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

To: Dennis Roth who wrote (82864)	4/11/2007 2:32:29 PM
From: JimisJim	Read Replies (2) \| Respond to of 206183

Dennis: <Californians refuse to believe that they can't have energy cheap anymore and if prices rise it must be a conspiracy.> You may be right about the majority of Californians... but those of us with a brain know better (also, I've been employed in oil patch for 20 years and know the score)... also, I would not single out Californians in this regard... seems to me that the majority of Americans are ignorant of energy issues and think that cheap energy is a birthright as they buy big SUVs to haul groceries -- I know my brother in Ohio falls into that camp. Most Americans are more concerned about who Anna Nicole Smith's kid's father is than energy issues... until they go to fill up that big Sequoia's tank with premium (my brother's takes premium, can't say for sure about all of them) and only then notice the price of gasoline... or open their heating/AC bills and wonder... briefly... then turn on Entertainment Tonight (their idea of "news") to find out the latest re: Britney and Lindsey Lohan and Paris Hilton and diapered astronuts (sic)... this is not isolated to California, but to all of the US... You should thank California for being bold enough to screw up so often and offer up real life lessons that IF the rest of the US were really paying attention to, they could learn from. Maybe California's biggest problems have to do more with having Hollywood actors govern the state for many of the last 30-40 years, coupled with term limits that guarantee we have idiots in the state assembly and allow the lobbyists to write the legislation for them because they don't have a clue -- and I'm talking about all parties, not singling out any one... Jim

To: Dennis Roth who wrote (82864)	4/11/2007 3:30:53 PM
From: Elroy Jetson	Read Replies (1) \| Respond to of 206183

Hopefully you also understand that price is the largest problem facing LNG terminals. Japanese firms have consistently out-bid North American and other firms for new LNG supplies. Why? Because you can currently buy gas produced in North America well below the cost of LNG gas. Japan has no domestic production so is willing to pay what ever is required to buy LNG. In reality, the "problem" with LNG terminals is a pretend problem. Once domestic natural gas prices increase to levels closer to the price for LNG, and look like they may head higher, then finally there's an incentive for LNG terminals. The economics of LNG terminals in North America only make sense for Soviet Commissars, Utilities who can pass on the extra costs to their rate-payers with impunity, and those who can buy LNG below market cost. For the rest of the world that has to make a profit, it doesn't make much sense right now. .