Gas Co's--investment groups have been ringing our phone attempting to negotiate bogus offers blaming the current hostile political setbacks touting low ball offers--
WHY IT PAYS TO WAIT
1- Natural Gas has skyrocked 30% in the past 7 weeks
2- N.Y.--like other East Coast Cities are experiencing the commencement of a broiling summer which has helped in this recent uptick
3- There have been other Structual Developments as well. With oil prices over $100/barrel--the integrated majors are diverting rigs to new onshore oil developments where the profits are, instead of using them to extract more underpriced gas. So, gas rig counts are down and industry insiders dont expect an upturn until gas gets up to $7-$8/BTU-- up from its current 4.85. This is limiting new supplies coming online from various shale gas plays which also helps in the upward trend in price.
4- On top of that--utilities are taking advantage of low gas prices and switching over from coal. Others are making the change purely for enviroment reasons where ng produces 1/2 the CO2 emissions and none of the NO2 or SO3 when compared to coal fired plants. The last coal plant was recently closed in Cailifornia where utilities like PG&E are racing to obtain 30 % of it's power from alternatives by 2020.This is why the EIA expects American NG demands to increase by 50% over the next 5 years
Longer term---this 800 pound Gorilla for this market is the prospect of exports to Asia--especially enegy hungry China. The infrastructure for this is not in place but is under construction and when this happens you can expect crude/natural gas price gap to disappear. Gas currently sells for 20% of the price of crude on a BTU basis.
We feel the above senario will be the commencement of a much needed demand side for natural gas which will boost prices for this diminutive molecule. Follow bill HR1830 which will come to vote this summer which is entitled the Natural Gas Act.
Gas Companies and the investment communities well know the above and this is the reason why they are trying to lease us NOW with ridiculous offers Please be paitent--Our time will come.