natrual gas prices still to drop

[dave1966]

our local paper is saying gas will be dropping 75%from 13.00 to 3.00 a 1,000 qu ft if it stays that low i'll be happy to let everyone have my share of pellets,i wont be burning them at $300 with gas that cheap if i do i'll can only see buying one ton for the coldest days.they say the dropp is due to the economy and over supply of gas

 

[peakbagger]

The basics are that natural gas follows a roughly three year cycle. When gas prices are high, all the drilling rigs get moved back in the field and start drilling. Eventually they come on line and the gas storage fills up. The price then drops and the rigs stop drilling and the price goes back up again. Throw in a bad economy after a major run up in natural gas prices and the demand for gas drops rapidly as the storage is full. Enjoy the price now as the rigs are going to stop drilling, and when the economy cranks up again the price of natural gas will skyrocket.