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Tropical Storms Could Influence Crude Oil and Natural Gas (Continued from Prior Part) Electricity consumption
The EIA (U.S. Energy Information Administration) reported in its June edition of the STEO (Short-Term Energy Outlook) report that the average US residential electricity bill will increase by 4.8% more during June, July, and August in 2015—compared to the same period in 2014. The increase in electricity consumption is due to warmer weather estimates. The rise in electricity consumption increases the demand for natural gas from the gas powered electric power plants.
The EIA projected that the natural gas fuel share averages around 30.9% in 2015—up from 27.4% in 2014. In contrast, electricity generation from coal will decline to 35.6% in 2015 from 38.7 in 2014. Old coal power plants will retire and give way to new natural gas powered electric power plants. The renewed demand from electric power plants also supports natural gas prices.
The estimates of declining production, rising consumption, and tropical storm supply disruption could support natural gas prices. However, the forces of supply and demand will bring natural gas prices in equilibrium in the long term. Upstream players like Energy EXXI (EXXI), Antero Resources (AR), and Rex Energy (REXX) are positively impacted by rising natural gas prices. 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.
Oil and gas ETFs like the Energy Select Sector SPDR ETF (XLE) and XOP also benefited from the rising natural gas and crude oil prices.
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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. |