happycajun

Natural Gas Prices Set To Surge - Canaccord

Well, I sleep pretty damn good - despite knowing that an ever increasing portion of my hard earned income goes to paying that "fixed income" to others, knowing that those social(ist) programs won't cover me. The price of natural gas on an oil-equivalent basis is a huge bargain. Demand for NG goes up when the gap between oil BTU's and gas BTU's increases where the gas transportation cost is reasonable (pipelines are not cheap). NG price is set by the market - supply & demand. Back in the '60s and early '70s there was a developing NG shortage because our beloved government regulated NG prices - remember "reserves" are only part of the equation - you have to find them, drill them, produce them, process and treat them, and transport them. The midwest has historically been more of an LPG market because of the more dispersed population - making propane a more economic heating fuel than NG - small diameter pipelines and trucks to the ubiquitous propane tank in the yard. It is all about supply and demand - and if you screw with it - you screw it up...