SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Gold/Mining/Energy : Big Dog's Boom Boom Room
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
From: tradingfaster1238/28/2008 10:54:24 AM
  Read Replies (3) of 206305
 
We haven't seen an NG oversupply of this degree since 2003. I mean, hopefully this number was an anomoly, but there's just been way too many of these huge numbers this year. I switched to the oily side yesterday after taking a loss on the gassers, and thank God I did. The E&P's still have excellent fundamentals, but the NG environment is just too bearish. The average E&P is outspending cash flow to grow production. That has to stop and the market will force it to stop. However, since many E&P's are hedged, prices may need to go a good deal below marginal cost for it to happen. Maybe the hurricane will destroy enough production to stabalize prices, but that would be very short-term thing.

I don't think the average E&P breaks the lows set a couple weeks ago unless things get really out of hand. Coal is another unknown variable.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News