Henry Hub prices were under $2.5/MMbtu (~$18/BBL OE) this week.
The last industry report I read on average, normalised drilling and fracking costs (not easy to get these, many unique variables) was for April 2011, and they were $4/MMbtu.
So if you do the maths, not many companies can afford to supply the domestic US market for too long.
They either, export at around $5-6/MMbtu cash cost, and cop local gas prices at the same. Still that's not too bad and implies an energy equivalence of about $30-35/BOE.
Or supply will dry up, and allow only the largest, low cost producers to supply the domestic market.
Either way the current status quo, isn't stable.
A lot of US politics before any answer is decided on. Time doesn't move fast in US politics. Only Bernanke et. al can decide the fate of a trillion or two at the drop of a hat.
Choice
exports of lng may raise u.s. prices , page-3
Add WDS (ASX) to my watchlist
 (20min delay)
|
|||||
|
Last
$24.05 |
Change
0.270(1.14%) |
Mkt cap ! $45.66B | |||
| Open | High | Low | Value | Volume |
| $23.82 | $24.09 | $23.76 | $106.1M | 4.408M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 4 | 17393 | $24.04 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $24.05 | 4691 | 1 |
View Market Depth
| Last trade - 16.10pm 01/11/2024 (20 minute delay) ? |
| WDS (ASX) Chart |