Why you shouldn’t predict price
Below is a video of a recent CNBC interview with a floor trader in natural gas. [March 28, 2013]
Speaking of price predictions here is one for oil just reported by Upstream from an LNG conference in Houston. Since most LNG contracts are indexed to the price of oil the future price of oil will significantly impact global LNG import prices.
A Brent crude drop to around $80, expected in the next year or two, could decrease prices for countries looking to import LNG, according to Fereidun Fesharaki, chairman of Facts Global Energy, an affiliate of the Washington-based Centre for Strategic and International Studies (CSIS).
At $80 Brent if the current discount of WTI continued it would put WTI in the mid $60/b range. At that price things could get real quite in western North Dakota really fast. Also lower LNG prices could put the brakes on the drive to export U.S. natural gas which would be most likely benchmarked to Henry Hub and priced primarily by U.S. domestic demand.
Interactive map of proposed coal plants around the globe
The map is from the World Resources Institute. The research this map is based on “shows that 1,199 new coal-fired plants with a total installed capacity of 1,401,268 megawatts (MW) are being proposed globally. If all of these projects are built, it would add new coal power capacity that is almost four times the current capacity of all coal-fired plants in the United States.”
By moving your mouse over each country you can see their plant proposal. Also when viewing this keep in mind that carbon emissions are only a portion of the story, mercury and other emissions matter as well.
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