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Politics : High Tolerance Plasticity -- Ignore unavailable to you. Want to Upgrade?

To: Telemarker who wrote (57)	2/21/2001 5:11:51 PM
From: JungleInvestor	Read Replies (1) \| Respond to of 23153

Well I wondered where some of the regulars of the Strictly Drilling thread went. Assuming that it's ok to post about oil and gas, thought I'd share the post below by Danwilson_Yorkshire with an excellent point about LNG shoring up the NG price bottom. Is high NG price here to stay? by: danwilson_Yorkshire 02/21/01 02:39 pm EST Msg: 15161 of 15168 If the U.S. becomes more dependent on LNG imports as a significant portion (over 5%) of our NG supply then the price of NG must stay above $3.50/mcf. Because if the price falls below the breakeven point for LNG then the supply will be cut off and price will immediately go up. Here's what "saved" the NG consumers this winter: 1. Cool summer in the Northeast reduced NG demand for electrical generation allowing storage to build to 2.7 TCF. 2. Canadian imports were at an all time high the last few month(Canadian storage is now virtually nil). BTW this is not going over very well with the consumers up in Canada. How would you like to heat a home or business in Calgary? 3. NG production bypassed fractionation which increase btu content of gas in the grid. This is only a short-term fix because NGL shortages cause those prices to skyrocket. 4. High prices caused numerous industrial users to sell their NG supply back to utilities. 5. California crisis actually reduced NG consumption. Is this how we'll make it through next winter? Personally, I think the consumers were quite lucky this year. Today's AGA report showing storage below 1 TCF for the first time will be interesting and next weeks draw could be in the 150 bcf range.