Jim Letourneau's Blog

Retired Life

Investing, Technology, Travel, Geology, Music, Golf. I think that covers it.

Talking in Phoenix

I was the first speaker at the Phoenix Resource Investment Conference this morning. It turns out there was a discrepancy between the schedule posted on the conference website and the printed schedule handed out to attendees. I started my talk on the 4Ds of investing at 8:30 am. It turns out that the printed schedule had me speaking at 9:00 am. OOPS! There were a few minutes of dead air but Cambridge House President, Joe Martin took charge and started a Q&A session with me doing most of the "A" from 9:00AM onwards.

There seems to be lots of interest in fracturing technology so I got to use big words like compressibility, and proppant. I don't believe that a true "green" fracturing technology exists (would you like some propane bubbles in your water sir?) but there's certainly a growing demand for fracturing services.

I'm bullish on natural gas supply which forces me to bearish on natural gas prices. No amount of huffing and puffing is going to make the natural gas price rise substantially. Colder winters might. A few years ago it was unthinkable that North America would have a natural gas surplus. Liquified Natural Gas (LNG) import terminals were being proposed. Now Canadian companies are partnering with China, Korea and Japan to export natural gas from the Horn River shale basin across the Pacific out of terminals in Prince Rupert and Kitimat. That's a big change in a short period of time and provides a great example of how technology can influence commodity prices.