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If you live in San Antonio, St. Louis, or even Albany, New York, it was not too worried about global warming. Abrupt climate change could be in his mind. Some thought that began in January and early spring. And the energy of course, was encouraging.

But less than ten days, said AccuWeather Chief Forecaster Joe Bastardi distance, "This winter could parallel severe winters of the past." For energy bears, Bastardi warned: "TheWho think that winter 2006-2007 is in an impact is mild. "The incident was last week and can not be the last. Bastardi believes that the current model forecast can mimic cold and stormy winters of 1965/66 and 1957/58. A pessimistic scenario would be if this winter plays in the winter from 1977-1978. Watch are "in a telephone interview from AccuWeather Caracozza Chuck told us that we take a figure model of cold, and this could play to recoverthe warmest December-January had many.

We asked one commentator Phil Flynn of Alaron Trading in your thoughts. "If the forecasts are correct, then you may have seen the least natural gas," he said. "But we need more than two weeks a cold snap. We need something that runs from February to March. Flynn thinks it could be a winter like this, some analysts and levels of gas storage challenging. He said "We are far above the average of five yearsTiers of storage. "And when the time for some of the nightmares of last winter in comparison?" If we have a good old fashioned winter, then we could see the inventory levels are not as comfortable as we thought. "Flynn also found:" So let's, as there are adequate supplies of gas is in reality. "

It is comfortable with multiple operators should tiers of storage? According to the International Energy Agency, the world's attention on natural gas could overtake oil dominantPosition sometime in the next fifty years. Crude inventories are burned almost twice as fast as gas. For example, according to Andy Flower who consults for the LNG industry, will the worldwide shortage of liquefied natural gas (LNG), continued until 2011 or longer. No big energy companies to increase the activities planned for LNG production. This is because the cost of building LNG plants has tripled in the last six years, according to Bechtel Group, the largest contractor in the United States.

FinallyGas demand and rising prices after the recovery at the global level, in the same way now view crude oil, with the last victim. Imagine the reaction of a decade ago, when we read that to ask the dealer if oil fell back below $ 50/barrel? Natural gas can also occur as a commodity, more widely followed, as soon as next month if the forecasters have correctly predicted a winter vindictive.

Why gas?

Natural gas has a lot of thingsfor them. Under pressure to help clean air, emissions of CO2 and vice versa abrupt climate change, natural gas is often cited as a better alternative to coal-fired power plants. It 'true that lacks the excitement to include nuclear energy and time on the price of' uranium. However, natural gas is no longer the cheap fuel is five or ten years.

Demand for gas has risen in most emerging economies in the world. Countries like China forGas as part of the national energy mix. And for good reason. First, the economy of a fuel of coal in China suffered a lot because they use this gas to meet their needs for economic growth. According to a September 2002 World Bank Policy Research Working Paper, air pollution from burning coal, reported causes about 300,000 premature deaths each year. For years, that this report was published, six of the world's most polluted cities in China.

In his acclaimedBook "The Black River (Cornell University Press, 2004), Elizabeth C. Economy, said:" One of the positive development of natural resources is the further expansion of coal and natural gas for heating in urban areas: from 1985 's use has more than quintupled. "The author has praised the efforts are more in China in this country to feed natural gas and hydroelectric power.

The fuel energy-Americans believe that an excess of capacity – and to give Phil Flynnthese levels could be questioned with winter – China is apparently not sufficient to establish "green" economy, maintaining a double-digit economic growth. Previously, he wrote about the growing Chinese demand for natural gas, for which he has signed an estimated 1.1 trillion cubic meters of its gas from Australia. The country is certainly not enough gas is produced abroad and a shortage of liquefied natural gas construction can influence the willingness of the countryIncreasing the consumption of natural gas in its energy mix. The shortage of natural gas to 30 to 40 billion cubic meters in 2010, according to an estimate of the Chinese government.

