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Gold/Mining/Energy : Big Dog's Boom Boom Room

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To: Big Dog who started this subject	12/1/2003 4:59:03 PM
From: Ed Ajootian	Read Replies (3) of 206092

Question re: liquids stripping for industry guys. It seems that the supply of natty is being impacted by the degree to which producers strip the natural gas liquids from their production stream (vs. leaving it in and getting more gas but less liquids to sell). Would it be correct to say that, in most cases, this would be a monthly decision that would need to be made, and once made, would effectively be unchangeable for the rest of that month? Case in point -- over this last week (which I believe was "bid week" for December) it seems that oil prices were selling above natty prices on a BTU-equivalent basis. Therefore, if a producer had to make a choice last week regarding this, he would probably have decided to strip out as much natgas liquids as possible for his December production. Now here we are today and natty prices go idiotic, while oil prices sink, which flips it around the other way (i.e. natty prices are selling at a higher price than oil on a BTU-equivalent basis). Is it correct to say that the companies that made the decision to strip out max liquids last week could not change their minds this week for their December production, or can they still do that?

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