If there is one question on the minds of energy market analysts regarding the price of natural gas, it’s; “how low would prices have to go before shale gas producers start shutting in production”. Thanks to the work of Energy Metro Desk who publishes a bi-weekly news letters on energy markets and polls forecasts on the EIA weekly natural gas storage report, they posted that question. A total of 125 producers and suppliers responded to the question with the average response of $2.20 for NYMEX Henry Hub before they would start shutting in any substantial amount of production.

With suppliers and brokers of natural gas pushing retail users to enter into long term, 100% fixed positions, significant savings from bear markets like this are forgone.  NuEnergen helps clients navigate these markets in a way that both mitigates risk, and captures the best prices as they grind lower.

Currently, we recommend that clients hold off until mid to late February  to implement further fixed positions, as natural gas supplies are near record highs, and natural gas prices have historically dipped coming off the winter period. As we head into the spring time we will look to fix larger portions of our clients supply for both natural gas and electricity.