Is not it ironic that about 37 billion U.S. dollars in natural gas are burned every year by an insufficient quantity can be transported by pipeline, or the excess gas is pumped underground need more oil to the surface, while a growing country like China is not enough can be taken to obtain the gasto meet their energy? According to a report of 15 The Associated Press in January, Beijing tries to encourage consumers to spend more and more development, "the brand. In the same line, which is what he did in state-owned China United Coal Bed Methane (CUCBM ) in the last ten years – provides most of what they call China in exchange for a share of economic benefits.

Foreign capital and modern technology has CUCBM agreements with major energy companies, and achieveda handful of promising (and linked), but the smaller firms. In general, companies for exploration, confirmation often need to develop the cost of a coal gas resources in exchange for 60 percent of the production sharing contracts. CUCBM has awarded land the size of Delaware or more than 40 percent share of future production of these projects. In recent years could have the Chinese currency yuan appreciation, the flexibility of the financial system more, and then has to stopObstacles for the money and leave the country.

While Canadian companies are stagnating coverage of CBM, many of which almost evaporated in the second half of 2006, and could have been avoided, we believe it is an encouragement for young companies may find their pre-CBM projects in China. "All the gas locally," energy experts have advised us. While gas prices may differ, Iran and Australia, or from Alberta to China, the perception of investorstends to remain consistent: to sell when the gas is to buy when increases. The underlying commodity may be mistakenly attributed to the actions of companies that develop their projects in China. What's in contact with the shares of companies in gas prices flattened?

You can look at the work done by Houston-based Far East Energy Corporation in recent years. Through its agreements with ConocoPhillips and CUCBM, the progress of society in the region of central China coalShanxi Province has finally begun to show good results. News of January 11th said that the Far East with high permeability and gas content of the five horizontal wells, comparing the potential for "productive wells similar to that of the United States at San Juan Basin or Australia Fairview Field."

CEO of the company, in his message, "The field of Fairview, a very productive field that a good analogy to what we found in our area are concentrated Shouyang possible." Of course,CEO also warns that it is too early, before the sustainable production of wells to make these comparisons.

We do not believe that the claims of Far East Energy to abnormal, but can also be confirmed with the expansion of its field well. The discovery of the very encouraging gas content also compares with the reports that we have a society similar in Canada, China, Asia and the Pacific has studied energy. The gas content in the CMS / t of drilling in the Longtan coal formationBaotian-basin Qingshan in Guizhou Province in China, compared with the formation of coal in Alberta Deep Basin Manville Llanos, the Fruitland coal formation in New Mexico San Juan Basin and the Pottsville coal formation of the Warrior basin of Alabama.

Both companies have made little progress in 2006, while prices for natural gas increasingly depressed. In this letter, the NYMEX natural gas traded to $ 6697 last February. Far East Energy suffered through a power struggle lastmade the fourth quarter, but seem to progress – has announced two new vertical wells are drilled. After the preliminary positive results from initial drilling, Pacific Asia China Energy plans began for a first series of production test pilot.

There may be a potential advantage for Asia and the Pacific, the energy in China, in addition to commercial success, it is possible the development of CBM have licenses. In an interview in October 2006 with China, Asia Pacific Energy VP / ExplorationDr. David Marchioni and in an interview in December 2006 Audio Executive Vice President Steven Khan, it seems that the company is able to generate their revenue in 2007 through its joint venture with Mitchell Drilling Australia's offshore leases .

The company has exclusive rights to the methane drilling in China with Mitchell, through this joint venture that could contribute to a valuable source of revenue to fund exploration on its other concessions CUCBM. Mitchell, propertyDymaxion drilling technology is an example of why the Chinese invited foreign-owned companies to help develop their CBM properties. With the funds the companies invest to develop these properties, they also bring advanced technology to ameliorate China’s ongoing energy crisis.

If indeed the natural gas price bottoms because of the weather risk, putting a frown on the faces of energy bears, then one of the first places investors might smile could be with the developments in China.

Copyright © 2007 by interview of Commons, Inc. ALL RIGHTS RESERVED.

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