7 replies to this topic

[Russ]

Anybody know what stock these people are talking about?

Monday, March 26, 2007

Dear Wealth Daily Reader:

Mark your calendars for Monday, April 9. Highlight it with a big X. Or better yet, write R.I.P. in it.

That's when Wealth Daily will officially eulogize the end of "cheap gas."

You see, on that day, something we've been telling you about for months will finally come true:

The leaders of Russia, Iran, Qatar, Algeria and Venezuela will meet in Doha, Qatar to form a "Natural Gas OPEC."

Yes, you're reading that correctly. The OPEC for gas will be formed.

According to the Russian news source Kommersant . . .

"Kommersant has learned that last week some of the world's leading natural gas exporters reached a final agreement on the creation of a so-called 'gas OPEC.' The consortium of gas-rich countries, which at the moment includes Russia, Iran, Qatar, Venezuela, and Algeria, is due to be formally organized in the Qatari capital of Doha on April 9. The appearance of such a powerful player in the energy arena will undoubtedly meet with an extremely negative reaction from the United States and the European Union." --March 19, 2007

My friends, it's over. Finito. Caput. These guys will control 70% of the world's natural gas supply . . . and they won't think twice about jacking up the price.

And if you think I'm exaggerating, think again.

In a newly-minted memorandum , the Army's assistant chief of staff for installation management is more worried about natural gas than oil, saying . . .

"Current Army assumption is that natural gas may cease to be a viable fuel for the Army within the next 25 years based on price volatility and affordable supply availability."

But, of course, here at Wealth Daily we see this coming crisis as a potential investment windfall. Mike Schaefer has a new investment he says could be "the greatest of his career."

It's a tiny Wyoming company that has created a way to exploit just about every natural gas source in the U.S. In addition to that, it'll reduce our dependence on the "Gas OPEC" while preventing one of the greatest environmental disasters in American history.

Last month, the company landed a deal with a $16 billion energy giant to begin work on 500 natural gas wells in the Powder River Basin. To learn about this device that'll make America natural-gas independent, get your free report here.

Regards,



Brian Hicks

http://www.angelnexus.com/o/web/1004

[hiker]

Powder River Basin is in WY where these companies are major NG operators -

UPL
ECA
STR

perhaps that will give you some leads for answering your question

another link to the press release you posted above -

http://www.mail-arch...g/msg69260.html

a link for searching WY corporations -

http://soswy.state.w...at/corporat.htm

Edited by hiker, 01 April 2007 - 12:14 PM.

[Russ]

Thanks Hiker, I'll do some more research later, could not find anything initially.

[gorydog]

From a few years back when I was investing in Nat gas stocks my recollection is that we only import a few % of our Nat gas consumption from beyond N. america. Based on past experience, stock tips like that one are bogus pink sheets anyway. GD

[hiker]

Russ -

this conservation organization for the Powder River Basin may know about the company in question -

http://www.powderriv...n.org/index.htm

[PorkLoin]

After a brief search, I see the EIA saying that in 2002 the US imported 16% of the natural gas consumed domestically, versus 61% of the oil. That 16% was roughly 3.6 trillion cubic feet - still substantial.

The US does have a lot of NG, but I see nothing to indicate that our reliance on foreign sources will decline much. It seems to be in the cards that our imports from Canada will decrease, and that they will increase from other sources:

According to the EIA, the U.S. imported 0.17 Tcf of natural gas in the form of LNG in 2002. LNG imports are expected to increase at an average annual rate of 15.8 percent, to levels of 4.80 Tcf of natural gas by 2025.


Best,

Doug

[PorkLoin]

Trades on the AMEX as SCU.

Small company, losing money currently, with a lot of expertise at stuff like extracting coalbed methane.

Since October 2004, Storm Cat has acquired a significant and highly prospective acreage portfolio targeting unconventional gas. Through drilling and acquisitions in the Powder River Basin (PRB), net production increased 132% to 1,606.2 million cubic feet (MMcf) for the full year 2006 from 693.5 MMcf in the prior year. For the full-year 2006, the Company reported average daily net sales production of 4.4 million cubic feet per day (MMcf/d) as compared to 1.9 MMcf/d for the full year 2005. Net production from the PRB averaged 8.0 MMcf/d at year end.

It's gotten whacked down pretty good. I haven't owned it since Hurricane Katrina but am watching. Weekly chart is starting to look interesting.


Doug

[Cirrus]

After a brief search, I see the EIA saying that in 2002 the US imported 16% of the natural gas consumed domestically, versus 61% of the oil. That 16% was roughly 3.6 trillion cubic feet - still substantial.

The US does have a lot of NG, but I see nothing to indicate that our reliance on foreign sources will decline much. It seems to be in the cards that our imports from Canada will decrease, and that they will increase from other sources:

According to the EIA, the U.S. imported 0.17 Tcf of natural gas in the form of LNG in 2002. LNG imports are expected to increase at an average annual rate of 15.8 percent, to levels of 4.80 Tcf of natural gas by 2025.


Best,

Doug

Doug,

I'm guessing the majority of the imports come from Canada. Right now the big driver for NG is industrial demand. It's running way above last years levels. The difference between NG and CL is the intensely cyclical nature of NG. The depletion rates for new North American NG wells are ridiculously high compared to decades earlier. What this means is that as soon as drilling falls of supply will briskly deteriorate.

We have a comfortable storage level so we'll have to weight for summer and industrial demand along with hurricane season.