January 28, 2010
Karl W. Miller, a senior energy executive and institutional investor today issued the following statement through his advisors regard "Why Obamaand The Democrats Can't Say Natural Gas". Simply put, the Obama administration has backed themselves into a corner on their proposed flawed renewable energy plan, threatening the stability of the U.S.Energy market, and just not listening to the American people on this matter.
Chesapeake Energy Corp. (NYSE: CHK) Chief Executive Officer Aubrey McClendon told CNBC that the White House is challenged on natural gas.
"If we start building new nuclear plants today, they’re simply going to replace the ones that need to be retired,"
McClendon said in an interview on CNBC today. "The reality is this president continues to avoid saying the words ‘natural gas’ for reasons not clear to me."
Obama and the Democrats are indirectly pushing the energy sector towards Natural Gas by trying to jam a flawed renewable bill, as Natural Gas is the marginal fue and the natural gas power generation plants are already built. State Public Utilities Commissions are already drawing a line in the sand that they will not allow massive rate increases to subsidize loss making renewable energy projects. Cite Florida Power and Light recent rate $10 billion rate increase rejection. They are going to force the utilities to utilize natural gas fired power plants, as that only requires fuel adjustments on an annual basis, plus minor capex compared to what would be required to subsidize wind and solar, for example.
Mr. Miller advises, despite the waste of billions of taxpayer dollars in the sinkhole tagged renewable, the "natural gas sector will reap the benefits of this flawed initiative.", the sad part is that the taxpayers will have to foot the bill for the renewable debacle.
Mr. Miller also believes that the current natural gas prices are being manipulated downward by the hedge funds and financial institutions to force producers like DVN, EOG, XTO, CHK, APC, OXY and others into artificially low hedge contracts and to arbitrage the price spread, especially as economic conditions are improving across the U.S. and demand is on the rise. Producers should not be hedging at these price levels, which are clearly artificially depressed.
To see Mr. Miller's complete analysis go to: http://www.naturalgasstocks.com/Karl_Miller/news/1282.asp