All opinions and/or facts appear to point towards production being years away. I wonder if the Ukraine situation escalates whether the Govt will press production companies to bring things forward?
What's going on?
SP up 4p even though no news. Is there in fact some news on it's way that us ordinary folk don't know about, or some change in sentiment in the market towards shale on the back of the Ukraine crisis, or just some random fluctuation. Time will tell but at least the SP isn't continuing to slide which it has in the past when there is no positive news. GL all.
BMO Capital like us http://www.proactiveinvestors.co.uk/companies/news/67711/igas-energy-seen-as-one-of-the-best-ways-to-gain-exposure-to-uk-shale-67711.html
Looking good for the future
Can see some big buys coming in tonight. With the situation as it stands at present, shale is the way forward. GLA to all invested here
Thats true what you say, up to a point. The problem is that LNG prices are fixed against oil prices and that link has to be broken before the price can go down. However, the USA alone imported 25% of all of the oil produced in the world, that is a lot to take out of the market. As more and more countries come on tap the demand for oil will plummet. Not initially, because OPEC will try to maintain the price by reducing production, but even that will not help in the long run. OPEC have to live and most do not produce much, except dates and oil. So the Shale effect may be a few years down the line, unless, of course, governments intervene. There will be public pressure on them to do that
RE: The Weald
UK shale won't have much effect on the gas price short term, all the better of course because a decent price will increase the profit for the the pioneer producers. But 10-15 years from now shale production will have spread across Europe; there are good prospects in Poland, Spain and France at least, and if it can be marketed politically as a bridge fuel to the green lobby, then the supply/demand balance will shift in the direction of lower prices IMO. Regarding the 150 I think the Barton results in a few months time, and/or a farm-in might push the SP in that direction. Can't see a better bet for a good return over the next couple of years.
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