Silicon Investor (SI) -- The First Internet Community

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 : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: excardog who wrote (23835)	6/16/2003 4:54:34 PM
From: jim_p	Read Replies (3) \| Respond to of 206202

Scott, For those of us who have been around long enough, this is nothing new. Back in the late 70's they were building LNG plants as fast as they could. NG was never going to fall below 5-7.00 per Mcf (in 1970's $) and the US was running out of NG forever. Here we are 25 years later. It only took several years for the LNG plants to go bankrupt because they all signed long term contracts to buy LNG at high prices (3.50-5.00 per Mcf) and when supply exceeded demand, NG fell down closer to $1.00 per Mcf. Well here we are again. LNG plants being built. NG never going to fall below $4.50 (the cost to import LNG). Spot prices in the winter over $10.00 per Mcf. If the markets really believed today that NG prices will never fall below $4.50, we would have new rigs being built and once we get back over 2, 3 or even 4,000 rigs running we would be right back where we were in the late 70's and early 80's. Never say never. There is plenty of NG in NA, it's all a function of price and perception. Jim