We’ve been documenting the drastic decline in natural gas prices which is having really large consequences in changing the infrastructure of North America’s energy sector. High oil prices both provide the impetus for more natural gas development to take advantage of the cheaper relative pricing, in addition to keeping natural gas prices low as drillers are willing to accept $2 natural gas in return for $100 oil out of the shale wells. Drillers will have to continue to stop drilling if prices remains so low but over the long term there are a lot of events that could raise prices. Exportation of LNG is a very exciting opportunity as is the development of natural gas filling stations to take the place of gasoline. The stronger and more well-financed energy companies are likely to be the winners as low prices might take some higher cost, higher leveraged companies out of business.
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