The provincial government has opened up the natural gas market to
several companies that have supply agreements, and right now
representatives from these various firms are going door to door trying
to get people to sign long-term (five years or more) contracts that
guarantee a $9.00 per gigajoule price for the duration of the term.
Knowing the R / P values for natural gas in North America, and also
knowing that nobody is building LNG terminals along the coast at a rate
that will come anywhere NEAR sating the demand for gas in the future, I
talk to these salespeople with bemusement. They tell me: "We can
GUARANTEE that your price will not rise for five years!"
To which I reply: "If there's no gas to deliver, your agreement won't be
worth the paper it's printed upon."
"But we've already BOUGHT the gas!" they contend.
"And you can accurately predict market demand for the next five years?"
I respond. "If the cost to obtain and deliver your product exceeds the
price you can charge, your company won't last very long."
"There's new technology coming," I hear them say. "Have you ever heard
of Liquified Nitrogen Gas?"
By this time I'm trying really hard not to laugh . . . "Yes, I have.
It's inert. It won't burn. If it did, we'd be in BIG trouble because
70% of our atmosphere is nitrogen. I guess they didn't tell you that in
your training . . ."
Flustered, the salespeople invariably try to deflect my line of
reasoning by mentioning how big their companies are, as if the size of
the company guarantees it won't become insolvent.
This seems to be yet another case of "we'll take what we can WHILE we
can," but what really vexes me about this is that the sales pitch is
that it absolutely depends on the ignorance of the general population.
Ugh! I'm not having a very good day today!
robert luis rabello
"The Edge of Justice"
"The Long Journey"
New Adventure for Your Mind
http://www.newadventure.ca
Ranger Supercharger Project Page
http://www.members.shaw.ca/rabello/
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