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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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EXPLORATEUR |
CODE : EXXI |
ISIN : BMG100821401 |
CUSIP : G10009101 |
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ProfilIndicateurs de MarchéVALEUR : Projets & res.Communiqués de PresseRapport annuelRISQUE : Profile actifsContactez la cie |
Energy X X I est une société d’exploration minière et de pétrole basée aux Etats-Unis D'Amerique. Son principal projet en exploration est VERDA RAGEN en USA. Energy X X I est cotée au Royaume-Uni et aux Etats-Unis D'Amerique. Sa capitalisation boursière aujourd'hui est 370,4 millions US$ (302,0 millions €). La valeur de son action a atteint son plus haut niveau récent le 18 septembre 2009 à 9,63 US$, et son plus bas niveau récent le 15 avril 2016 à 0,12 US$. Energy X X I possède 95 459 002 actions en circulation. |