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

To: gregor_us who wrote (106603)	8/5/2008 5:04:19 PM
From: Broken_Clock	Respond to of 206184

Have you ever watched PTEN's power point on NG drilling? One thing no one should knock about Greenlaw....the OSX/OIH is the best trading vehicle out there. Just have to play the swings. -g-

To: gregor_us who wrote (106603)	8/5/2008 5:58:32 PM
From: ChanceIs	Read Replies (2) \| Respond to of 206184

>>>$8-9 is not enough to realize the Big Blue Sky flows, from these plays.<<< An excellent well thought out post. A few comments and queries: 1) I couldn't agree with you more about the global crude situation. We hear so much about demand being down on a global slowdown. That may be true, but look at the supply side. It ain't prteey. Oh. Banks are pretty reluctant to loan against anything right now. Throw in the crude price insatbilty and they may refuse to finance any project which can't mak it on $60 crude. 2) NG shortage in GCC countries?? I thought that those guys were floating around in gas balloons, and couldn't wait to build gas liquefaction terminals. I would suppose that their electrical generation needs are way up. I know they have that ski slope in the dessert and lots of new construction. If they have the gas, I would think it much more cost beneficial to sell the oil and burn the gas. Help me out here. 3) NG investing theme. Its really funny. Three years ago NG was getting pummeled in Congress. I remember sitting in on one hearing where former Senator Warner wanted to ban all new NG fired generation plants. Clinton was all for them. They we moved against them. Now they are back in favor. In fact they have been growing like weeds in the background because coal was just too expensive to build. Now besides the expense, coal has become a symbol of the devil. I can tell you this for sure - the environmentalists have their hands on the controls. The environmentalists will shift the capital plant profile over to favor NG just as you suggest. An environmentalist will never be a nuisance to himself by inquiring about the supply of NG. The environmentalists are whole hog against new coal even though it is the low cost on a per BTU basis. NG will get built out and consumed whether or not it makes any cost or resource availability sense. 4) I am still derelict in my duty assessing the production potential of these new discoveries. They get a lot of hype. The mainstream press hasn't said much about what is on-line today or when the miracle flows will commence...and at what price. 5) Related to point #3 above, lets recall what the ethanol mandate did to the stills. I would put the odds at 60% that the government would get all starry eyed over NG and start mandating its use. Aubrey was already in there lobbying for it. T. Boone has been as well. We have certainly swung from a scarcity to surplus mentality. This sell off still makes little sense to me. Sure we have had a big run up, and one would expect profit taking. It seems that the broad markets may already be discounting an economic/housing/credit bottom. (I think they are dead wrong.) We rally 300 today. The rising tide should be lifting all the boats. Bottom line is that in a recession, people will heat their homes before they take out a loan. If the recession is over and the skies clearing, then we can be confident of expanded hydrocarbon use. The patch should be rising with the banks. If the recession isn't over, then the patch maybe should rise, and maybe it shouldn't....but the banks should remain in the tank. If it were easy, we would all be rich.

To: gregor_us who wrote (106603)	8/6/2008 1:14:17 AM
From: energyplay	Respond to of 206184

And Federal $ support to buy domestic CNG vehicles supports the US auto industry, the source of numerous jobs. That's and economic two-fer (less imported oil, more US car sales) and a political three - fer (add in some stuff about global warming)