A New Global Market for Natural Gas

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...As one watches the price of natural gas collapse in the U.S., is it possible the price remains near $8.00 this winter as Asians and Europeans pay more than two times that price? Michael B. Smith

In late 2006, China for the first time in its history became a net coal importer. This changed the dyanmics of the world's energy market. Korea and Japan, previously importers of Chinese coal, were sent scrambling for alternative sources of energy. What they found in the winter of 2007 was LNG for $18-$20/BTU. China too was a willing buyer...

Fast forward to today and enter Russia. Russia's invasion of Georgia is a dangerous precedent. Russia controls over 25% of Europe's natural gas and in the winter of 2006 used it as a weapon against Eastern Europe. Russia's true intent today may very well be to take further control of the world's energy market. Does one really believe that the Russian government cares anything about 70,000 ethnic Russians living in the mountains of Georgia?..

As one watches the price of natural gas collapse in the U.S., is it possible the price remains near $8.00 this winter as Asians and Europeans pay more than two times that price?

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