Im guessing at what you have read ,probably recently ,and it relates to gas in storage in the U.S. At present,and for several weeks now, gas in storage has been at levels of 7 or 8 % higher than at the same time as last year. These levels dont seem to concern the market in any way- you just cant store more than a microscopic % of available gas ,other than to leave it in the ground. The real equation is whether likely medium and long term gas demand equals or exceeds likely available gas- in Tricoms report re Mae they have no doubt that there is a long term imbalance between demand and supply in the U.S. and that is the single most important point in considering whether or not to invest in the U.S. natural gas industry. Its a no brainer,and when you throw into the equation the lower greenhouse emissions from gas vis a vis other fossil fuels (and the govt.support that evokes) its a double no brainer.Further, if you also throw in the prospect that 41% of gas yet to be discovered in the U.S. is likely to be found in the Rockies it becomes almost a triple no brainer for the Rockies producers. Its no wonder that holders of good Rockies acreage are in a nice position,even if there is a reticulation problem for the moment.
MAE Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
