MGM Energy Corp MGMCF

Natural Gas Cartel

[JR5]

Dec. 24 (Bloomberg) -- Russia, Iran and other countries controlling the world’s biggest natural-gas reserves agreed to coordinate forecasts, investments and relations with consumers to defend their market interests amid volatile energy prices.

The 15-member Gas Exporting Countries Forum, which adopted a charter in Moscow yesterday, will locate the headquarters of its new secretariat in Doha, Qatar, the biggest source for world liquefied natural gas shipments. LNG may eventually form the basis for more global gas trading.

This should be taken as a wakeup call to Canada and the United States to start the construction of a pipeline to provide enough natural gas to prevent gas shortages by the same players that control the bulk of the world's oil exports. If there ever was a need for a large scale infrstructure project its building a pipeline from both Alaska & northern Canada. We will need that gas to heat homes and produce chemical feedstocks. If the auto manufactures in North America get their act together they will start making natural gas powered cars. Europe is already ahead of the game.

Hope MGX has started drilling so they have enough time to complete the wells before equipment has to be moved  ahead of the spring thaw. Expect a rough winter up north and it will cost them some down time.

Cheers,

JR.