High Yield Income Investing

High Yield Income Investing   /  Message Board  /  Read Message



Rec'd By
Authored By
Minimum Recs
Previous Message  Next Message   Post Message   Post a Reply return to message boardtop of board
Msg  21473 of 22896  at  12/30/2011 2:11:37 AM  by


Cheap NG thanks to the Cheney Loophole - a gift that keeps on giving.

The Cheney/Halliburton loophole (Bush administration 2005) allows O&G companies to inject anything they want into the ground for fracking, with the only exception being diesel fuel. Seems it gives drinking water a bad taste, despite the pretty sheen to the top of the water in your drinking glass.

A decade ago shale layers supplied only 1 percent of America’s natural gas. Today, thanks to fracking, they provide 30 percent.

The only bright spot for NG was this week's smaller extraction from storage of 81 BCF. It's the end of December and Henry Hub Spot is less the $3 - $2.98. Wow!

So, those people who's main concern is steady income better start looking very closely at where their divys/distributions are coming from. There's going to be some NG weighted producers "selling the furniture to pay the rent" to keep up the payouts. Those hedges don't last forever.

Cheers, Mooser

Check out the vector on this chart:

     e-mail to a friend      printer-friendly     add to library      
| More
Recs: 1     Views: 317 (updated 24hrs)
Previous Message  Next Message   Post Message   Post a Reply return to message boardtop of board

About Us    Contact Us    Follow Us on Twitter    Members Directory    Help    Advertise
Not a member yet? What are you waiting for? Join Now
Want to contribute? Support InvestorVillage by donating
2003-2013 Investorvillage.com. All rights reserved. User Agreement
Financial Market Data provided by