Thursday, June 25, 2009

Alberta Gas Subsidizes Stock Market

Alberta today announces over a billion dollars is going to the troubled gas industry to increase drilling. There was over a billion dollars given to the oil industry to increase drilling and, nothing came of that. Likewise there will be nothing coming from the investment in gas.

Very recently bulk LNG has docked on the East coast of the US. LNG arriving by boats is a lot cheaper than gas shipped by pipelines. In the right circumstance it can render gas pipelines obsolete. This is a new trend that is expected to increase very rapidly.

Russia is looking for new customers as Europe looks elsewhere for a supplier.

In addition to this horizontal drilling coupled with carbon dioxide injection is freeing up huge amounts of natural gas here and in the other shale formations.

This is a market glut in gas that is not going to go away any time soon. Why then do they pour over a billion dollars into it? Every cent they put into Gas now will go directly into company profits and the stock market.

Still on Alberta Energy: Trans Canada has got the go ahead for the Texas pipeline for crude. This is a good deal for us all. What I find strange is Trans Canada have been able to sell 1.3 billion dollars in shares in a few days. This, at after the Alberta Government says it will have to borrow 8 billion.

I have to ask; Did AIMCo buy a huge slot of Trans-Canada share offerings on the pipeline?
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