Re: Natural Gas: Do the Chinese Know More Than We Do? No. Not a chance.
<<Meanwhile, investors in North America have orphaned this cleanest of fossil energy sources, discounting its price like a second hand book on a sidewalk table. Few here believe the wonder-fuel will be worth more tomorrow than today, just like cheap words on cheap paper. Thats what happens when markets cater to the same customers for too long; they often end up being gathering places for insular thinking. So, when someone comes in from afar and doubles down on price, we should always ask if they know more than we do.>>
F Me! The same blathering nonsense has been spewed for the last 5 years - "nat gas is too cheap - it's going up next year because drilling will slow as a result of the (then) low prices".
But a crazy thing has happened instead - supply continues to increase - and when the string of cold winters/hot summers finally came to an end, storage zoomed and prices collapsed. There is no hope for natgas - not when so many make good to excellent profits off liquids-rich natgas and oilshales with lots of associated gas - those producers can give the stuff away and still make handsome ROR - and that's why production continues to increase even as prices collapse.
If you are foolish enough to ignore what MSF in conjunction with horizontal drilling is doing in domestic shale plays, you deserve what will inevitably happen to your portfolio...