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

To: whitepine who wrote (87982)	7/24/2007 12:30:11 PM
From: Broken_Clock	Respond to of 206325

whitepine I think you've nailed it. I will add that IF the USD can bounce from here it may mitigate some of the pain for Canadian gas since it will keep a hedge against the pain with a higher USD. I'm looking for PDS to get around $20. then it's all in.

To: whitepine who wrote (87982)	7/24/2007 12:49:49 PM
From: ChanceIs	Read Replies (1) \| Respond to of 206325

>>>Higher C dollar and lower US dollar damage net sales revenue.<<< This was a point I was contesting earlier. In the short term I agree. But a BTU of gas is a BTU of gas, and consumers will pay to keep warm. If the Canadians aren't being offered its real worth in BTU's they will ask more American dollars to get its worth. The new hub coming on line in GOM is certainly not insignificant, and supports your argument. OTOH, I still think that the US can't do W/O Canadian NG. I wish I knew more about the international NG market. Certainly crude is denominated in US dollars. That is starting to change - Iran transacting with Japan in Yen I believe. There are other minor threats - Hugo trading in Euros. We all know that LNG imports to the US are rising on a volume basis. There certainly is a liquid international market there. Britain was buying LNG away from the US several winters ago. I suspect that market is basically in dollars, but I have read about a lot of LT bilateral contracts. No reason for them to be in dollars.