Natural Gas: Clean Fuel with a Dirty Little Secret

Source: Seeking Alpha (8/14/08)

This dirty secret is not obvious, until you spend some time with the data. While natural gas demand is expected to increase by 1.42% in 2008, from 65.42 BCF/d to 66.35 BCF/d, domestic natural gas supply increased from 52.97 BCF/d in May 2007 to 57.14 BCF/d in May 2008! This is a stunning 4.17 BCF/d supply response in the midst of a .93 BCF/d increase in demand. The natural gas markets are currently 3.24 BCF a day oversupplied!...Nathan Weiss

The natural gas market has a dirty little secret: The U.S. natural gas market is currently massively oversupplied...This dirty secret is not obvious, until you spend some time with the data. While natural gas demand is expected to increase by 1.42% in 2008, from 65.42 BCF/d to 66.35 BCF/d, domestic natural gas supply increased from 52.97 BCF/d in May 2007 to 57.14 BCF/d in May 2008! This is a stunning 4.17 BCF/d supply response in the midst of a .93 BCF/d increase in demand. The natural gas markets are currently 3.24 BCF a day oversupplied!

Despite the massive growth in natural gas supply, the amount of natural gas in storage began the year 358 BCF lower than in 2007 and today is only 367 BCF lower. How can the market be massively oversupplied when storage levels are constant versus 2007? There were 152 days from January 1 to May 30. If the market was truly oversupplied by 3.24 BCF/d, we should have seen storage increase by 492 BCF. Where did nearly 500 BCF disappear to?

LNG imports have decreased significantly. From January 1 to May 30, 2007 the United States imported an estimated 377 BCF of LNG, in total. During the same time period in 2008, imports totaled 139 BCF of LNG - a level our research shows to be near the absolute minimum contracted levels. The lack of LNG imports has benefited natural gas storage levels to the tune of 238 BCF so far in 2008. This will become apparent in the headline storage data shortly...

Announcing Streetwise Live! Events
Source: Streetwise Reports (07/13/2020)

Streetwise Reports is offering 100 investors—at no charge—the opportunity to meet via Zoom with executives of precious metals companies as they discuss recent developments at their companies and upcoming catalysts.

"China's export quota could be opportunity for Canadian miners"

Mexico: Gold's Next Powerhouse Player
Source: Marc Davis, BNW News (11/03/2009)

As the world's key gold producing nations struggle mostly in vain to replenish dwindling below-ground supplies, Mexico is bucking the trend in a big way.

Where Have All the Gold Mines Gone?
Source: Brent Cook, Exploration Insights (04/14/2009)

Given the declining global gold production, mining companies’ demand for reserve replacement and the acute dearth of new gold discoveries, there is no doubt that real economic discoveries will be exceptionally valuable. . .the opportunity for stellar profits is the best it has probably ever been. Identifying the few successes, however, will require vigilant and constant technical assessment of geology and drill results, always with an eye to mine economics.

Congo Completes Mining Review, Says Majors Quit Talks
Source: Reuters (12/20/2008)

"Review process is extended an additional 45 days to allow six companies to return to the negotiating table for direct talks with government ministers."