Question?.

The BIG 3, are going to dole out 260 Billion in Bonus $.
Averaging for 119,000 employess, is approx 250k each………

When AIG (Paulson knew and agreed) to pay them their salary in the form of a YEAR end bonus for NOT leaving their jobs( key position folks), and taking a $1.00 for their salary.

ACORN and the public was ALL over them.
Why is GS/MS/&JPM, getting a PASS?…………

Just sayin’………………….

According to Matt Badiali of Growth Stock Wire, “We store natural gas in old oil and gas fields, salt domes, and even aquifers. Old fields make up the largest volume of storage, about 81% of the 8.5 trillion cubic feet of capacity. Some of those require a certain amount of gas to keep the cracks open, called “base gas.” Base gas volume remains steady around 4.3 trillion cubic feet. The remaining 4.2 trillion cubic feet of storage is for “working gas.” That’s gas available for use.

The Energy Information Administration publishes how much working gas we have in storage. As of October 9, that was 3.7 trillion cubic feet. We only have 0.5 trillion cubic feet of storage left. In other words, we’re at 94% capacity. Over the last six weeks, we added about 65 billion cubic feet per week. Unless demand changes quickly, we’ll fill up the remaining space by early December.”

So why are prices rising? Well, the number of drilling rigs is running at 726, down from 1600 in September of last year. Also, tight credit is helping to further feed the cutback in production. So, in spite of the supply situation, the current slowdown in production, coupled with a 70% drop in prices may be part of the answer.

Then there is the haunting Natural Gas to Oil ratio. In theory, based on an energy equivalent basis, crude oil and natural gas prices should have a 6 to 1 ratio. Strangely enough that hit close to 25 to 1, an obvious historical high. Currently it is running at 13.75, still 2x it’s historical.

Could the big inventories be somewhat of an illusion as traders look past the current data? I don’t know, but I would imagine that when we work through these inventories, we could see a sustained move in Natural Gas prices.

If you would like to keep and eye on the storage numbers yourself, Matt gives out some useful information.

“Go to the EIA’s website: http://www.eia.doe.gov/oil_gas/natural_gas/ngs/ngs.html. Look at the table for Working Gas in Underground Storage. In the lower left corner, you can see the total for the week (3,716 billion cubic feet, as of October 9). Subtract that number from 4,200 billion cubic feet and you can see how much room we have left. You can also scroll down and check out the “Working Gas in Underground Storage” graph. That shows you the trend in red, compared to the historical range in gray.”

case in point, the news recently about how Goldman was simultaneously profiting from the promotion/sale of mortgages while their trading desk was shorting mortgages!

http://www.mcclatchydc.com/100/story/77791.html

somebody correct me if i’m wrong here, but i don’t believe Goldman’s (or any) trading desk publishes forecasts like this, so i have to assume (since it isn’t mentioned) that it’s Goldman’s research arm (which works hand-in-hand with their sales force) that is publishing these forecasts.

GS is normally quite wrong. I do not think Gold will come back to 960 in a hurry. Also NG moving up is not something I rule out. The chances are it will move.

fresbee
GA Alpha Fund
INVESTING CONTRARIAN

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