"The most conservative estimates of North American natural gas supply demonstrate a serious shortfall in production for the foreseeable future. With short supply driving prices higher, we are now seeing some of the highest natural gas prices in the world here in the Southwestern United States and Mexico. With so much of our energy infrastructure and industry tied directly to natural gas, it is necessary to identify and deliver more competitive supply options in order for the US and Mexican economies to grow."Fact: "we" are swimming in natural gas, more is being found every day, and price of natural gas is at or near historic lows.
March 21, 2010: Update: I have not heard back from DKRW after asking about their outlook for natural gas which is the first thing one sees on their home page:
"The most conservative estimates of North American natural gas supply demonstrate a serious shortfall in production for the foreseeable future. With short supply driving prices higher, we are now seeing some of the highest natural gas prices in the world here in the Southwestern United States and Mexico. With so much of our energy infrastructure and industry tied directly to natural gas, it is necessary to identify and deliver more competitive supply options in order for the US and Mexican economies to grow."March 16, 2010: I sent my inquiry to DKRW on March 15, 2010. On that same date they acknowledged receipt; to date no response.
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Is it just me or do others find this opening statement at their home page by DKRW confusing, or worse?
"The most conservative estimates of North American natural gas supply demonstrate a serious shortfall in production for the foreseeable future. With short supply driving prices higher, we are now seeing some of the highest natural gas prices in the world here in the Southwestern United States ..."Everything I read suggests just the opposite, specifically: North America is swimming in natural gas; and, the price of natural gas continues to deteriorate.
Just after I posted the above, I came across this link: energy companies moving away from natural gas.
DKRW's comment is probably 5 years old. A wave of LNG projects, including DKRW's, hit the drawing boards after the '05 price spike. Obviously we are not seeing "the highest natural gas prices in the world" anymore.
ReplyDeleteThe move away from gas to oil is in response to prices. Natural gas prices are flat far into the future. Specifically because gas supplies are so plentiful now.
Thank you. I thought I was slowly losing my mind...it will be interesting to see if DKRW updates its front-page comment, unless they see something the rest of us are missing. I have written them asking if I might be missing something. They have acknowledged they got my inquiry.
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