This commodity is in an ‘epic bear market’
"Chris Verrone, technician at Strategas Research, sees an even worse scenario for nat gas, predicting it may go as low as $1.50.
The steady decline in natural gas prices has become an "epic bear market," Verrone said Monday on "Power Lunch," one that should take several years to correct. In the meantime, he said investors should watch for upside resistance at $2 and sell any short-term bounce.
"When we get declines of this magnitude, it takes many, many, many years to repair. So even if we are in the vicinity or the neighborhood of a low, we're talking about years before a major turn or a new bull market really starts to take shape," Verrone said.
http://www.cnbc.com/2015/12/14/this-commodity-is-in-an-epic-bear-market-trader.html
Did I mention that Tsawwassen First Nation just said HELL NO to an LNG terminal? Tsawwassen First Nation will prosper long into the future with clean water, fertile land and fresh seafood..LNG is slow death....!
http://www.vancouversun.com/news/metro/tsawwassen+first+nation+rejects+proposed+facility/11594929/story.html
Well Christy Clark, what is your next big lie,.....And hey, Christy Clark, where the heck is that prosperity fund....Oh, that`s right, BC`s prosperity fund went into the personal bank account of Malaysian Prime Minister Najib Razak.
https://www.malaysiakini.com/news/323496
Hello readers, contributors.....There is nothing much left to say about BC`s LNG exporting future..The industry is dead, .
Not only do Japanese LNG import volumes continue to fall....More nuclear plants are scheduled to restart...
http://www.lngworldnews.com/japan-november-lng-imports-down-yoy/
And if that wasn`t bad enough....
Japanese LNG imports fall and long-term contract prices drop below $9 mark
http://www.lngjournal.com/lng/index.php/home-mainmenu-1/item/10697-japanese-lng-imports-decline-and-long-term-contract-prices-fall-below-$9-mark
Here`s the rub for British Columbia(one of many rubs)....Now longterm LNG buying contracts are being inked for less than $9 dollars per MM BTUs...Not spot market buys but longterm contracts, low prices even before the tsunami sized glut of LNG comes online over the next two years..
Already operating LNG terminals, these LNG producers aren`t taking any chances, they are dropping their prices to the barebones of profitability, ....Those energy companies fear if they don`t ink longterm LNG buying contracts for low prices today.....
Those companies fear they will be forced to sign longterm LNG buying contracts tomorrow for even less money!...
An old saying comes to mind, and it rings true..
"One in the hand is worth two in the bush"
So, in a nutshell.....For Petronas`s Lelu Island LNG terminal proposal...It has been reported, because BC`s LNG industry is/would be a "Greenfield" start-up, with BC`s gas supplies hundreds of kilometers from the coast, nothing in place in the way of infrastructure...It has widely been reported that Petronas needs a longterm selling price of a minimum of $12 dollars to be even slightly profitable...
With now longterm contracts for LNG being inked for between $8 and $9 dollars...
That means Petronas can`t make a profit, or break-even.....The only way the Petronas Prince Rupert project goes forward now is if the Province of British Columbia makes/gives/legislates a financial guarantee of between the $12 to $14 dollar range....There is no other way any LNG greenfield LNG project in British Columbia can go forward financially, no big energy company CEO could keep their job by sanctioning money losing ventures...
I mean it really is that simple,.....
There is too much supply, little demand, too many fools rushed in,.....There may be another window of LNG opportunity by 2030...Maybe, that is, if, if the world is still believing the clean LNG bullshit/myth..
It`s going to be renewables and nuclear going forward as the big winners in energy..
So, the only thing that remains is for British Columbia`s media and NDP opposition to corner Christy Clark and Rich Coleman and demand answers, honest answers, not vague industry spin...
Site C dam....$15 billion borrowed taxpayer dollars for power we don`t need, and won`t need, not today, not tomorrow...LNG and Christy Clark, the gift that keeps on taking
Lastly..... As per usual all the dirty little whitewashed reviews and reports come flooding out at and or near Christmas, such standard deflectory fare for these BC Conservative/quasi Liberals ....Ahh, but this time is different.. the Christy Clark regime is running scared, very very scared, hence all the covering photo-ops...Massey tunnel announcement, without money details...Riverview lands, a vague proposal with no timeline,...Money offered to the tech industry, Compass card promoting...
You see, Site C dam will barely be started by the 2017 election, ..Yet more mines will be shuttered in BC because of low commodity prices, the major LNG proponents will back away one by one...
