Brahm

Natural Gas: Clean Fuel with a Dirty Little Secret

With regard to decreases in imported gas, perhaps, the explanation is not oversupply in the US. NG markets are very healthy abroad, and there is actually a shortage of supplies in the Persian Gulf (lower transportation costs due to contiguity). Many projects on the board or desired to be implemented in the near term in the Gulf region cannot find the gas feedstock required for them. Production is way behind demand and market needs. India, for example, has difficulties finding gas for near term needs (2 or 3 years ahead) of LNG from the Gulf. Not very successful. Power projects appear to be stalled in some of the emirates due to a lack of projected supplies.in the near and intermediate term. Drilling has not kept pace with burgeoning needs for power supply feeds. Prices are also very healthy for spot marker supplies in the Eastern region, and it perhaps does not make much sense to send ships laden with LNG over long distances to the US where prices are not that attrative.

So please be careful regarding the gift of your analystical powers!