Replies to post #15752 on Velocityshares 3X Long Natural Gas ETN (UGAZ)

[MJ moneymaker]

A shortage??! Gasp. Good thing our power grid is becoming more and more reliant on the most volatile commodity there is. I'm sure everyone will appreciate it when natural gas is over $5 in a couple years and their electric bills go up a lot.

[dude iligence]

NatGas Rigs Wait It Out as Oil Units Step Up Again
Joe Fisher August 19, 2016

NatGas Rigs Depart as Oil Units Return
Gas Plays Poised to Step Up as Oil Rigs Chart Gains
Natural Gas Rigs Mostly Still Benched as Drillers Call Up Oil Units
USBaker
Looking ahead to next year, Societe Generale analyst Breanne Dougherty says natural gas demand growth "is all but certain" and drillers will have to step up.

In a note published earlier this month, Dougherty projected a "modest" decline in power generation demand but accompanied by demand strengthening coming from export and industrial growth. Compared to the mild 2015-2016 winter, the next one will likely bring stronger gas demand demand, she said.

"Tapping the uncompleted well backlog is estimated to be able to provide approximately 2 Bcf/d to the production base through the end of 2017; but between the natural decline of shale wells and the rise of demand, the call on new drill gas volumes will be strong."

Hopefully those gas drillers will be awake enough to hear the phone ring. No natural gas-directed rigs returned to action in the most recent week of activity tallied by Baker Hughes Inc. (BHI), and four rigs left the gas patch in Canada.

Overall in the United States for the week, land-based rigs gained nine units to end at 470 active. One offshore rig was added, too, which brought that total to 18 active. All of the U.S. rigs that came back were oil-focused, bringing that total to 406. Natural gas rigs held steady at 83 units active. Seven horizontal rigs came back, accompanied by one directional and two verticals. Texas led the states with eight rigs added, and the Permian led plays, having added seven rigs.

In Canada, four natural gas rigs left play, accompanied by one "miscellaneous" rig, dropping the country's total by five units to end at 121 rigs active. That left North America with a net gain of five units to end at 612.



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[dude iligence]

The U.S. Energy Information Administration said in its weekly report that natural gas storage
United States Natural Gas Storage
Latest Release:
Aug 25, 2016
Actual:
11B
Forecast:
18B
Previous:
22B
in the U.S. rose by 11 billion cubic feet in the week ended August 19, below expectations for an increase of 18 billion.
That compared with a gain of 22 billion cubic feet in the preceding week, 67 billion a year earlier and a five-year average of 66 billion cubic feet.
Total U.S. natural gas storage stood at 3.350 trillion cubic feet, 8.3% higher than levels at this time a year ago and 8.2% above the five-year average for this time of year.

---------

Last week

The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. rose by 22 billion cubic feet in the week ended August 12, while analysts had forecast an increase of 27 billion.
That compared with an advance of 29 billion cubic feet in the preceding week, 52 billion a year earlier and a five-year average of 57 billion cubic feet.
Total U.S. natural gas storage stood at 3.339 trillion cubic feet, 10.9% higher than levels at this time a year ago and 13.8% above the five-year average for this time of year.

May 26 it was "35.4% higher than levels at this time a year ago and 32.7% above the five-year average for this time of year.


Strong trend well under way. Less than 90 NG rigs in service oil in the $40 wont put many US oil rigs back in service.