# Gas Opec/Cartel



## YOUNG_TRADER (22 March 2007)

This was originally posted by Hisso in general chat, but I felt it belonged under commodities,

Anyway I have been talking with bankers over in the middle east and apparantly Iran was the instigator of this cartel, from what I'm told its their way of flexing their muscle and showing the world (ie US) how much power they have, kinda of like when for the first time ever Iran set up a system whereby Oil was sold in Euros rather than USD thus trying to break the Petro-dollar control of the USD, anyway this Gas Cartel has been brewing for some time.

Considering they would control 70% of the worlds Gas and apparantly Iran has a hell of alot of it, it looks interesting to say the least.


Mark your calendars for Monday, April 9. Highlight it with a big X. Or better yet, write R.I.P. in it.

You see, on that day, something we've been telling you about for months will finally come true:

The leaders of Russia, Iran, Qatar, Algeria and Venezuela will meet in Doha, Qatar to form a "Natural Gas OPEC."

Yes, you're reading that correctly. The OPEC for gas will be formed.

According to the Russian news source Kommersant . . .

"Kommersant has learned that last week some of the world's leading natural gas exporters reached a final agreement on the creation of a so-called 'gas OPEC.' The consortium of gas-rich countries, which at the moment includes Russia, Iran, Qatar, Venezuela, and Algeria, is due to be formally organized in the Qatari capital of Doha on April 9. The appearance of such a powerful player in the energy arena will undoubtedly meet with an extremely negative reaction from the United States and the European Union." --March 19, 2007

My friends, it's over. Finito. Caput. These guys will control 70% of the world's natural gas supply . . . and they won't think twice about jacking up the price.

And if you think I'm exaggerating, think again.

In a newly-minted memorandum , the Army's assistant chief of staff for installation management is more worried about natural gas than oil, saying . . .

"Current Army assumption is that natural gas may cease to be a viable fuel for the Army within the next 25 years based on price volatility and affordable supply availability."


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## surfingman (22 March 2007)

YOUNG_TRADER said:
			
		

> This was originally posted by Hisso in general chat, but I felt it belonged under commodities,
> 
> Anyway I have been talking with bankers over in the middle east and apparantly Iran was the instigator of this cartel, from what I'm told its their way of flexing their muscle and showing the world (ie US) how much power they have, kinda of like when for the first time ever Iran set up a system whereby Oil was sold in Euros rather than USD thus trying to break the Petro-dollar control of the USD, anyway this Gas Cartel has been brewing for some time.
> 
> ...




If they control the price of gas and its increases significantly, wouldn't it be a viable option to have shares in companies who are producing gas regardless?

I cannot see how the RIP comes into this, it could do great things for investors couldnt it?


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## Smurf1976 (22 March 2007)

surfingman said:
			
		

> If they control the price of gas and its increases significantly, wouldn't it be a viable option to have shares in companies who are producing gas regardless?
> 
> I cannot see how the RIP comes into this, it could do great things for investors couldnt it?



Absolutely good to invest in gas stocks, as long as they haven't already locked in low prices. Beware though of those with assets located in the OPEC countries since nationalisation is a real possibility (and in any other country short on government funds and with the appropriate political climate).

It's a serious negative for the economy as a whole however.

As for how long it's been brewing, the concept was experimented with by the OPEC member countries back in the 1970's when they hiked the price of LNG exports to the US (hence the subsequent mothballing of US LNG import terminals for two decades). 

That's one of the major reasons the world built so many new coal-fired power plants in the 1980's. So any form of power production that doesn't rely on oil or gas also stands to benefit from this, at least in the long term (in the short term, Australian gas prices are pretty much locked in under contracts).


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