Home Logon FTA Investment Managers Blog Subscribe About Us Contact Us

Search by Ticker, Keyword or CUSIP       
 
 
 
Blog Home
Bob Carey
Chief Market Strategist
Bio
X •  LinkedIn
 

  Waiting Game Continues For Natural Gas Investors
Posted Under: Sectors
Supporting Image for Blog Post

 

Views from the Observation Deck

  1. The National Oceanic Atmospheric Administration has stated that 2012 will go down as the warmest year in the U.S. on record (118 years).  
  2. Prior to 2012, the warmest year for the lower 48 states in the U.S. was 1998. The price of natural gas averaged $1.93 per million BTUs in December 1998, according to Bloomberg. 
  3. Natural gas prices declined steadily in the first half of 2012. The price bottomed at $1.91 per million BTUs on 4/19/12. In line with December 1998.
  4. The chart above shows a closing price for natural gas of $3.31  per million BTUs on 12/14/12. Why is the price so much higher than back in April? The answer is less rigs and a pop in demand from electric utilities. 
  5. Natural gas producers cut the number of active rigs in the U.S. from 818 on 12/16/11 to just 416 on 12/14/12 in an effort to offset high inventory levels earlier this year. 
  6. The average number of active natural gas rigs for the 10 totals (spanning 10 years) referenced in the chart was 1,050.
  7. The Energy Information Administration reported that the use of coal to generate electricity plunged 17% in the first eight months of 2012, while natural gas usage rose 27%.
  8. While we believe the future for natural gas looks compelling, there are some fundamental challenges in the current climate.
Click here for a PDF version
Posted on Tuesday, December 18, 2012 @ 3:21 PM • Post Link Print this post Printer Friendly

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.
Search Posts
MARKET ANALYSIS
Market Commentary and Analysis
Market Commentary Video
Monthly Talking Points
Quarterly Newsletter
Market Observations
Subscribe To Receive Email
 


 PREVIOUS POSTS
Majority Of Top Performing Stock Indices Since Last Bear Market Have Growth Bias
Inflationary Pressure Has Abated In Some Key Countries
Being Paid for Taking Risk
Nerves Have Settled Some In Europe
Institutional And Retail Investors Still Do Not See Eye-To-Eye On the Markets
A Welcome Sight
Gaining Exposure To China’s Economy Without Investing In Its Stocks
Corrections, Evaluations and Washington
This Down And Out Asset Class Coming Back To Life
A Status Update On Homebuilding
Archive
Skip Navigation Links.
Expand 20242024
Expand 20232023
Expand 20222022
Expand 20212021
Expand 20202020
Expand 20192019
Expand 20182018
Expand 20172017
Expand 20162016
Expand 20152015
Expand 20142014
Expand 20132013
Expand 20122012
Expand 20112011

Search by Topic
Skip Navigation Links.

 
The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
Follow First Trust:  
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
Home |  Important Legal Information |  Privacy Policy |  California Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2024 All rights reserved.