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.
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