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Re: spartex post# 7030

Tuesday, 02/14/2012 2:31:42 AM

Tuesday, February 14, 2012 2:31:42 AM

Post# of 14019
I believe the low natural gas price is caused by both the present business climate and the recent shale gas deposits. Shale gas deposits are said to have high development cost and quick decline ratios, as much as 50% during the first year.

Also NG companies had to explore, or lose their leases, so along with the business climate, underground storage in the US increased considerably, further lowering the NG price. The fracking process for shale deposits uses various chemicals that many communities say are contaminating their aquifers.

Using frac sand alone doesn't create contamination, because its a natural element that's further process before use.

I think the shale gas situation could have problems and NG may spike.

JMO