Saturday, March 03, 2012

From Upper Left Edge:Columbia Riverkeeper Letter To Oregon LNG Financial Backers, Leucadia National Corp.

The basic message here?
Pull the plug on the project now!

Read Full Letter From Columbia Riverkeeper

1 comment:

g said...

I'm sure Ian Cumming will appreciate RiverKeeper for simplifying an otherwise very complex industry.

1. Political landscapes change. Clatsop county will and so will Oregon.

2. Demand for NG is at a low right now. True. So is coal. So is Oil. I won't go into why Oil is high but demand is NOT the reason.

3. As developed and 3 world countries continue to develop, the hunger for NG will increase. Google Supply vs demand to understand what NG prices will do.

4. Horizontal drilling (fracking) has caused a glut of NG. It will take some time (domestically) to absorb the supply which will keep prices down. Expect utilities to go crazy building more NG plants for electricity purposes. This is good because it will add construction jobs.

OLNG/Leucadia would be smart to play the patience game right now and wait it out. Things will change. As world demand increases, the pressure for export facilities will increase.