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Comment by red rider on April 14, 2009 at 18:39

I don't agree with the price either, but if a glut is given to help drive prices down, then it could possibly happen. heck, i'd love to see the price around 10 or higher, as would all haynesville shalers. and the drop in price would hopefully be very temporary. especially if the suppliers aren't drilling as much nat gas. I wish prices would creep back to 8 or 10 or much higher. it seems to be a wait and see game.
that price of $2 and some change is just speculation. hopefully it will stay above 3.50! and start climbing higher.

Comment by Scott on April 13, 2009 at 3:50

Not sure I agree with you on such a low gas price in the future. I agree gas prices should stay low but your figure appears quite low.

Comment by red rider on April 12, 2009 at 18:45

well, that should depress prices down into the $2 range. (possibly the mid to upper $2 range), maybe even lower. hopefully Pickens plan will get the gas moving, so that the supply will drop, and in turn drive prices higher. Guess, we'll just have to wait and see how this plays out.

Comment by red rider on April 11, 2009 at 17:58

absoluetly, i can't seem to find the article but i believe China has agreed to contracts with Russia for a portion of their oil and gas. As well as China buying up reserves where ever they can. remember a few years ago when China tried to buy out that oil company in California? I can't recall the name of that comapny, but China was offering 19 billion in cash. The US senate blocked it, after the people flooded their emails and voicemails. and another US oil company bought it. but i may be wrong, but that may have been the start of China starting to secure oil worldwide.

despite one of the worst recessions in recent world history, oil demand has only contracted by less than 2%.
Whereas oil companies are shutting down rigs for oil/gas. eventually demand will exceed supply, until the oil companies can get the rigs back up to speed to meet demand, if they can ever match demand. meanwhile oil and gas prices will have to jump much higher. and it may be sooner than we think.

Comment by Martin on April 11, 2009 at 8:26

Saw a recent newspaper article about how Total had just completed (last fall I believe) a pipeline and LNG production facility in Yemen for US$4 billion. After Europe, wouldn't the Asian countries of China, Japan, and India be the most likely potential markets for LNG?

Comment by red rider on April 10, 2009 at 19:23

Russia is the largest natural gas producer in the world, and holds the largest reserves of natural gas in the world, and WSJ (wall street journal) on 04 Mar 09, an official from Gazprom (Russian oil/gas company) claims that they could easily see production drop 20% year after year. Russia supplies nat gas to Europe. about 20% comes from the Ukraine going to Europe.

Which means, Russia and Europe need nat gas. it gets cold up there. So, it looks like Russia and Europe will be bidding out each other for LNG (liquid natural gas). Where is that LNG coming from? could be USA?
Wherever it comes from will have to drive nat gas prices higher.
Note: there are only a handful of maritime vessels that can carry LNG. very volatile stuff. so nat gas price has to come up. combined with Pickens plan, we should see things improve. regarding nat gas prices.

Question: how much (percentage) of Haynesville shale nat gas stays in Louisiana?
I say export the rest!