Aren't we having fun again today. Definitely another nap day as far a Capstone goes. Its been quite a hiatus between order announcements, but I'm hoping that oft quoted backlog is keeping the shipping dock busy.
Henry Hub has increased a nickel today for some reason, but the mild winter has already depressed prices and they are likely to go lower. Interestingly, production has remained level despite the significant decrease in rig counts. Taking all of this into account it would seem to me that there is more than adequate supply and no up-tick in drilling is likely to happen in the near future. Has the domestic market E&P market for Capstone Turbines stalled?
From US Energy Information Administration
Overview:
(For the Week Ending Wednesday, December 12, 2012)
Natural gas prices registered overall decreases for the report week (Wednesday to Wednesday) at many of the country’s trading locations. The Henry Hub price rose last Thursday to $3.48 per million British thermal units (MMBtu), but closed yesterday at $3.33 per MMBtu, down 8 cents per MMBtu for the week.
Prices at the natural gas futures market continued to decrease—a decline which started at the end of November—trending lower throughout the week. At the New York Mercantile Exchange (NYMEX), the January 2012 natural gas contract lost 31.8 cents per MMBtu overall to close at $3.382 per MMBtu yesterday.
Working natural gas in storage rose last week to 3,806 billion cubic feet (Bcf) as of Friday, December 7, according to the U.S. Energy Information Administration’s (EIA) Weekly Natural Gas Storage Report (WNGSR). An implied storage build of 2 Bcf for the week positioned storage volumes 48 Bcf above year-ago levels.
The natural gas rotary rig count, as reported by Baker Hughes Incorporated on December 7, decreased by 7 to 417 active units. Meanwhile, oil-directed rigs fell by 4 to 1,382 units.
