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Strategies & Market Trends : Strictly: Drilling II -- Ignore unavailable to you. Want to Upgrade?

To: Douglas V. Fant who wrote (22486)	11/28/2002 3:18:04 PM
From: nspolar	Read Replies (1) \| Respond to of 36161

Douglas, as I recall latest I would put that figure over $4.00/mcf. I'm not sure companies would do major LNG projects for $3.00/mcf, depending on how far they had to ship the stuff. (I could be wrong - I do see numbers in my work every now and then, but don't specifically work this area). Additionally at over $4.00/mcf I think a pipeline from the Northslope becomes viable, bringing large quantities of gas to the south. Large quantities that will last for a long time. The process going on here is imo a slow one, but one of slow but steady increases in prices. What will really kick it in the rear again one day is when demand picks up. Right now I don't see that happening for a while, like maybe another yr and a half or so. If the markets dump here, which seems likely, I think it will because of a large recession yet coming. A deep one this time. Maybe I need to invest in more real estate in the Fbanks area, during this downturn. A Northslope pipeline project will be huge. I think it will happen, just a matter of time. Murkowski is now the gov of AK and this is his dream (one of them). Additionally I don't see how the US can continue to import increasingly larger amounts of energy, when they have this large supply. Makes no sense, but it is a matter of bucks I guess. A Northslope pipeline is not in the interest of lower 48 gas explorers, in the short term. The effect of a sudden large new source of gas will temporarily drive gas prices way down, so it would seem. Personally however I hope the pipeline doesn't come through here (Fbanks). Makes little sense to me, except for politics and ST thinkers. The cheapest route would be along the Northern border (subsea), and then down through the McKenzie where it could pick up large amounts of additional gas. My $.02.