"PS EOG have some very upbeat analysis about the increase in natural gas prices into early 2010 and their reasoning behind this."
I'd take any 'reasoning' from a NG outfit in the USA right now with a grain of salt.
There is more than enough gas in storage NOW to take care of winter demand. Anything less than a fullblown deep freeze in the USA is going to leave more than enough gas to take care of SUMMER demand as well.
Canadian storage is full. You have no prospect of sustained demand increase in the industrial area.
You'll need a huge number of wells to be shut in, small companies to go bust, the economy to recover, and no huge prolific wells to come online.
Maybe if gas production falls another 10 or 20 bcf per day, cap and tax (tax and rape) gets passed and decimates the industry, new tax regs are put in place that take of some more outfits, and the economy stops getting woorse you MIGHT get NG prices up in a couple of YEARS.
And with that I'm gone.
Off HC.
Lots of letters to write to ASX and ASIC.
Good luck we are going to need it.
AZZ Price at posting:
26.0¢ Sentiment: Hold Disclosure: Held
