The New York Times questions shale… huh?
A recent article in The New York Times regarding growth prospects for North American shale gas was the talk of the town yesterday. The article in question, called into question, the prospects of shale gas development.
As far as we were concerned, the story was more or less a he-said… she-said, summation of dueling opinions within the EIA’s pecking order. In this vein, we gave the article short shrift.
Exxon’s $36 billion shale bet on XTO notwithstanding, the story seemed to pick up steam throughout yesterday's session.
Therefore, we thought it prudent to take a look at the term structure of the NYMEX Henry Hub complex.
In today’s issue of The Schork Report, we graphed the return on holding natural gas inventory, as measured by the 1st/13th month calendar spread (aka… spot month/red month) of Nymex Henry Hub natural gas futures.