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.

Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (33613)	2/22/2009 2:48:22 PM
From: E_K_S	Respond to of 78659

U.S. Gas Production Seen Sliding for 4 Years: Chart of the Day bloomberg.com From the article:"...Feb. 20 (Bloomberg) -- U.S. production of natural gas, the most widely used furnace fuel in the world’s largest economy, may tumble through 2012 as low prices prompt producers to shut down drilling rigs from Louisiana to the Rocky Mountains...." ================================================================ As the marginal rigs are shut down overall production should decrease. This should limit the supply of NG which should stabilize current prices. Any increase in demand should raise NG prices in the short term. I agree with you that we may have seen the current lows. I still think Obama will promote NG usage because it is a clean fuel and most of the reserves are domestic. There was some discussion last year (with oil over $125/barrel) to tax the oil companies with a windfall oil tax. I would not be surprised to see some type of oil tax to spur NG usage over imported oil. California was all set to charge a $0.12/gallon tax to help the budget deficit but was removed at the last minute. EKS