Global Gas HysteriaAnd now certainly appears that the global gas markets facing market hysteria. They after day we are seeing record European gas prices in TTF.
Today the Chinese Vice Premiere Publicly commanded state owned Enterprises to secure coal, natural gas and oil inventory at all costs. Resulting in the obvious fact that both Europe and China will do whatever it takes to secure inventories for the coming winter.
US LNG exports are surging as a result with no anticipation of leading up until some time after the heating season in 2022. Even a bearish storage number today could not contain the US natural gas price.
At this point the US gas price has largely escaped the global hysteria… But that appears to be changing. Recent sessions show a levelling up of the US domestic gas price. As things become tighter globally I expect the US gas price to mimic The skyrocketing prices found in Europe and Asia. Canada has enjoyed the highest gas prices in decades for this time of year.
I am wondering if we are going to see a truly global expression for natural gas in all countries that have access to world markets. We will see it in the US before we see it in Canada… But we might very well see it.
The cash flow tsunami coming to North American Shores and Canadian companies like TOU and PNE It's truly going to be a mind blowing spectacle!
The only spoiler to this anticipated event could be some miraculous intervention by Russia to quell the panic in Europe… But I anticipate that is is not going to happen and less Nord stream to gets commissioned, gas prom sells off operator ship to a third-party and the German courts/legislators allow the Nordstrom 2 pipeline to be certified.
I have to ask the question where is Chicken Little /Wrong Again in this conversation? For all the ridicule we had to endure about how irrelevant China and Europe were too US gas and LNG. Like I said before I would be laughing all summer long! And I would be watching with Ken anticipation during the shoulder season To see if any response from Russia could stop what I anticipated playing out. We are five weeks away from the end of the filling season… At that point We will move from keenly watching... And into the winter withdrawal season and watch the resulting pandemonium as the gas crisis impacts North American shores. I am so happy for everybody who is long on natural gas in Canada after suffering for a long seven years! Congratulations to the PNE and TOU management teams. Let the egregious volumes of cash flow shake the generalist/E.S.G. Investor from there brain dead slumber! Let the party begin…
To the few of you that have been squirrelling away shares like I have since 2019… Congratulations on sticking to your beliefs! We have already been rewarded… But I think we have a long ways to go. The seeds to this up swing were someone way back in November and December 2019 as US shale production peaked.
PS… Bought the car! Should this continue its upward rise into the winter of 2021-22.... Then I'm going to add a new house as well!
A special shout out to chicken little... HA HA HA... All summer long has changed to party like it's 2022