Tuesday, November 25, 2008

Before You Invest or Approve That Natural Gas Deal...
Here is a post from the naked capitalism blog that has an extensive quote from Platts. In summary, it says that a warm winter could lead to natural gas prices near $4 / MMbtu. Oil and gas deals had trouble paying sizeable distributions over the past year with energy prices soaring. This is due in part to their structure - too many fees - and the cost and expenses of drilling that increase along with energy prices. Now that oil and gas prices have fallen and expenses have likely remained constant, oil and gas deals may have difficulty making distributions.

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