Monday, July 8, 2013

Sub $2 Natural Gas Returned Last Week--Marcellus Northeast America's Cheapest Gas

Natural gas priced below $2 for a thousand cubic feet returned to America on July 3 and July 5 at the Marcellus Northeast trading hub.  That's about $1.50 less than gas traded at the Henry Hub in Louisiana, making the Marcellus gas a tremendous bargain.

Gas priced below $3.50 knocks out substantial coal-fired electric generation.  Gas priced below $2 sets off an avalanche of switching from coal to gas for electricity.

The recent price decline of gas from above $4 will slow the market share gains coal made at the expense of gas from November 2012 through April 2013.

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