Christy Clark will need another mystery industry to appear, or be promoted as the catalyst for continuing the Site C dam boondoggle..
I wonder what Christy Carnak Nostradamis Clark will come up with..?
I`m betting Christy Cluck Cluck Clark will merely "Gobble Gobble"
The Straight Goods
Cheers Eyes Wide Open
8 comments:
"Just Wait For The Bankruptcies" - The Latest Market That "Is In Real Trouble"
Natural-gas fell to the lowest ever inflation-adjusted price in its history of NYMEX trading on Wednesday as extremely warm weather continues to limit demand. As we recently explained, the glut in nattie is worse than that facing the crude complex, and while the glut in oil is expected to continue for the next year or so before balancing in late 2016, the pain for liquefied natural gas (LNG) could be just beginning. As one trader warned "this market is in real trouble...just wait for the bankruptcies."
http://www.zerohedge.com/news/2015-12-17/just-wait-bankruptcies-latest-market-real-trouble
Waaait a minute! What if we were all to use Natural Gas to heat our homes? Oh we're already doing that? To run ferries? There's a novel idea. Run locomotives back and forth across the country, instead of burning dirty diesel? You hadn't thought of that?
Rather than giving it away to 'other people', why not use it at home and save all that expensive liquefying and barging cost. Then give it to families. Cheap transportation. Cheap heating.
Remember Christy, charity begins at home.
Have a Happy Christmas!
Cluck doesn't listen to anyone but the harperman and he actually deals with Coleman who is just as evil and stupid as Cluck. Grade 12 Cluck the psycho is too stupid to understand just about anything and is not interested in anything but $$$$$$$ paid to her and her mob by corrupt corporations, pay-backs to cluck's gang and who donate their money to the corporate re-election of this gang of monsters.
RECALL CLUCK and her incapable goons BEFORE IT IS TOO LATE to rid ourselves of these corrupt corporate loving pigs.
We must work together to make sure no one can run as a politician without a degree in political science. You won't find anyone smart enough in this bunch to be able to complete any university course. Stupid is as stupid does.
Great post as usual Grant and looking so forward to meeting with you before Merry Christmas.
Thank YOU for being there for all of us.
Jean
She'll be made to walk the plank and the falcon will fly in.
You've been right all along: This LNG gambit is not going to work. And i would add that she'll take the fall for it finally (which i believe you've mentioned before as well).
It will tumble to the Howe Street boys to resuscitate the party on the right. They may even choose to lose one, as we head into another major slow-down. Hard to govern sailing into a storm. Best to head for harbour and wait it out safely.
When Horgan takes power in this province, the books are going to be in a right mess. By accumulating massive debts,especially under the crispy regime, this government has chained the tax-paying public to heavy obligations to re-pay (with compounding interest). This obligation has to be serviced by us, the tax-paying folks. The more debt and interest owing, the more money we are obliged to offer up to the banksters. This is where the devil really lives. It is also where the real political struggle is waged. This is a "G"reat work indeed. The battle is primarily that of deciding where--or, upon whom--to impose tax(es)/ The BC liberals govern at the convenience of the upper classes, mostly because the deal they get on tax(es).
As is required, after having borrowed so much to govern, there are three possible outcomes: 1)the STATE raise tax(es) to better meet obligations; 2)the STATE cuts fiscal spending via austerity measures; 3) the PUBLIC defaults on ITS' debt and thereby made to join the dregs for want of sound money.
Being in quite a bind as we are, it won't surprise me in the slightest if they back off and hand the reigns over to Horgan for a term. There are "G"oing to be some hard decisions a-waiting his first day in the big chair. Shocking as it may sound, i get the feeling that the scalliwagish liberals would rather not take the blame for anything in the end, being the sketchy grifters that they are.
@ Jon Ghun. And what if Horgan won't touch it with a ten foot pole? That's what I thought happened last time - the worst punishment would be if the Lieberals had to ride the mess that they'd created prior to May, 2013. Well, it looks like they turned the tables on us. But you're right - there's going to be an unimaginable mess the next time!
just wondering what your take is on steve carr going from deputy minister lng to adviser
to clark.
Steve Carr must have some pull...And he`s smart enough to know that you don`t want to be too connected to LNG..
He found calmer seas to sail in..
well gordo brought him in for the great re org. in for the bs lng , now for the election in 17.. maybe pull or will do the stuff they need. ?
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