ironically, gas prices are likely to increase for a number of reasons.
according to Henry Groppe, $8 gas is on it's way this northern summer. his take is that shale reserves are declining faster than hoped, as are inventories, and this has been known by oil majors for some time, which is why they are spending up VERY BIG buying any land with shale acreage. the yields are phenomenal (up to 200BCF/km2), but at current gas prices this does not make alot of sense.
however, once the realization kicks in that shale gas provides political independance, cleaner energy, but NOT 100years of supply, the price will rocket.
now is the time for astute investors to be getting in on the shale story. most of the australian market has barely raised an eyebrow, very few players laying foundations.
while the likes of exxon-mobil and BG are waiving multi billion dollar check books around in the US, australian investors are sleeping.
not china. asian funds are already investing BILLIONS into shale gas equities.
