"HeyBub" wrote in
m:

Han wrote:

N/G is about 1/2 the cost of coal.

Lew

For the moment. There is a glut now, in part because of the mild
winter. When supply and demand get into more of an equilibrium, nat
gas prices will go up, and coal will come down. Although I don't
mind cheap natural gas ...

Nope. There IS a glut, but not because of a mild winter; there's an
abundunce of NG due to increased discovery and production methodology
(i.e., "fracking").

Today, we have, in the U.S., about 270 trillion cu ft of proven
reserves.

U.S. consumption is about 1.5 trillion cu ft per year. At current
levels of use and known reserves, that comes to a 180-year supply.

Since the beginning of 2001, the price of NG has dropped from
$6.82/1000 cu ft to $1.89.

You missed the "in part" I mentioned. As more power plants switch or get
newly built to use natural gas, the excess supply will decrease. They're
building or are going to build a liquified natural gas plant somewhere in
the South. Originally meant to be for importing LNG, it is now being
modified for export. That'll take some of the supply to other countries
(Japan? China?). All great for the US economy. Perhaps less so for the
people living near the wells (Larry J?).


--
Best regards
Han
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