its hard to be bearish nat gas , page-3

EEG has 14 million acres in The McCarthur basin in Australia targeting 12 Tcf

I agree that right now oil production is worth more than gas, thats pretty obvious, my point was that although the price disparity can go on for a lot longer than people think, if you want to be forward looking about it, it is unlikely to last for years. Likewise, the price of gas being 7x higher in Asia is unlikely to last forever. I'm not necessarily saying you need to be limit long NG, but I think it is hard to be bearish at these prices.

Inventories are indeed high in the US , which is why the price is sub $2, though I disagree that the US needs an economic boom for gas prices to normalize. One warm summer, a cold winter and increased switching by power producers and diesel users would be enough to drain inventories substantially. It's not a near term event but any effort to export gas from the US would clearly get the price much higher.

Like I said, I'm not advocating being very long gas here but with oil c $100 I think it is hard to be overly negative on it. The state of the gas market is very well known and all that "news" is certainly in the price.