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

To: Sharp_End_Of_Drill who wrote (98091)	3/17/2008 7:12:51 PM
From: quehubo	Respond to of 206338

Sharp the Winter has been close to normal since the start of the year. What has really stoked the market were the strong draws relative to gw hdd. The market was stoked because the LNG imports that we have been hearing about for 18 months never materialized this Winter as expected. Also with US production booming we still had these strong draws. The market will find a price that assures storage gains back the 300 bcf it lost over the last year. There is much new storage to fill this year as well. I think $10 - $12 ng 12 month strip should prevail until the injections reveal this Springs S/D balance. Heating oil is about $20 mbtu, there is not much else for ng to compare to.

To: Sharp_End_Of_Drill who wrote (98091)	3/18/2008 7:10:05 AM
From: Ed Ajootian	Read Replies (1) \| Respond to of 206338

Sharp, you're dating yourself when you refer to 1TCF as being a relevant benchmark for end-of-winter storage <g>. The average for the last 4 years has been 1.3 TCF. Given that we will be ending up at right around (and if que is right, as much as 100 BCF under) the 4 year average low storage this year, I believe the speculators who have been bidding up gas may not be all that far off. The price of gas is cheap on a historical basis, compared to the btu-equivalant price of oil, when compared to other times in recent years when storage was at average levels.