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Re: Can natural gas prices recover?

By: pdowd in ROUND | Recommend this post (0)
Thu, 02 Jun 11 4:49 PM | 106 view(s)
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Msg. 33231 of 45510
(This msg. is a reply to 33229 by Decomposed)

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The distribution process for NG is a painfully slow one. Pipelines, the major distribution method in the US as of now have to be permitted. This process is very tedious, i.e.: years.

One interesting fact is that there are major LNG (liquefied natural gas)terminals built for IMPORTING LNG, now being retrofitted to EXPORT LNG. I believe there are at least 3 on the Louisiana coast being converted as we speak.

All I really know is that the Shale plays are getting easier i.e.: cheaper, to produce for oil and the major NG plays like HK are turning their attention to oil in the shale formations as well where even last year oil was just an afterthought.




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The above is a reply to the following message:
Re: Can natural gas prices recover?
By: Decomposed
in ROUND
Thu, 02 Jun 11 3:30 PM
Msg. 33229 of 45510

I'm no expert, so I can't say if the prices will recover. I've read that new processes ensure that the United States will have all the natural gas it needs for HUNDREDS of years to come. That suggests that prices are going to remain low.

So, even if that's bad for my investment, it's great for the country! The question is, why isn't the country moving toward natural gas as rapidly as possible? It doesn't seem to be doing that, and I don't know why. Is it just a matter of distributing the gas?


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