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NG (price) looks ugly while oil price is sitting pretty

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  • NG (price) looks ugly while oil price is sitting pretty

    Adkins says we could go below $2.00/mcf

    I suppose what's ugly to them is good for us!


    http://www.stockhouse.com/Columnists...ce-is-sitting-

  • #2
    Re: NG (price) looks ugly while oil price is sitting pretty

    Hey Tax Counsel . . . thanks for info on NG commodity pricing,

    Looks like OVER Supply will be constant for USA for 10+ years ... hooray!!

    Last weekend, USA Today listed NG commodity pricing at $3.80 per Mcf and today 3/23/09 MorningStar.com has it at $4.31 so looks like $4 floor seems a "bounce point" where it briefly drops below, then pops back up above.

    Either way, price surely should DECLINE (or at least stay low) as article says that USA NG production is INCREASING around 8% to 10% per year . . . WOW!! Article mentions lots of easy to get NG pools in shale.

    THEREFORE, now is the PERFECT time for NG vehicles and CNG to take off and run since we have abundant and cheap (and CLEAN) fuel for vehicles.

    Please, everyone in border states where NG might be exported to Mexico (ie TX, CA, AZ, etc) to strongly petition your elected officials to NOT ALLOW exports of clean NG to Mexico. Instead, USA should implement cng vehicles All Across The USA . . . . go CNG !!

    P.S. AT&T got the message and will be rolling out 8,000 ngv's soon. Let the good news keep on coming for cng!!

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    • #3
      Re: NG (price) looks ugly while oil price is sitting pretty

      All this might go out the window if Obama's "cap and trade" policy goes into effect. It will make it very expensive to burn coal for electrical generation or steam production. Seeing how this country doesn't believe in Nuclear power, the only logical remaining fuel source is NG. This would quickly reduce our NG supplies. Hey, don't get me wrong, I'm not against clean air, however we need to ramp up to a changeover of fuel sources. Also, remember during the last runup in crude, NG tracked with it hitting $15.00 last Summer .

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      • #4
        Re: NG (price) looks ugly while oil price is sitting pretty

        Is there any way for consumers or small fleets to lock in lower prices? I suppose you could buy an offsetting hedge contract.

        But for the regular guy, could you buy a GX or Impala conversion with a guaranteed $1.99 gge cap for 36 months? I wonder if that would appeal to small fleets.

        I think CE offers something like this for large fleets.

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        • #5
          Dow wants to limit U.S. LNG exports

          http://www.forbes.com/sites/christop...s-lng-exports/


          Cheap, plentiful gas from shale reservoirs is a real boon for Dow, which uses the energy equivalent of 850,000 barrels of oil per day, mostly as feedstock for its chemicals and plastics.

          With the proving up of America’s shale gas reserves, Liveris said Dow has begun investing in the U.S. again, set to build its first new ethane cracker here in a decade and eager to “refresh” its $40 billion in U.S. assets. That’s a shift in strategy after Dow’s many years of preferential expansion overseas in cheap-energy countries like Saudi Arabia (where last year Dow announced the Sadara chemical complex joint venture with Saudi Aramco).

          Yet Andrew Liveris, chief executive of Dow Chemical, cautioned that America’s industrial advantages of cheap, plentiful gas could disappear without the formation of a coherent national energy policy. What he’s particularly keyed in on is the possibility of importing gas in the form of LNG. “We’re all for exporting natural gas,” he said. “We just want to see it exported in solid form instead of liquid form.”

          He explained that exporting products made from natural gas, such as plastics, fertilizers and other chemicals would generate eight times more value for the U.S. economy than just exporting the LNG alone.

          “If we allow the world gas price to come to this country by exporting gas then it will destroy the benefits of plentiful cheap gas,” said Liveris, referring to the higher price that gas fetches in the rest of the world. LNG delivered to Japan and Korea, for instance, fetches upwards of $15 per thousand cubic feet, versus a current U.S. price of $2.25 per mcf.
          .

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          • #6
            Re: NG (price) looks ugly while oil price is sitting pretty

            While I do not share CNGacrosshteusa's enthusiasm for CNG, I would be completely opposed to mandated CNG across the country, thats just dumb and will never happen.
            I am a motorsport enthusiast and a cng owner.
            The major miles I drive in this great country I was priveleged to be born into are driven in a CNG vehicle, but I have gas and diesel hobbies. Boats dont run on CNG and my fifth wheel will never get pulled by a CNG vehicle. Mandated cng for everything is like saying that all guns are bad and just not a cogent statement.
            That being said, my Vic is CNG and does get me to my livlihood safely and cost effectively, and I couldnt be happier.....

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            • #7
              Re: NG (price) looks ugly while oil price is sitting pretty

              I do agree with you bonedgg. It should not be mandated but the government is not consistent and there are some ignorant judgements being made about CNG. In NYS as an example there are thos in the government playing on people's fear. There was a protest on Long Island against fracking as an example, where there is no gas to frack. So over here we need more education for the public and to know that we are commited to this in the long term. As for the CNG station we are looking to build we started on this in 2008 and just recieved permits in December of 2011 due to utter fear mongering by some. This is not a way to promote an industry which is still in it's infancy.

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              • #8
                Re: NG (price) looks ugly while oil price is sitting pretty

                No need to mandate it if it is good.

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                • #9
                  Re: NG (price) looks ugly while oil price is sitting pretty

                  Originally posted by Bonedogg1 View Post
                  While I do not share CNGacrosshteusa's enthusiasm for CNG, I would be completely opposed to mandated CNG across the country, thats just dumb and will never happen.
                  I am a motorsport enthusiast and a cng owner.
                  The major miles I drive in this great country I was priveleged to be born into are driven in a CNG vehicle, but I have gas and diesel hobbies. Boats dont run on CNG and my fifth wheel will never get pulled by a CNG vehicle. Mandated cng for everything is like saying that all guns are bad and just not a cogent statement.
                  That being said, my Vic is CNG and does get me to my livlihood safely and cost effectively, and I couldnt be happier.....
                  if the gun powder that the goverment mandated was much better and much cheaper than I might be onboard all guns are not bad just the as **holes that are holding them and the the politcos that are feared of them only most of them are bad. not all of them god save the cng!!!!!!!!!!!!!!!

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