Mmarrkk

Supply Glut Pressuring Natural Gas

Don't have to be comparable to developing countries, but also don't have to be as ridiculous as the UAW contracts that pay folks when they aren't working, that pay them huge percentages over their counterparts at Hyundai and Toyota and Honda plants IN THE U.S.A. Hyundai's plant in Alabama is working well at a fraction of the labor cost of the GM plants around the country. Difference? Union vs non-union.


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> those in developing countries would "mirror reality", right?

Supply Glut Pressuring Natural Gas

Fully agree! I'd add that the relentless collapse of u.s. manufacturing was driven in large part by the overreaching of two groups: organized labor and environmental terrorists organizations...both joined at the hip by the Democratic Party! Labor costs have gone through the roof due to benefits packages that don't mirror reality or the competitive nature of the world economy. Keeping up with ever changing environmental regulations that in many cases have no basis in cost/benefit analysis is also a driving force behind manufacturing leaving the country. With that manufacturing base leaving, the natural gas industry has lost a vital demand element.


On Aug 31 12:28 PM john s. gordon wrote:

> the relentless collapse of u.s manufacturing has seriously wounded
> the natural gas business.

Supply Glut Pressuring Natural Gas

Actually Elliott its been done for years, at least since WWII. The South Africans led the way with Fischer-Tropes (sp?). Gas-To-Liquids is a proven commercial process and is even more economic when gas prices are low and oil prices are high. Go to Syntroleum's web site or to Shell and/or Exxon. Make sure you look up GTL, not to be confused with LNG (liquified natural gas). These are two completely different processes.


On Aug 31 11:31 AM Elliott wrote:

> On Aug 31 10:03 AM Mad Hedge Fund Trader wrote:

Bullish Signs from Oil

toobad41: while you are right that "most" gas wells produce some liquids, when you look at the revenue and profits of many predominately nat gas companies, >90% of their revenue/profit comes from nat gas sales. Check out CHK and HK. Oil prices don't really impact them, its nat gas prices, unless we have a good tight relationship between oil and nat gas prices which we haven't see.

Jimbo: not sure where to start with your post. On quickly changing tack from nat gas to oil, its a lot more difficult than you would think. When a company leases acreage/mineral rights in an area that is gas prone, they can't just snap their fingers and start drilling for oil. They've invest millions of dollars in a gas play and they just up and move to an oil play?? Don't think so. Your comments on PUD's are not reall factual, more of an opinion that for the life of me, I can't find any data to back it up. Perhaps you have some?? Since I've worked reserves accounting for years I can see PUDs being developed and moved to PDP all the time.

Bullish Signs from Oil

Quick question: how does a move in oil make for a move in EXCO, Range, etc? These are natural gas producers and while there is a correlation between oil and gas prices, that has been weak as of late. Natural gas is mired in a supply/demand imbalance that has only minimal relationship to crude.