TXDESERTFOX

Royalty Trusts: Maintaining Income in a Volatile Market

One additional consideration: U.S. imports of liquefied natural gas (LNG) have been severely hampered by global LNG demand growth and higher relative prices in the Asia-Pacific region and Europe. For 2008, LNG imports are expected to total about 350 billion cubic feet (Bcf), a decline of more than 50 percent, or 420 Bcf, from 2007, and then to total about 450 Bcf in 2009 as new global LNG supply is added to the market.

Royalty Trusts: Maintaining Income in a Volatile Market

Consider: 1. USGS estimated Barnett Shale ultimate recovery @ 30 TCFe, actual < 6 TCFe. 2. Sunspot Cycle 24 delayed due to lack of sunspots (50-year low e.i., 200 spotless days this year, with sun dimmest in 50 years.) 3. Rigs drilling for gas on the decline, frac proppants, casing, etc. in short supply. 4. Where is all the shale gas? Weekly storage injections should be 150 BCF/week! 2007 average weekly injection 76 BCF/Week.

I consider this a buying opportunity ahead of rising gas prices with an expected cold winter.