It is amazing how people will cut and run from a stock at the smallest hint of change. People in general are afraid of any kind of change, especially if they think it will hurt them. PGh's earlier announcement of energy aquisitions was with little explanation on how they were going to pay for it. Well the latest is that they are issuing more shares to pay for the aquisitions. That's to be understood, or should be understood. I like their 14 year history and am sticking all the way, especially since this energy thing looks to me to be very long term. It won't be long and the stock price will be right back and even higher. Good luck.
Ah, but the CURRENT rate is NOTHING like the FUTURE rate is it? In the seventies, we, as a nation, consumed roughly THIRTEEN million barrels of oil per day. And today it is TWENTY FIVE million barrels of oil per DAY. A DOUBLING of consumption every twenty five years. Not bad, considering the growth and conservation measures......but NOT good enough. NEXT? KEEEEEEEEP DRILLLLLLING!
1) How would they get the NG here. We are looking at a minimum of 3 years to expand LNG shipments.
2) We are looking at 1-2 years to be able to get it out of the ground IF some sort of peace can happne.
Don't bet on any large amount of anything except bodies coming out if Iraq for quite a time.
110 tcf of ng equals 18.3 billion barrels of oil equivalent. There are 6000 cu. ft of ng to one barrel of oil. Combining their oil and ng reserves produces enough to run this country for 17 years at the current rate of consumption.
listenclosely: I liked your post but did not respond. After todays drop in the O & G sector I kept recalling your post. Originally I held over 95% in the O & G sector but bailed nearly 2 weeks ago (I did'nt like the injection numbers). However, decided to hang onto the portion that was high yield related which was Canroy's and CV (a utility Co.) Today's rebound in PGH was a good case in point,which I hold a fair postion in. I also hold PWI, and Advantage. The latter being the best performer.
Sometimes a very simplistic post yet to the point seams to make the Logic Inescapable. Thanks and Regards Csense
Comsense, I appreciate your comments. As concerns OG prices as reported on Bloomberg or anywhere else on the web for that matter, these prices change with every dimple on the horizon. For the the most part it's a futures market price that we look at, and that is good for only 24 hours. I believe the average OG investor should be looking further down the road. Given the fact that the U.S. uses over 25 million barrels of oil a day, an oil supply of some 288 million barrels is scarey. One little refinery shut down here, one little strike there and everything goes to hell. We use a third of the world's oil supply. What's going to happen when the big bird of China opens its mouth for more, and what about the rest of the entire world of developing nations? In five years, we will be in a big bind for oil and gas. I am sure I am not telling you anything you probably don't already know, but these are interesting thoughts to ponder. Good Luck