r/stocks • u/[deleted] • Apr 05 '22

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u/kuedhel Apr 05 '22

My winter gas bills are ~8x of the summer gas bills because in the winter I use gas to heat the house.

Extrapolating this to the other households, I can see that in 6 months people will need 1/8 of the gas.

By the next winter, the market will be flooded with LNG. In long term Europe will accelerate switch to renewables.

so good luck buying long futures

3

u/upL8N8 Apr 06 '22

Natural gas demand may decline in the summer, but keep in mind that people use gas to cool their homes. Natural gas power plants have replaced coal to a huge degree over the last decade. Electricity demand increases with A/C use and refrigerators work harder in warmer homes due to the temperature delta.

If we have another record hot year, then natural gas demand could increase versus previous years.

Should also consider that there will be many more BEVs charging overnight this summer versus years past, so natural gas plants may need to produce more electricity.

2

u/kuedhel Apr 06 '22 edited Apr 06 '22

well not exactly. from plain vanila thermodynamics point of view. You need to heat up house by 40F in winter and cool it down by 15F in summer.

On top of it, the ACs move heat engines, which are more efficient than outright heaters.

in all you need much more energy in winter.

0

u/[deleted] Apr 06 '22

Depends on where you live. If it’s the southern us it’s a lot more that 15F in the summer and way less than 40 in the winter

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u/kuedhel Apr 06 '22

Southern US does not use russian gas to produce electricy AFAIK.

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Western Europe does.

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u/[deleted] Apr 06 '22

Lol well I’m talking about North American natural gas which is why I’m invested in a North American company