Monday, April 22, 2019

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  1. Rod Adams on May 12, 2016 at 10:23 AM

    Mr. Duane should understand that sophisticated investors know that they can make exception returns in situations that are not necessarily beneficial to customers.

    Many of the combined cycle and other natural gas fired power plants built under current market conditions are linked to entities that have interests in the natural gas fuel supply business.

    If coal and nuclear plants can be forced out of the market as a result of temporarily low natural gas prices, there is little chance that they will return to the market when demand increases without a corresponding increase in natural gas supply.

    That situation will drive natural gas prices back up, especially in an area where pipeline constraints still limit supplies from other areas.

    Costs for gas extractors do not increase when market price increases; they simply collect a larger margin on each sale.

    Rod Adams
    Publisher, Atomic Insights
    Host and producer, the Atomic Show podcast

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