You recently posted a chart showing Ng Stocks outperforming Ng futures price ....
I ran across this today:
The stock valuations of the E&Ps are still very high indicating that investors are still encouraging companies to take and spend money for drilling despite commodity prices. I heard that there is a backlog of around 1500 wells that are drilled and awaiting completion, mostly in Eagleford and Marcellus. The supply train is still picking up steam.
I asked an executive at Petrohawk when the drilling/production madness will end for natural gas he just said
when investors turn sour on aggressive exploration and development. For us publicly owned companies it is the shareholders that decide what they want, and so far they want everyone to keep producing more and more regardless of price. The mentality with these new shale fields is to stake a claim just to hold the reserves, even if it isn't profitable today
So then I asked when will they turn sour? And he said
when earnings slow, which may be years away given the fact that crude output is helping many gas guys hide performance.
I have wondered for some time when Ng production would slow based on the low price, but if the above has any merit, the producers will keep producing as long as the market keeps pumping $$$ into their stock !!!!!!!
Since you keep an eye on the Ng stocks/ETF's, any comments ????