listing Rule Change
  • 5 days Chevron Quits Australian Deepwater Oil Exploration
  • 5 days Europe Braces For End Of Iran Nuclear Deal
  • 5 days Renewable Energy Startup Powering Native American Protest Camp
  • 5 days Husky Energy Set To Restart Pipeline
  • 5 days Russia, Morocco Sign String Of Energy And Military Deals
  • 6 days Norway Looks To Cut Some Of Its Generous Tax Breaks For EVs
  • 6 days China Set To Continue Crude Oil Buying Spree, IEA Says
  • 6 days India Needs Help To Boost Oil Production
  • 6 days Shell Buys One Of Europe’s Largest EV Charging Networks
  • 6 days Oil Throwback: BP Is Bringing Back The Amoco Brand
  • 6 days Libyan Oil Output Covers 25% Of 2017 Budget Needs
  • 6 days District Judge Rules Dakota Access Can Continue Operating
  • 7 days Surprise Oil Inventory Build Shocks Markets
  • 7 days France’s Biggest Listed Bank To Stop Funding Shale, Oil Sands Projects
  • 7 days Syria’s Kurds Aim To Control Oil-Rich Areas
  • 7 days Chinese Teapots Create $5B JV To Compete With State Firms
  • 7 days Oil M&A Deals Set To Rise
  • 7 days South Sudan Tightens Oil Industry Security
  • 7 days Over 1 Million Bpd Remain Offline In Gulf Of Mexico
  • 7 days Turkmenistan To Spend $93-Billion On Oil And Gas Sector
  • 8 days Indian Hydrocarbon Projects Get $300 Billion Boost Over 10 Years
Alt Text

The Natural Gas Giant To Challenge Israel

With no hydrocarbon reserves of…

Alt Text

The Natural Gas Market Is Set To Boom

With the new lower-for-longer oil…

Alt Text

Qatar Uses Saudi Strategy To Conquer LNG Markets

Qatar, the country with the…

Where Are the Best Natgas Prices in America?

Florida. At least they were last week.

City-gate natural gas prices in the Sunshine State briefly hit $14 per MMBtu last Thursday. A level not seen for many years in this region. And certainly above prices elsewhere in America, which are running around $5.

So what happened?

The U.S. Federal Energy Regulatory Commission is still investigating the cause of the price spike. But it appears this was a localized phenomenon, related to pipeline maintenance that limited incoming supplies. At nearby gas transmission zones in Florida, prices remained around $5.

An instructive story. As I've discussed many times, the gas market in the United States (and increasingly the world as a whole) is evolving quickly.

The recent development of shale gas and tight gas in America has changed the game. We now have lots of gas coming from places we never expected.

Meaning there wasn't a lot of planning on how to get that gas from producing areas to major markets, like Florida's cities. America is now scrambling to re-invent its gas architecture.

This is going to mean a period with more price dislocations. And such dislocations create arbitrage, leading to investment opportunities.

For the nimble and knowledgeable in the U.S. gas market, this is a very promising time.

By. Dave Forest of Notela Resources




Back to homepage


Leave a comment
  • Anonymous on August 13 2010 said:
    Very interesting, but incomplete. How does gas mostly selling for $5 go to 14. Yes, it's a spike, but...As for the gas market evolving in the whole world, I would have liked to hear more about that because.....

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News