Monday, June 8, 2009

Start thinking about natural gas.



Price of natural gas is currently being the lowest compared to the crude oil prices since the fall of the Soviet Union. Gas prices, after falling by 31 percent since the beginning of the year, are with the worst performance commodities.

During the last 11 months the price of gas has plummeted by 72 percent. Mainly due to the worst economic depression in the U.S. over the last 50 years and also because mining companies were unable to respond quickly to slowing demand. Because of this stock levels of natural gas are about 22 percent more than the five-year average. Moreover, the gap between the price of gas and oil prices is increasing. Currently oil 18 times more expensive than natural gas. This is the biggest difference since 1992, after the fall of communism has stopped supplies from Russia.

Currently, mining companies have slowed down the exploration and production of gas. The number of operated drilling rigs in the U.S. declined during the past nine months by 56 percent, the largest decline for the last two decades. But this occurs at a time when arising signs of improving global economy.

Comments

1 Response to "Start thinking about natural gas."

Anonymous said... November 22, 2009 at 3:15 AM

...please where can I buy a unicorn?