killer driller update, page-30

Wiseup,

Well spoken.

My take is the the USA gas glut is quite likely ST, precipitated by the unexpected opening up of the shale gas plays simultaneously with BOTH the arrival of LNG importation and the economic slump.

Much traditional drilling sub economic at recent prices, and Atlantic LNG still going to USA because Europe also taking a dip.

Gas price way below oil in the USA, traditionally a lot of fuel switching which this time has obviously been swamped by the volumes involved. This switching likely to accelerate if gas stays low wrt oil. Markets will adjust.

If for some reason the US can produce increasing gas at low prices, then the issue of phasing out vast amounts of coal fired generation becomes a whole lot more attractive, and in my understanding puts a long term gas floor north of the current 5/mcf.

Anyway the vast cities of Asia are not siting on vast gas resources of any sort. New continental pipelines and LNG infrastructure will have to deliver them their gas. For them the best long term going price appears to be about 85% of oil parity.

If BOW were to only get post 'brown coal age' domgas prices for it's gas, then we still look to be on a pretty good thing imho.

Anyway those that believe their charts are all they need and never lie, never need worry themselves into a stink over gas gluts anyway.

EL