Wednesday, February 29, 2012

Can These Natural Gas Stocks Live Off Oil Until 2015?

Not that the expectations are for natural gas prices to remain this low until 2015, but this is when the real possibility of the US exporting natural gas begins. Until then the possibility remains that the new shale production techniques will keep production ahead of domestic demand and prices low.

Without a serious energy policy to utilize this increased resource, it is very probable that this country will begin exporting our cheap energy supplies to Europe and Asia while still importing expensive oil and gasoline. That is assuming the big producers of natural gas remain in business in a subdued pricing environment.

The main catalyst for the focus on surviving until 2015 was the huge announcement yesterday that Blackstone would invest $2B in Cheniere Energy Partners (CQP) to provide the equity financing needed for the construction of export facilities at the Sabane Pass liquefaction project in Lousiana. This will be the first natural gas liquefaction export facility in the continental United States hence ushering the domestic market into the world prices similar to oil.

Read the full article at Seeking Alpha.


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