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Crude Oil and Natural Gas: Will the Collateral Damage Continue? (Continued from Prior Part) Gas deliveries to electrical power plants
Gas flows to electric power plants continued to rise due to summer demand. Gas deliveries to electric power plants rose to 32 Bcf (billion cubic feet) from 30 Bcf week-over-week as of July 1, 2015. Gas flows to electric power plants were 3% more than the levels last year. In contrast, the residential and commercial segments saw a fall in natural gas flows week-over-week. Weekly gas deliveries to industrial power plants also fell.
The EIA (U.S. Energy Information Administration) estimates that natural gas consumption from electric power plants will account for 33% in the US. Switching coal powered plants to gas powered electric power plants will support natural gas prices. Lower natural gas prices, an abundance in availability, and cleaner fuel are the key factors for switching the power plants. The old power plants will retire. This will pave the way for new gas powered electric power plants. This renewed demand for natural gas might uptick natural gas prices.
Crude oil and natural gas producers like Energy EXXI (EXXI), Antero Resources (AR), and Rex Energy (REXX) are negatively affected by falling natural gas prices. Combined, they account for 3.99% of the Spider Oil and Gas ETF (XOP). They also have a gas production mix that’s greater than 45% of their total production. The volatility in the energy market impacts energy ETFs like the Energy Select Sector SPDR ETF (XLE) and XOP. These ETFs fell by 1.28% and 3.17% in yesterday’s trade.
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Energy XXI
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EXPLORATION STAGE |
CODE : EXXI |
ISIN : BMG100821401 |
CUSIP : G10009101 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Energy X X I is a and oil exploration company based in United states of america. Its main exploration property is VERDA RAGEN in USA. Energy X X I is listed in United Kingdom and in United States of America. Its market capitalisation is US$ 370.4 millions as of today (€ 302.0 millions). Its stock quote reached its highest recent level on September 18, 2009 at US$ 9.63, and its lowest recent point on April 15, 2016 at US$ 0.12. Energy X X I has 95 459 002 shares outstanding. |