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Natural Gas and Crude Oil Prices Move in Opposite Directions (Continued from Prior Part) STEO report
In its June STEO (Short-Term Energy Outlook), the EIA (U.S. Energy Information Administration) reported that natural gas marketed production will rise by 4.2 Bcf (billion cubic feet) per day to 78.96 Bcf per day in 2015. This is a rise of 5.7% from the levels in 2014. Likewise, production will rise by 1.6 Bcf per day, or 2%, to 80.56 Bcf per day in 2016.
These forecasts are 0.3 Bcf per day lower than the previous estimate for the production levels in 2015. The consensus of slowing natural gas production could support natural gas prices. The dry natural gas production is expected to rise to 74.43 Bcf per day in 2015 from 70.46 Bcf per day in 2014. Production will rise slightly to 75.92 Bcf per day in 2016.
Demand will likely slow down
The EIA estimates that natural gas demand will average around 76.7 Bcf per day in 2015. Demand is expected to slow down to 76.6 Bcf per day in 2016. The average natural gas consumption was at 73.5 Bcf per in 2014. The natural gas consumption will largely come from industrial power plants and electric power plants. The retiring of coal power plants to natural gas, due to lower natural gas prices, will also support the demand for natural gas.
The long-term downtrend of natural gas prices affects upstream players like Cabot Oil and Gas (COG), Rex Energy (REXX), and Devon Energy (DVN). These stocks account for 2.98% of the Spider Oil and Gas ETF (XOP). These companies also have a gas production mix that’s greater than 43% of their production portfolio. They also negatively impact energy ETFs like the Energy Select Sector SPDR ETF (XLE) and XOP.
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Cabot Oil & Gas Corporation
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CODE : COG |
ISIN : US1270971039 |
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ProfilIndicateurs de MarchéVALEUR : Projets & res.Communiqués de PresseRapport annuelRISQUE : Profile actifsContactez la cie |
Cabot Oil & Gas est une société d’exploration minière de pétrole basée aux Etats-Unis D'Amerique. Cabot Oil & Gas est cotée aux Etats-Unis D'Amerique et en Allemagne. Sa capitalisation boursière aujourd'hui est 10,2 milliards US$ (9,0 milliards €). La valeur de son action a atteint son plus bas niveau récent le 26 mars 2004 à 10,00 US$, et son plus haut niveau récent le 14 janvier 2022 à 22,20 US$. Cabot Oil & Gas possède 460 786 236 actions en circulation. |