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May 3rd, 2012

What is ??Wet? Natural Gas?

by Andrew Price, President & COO

Previously I wrote about record low NYMEX natural gas prices. The rapid expansion of natural gas production from shale is a key factor driving prices lower. Shale gas production has remained high – even as prices plummet – for many reasons. One important driver of shale gas production is that higher value products can be associated with the natural gas that comes out of the well. In many wells Natural Gas Liquids (NGLs) are the prize; therefore the value of the natural gas that also comes out of the well can continue to fall without putting exploration and production companies into the red. NGLs have maintained their value as they are also derived from expensive crude oil.

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April 19th, 2012

Natural Gas Prices Are At 10-Year Lows: How Much Lower Can Prices Go?

by Andrew Price, President & COO

Natural gas prices continue to plumb new lows with each passing trading day. Prices for the May 2012 NYMEX futures contract closed at $1.95 per MMBtu yesterday. We have not seen futures prices this low since January 2002 - is it possible that prices could go lower?

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April 12th, 2012

Canadian Tar Sands Oil Flowing South

by Andrew Price, President & COO

An enormous reservoir of oil sits just to our north in Alberta Canada. The Canadian tar sands hold almost 200 billion barrels of oil by some estimates, giving Canada the world’s third largest oil reserves behind Venezuela, and Saudi Arabia. Much has been written recently about efforts to bring tar sands oil to the US via Transcanada Corporation’s new Keystone XL pipeline. While the Keystone XL pipeline has been delayed, at least in part, for political reasons, other pipelines are quietly jumping in to meet the growing demand. Most recently the 236-mile Portland Maine to Montreal Canada pipeline has been connected with the Canadian tar sands.

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April 5th, 2012

Study Finds That Cape Wind Will Save $7.2 Billion

by Andrew Price, President & COO

Charles River Associates has calculated that the Cape Wind project will reduce wholesale power prices in New England by $7.2 billion over 25 years. The report dated March 29th, was an update to a 2010 study commissioned by Cape Wind, the controversial offshore wind power project planned for Nantucket Sound.

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