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Permalink Reply by Keith Mauck (Site Publisher) on October 21, 2010 at 10:08

I was struck by Stice's comment, "I think this is gonna happen" referring to liquefying and exporting shale gas via Sabine Pass.

I wonder if this was a driver behind staying with the Haynesville while shedding some acreage in Marcellus and the Barnett...we would be in a sweet position to deliver the gas to Sabine PAss.

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Permalink Reply by DrWAVeSport Cd1 on October 21, 2010 at 11:50

Hi Keith...Hello to you and your lovely family.

I think Chk's McLendon is smart and right per Chk's partnership plays and Chk's "sale" plays. If, BIG IF, LNG can be exported at a low cost...the supply will be endless...and Chk holds the keys to the endless supply here in the U.S. Chk is in the right geographic position and infrastructures are going into place faster than I can think some days. (LOL) The "Southern Plays" are definitely prime real estate for growing LNG products for future export. Talk about a New World!

Could the U.S. become a Major in LNG Export Business???? Sweet Position is RIGHT!

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Permalink Reply by Skip Peel - Mineral Consultant on October 21, 2010 at 10:11

The value is to the consumer for reasonable energy cost. To the energy security of the nation. And that of friends and allies overseas. To fewer emissions and cleaner air. Unless you're a fan of alternative energy, the benefits are numerous and far reaching. As use of natural gas increases, so will price. IMO, we will not see double digit nat gas prices again in my lifetime. A reliable supply and stable price will benefit producers, consumers and royalty recipients. Unfortunately the increase in demand will be years in the making.

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Permalink Reply by DrWAVeSport Cd1 on October 21, 2010 at 11:20

Skip,

I agree with you... We live in such a volatile world and any natural or man-made disaster, 1973-type OPEC embargo, skirmishes of all types, do increase fuel costs (Downside). All of these lead to instabilities for energy-import-dependent countries (Downside). These kinds of world-wide rumblings lead to higher prices for nat gas here in the U.S. (Downside). But, Great for RIs and WIs and Domestic O&G companies (Upside). Not so good for consumers (Downside). But Unconventional O&G plays have increased jobs both in and out of the O&G field (Upside). And these Unconventional Finds will, in the long run, get the U.S. off the foreign/OPEC "choke" hold (Upside).

But, Lower nat gas prices have their upside too (IMO). If one has some time, take a look at the U.S. DOE Nat Gas Import & Export Regulations/Authorizations website. Orders & Authorizations, future and past, tell a story. My theory (my opine) says low nat gas prices keep the HS Play sitting on a gold mine for future use. The HS has great location, great weather, no down-time, cheaper costs, provides easier access to produce and greater production per costs than any other nat gas shale play. Good economics sit in the Haynesville Shale. (And you Texas Shalers are sure helping the HS too...You have oil!)

How has OPEC created wealth? Supplying oil at rock-bottom prices for years to the U.S. Then, shutting down U.S. domestic production. And, finally, curtailing production (with increased gobal demand) and dictating the price per barrel. OPEC wins on low prices/wins on high prices.

We have to decide that a win/win situation for the Free World is right too. The U.S. has to make an active move...not wait and then be forced into making a reactive move...toward energy independence. Produce it, Sell it, Distribute it, Control it and finally, be able to Rely On It!

Location, Location, Location. (Could it be that some U.S. policy makers are finally looking at the long term?) It is in the World's Best Peaceful Interest For the U.S. to be their Energy Provider!!! (IMHO) I say, Let's Do It! Even at l-o-o-o-w nat gas prices!

DrWAVeSport 10/21/2010

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Permalink Reply by Stevew on October 21, 2010 at 19:35

I am a believer in the future of renewable energy and have been waiting for it to happen since the days when it was called "alternative energy". lol!

However, only one fuel can be the bridge from our current energy usage to a different future with renewables. It will be at least 15-20 years before alternatives really happen. Plus, they have their own problems, like wind energy. Natural gas can and should be the bridge fuel for the next 20-30 years.

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Permalink Reply by MARG on October 24, 2010 at 11:53

Whose honest opinion says all this will happen in five years? seven years? ten eyears? fifteen up?Anyone older may be "stuck-out" --- Right??? If one is seventy or so, he or see may not see his or her gas used; thus, shale may will have injured some. RIGHT??????? LOL

WARNING YOUNG ONES: TIME PASSES, FLEES, FLIES AND LIFE REALLY MOVES!!!!!!! LOL

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