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.That's the first paragraph on the homepage of DKRW Energy. They must be seeing something different than what I'm seeing. I've e-mailed DKRW twice and have never gotten a response. As much as I think natural gas is the bridge to America's energy future, DKRW's statement seems to be a bold-face ..... unique opinion.
From my perspective, America is swimming in natural gas, and we are seeing some of the lowest prices ever. Investors would love to see natural gas stay above $5.00; it seems to be in a trading range of $4.00 to $4.50. The break-even point for natural gas in the Marcellus for ERF is about $3.85. Compare that to oil. Even in the Bakken where oil is relatively expensive to find/produce has a break-even price of about $14 to $20, and is in a trading range of $60 to $80.
Whatever.
No comments:
Post a Comment