Shale Natural Gas, Oil and NGLs and ESA Message Board

STOCKTALK

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 : Shale Natural Gas, Oil and NGLs and ESA

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

From: jrhana	6/20/2009 12:16:48 PM
	of 6160

Six Reasons Natural Gas Is Better Than Oil seekingalpha.com by: Vitaliy Katsenelson June 19, 2009 \| about: GAZ / OIL / USO Six reasons why natural gas is a better investment than oil: 1. Reserves deplete faster than oil (in general) 2. Oil/natural gas ratio: the price of oil divided by the price of natural gas is at an all-time high (or close). This ratio stands at 17 (historically it has been at about an 8 or so), Natural gas prices will go up, oil will decline, or both. Also, natural gas is not a good hedge against the declining dollar (it is for the most part a domestic commodity) and storage capacity is more limited, thus not as admired by speculators as oil. This explains in part why it lagged the the spectacular performance of oil of late. 3. At $4, natural gas it is uneconomical to develop and look for new reserves. 4. No OPEC competition, LNG (liquid natural gas) imports are uneconomical at these prices. 5. Politically more favorable than coal. 6. After emission caps are implemented natural gas will become a cheaper alternative than politically and environmentally unfriendly coal.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next