Natural Gas and Coal

Don’t look now, but near front month (November) natural gas is trading at $3.29, while December contracts are at $3.58.

Coal became depressed on the back of the shale gas boom:  Haynesville PlayCoal vs. natural gas: It’s complicated at Fuel Fix.

“Natural gas pipelines coming into service by year end may boost deliveries from the Marcellus shale deposit in the U.S. Northeast by 30 percent, extending a supply glut that helped send prices to decade lows.”  Fuel Fix

Thermal coal price recovery not seen until late 2013 at SNL.

Is coal-to-gas switching overstated?  SNL

Trading Point: Central Appalachian (CAPP) is the nation’s benchmark price for eastern coal at the EIABernstein: Coal retirements will constrain capacity most in Southeast at SNL.

“Environmental regulations by the Obama administration come at a cost to coal plants and mines, but the rise of cheap natural gas appears to be a greater threat.”  Christian Science Monitor

“The world is currently experiencing the end of only the beginning of a long-term commodity boom – potentially the largest ever, Adrian Day Asset Management president Adrian Day told the Toronto Resource Investment Conference on Thursday morning.  Day was referring to the commodities boom that had started in the 2000s, which was expected to last more than 17 years.”  Mining Weekly