Quote:
Originally Posted by Bill Bumface
^Because the Marcellus means our biggest gas customer no longer needs us so gas prices will be crap for our remaining lifetimes.
We are talking about a commodity that is commonly destroyed (flared) as a nuisance by product not worth transporting in jurisdictions without existing infrastructure and loose regulation.
Plus we seem to have thoroughly shot ourselves in the feet trying to get any timely LNG export infrastructure in place.
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There's always a reason (an unknown reason) why commodity prices are cyclical, but at this point it's tough to disagree with your position. My main point in my post was that the price of natural gas is a major factor when discussing a recovery to Calgary's economy because there are so many companies' cash flows are dependent on it and its' recovery, and it's always just tunnel vision on here about oil price which is only a part of the equation.
Also, there's a huge difference between today's deplorable and uneconomic price and what even a mild storage draw will do to it. Companies can make money at a surprisingly low price, which a draw on storage with 1 cold season will drive.
Is it likely it will ever get to $11/mcf? No.
Is it likely it'll return to $3-$4? Yes. Is this economic? Yes.