Executives from oil and fuel companies have revealed the place they anticipate the Henry Hub pure fuel worth to be at numerous factors sooner or later as a part of the third quarter Dallas Fed Power Survey.
The common response executives from 131 oil and fuel companies gave when requested what they anticipate the Henry Hub pure fuel worth to be on the finish of 2024 was $2.62 per million British thermal models (MMBtu), the survey highlighted. The low forecast was $1.50 per MMBtu, the excessive forecast was $4.25 per MMBtu, and the Henry Hub spot worth through the survey averaged $2.23 per MMBtu, the survey identified.
Within the earlier Dallas Fed Power Survey, which was launched within the second quarter, the common response executives from 133 oil and fuel companies gave when requested the identical query was $3.01 per MMBtu. The low forecast in that survey got here in at $1.85 per MMBtu, the excessive forecast was $4.80 per MMBtu, and the Henry Hub spot worth through the survey averaged $2.61 per MMBtu, that survey outlined.
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The newest Dallas Fed Power Survey additionally requested members the place they anticipate Henry Hub pure costs to be in six months, one 12 months, two years, and 5 years. Executives from 112 oil and fuel companies answered this query and gave a imply response of $2.57 per MMBtu for the six month mark, $2.85 per MMBtu for the 12 months mark, $3.24 per MMBtu for the 2 12 months mark, and $3.89 per MMBtu for the 5 12 months mark, the survey confirmed.
Executives from 116 oil and fuel companies answered this query within the earlier Dallas Fed Power Survey. They gave a imply response of $2.93 per MMBtu for the six month mark, $3.15 per MMBtu for the 12 months mark, $3.58 per MMBtu for the 2 12 months mark, and $4.28 per MMBtu for the 5 12 months mark, that survey highlighted.
The fuel worth was highlighted a number of instances in a ‘feedback’ part of the newest Dallas Fed Power Survey, which the survey outlined confirmed feedback from respondents’ accomplished surveys that had been edited for publication.
“Pure fuel manufacturing within the Permian Basin is priced effectively under the futures market,” one exploration and manufacturing agency stated, the survey confirmed.
“A number of of the previous months I’ve obtained nothing or a damaging adjustment to income for pure fuel. In June, one operator paid $0.09 per million cubic toes, which is above $0, however accrues little to my income. I imagine this example will persist for months if not years,” it added.
One other exploration and manufacturing agency was quoted within the survey as saying, “we’re seeing pure fuel costs have an effect on drilling rig utilization within the East Texas Basin”.
“The Japanese Haynesville drilling rig utilization is dropping off, and drilling rig utilization within the Western Haynesville/Bossier Sands play is rising because of greater manufacturing charges being discovered there,” it added.
A separate exploration and manufacturing agency was quoted as stating within the survey, “turbulent commodity pricing markets, particularly WTI (West Texas Intermediate) crude oil and Henry Hub pure fuel, don’t permit for assured future efficiency projections with regards to internet revenue”.
A analysis be aware despatched to Rigzone by the JPM Commodities Analysis group on Monday confirmed that J.P. Morgan is forecasting that the U.S. pure fuel Henry Hub worth will common $2.33 per MMBtu in 2024 and $3.70 per MMBtu in 2025.
A report despatched to Rigzone late Tuesday by Customary Chartered Financial institution Head of Commodities Analysis Paul Horsnell confirmed that the corporate expects the NYMEX foundation Henry Hub close by future worth to common $2.17 per MMBtu within the third quarter of this 12 months, $2.70 per MMBtu within the fourth quarter, and $3.25 per MMBtu total in 2025.
In a BMI report despatched to Rigzone by the Fitch Group on September 20, BMI projected that the pure fuel Henry Hub entrance month worth will common $2.40 per MMBtu in 2024 and $3.40 per MMBtu in 2025.
To contact the writer, e mail andreas.exarheas@rigzone.com
