This came from a newsletter I subscride too. It is basically and add to purchase a different report but I thought a few people who have invested in Gas may be interested. I havn't posted the whole article as I do not wish for H/C to be used for free ads................
The White House is running SCARED
There are TWO WORDS...
...that most Americans don't ever want to hear together again:
ENERGY CRISIS.
Yet that's exactly what has the White House holding closed-door emergency meetings.Alan Greenspan testifying to Congress.and the U.S. Senate forming new energy hearings.
Several ill-timed factors are currently converging.and all indications are pointing to another MASSIVE CRISIS beginning as early as this summer or next winter, at the latest.
But this one will be different. There won't be long lines at the gas pump. The oil barons at OPEC won't be the culprits behind it. And the numbers on your license plate won't have any influence on what day you get in line.
The coming crisis won't be about the price of gasoline.
This time it's natural gas.
So far the popular press isn't talking much about it. But, my friend, this crisis is REAL -- and IT'S IMMINENT.
Without mincing words (if you've seen me on Fox TV's Bulls and Bears program, you know I call 'em like I see 'em), we are in very deep guano when it comes to natural gas supply and prices over the next four to five years. Consider this:
* Right now, the amount of natural gas in underground storage is about 1.6% BELOW last year's storage levels.
* With only a few weeks left in the prime injection season for rebuilding supplies and a few months left before the traditional heating season begins, there is almost NO HOPE of refilling the storage kitty.
* At the same time supply is decreasing, demand is INCREASING rapidly. Over 75% of new homes built in the last 15 years are heated AND cooled by natural gas. Now 25% BIGGER than those built in the 70s and 80s, new houses are using up gas at unprecedented rates. Industrial demand is only dropping at a fraction of the rate of demand GROWTH from other areas. And propane demand -- a derivative of natural gas -- is growing FASTER than natural gas demand.
* This is NOT a one-year event -- it's a long- term secular shortage. Demand for natural gas EXCEEDS new production. And without drastic curtailment of gas usage OR dramatic expansion of exploration and liquid natural gas importation (neither of which are likely in the short term), the shortage will get worse, not better.
Mark my words, my friend: All of our proprietary research shows that this supply/demand imbalance is going to spike prices from the current $4.50-$6.00 range to a whopping $10-$15.and will wreak havoc on gas consumers and energy utilities.
Our current $6 per thousand cubic feet price for natural gas is the equivalent of $35 per barrel for oil. But in the gas patch, there is NO OPEC and NO IMPORT CAPABILITY.
We are in a serious, serious crisis for natural gas.and the powers that be are fiddling while Rome burns. Our national strategy for dealing with this emergency appears to be "pray for a mild summer and completely abnormal winter" or natural gas prices will skyrocket. Back in Kansas, consumers are about to get CRUSHED.
GAS Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
