• 4 minutes "Saudi Armada heading to U.S.", "Dumping" is a WTO VIOLATION.
  • 7 minutes Trump will be holding back funds that were going to W.H.O. Good move
  • 11 minutes Washington doctor removed from his post, over covid
  • 15 minutes Which producers will shut in first?
  • 7 hours Why Trump Is Right to Re-Open the Economy
  • 13 mins A small trial finds that hydroxychloroquine is not effective for treating coronavirus
  • 2 hours Sharp real pure true hard working roughneck needing work..
  • 13 mins Charts of COVID-19 Fatality Rate by Age and Sex
  • 22 mins Russia's Rosneft Oil is screwed if they have to shut down production as a result of glut.
  • 15 mins Corona Price Tag
  • 18 hours Wouldn't fall in demand balance it out?
  • 14 hours US Shale Resilience: Oil Industry Experts Say Shale Will Rise Again
  • 1 hour Bernie Sanders introduces bill to ban fracking
  • 4 hours 80's GOM Oil Fam: Mid-80's Oil Glut Part Deux?
  • 7 hours CCP holding back virus data . . . . . . Spanish Flu 1918 MUTATED, Came in 3 waves, Lasted 14 months and killed upward 5% World population
  • 13 hours Its going to be an oil bloodbath
Dan Dicker

Dan Dicker

Dan Dicker is a 25 year veteran of the New York Mercantile Exchange where he traded crude oil, natural gas, unleaded gasoline and heating oil…

More Info

Weather Forecast Looks Bright For LNG But I’m Skeptical

For a lifetime trader of fossil fuels, it’s been like living in the dark.  I’ve never seen a better market to be long crude oil, where the risks to the upside were, to me, exponentially deeper than the possibilities to the downside – but my shrinking profit and loss statements have been a contrary indicator to be sure.

Natural gas has been almost the exact opposite, where downside risks are far more numerous than the possibilities for a big move higher.  And yet, nat gas is showing some surprising strength, considering the moderate summer we’ve just come through.  As with crude oil you have to ask – what is going on?

One chart I love to start the conversation on natural gas is this one, from the Energy Information Association:

Even for those of you who are aware of the shale revolution in the US, this serves as a fantastic representation of just how incredible the growth in gas production has been here in the US.

And remember: while US crude demand will never be satisfied by US production, natural gas production from shale has almost completely satisfied what the US uses – and ultimately the excess that gets produced has nowhere to go.  

Sure, there’s been hopeful talk from natural gas advocates about a conversion in the US to a ‘gas-based’ energy infrastructure:  transport trucks and cars running on US shale gas, utility plant conversions, gas-to-liquids projects…




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