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

To: Tommaso who wrote (120287)	4/30/2009 9:28:12 PM
From: Sharp_End_Of_Drill	2 Recommendations Read Replies (1) \| Respond to of 206113

Tommaso, there is a great article in this month's World Oil that tries to calculate the price of gas needed to justify the Haynesville shale. The results are surprising, these shale plays need substantially higher prices than present to be economical. He got numbers as high as $9, based on some assumptions. It is going to be very interesting regarding gas prices going forward. There is a huge slug of LNG capacity coming online which will tend to give an upside cap, and present prices don't justify drilling - so something's got to give. It looks to me like US crude oil production rolled over two weeks ago and is going into decline. Natural gas is likely to roll over fairly soon, hopefully sooner than later. In years past it has seemed to take about 9 months between an upswing in activity vs. supply response, so perhaps 9 months after Q3 2008 will see a good supply drop. I've been out of touch for a while with SI, has there been much talk about PDS? I jumped all over that one in the $2's. Sharp