
By Jeff Bolyard, Vice President, Commodity Strategy
After hitting all-time high production levels in November 2019 averaging over 95 Bcf per day, then dropping to average only 87.7 Bcf/day during the oil war plagued summer of 2020, we find ourselves in the midst of a surprising recovery of gas production over the past couple of months. Admittedly, the recovery has not been consistent, but the upward trend is undeniable. The below U.S. natural gas production chart from Bloomberg NEF shows the recovery since mid-September in the highlighted area of the black line (2020) compared to the previous year, 2019 (magenta line). The last seven days of November averaged an impressive 92.25 Bcf/day, with increases in nearly every major production area.
When we see trends like this, we often need to be reminded why NYMEX prices still have upside potential for the rest of the winter and throughout 2021. So here is your pre-holiday list of items that might kill one’s optimism of seeing a sub $2.00 NYMEX anytime soon.
In reality, there are movers in the current gas market that can make gas prices increase or decrease $0.10-$0.20 or more on any given day based on the news cycle. Do not let the news cycle determine your energy spend or risk and take control by managing it based on the risks you want to take. Reach out to Edison Energy to learn more.
We believe that smart energy solutions start with a dialogue. Contact us today and let’s start the conversation about how Edison Energy can evaluate and mitigate risks while aligning energy investments with your company’s strategic goals.
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