Anyone have any guess where the price of gas will bottom out. I want to know when to stop holding my breath.
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imo, it just is what it is. first movers do indeed stand to gain a lot, as in the early bird and the worm etc. the natrual gas glut directly represents competition and the evolution of a market, among other things, one supposes.
without such a huge, completely un-ignorable disparity in prices (implicit and explicit, fwiw) vis a vis natural gas, coal, and gasoline it would take much, much longer to overcome the inherent inertia of political/economic reality, and i do not for one minute think trying to somehow centrally plan an energy policy would have been more efficient. world energy markets are fractal systems and the most efficient utilization of such is represented by the collective market participants making individual value judgments for themselves.
$2.20... unfortunately! we did it to ourselves believing government would have an energy policy in place. Wrong! But private enterprise will always figure out a way out of a problem... not government. Private enterprise will find new markets for our abundant cheap and clean energy because the government refuses to do it and is incapable of doing it! Hopefully "government" won't mess that up!
If those outspoken critics out there who detest fossil fuels would just quit being hypocritical, park their cars and start walking or riding a bike then they would be doing something really proactive about solving our energy crisis and I would be impressed with their self righteous indignation. lol.
Reminds me of a landowner that hates oil companies and is fighting efforts to drill near their property - I will bet my royalty check that they never refuse to cash their royalty checks.
Always two or more sides. Some U.S. Corps. are reaping rewards of $2 nat gas prices:
http://www.investorplace.com/2012/03/why-chemical-makers-love-cheap...
And market's perception is nat gas production cutbacks may be more of a " do as we say we are doing, not as we sort of aren't doing, really." (?):
"Show, don't tell: U.S. natural gas traders question cuts" by Edward McCallister Reuters~3/7/2012:
http://www.reuters.com/article/2012/03/07/us-natgas-cuts-idUSTRE826...
IMO...$2 nat gas vs. $4 gasoline at the pump...is the only way life changes in U.S.
It's just going to be a rough road.
Not that $2.75 sounds optimum but it sure sounds better than $2.08.
So..........when do we get up to $2.75?
Bobi, it is sad that I got excited by $2.75 and $3.75 per mmbtu upon reading the article.....so sad.
Yep. Me too.
No......bring on the $2.75. Uugh.
The silver lining in this price drop is that the lower gas goes the more likely we are to get NG conversions for our vehicles at an affordable price. $2 NG vs $4 plus for gasoline..duh..its a no brainer. I think its already dropped to the bottom myself. And I think by July will be over $3 again.
Unless someone comes up with a simple Gas>NG conversion/tank kit and auto insurance for the conversion few will change - e.g., 16mpg to 32mpg at 12K - $4.50/g takes 750:375gal =$1500/yr Diff it will be a long time to get a significant fleet changes - easier to get the LNG, major industry users, and maybe state fleet to make a real demand change - Traders don't seem to believe the producers as closing in some wells in order to reduce supply so side bet - $3/MMBtus....many will go over to FrackOils and FrackCondensates until $3 is reached...Tom
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