I just heard Doomberg say that natural gas is trading at “an energy equivalent of $10/bbl oil”. Because “we’re swimming in it and can’t get rid of it”.

Can someone expand on that? I don’t think I quite understand.

In this interview at about 6:22

[https://www.youtube.com/watch?v=MtjJq7WP6QE](https://www.youtube.com/watch?v=MtjJq7WP6QE)

by RawEggEater1956

3 comments

  1. I’ve read this guy and he definitely is smart, but he’s super coy about what he believes. He seems to me a climate denier without admitting it, while also cherry pick lots of evidence to support his theories. He doesn’t seem to believe fossil fuels can be replaced despite evidence to the contrary.

  2. It’ll be a reference to the oversupply of fossil gas in the US, and bottlenecks in exporting it as LNG.

  3. Which part do you not understand? The energy equivalency calculation or the fact that the U.S. natural gas market is currently oversupplied?

    On the former it’s just a simple calculation… Henry Hub gas is traded in millions of BTUs so you can translate that to BBLs of oil based on the BTU content of a typical barrel of oil. (It varies by where it’s produced but you can ballpark a “typical” barrel.)

    On the latter, the gas market in the U.S. has been oversupplied for about a year for several reasons…. The fact that associated gas plays like Permian keep producing gas no matter the gas price… the next wave of LNG demand is still about a year away… the warm winter… the fact that it takes some time (6-8 months or more) to see production fall off in gas-directed plays like Haynesville and Appalachia once producers start dropping rigs due to price. As it were, we are starting to see that now since it was last spring when rigs really started to drop.

    The market will likely get back into balance by the end of this year and certainly next year when the next wave of LNG facilities come online.

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