Insignia Energy Ltd ISNAF

The low prices affects most of the NG weighted com

[trendisafriend]

The larger problem is the long term situation for NG supply, as surely demand will return as the US manufacturing complex, slowly but surely returns somewhat to its previous form from about 18 months ago.  Supply though is problematic from my point of view, as the market will begin to become increasingly affected by foreign deliveries of LNGs into the USA in particular. Most of this liquified NG is produced for a very low cost, so one could say that shipping plus a reasonable premium and that would be some kind of floor price for NG in the North American venue.  Conventional NG? I have a tough time thinking we are going to see $10 again anytime soon, unless there is a big bout of inflation. These prices here, and perhaps a spike to 5 or 6 dollars is all Im expecting in a best case scenario... Shale gas has altered the entire cost structure for NA NAT GAS< while the increasing imports of very cheap offshore NAT GAS will only compound the problem longer term... Solution...move the production balance significantly towards CRUDE and cut back on the development of NAT GAS>. Shale will eventually be good, but there are high initial costs associated as well.... Interesting to hear other opinions.