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Permalink Reply by Wilma Watts on March 1, 2011 at 1:43

The crude oil, natural gas, and coal sectors remain in bullish mode - and Warren Buffett's comments on why higher oil and gas price might mean are atttractive sectors for investors:

http://www.lsgifund.com/index_files/Page960.htm

Expect energy prices to remain elevated, and nat gas prices to move toward oil on an energy content basis over time

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Permalink Reply by P.G. on March 1, 2011 at 3:18

From that website:

A big reason for the utilities' antipathy toward gas is that prices have historically been volatile, especially when a lot of supply came from the hurricane-prone Gulf of Mexico. Now, with supply shifting toward onshore shale fields, gas prices look flat for as far as the eye can see: Gas futures don't get above $6 per million Btu until December 2015. Alongside the fitful trend toward a lower-carbon future, those flat prices should persuade more generators to abandon coal en masse. Paradoxically, gas's very weakness should underpin its eventual resurgence.

 

I think it's going to take more than just electric power generation to set some serious fire to NG prices..

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