What does gas glut mean?
anybody knows and what it means in the context of things? excess supply and low prices?
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Gas glut means to stop eating so many beans.
Glut means an oversupply. With generation Y graduating college, there is a glut of liberal arts majors right now.
After the glut of cheese products, high school students around the country were eating free grilled-cheese sandwiches provided by the USDA for months and months.
The near polar opposite of glut is a dearth.
You would need to provide more context for your question
What else could it be?
Natgas is at $2.25/mcf right now, down from $14 five years ago. I think it's definitely referring to shale gas in the US. Still confused when the OP apparently knows the answer.
I like grilled cheese sandwiches.
no context is needed... glut isn't an industry term.
glut is supply greatly exceeding demand.
put gas in front of it =
gas glut
I assume you mean in the context of $2.50/mcf henry hub gas prices.
In short, it would help to understand how the gas market works. Producers (E&P companies like CHK) drill for gas all year. However, gas is only lightly used in summer, and heavily used in winter. Therefore, a system of storage is used. It's filled during the summer months and emptied in the winter months.
However, due to various circumstances, including a warmer winter and an over-production of gas due to "cheap" shale plays, storage has not been drawn down sufficiently over the winter. We are therefore exiting the winter at a projected 2.3-2.4 Trillion Cubic Feet, rather than the usual 1.6 Tcf. This puts pressure on producers, who continue to need to sell their supplies into storage in the coming year.
This is the "glut". There is too much gas currently in storage and given the mechanics of gas production, it's not so easy to just "turn off the tap". Hence, prices are being driven down by oversupply.
Too much gas, excess supply, more gas than demand for gas...
Gas glut? ...as in the Shale Gale?
I present to you the first edition of Natural Gas Glut, Excess Supply and Low Prices for Dummies, written by a dummy.
Several years ago it was believed that the US would soon need to be importing nat gas from other countries in order to meet demand. Along comes Mrs. Horizontal Drilling, who wants to try something different from the standard missionary position...I mean vertical drilling. Let's drill vertical and then turn that sucker sideway to capture a narrow band of shale (that contains gas tightly packed into the rock) which, although narrow in vertical depth, stretches out horizontally for quite some distance. And then Mr. Hydraulic Fracturing comes along and pounds cracks into the rock, thus fracturing it, to release the gas [probably best to end any sexual analogy/reference/innuendo at this point]. Yada yada yada, he's very tired the next morning. Lots of guys jump on the bandwagon and use these techniques and then we find that we have a ton more nat gas recoverable than previously thought. Nat gas production is way up cuz everyone is fracking their brains out. Cue the glut. Gas falls from ~$15 several years ago to the sad, miserable sub-$2.50 neighborhood. Gas glut...excess supply....low prices. Mystery solved. Next...on to an even greater mystery than explaining "gas glut": how to make a macaroni necklace. I'll give you a hint, it involves macaroni pasta and string.
Silver Banana for you. If you work in Houston, let's get drinks or macaroni.
I think he meant so say "ga slut" - that is a term referring to a skanky girl attending the university of georgia.
:)
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