Oil’s collapse dominates the energy sector, but trouble is building in natural-gas


With prices  down by almost half  in the past year, it seems impolite to raise the subject of oil in Texan country clubs. But changing the subject to natural gas wouldn’t win friends, either.

Amid oil’s collapse, it is easy to forget the U.S. gas market has been struggling with shale-derived excess for years. While oil has rallied 12% in 2015, front-month gas futures are down about 2%. At around $2.90 per million British thermal units, gas is well below even its pretty dismal five-year average of $3.67.

Like oil, gas inventories are high. Unlike oil, it is certain these will keep climbing—they always do over the summer. The big question is by how much.

The “injection” season—when excess gas output is squirreled away ahead of winter—usually stops at the end of October. Last year, 1.97 trillion cubic feet of gas entered storage between early June and the season’s end, taking the total to 3.6 trillion.  (Wall Street Journal by  LIAM DENNING)

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