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

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To: Jacob Snyder who wrote (142770)12/21/2010 6:39:08 PM
From: Jacob Snyder1 Recommendation  Read Replies (1) of 206159
 
Natgas price: $3-$6 for two years now, and it is unlikely to go higher till 2012. So many companies have to drill or lose their lease, supply will continue to increase no matter what the price. Cheap prices should increase demand, but there is a lag of many years before dirty coal plants get replaced. Natgas vehicles also have a large switching cost.

27$ = the cost of natgas, at current prices, which yields the same energy as a barrel of oil.
breakingviews.com

The implications of low natgas prices through 2011, are bearish for solar, wind, nuclear in 2011.
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