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Don't Expect Government Price Controls on Natural Gas Anytime Soon
September 8, 2009
Natural Gas Dips to Lowest Since March 2002 on Inventory Gain | www.bloomberg.com
Natural gas prices are inherently volatile, due to wide variations in supply and demand plus limited storage, compounded by speculative trading mechanisms. Unpredictable natural gas cost swings impact not just short term profitability, but long term capital investment and competitiveness. Government price controls, however, are not likely, as they could convert a short term volatility issue into a long term capacity issue, thus reducing the time available to find better alternatives.
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Shale gas abundance provides new options for energy companies
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Early signs of caution begin to cloud frontier exploration and production
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