Article from the Stock page reports.. Sept. 7, 2009

As natural gas' price decreases, its attractiveness increases
Posted Sep 7th 2009 12:00PM by Joseph Lazzaro
Filed under: Commodities

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With the way natural gas is trending, it seems foolish for the United States to not expand its use for the nation's energy needs in the decade ahead.

True, natural gas' price, which traded Friday at $2.72 per million BTUs (MMBtu), will likely rise as natural gas demand increases with the U.S. economic recovery, but it will still probably be at least price competitive with oil. Right now, natural gas is at a decided price advantage versus oil: Oil, which is around $68 per barrel, currently is about 25 times the price of natural gas, while the historical average is about 8.4 over the past decade.


The other major plus for natural gas, besides price? It's a plentiful, domestic energy form, with the latest Potential Gas Committee research placing estimated reserves at 2,074 trillion cubic feet in 2008, up from 1,532 trillion cubic feet in 2006.

If more homes and businesses in the United States convert to natural gas for heat, and if more electric utility companies do the same for power generation, the two changes will decrease the nation's dependence on oil, and will also decrease greenhouse gas emission (the latter being due to natural gas' status as a cleaner energy source than coal).

And those increased natural gas uses will also mean more energy dollars are retained in the U.S. -- creating more domestic jobs and making more dollars available for investment -- no modest advantages in a U.S. economy that needs both.

Tags: inthenews, natural gas

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landownerPermalink Reply by MARG on September 8, 2009 at 7:54
Perhaps everyone might want to read the President's Energy Proposal which calls for no write-offs for operators and producers and for stopping the fifteen percent depletion for owners and no write-offs for well heads expenses and severance tax, etc. This could, in my opinion, be quite a problem for all of us. Many have called the Governor's Office, Congressmen, Senators and all of their local politicans. We should work to help spread the word that people are needed to support the domestic oil and gas industry. This could be a terrible unemployment problem, etc. T he one I read would include no deductions for drilling costs and transportation costs, etc. which could cause many problems for all. An organization asked me to notify all of the Democratic Politicans as I assumed that they felt the Republicans would be for the industry. Many of us have been concerned as it will effect the industries that are supportive to the industry and could, in my opinion, really be a problem to our Texas Economy. Also, it could be a real detriment to our national economy as we could have to pay more at the pump and for the items we must purchase. WHO KNOWS???? I did hear on Fox National that things could happen and we might need Russian Oil at four hundred a barrell. SHOCKING!!! Perhaps we could contact our operators and seek their opinions. Perhaps we could work on this as the health care is "reformed". I have been amazed that people have not been discussing this as energy is so important in our national defense and in all walks of life. Please consider checking into this. WHAT DO YOU THINK? ( It will really increase your federal tax on royalties if this happens.) ANYONE WANT TO WORK ON THIS??? (We will not know what we can do until we try.). As mineral and royalty owners as well as citIzens and consumers, I feel strongly that we should be working against this energy policy. I ENCOURAGE EVERYONE TO CHECK IT OUT AND TAKE ACTION, IF YOU FIND IT APPROPRIATE, BEFORE IT COULD BE TOO LATE. HOUSTON, TX.

landownerPermalink Reply by essay on September 8, 2009 at 12:21
while i agree in all probability capntax would be a huge burden on the country at large, i wouldn't worry about it much at this point, and maybe not ever. right now the left looks like a chicken snake trying to swallow a watermelon as it is.

i am a firm believer in logic, reason, and working compromises. don't see too much in the news today but i think sanity will win in the end. money talks and bs walks, and right now nat gas really packs a lot of bang for your buck. i knew gas and oil had diverged drastically but i hadn't done the math... almost a threefold increase over the historical average is startling.

Oil & Gas ProPermalink Reply by Grillin' - MmmMmm on September 9, 2009 at 1:28
You are very correct my friend. We got rid of one "Czar", how about the rest of them along with this bill!

landownerPermalink Reply by MARG on September 8, 2009 at 16:08
Many years ago, a TX Gov. started some school vehicles and state vehicles running on natural gas. For quite a while, there were pumps of that about a mile from where I live; then, it just stopped. I worked for the state in education in TDCJ for many years. I have seen the vehicles which run on natural gas; that is what we should be doing----running our vehicles on it and it would help end much of the pollution, be much cheaper, add a lot of funds to the state budget, etc. We simply do not utilize our resources; thus, we are dependent upon others, including our enemies!!! LOL

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