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Natural Gas: Timing Is Everything

seekingalpha -- An investor seeking modest long-term growth with relatively low risk should consider buying into natural gas; the question is when to pull the BUY trigger. With natural gas prices near 10 year lows, high production in 2011 not fully consumed, and a warmer than normal winter, there is no surprise why natural gas is so cheap. Whether or not the price of natural gas will increase depends primarily on a strong year for industrials and the upcoming winters.

Why is natural gas so cheap?

Natural gas spot prices hit the lowest average month price since April 1999. Upcoming statistics and information are found at the U.S. Energy Administration's website.

(click to enlarge images)
Working natural gas inventories continue to set new seasonal record highs as a very warm winter has contributed to mu


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Submitted Apr 29, 2012 By: mastermariner
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REPLIES (newest first)
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bluestang96
Veteran Author Ohio

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Message Posted: Apr 30, 2012 10:12:30 AM

Sure have a lot of it now.
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Nancy&Len
Champion Author Cleveland

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Message Posted: Apr 30, 2012 9:23:13 AM

Lack of demand is the main reason.
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Gas_Eyes
Champion Author Dallas

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Message Posted: Apr 30, 2012 8:32:20 AM

The mild winter this year reduced the demand significantly. Natural gas drillers could not react fast enough to slow down drilling.

Is it time to promote more CNG uses for transportation?
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Canucktree
Champion Author Alberta

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Message Posted: Apr 30, 2012 7:21:03 AM

I am locking in as soon as she starts to jump!
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Amplion
Champion Author Oregon

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Message Posted: Apr 30, 2012 3:31:07 AM

NATURAL GAS HAS PROVEN TO BE UNSAFE.
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megadiesellv
Champion Author Atlanta

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Message Posted: Apr 30, 2012 12:36:41 AM

The evil market.
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bvrbill
Champion Author Eugene

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Message Posted: Apr 29, 2012 10:14:23 PM

I agree with jjjleblanc. Let's turn to a fuel that is not effected by an unstable Mid-East.
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fracknsave
Champion Author Grand Rapids

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Message Posted: Apr 29, 2012 9:57:16 PM

PDQ, the price of nat gas has dropped by 2/3 to 3/4 of a few years ago, what would car sales do if their price dropped in 1/2?

No, the drillers need only to survive until the impending 'gold rush'
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asog75
All-Star Author Indiana

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Message Posted: Apr 29, 2012 9:54:31 PM

interesting,
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esq262
Champion Author Asheville

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Message Posted: Apr 29, 2012 9:32:03 PM

A warm winter is part of this.
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PDQBlues
Champion Author San Diego

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Message Posted: Apr 29, 2012 9:20:12 PM

Oh, those poor drillers. Boo hoo for them...
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Meowmy
Champion Author Florida

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Message Posted: Apr 29, 2012 8:27:14 PM

Buy low, sell high.
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Bussman
Champion Author Dallas

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Message Posted: Apr 29, 2012 7:07:04 PM

With all the talk, this seems like it could be our future.
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scottriedel
Sophomore Author Tennessee

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Message Posted: Apr 29, 2012 6:45:29 PM

I have seen lawnmowers converted to propane, should be an easy change.
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jjjleblanc
Champion Author Rochester

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Message Posted: Apr 29, 2012 6:39:35 PM

Time to convert diesel fleets to natural gas.
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kag2010
Champion Author Winnipeg

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Message Posted: Apr 29, 2012 5:16:44 PM

Natural gas spot prices hit the lowest average month price since April 1999.
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200porter
Champion Author Toronto

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Message Posted: Apr 29, 2012 4:06:35 PM

Buy low, it seems the time is right about now. As they start to frack natural gas and more people convert to natural gas, prices will go up.
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tnfran
Champion Author Arizona

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Message Posted: Apr 29, 2012 2:49:15 PM

This is a good thing for consumers but not so much gas co's.
On a second note though the Gas co's didn't care a whit about the consumers when the prices were going crazily high. It is the same thing with Big Oil at present.
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RRBC
Champion Author Victoria

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Message Posted: Apr 29, 2012 2:47:18 PM

Not enough investors?? Not enough short term profit?

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tgusa
Champion Author Virginia Beach

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Message Posted: Apr 29, 2012 2:30:46 PM

yup
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tarheelcoastie
Champion Author Greensboro

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Message Posted: Apr 29, 2012 2:19:31 PM

yep
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JoeKR
Champion Author New Jersey

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Message Posted: Apr 29, 2012 2:18:31 PM

Why aren't we using this resource to power transit vehicles? It would ease the downward pressure on nat gas and relieve the upward pressure on gasoline!
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fowlcan
Champion Author Oklahoma City

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Message Posted: Apr 29, 2012 2:17:31 PM

The thing to do!
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BUSMAN1105
Champion Author Atlanta

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Message Posted: Apr 29, 2012 2:13:16 PM

WE NEED NATURAL GAS TO DROP SO PRIES WILL DROP.
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uglytom
Champion Author Florida

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Message Posted: Apr 29, 2012 2:09:36 PM

Makes sense...supply and demand!
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djwhit
Champion Author Ohio

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Message Posted: Apr 29, 2012 2:08:16 PM

THATS GREAT........
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fracknsave
Champion Author Grand Rapids

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Message Posted: Apr 29, 2012 1:49:45 PM

Industry will adapt to nat gas, but there will be some lag time
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vcsuksu21
Champion Author Oklahoma City

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Message Posted: Apr 29, 2012 1:47:48 PM

Ok
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Hoporrene
Veteran Author Mississippi

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Message Posted: Apr 29, 2012 1:45:29 PM

Ok...or could this all be about the almight dollar...
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gumbyrex
Champion Author Fresno

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Message Posted: Apr 29, 2012 1:36:25 PM

Don't give up on natural gas, 'cause it ain't over 'til its over.
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TripleHs
Champion Author Austin

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Message Posted: Apr 29, 2012 1:34:54 PM

won't last too long as the demand increases
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humblepie
Champion Author Toledo

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Message Posted: Apr 29, 2012 1:16:40 PM

buy when there is blood in the streets, like NOW...
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MontanaMac
Champion Author Washington

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Message Posted: Apr 29, 2012 1:15:22 PM

@BTJ - is it because the root of all evils 'big oil' is involved in extraction / production?
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BuckyTJones
Champion Author Salt Lake City

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Message Posted: Apr 29, 2012 1:00:12 PM

Maybe someone could tell me?

We as a nation are suppose to be trying to come up with Alternative Fuels.

We are spending like there is no tomorrow for solar, wind and what ever else. It seems to me like Natural Gas is a good way to go. Why are we not developing more options for CNG?
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Dphillips720
Champion Author Michigan

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Message Posted: Apr 29, 2012 12:54:25 PM

ok
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