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

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To: Ed Ajootian who wrote (62912)4/20/2006 6:44:14 AM
From: Dennis Roth  Read Replies (3) of 206118
 
Ed, you might want to look at Raymond James' Energy Stat of the Week, this week raymondjamesecm.com

It touches on some of the things you are wondering about.
Most of the world prizes LNG strictly for its BTU content. The world price for gas tends towards the 6:1 BTU parity price ratio
except in gas markets isolated from the rest of the world.
With oil above $70, not much gas is going to be sold into the US at < $5 prices. Very little LNG is sold in the US under fixed price contracts. We're not going to get a flood of LNG at a super-discount to its BTU parity price ratio, IMO.

Of course I could be wrong,.
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