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Location: Pantego, Texas, United States

Friday, August 08, 2008

Recently the price of natural gas has fallen from around $13 per thousand cubic feet to less than $9 per thousand. The CEO of XTO blames the CEO of Chesapeake because the latter projected that the Haynesville shale contained incredible 245 trillion cubic feet of recoverable natural gas.

http://seekingalpha.com/article/88789-chesapeake-energy-corp-q2-2008-earnings-call-transcript

Apparently the CEO of XTO is a Republican because Democrats do not think that the prospect of future supplies of oil or gas will affect the current price.

(Personally I think that the recent natural gas price decline is more related to long-range weather forecasts of a warm winter in the US this year. This still assumes that there is a relationship between price and future supply and demand.)

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