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Jim Letourneau's Blog

Investing, Technology, Travel, Geology, Music, Golf. I think that covers it.

How's the Weather?

If you're a natural gas investor, you probably weren't expecting much in the way of short term returns. Even chilly weather last year wasn't enough to offset the decline in industrial demand for natural gas. It looks like 2010 will be different. I've posted a disproportionate number of "climate change" posts lately and weather isn't climate but the current weather is very cold.

For now, it is fair to say that this prediction via Brett Anderson of Accuweather is coming true...

For cold of a variety not seen in over 25 years in a large scale is about to engulf the major energy consuming areas of the northern Hemisphere. The first 15 days of the opening of the New Year will be the coldest, population weighted, north of 30 north world wide in over 25 years in my opinion.

For some confirmation, look no further than these headlines lifted from the Drudge Report.

Winter Could Be Worst in 25 Years for USA...
CHILL MAP...
Britain braced for heaviest snowfall in 50-years...
GAS SUPPLIES RUNNING OUT IN UK...
Elderly burn books for warmth?
Vermont sets 'all-time record for one snowstorm'...
Iowa temps 'a solid 30 degrees below normal'...
Seoul buried in heaviest snowfall in 70 years...
3 die in fire at Detroit home; power was cut...
Midwest Sees Near-Record Lows, Snow By The Foot...
Miami shivers from coldest weather in decade...


A few weeks of "population weighted" cold weather will make a major dent in North American natural gas supplies.