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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: ggersh who wrote (22749)	9/14/2009 10:43:45 PM
From: Larry S.	Read Replies (1) \| Respond to of 71479

I just posted the following excerpt on Rarebird's thread. It may be a equal interest here. It is an excerpt from tonigh's Late Edition from David Prescod of Canaccord Capital. Larry We wrote just last week about what next for natural gas, according to Bob Hoye and his team at ChartWorks that had predicted a natural gas rally on September 2nd, and they’ve certainly gotten it. However, they are looking for a ten to 12 day event, followed by something that might not be a lot of joy in the natural gas sector. We caught up with Bobby Lamond, the Calgary veteran and long-time player in the natural gas sector who has spent much of the last year sending people charts and warning everyone about how ugly it could get in this sector. When we caught up with him on Friday, he says, “it’s been the perfect storm for natural gas” over the last year. “Anything that could go wrong” he says, “had gone wrong” and he has never seen a worse time for the natural gas sector. First of all, you had rampant drilling, particularly in the shale plays in the United States which came up with huge front-end production oversupplying markets tremendously. Then you had the huge chemical plants that were big users of natural gas shutting down because of the weak economy and others moving overseas and you also had one of the coolest summers in decades, so there was no need at all for cooling and air-conditioning that usually generates demand for natural gas in the summer. To top it off in this perfect storm, Lamond points out that there were no hurricanes at all that might have shut down offshore production. Now Lamond who has spent much of the last year warning people about this, is starting to get optimistic, just when a long list of brokerage analysts are giving up on natural gas to recover this coming winter. Lamond says “it’s not quite moving from the depth of gloom back to a bed of roses, but it is getting better” and when we ask him where he would expect spot natural gas prices to be this Christmas and next, he suggests $5.00 for this Christmas and $6.00 for next Christmas. But in the short-term it’s still pretty ugly out there if you are a drilling contractor or a natural gas company. He points out that this is usually a time of year that you’d see 300 natural gas rigs turning in Alberta and right now it’s hard to find 70. Lots of rig hands looking for work and drilling companies that have got to be worried about their financial statements.