Dangerous Price Manipulation Rocks Energy Markets (Natural Gas)

Wall Street Daily ^ | Friday, May 3, 2013 | BUSINESS WIRES

[haffast]

A new investigation released by Wall Street Daily just revealed a disturbing pattern of price manipulation in the energy markets.

The six-month investigation, conducted by renowned energy analyst, Karim Rahemtulla, was triggered by the incredible disparity in gas prices between the United States and Europe.

The price of natural gas in the United States is presently about $4/mcf.

Yet the price in Europe is upwards of $15/mcf.

“Such mispricing simply cannot occur in an efficient market,” says Rahemtulla.

For the global economy to function properly, the energy markets must be priced efficiently. It can be no other way. Any malfeasance can have catastrophic consequences on the global economy. Especially considering the precarious financial positions many world nations find themselves in.

Despite such a reality, though, Rahemtulla discovered insurmountable evidence that natural gas kingpin, Russia, has been artificially manipulating prices.

“It amounts to extortion,” according to Rahemtulla.

You see, Russia controls an enormous share of the natural gas market in Europe.

snip

But thanks to the banking collapse in Cyprus, the energy situation in Europe is now likely to stabilize, without any rioting in the streets.

"Cyprus, in fact, now lies at the center of the energy world," says Rahemtulla.

Yes, Cyprus.

snip

[haffast]

Consider this guy's speculation in light of the geopolitics in the Middle East involving the natural gas discoveries in the Mediterranean (Israel, Syria, Cyprus, Turkey, Russia, China, Arabs, EU)

Russia/China/Turkey get this gas, or the EU?

The reason for Syria (and later Lebanon)?

[KarlInOhio]

“Such mispricing simply cannot occur in an efficient market,” says Rahemtulla.

But the market is not efficient (luckily for us) because we produce a lot of natural gas and have almost no export capability. Even if they wanted to, the Europeans can't buy our gas to compete with Russian gas.

[JRandomFreeper]

I would appreciate your comments on this thread. My understanding is that it's not cheap to move natural gas without a pipeline, as opposed to crude.

/johnny

[haffast]

[publius911]

Bookmark

[haffast]

UK to Get LNG From Texas Under Exxon Deal
May 10th, 2013
http://www.naturalgaseurope.com/lng-deals-smoothed-11438

Under New Approval, More Natural Gas Will Be Sent Abroad From Texas
May 17, 2013 | 1:10 PM
https://stateimpact.npr.org/texas/2013/05/17/under-new-approval-more-natural-gas-will-be-sent-abroad-from-texas/

[DrGunsforHands]

I thought we did have the capability. Or is it that the infrastructure is just not yet in place?

[KarlInOhio]

We have some, but not where close to the amount our gas supplies could support and not enough to really drive down global prices yet. Instead those who do own the ports can just sell at almost Russian prices (ka-ching!).

More are getting approval but they still take years, billions of dollars and special government approval for export to build.

[DuncanWaring]

I think LNG tankers are fairly efficient.

The situation may have changed in the last 30 years, but New England used to get a lot of their natural gas by LNG tanker from North Africa.

Once while I was there they almost ran out due to a combination of exceptionally cold weather increasing consumption and a storm delaying a tanker.

[sauropod]

read

[haffast]

Russia Raises Stakes in Syria
The Wall Street JournalBy Adam Entous | The Wall Street Journal – Thu, May 16, 2013 11:07 PM EDT
http://finance.yahoo.com/news/russia-raises-stakes-syria-030700232.html?l=1

Delivering the S-300 missles sold to Syria?

Protecting their base at Tartus?

Protecting their natural gas business?

[rellimpank]

----You see, Russia controls an enormous share of the natural gas market in Europe.

--and appears to be able to charge what the "market" is willing to pay-------

[NormsRevenge]

every country has massive amounts of natural gas coming out of their politicians.. just modify a bovine methane collector .. and waaalaaa.. an endless untapped source of energy .. maybe not as green as some might wish.. butt...

[haffast]

Just noticed this:

[Eric in the Ozarks]

While the Euros are talking CO2 restrictions, they’re importing high sulfur residual oil to fire their power plants. The $15 MM provides an opportunity for US oil to move to the Med, Singapore, Japan...

[TheBattman]

Lets see - we here in the US are drilling our own.... I can’t imagine why it would be less expensive when we do that....

DUH!!!

[TheBattman]

I am curious why we are pushing CNG here, instead of LNG... But I know very little about LNG, other than I have heard repeatedly that LNG is far more efficient and logical for transportation (LNG vs. CNG stations for example).

What am I missing (not to hijack this thread).

[SomeCallMeTim]

yep... this entire war in Syria now makes perfect sense.

And, the US is not involved because.... ????

[Gay State Conservative]

Well,when you have the KGB essentially controlling Europe's gas markets just about anything’s possible.

[RetiredTexasVet]

Well, third world EU could just switch to its own natural gas .... but wait, solar panels and wind turbine only generate non-measurable amounts of natural gas.