So, You Think We've Been In A Natural Gas Boom...

Well, as the old saying goes, "You ain't seen nothing yet". With events moving fast in Europe, due to Putin's moves into Crimea, and his threats towards Ukraine, the Western World, and especially Western Europe, is learning that Russia, and more importantly Putin, can not be trusted as a reliable source for Europe's energy.  Western European countries have already begun neutralizing themselves, obviously due to Putin's behind the scene threats to cut off their supply of natural gas. Fortunately, the U.S., due to it's development of the new technologies of horizontal drilling and fracking, will soon become Western Europe's major source of energy until they develop their own natural gas resources. We should begin to see gas stocks begin climbing as well as the gas prices, which will benefit the natural gas industry. The future looks bright for jobs in the construction of pipelines from all of the major shale plays are to new LNG export terminals on the Gulf Coast. We will also begin to see unprecedented cooperation between both major political parties in both Houses of Congress to craft and pass friendly legislation to hasten further natural gas exploration and well drilling, as well as the distribution of natural gas. Anybody in Washington who has been obstructing the oil and gas industry, and this includes you all know who, will learn that you either "help or get out of the way". Be sure to read this March 5th article from the NY Times:  http://www.nytimes.com/2014/03/06/world/europe/us-seeks-to-reduce-u...

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Permalink Reply by Tim Tarr on March 6, 2014 at 7:09pm

http://www.cnbc.com/id/101470274

Domestic natural gas prices are unlikely to surge—even when the U.S. is exporting to a world now paying three to four times more for gas— because of the vastness of U.S. reserves, industry experts say.

Several industry officials said they do not see a convergence of the cheap price paid in the U.S. of less than $5 per million Btu with $15 or higher paid in some parts of Asia. Still, they do see some price advantages for Asia as new supply from the U.S. and elsewhere hits the market in the next few years. IHS, in its own study, found that gas prices should average $4 to $5 annually for the next 20 years, even with occasional spikes.

I'll take $5-6/MMBtu. and be very happy. I think that $4 is a little low. Some of those shales need $5 and above for serious drilling to start up again. Between $5-6 Marcellus and Utica can provide plenty of gas with fat margins for best Operators in core areas. Now build them LNG plants, pipelines and LNG tanker ships yesterday damn it.

Permalink Reply by Bill Barnaby on March 7, 2014 at 10:02am

View from a land owner with a lease:
GO TO $500 an MM

Rest of the country:
Gas prices are going up, aww

Permalink Reply by Brett on March 7, 2014 at 10:29am

I wish I shared your optimism. I fear that there are those within our own government who only want to weaken our world standing both politically and economically. They appear to be in control.

Permalink Reply by mark ondrusek on March 7, 2014 at 10:34am

nobody knows where prices are going to be 1, 2 or 5 years from now!   another warm winter and prices could drop again or 1 small war in middle east and prices could rise.   we don't know..can just hope for good times!

Permalink Reply by Go-Green on March 7, 2014 at 2:16pm

Exporting massive amounts of NG to the Ukraine (or Europe) from the USA is an awfully big hurdle that may prove to be insurmountable due to the practical difficulties of transporting it that far and the expenses associated with doing so.

Permalink Reply by Jack F on March 7, 2014 at 9:52pm

Hey Go: Will you explain the practical difficulties that could be "insurmountable" to exporting LNG verses our prior history of importing LNG into this country? I would be interested to know what has changed, other than the strangling reg's and disinformation promoted by the anti's?

Permalink Reply by deer spotter on March 7, 2014 at 10:11pm

One thing that comes to mind is Russia has blockaded Ukraine ports with war ships.

Permalink Reply by Jack F on March 7, 2014 at 10:38pm

Deer Spotter: I doubt this will last and if it does it will prove Russia's motive of maintaining it's monopoly on the EU's energy needs, and then it will get real interesting. However I would still like to be enlightened about the "practical difficulies" of exporting LNG.I do understand the political realities and agendas.

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