Of more concern is the chart showing the growth in the price of natural gas. The price has been fluctuating between $1.60 to $2.00/MMBtu. But in a couple of months the price is going to jump dramatically to $3, $4, $5, $6 and maybe even over $10/MMBtu.
Why?
Because fracking wells produce 20 TCF of our natural gas right now out of a total of 30 TCF. Only 10 TCF is produced by non-hydraulic wells.
And fracking is essentially dead in America as it costs too much to keep those wells open (they produce 6.5 million barrels a day). The glut of oil worldwide is over $25 million barrels and even if Russia, SA and the US agreed to cut production by 8 million barrels a day--that would mean all the most expensive wells to produce oil will be shut down. That's fracking.
So then America becomes 20 TCF SHORT of enough natural gas to keep it's electrical plants operating and to heat homes next winter.
Enjoy your lockdown America it's going to take a lot of firewood to stay warm. And buy up some candles your going to need that too.
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