Augustus

Natural Gas Should Get a Boost from China's New Demand

The target market for the LNG exports has to be western Europe. They are being held hostage by the ruskies now and are paying jacked up prices. The US has a current oversupply that is unlikely to disappear for a couple of years. OBamanomics will increase US industrial costs, driving more industrial users offshore. The economic rebound, if any, will be weak and tepid, at best. Very little LNG will be landed at US receipt points as the market is saturated with supply.

The Current Stagnation of Natural Gas Vehicles in America

Natural Gas Vehicles have a few problems that gasoline fueled ones do not hae. Have you thought about the consequences of a very small NG leak. You can very easily have a pretty dramatic event occur without any warning. However, a leak of gasoline is not going to cause the same problem.

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

Tme market in Europe will take all of the LNG capacity. They have a general shortage and are supplied by the fairly high cost Ruskies.

Chesapeake Energy Unlikely To Remain this Cheap

Aubrey McCendon is a land man dumb ass.
They have monsterous values assigned to leases which will neve be drilled. They've paid $2,000 / acre for leases that are worth $20 / acre.
Sure, they have production. And it is declining. They don't have to shut in anything to have it go down. The production people are so focused on immediate production that they are damaging long term reserve recovery.

The Pickens plan is nonsense. The costs are so much greater than the rewards that it is obvious that Pickens has lost it.

This company has risked everything on very fast rising energy costs. They lost and will go bust. When the reserves are economic to develop, they will be developed. By someone other than McClendon and Pickens.

Chesapeake Energy Called the Market's Bluff

CHK can get it out.
CHK can market it.
Can they make a profit based upon the nutty costs they incur in doing it?
They have paid some monsterous lease bonuses.
They will also be paying abut double the rig costs for drilling as they have to get this stuff done before the leases expire.
High gas prices and the lust for rapid development may kill the earnings.