Jump to content


This topic is now archived and is closed to further replies.


Thank God it's Friday

Recommended Posts



The big difference between current and future gas prices is probably also a consequence of the credit crunch - too much drilling meets reduced consumption.


What needs to happen is the hedgies need to come in and make short term loans to the producers so they can meet their interest bills now while they shut in production.


In return the hedgies get paid back in gas in one years time at $3 a MCF - which they can sell now on the futures market for $6 a MCF - lock in the profit now.


By relieving the producers of the financial risk and pain of shutting in production now the hedgies can gain the certainty of a big quick profit of 100%

(or lets say 50% as in reality the profits will have to be split with the producer to make it worth while to them).


Both the short term lender/speculator and the gas producer win big.

Share this post

Link to post
Share on other sites

Stock market portfolio giving you the runs? See Dr. Stool.

Take a subscribatory!
The Anals of Stock Proctology now!

The Daily Stool - Stock Market Message Board
Stool's Gold- Gold and Precious Metals Forum
Look Out Below Message Board

Support your local Stool Board.

The Al E. Greenspeuman designer line at Stoolmart. Get yours today! Click here now!

Old Stool Depository

The Wall Street Examiner
Subscribe to the Wall Street Examiner
Contact Us

Market Quotes are powered by Investing.com.