Andy1234

Natural Gas: The Next Big Thing

I think the guys above are looking at the demand side....the supply side looks horrible when oil is $50/barrel.

I think people in the market are looking forward and saying....damn we won't have any new projects coming online if oil is under $70-60 a barrel.....we might not even have anything coming online at $80/barrel.

Then the look the other way and see this massive pile of cash being created.....I dunno.

Its all about demand/supply and the cost to replace the supply when used. The price cannot eclipse the majority of new oil coming online for a very long period....otherwise shortages occur. NG and oil are too low for new projects to come online in the mass....and if new projects are cut.....the natural decline of 7-9% of supply (new oil isn't coming online) will eclipse the demand pretty quickly if oil remains low.

I do see we significantly rose the production of NG when prices were high....so the relationship between oil and NG may change in the future if we find significant amounts and are able to produce them at a reasonable price (the shales).

What Devon's Huge Write-Down Means for Natural Gas

At current prices.....I don't think LNG is competitive.


On Feb 05 07:47 AM prairiedog555 wrote:

> I have been reading that the supply of LNG from overseas will soon
> be flooding the US market via a number of newly constructed LNG ships.
>
> How will this affect Nat Gas price and producers?