Diary of a Mad(Natural Gas Producer)man
August 20, 20247:00 AM Terry Etam
With all due respect to Ozzy Osbourne, a guy that lived the rockstar life; who drank enough alcohol to float an aircraft carrier; who took enough drugs to stun a small nation; who survived all that, raised a family, survived to age 76/counting, and is worth $200 million…that’s not a madman. That’s genius. Well played, sir.
The story of natural gas markets and producers, on the other hand, can righteously lay claim to the title.
Don’t take my word for it. Have a look at this chart that depicts US natural gas production (black line) and Henry Hub prices (orange) for the last quarter century or so:
In what industry, you might wonder, would producers accelerate production at such a rapid clip, while simultaneously driving prices into the toilet. You would not be crazy in asking that. Over the period of the arrows above, the industry gave a whole new meaning to the term “value destruction”. Investors did not care for the strategy much at all, surprise surprise.
https://boereport.com/2024/08/20/diary-of-a-madnatural-gas-producerman/
