Comments on: IGS ENERGY – Is it smart to lock in a price for natural gas? http://askalandman.com/igs-energy-is-it-smart-to-lock-in-a-price-for-natural-gas.htm Questions and Answers Sun, 20 May 2012 00:01:09 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: paul http://askalandman.com/igs-energy-is-it-smart-to-lock-in-a-price-for-natural-gas.htm/comment-page-1#comment-1930 paul Mon, 29 Jun 2009 06:01:50 +0000 http://askalandman.com/igs-energy-is-it-smart-to-lock-in-a-price-for-natural-gas.htm#comment-1930 It is just like investing money. Is the stock market going up or down? Is gold going up or down? What is a barrel of oil going to be in 3 years? No one can tell you. But the gas company can make better guesses than you can. Do you want to bet against their guess? They could be wrong. Locking in prices is a good business practice. If you make widgets and you can make a profit if you pay $1.50 CCF but you would lose money at $1.55CCF, you may want to lock in the price so you still make a profit. Even if it means you make less of a profit today when it is at $1.35CCF. It is just like investing money. Is the stock market going up or down? Is gold going up or down? What is a barrel of oil going to be in 3 years? No one can tell you. But the gas company can make better guesses than you can. Do you want to bet against their guess? They could be wrong.

Locking in prices is a good business practice. If you make widgets and you can make a profit if you pay $1.50 CCF but you would lose money at $1.55CCF, you may want to lock in the price so you still make a profit. Even if it means you make less of a profit today when it is at $1.35CCF.

]]> By: William W http://askalandman.com/igs-energy-is-it-smart-to-lock-in-a-price-for-natural-gas.htm/comment-page-1#comment-1929 William W Mon, 29 Jun 2009 06:01:50 +0000 http://askalandman.com/igs-energy-is-it-smart-to-lock-in-a-price-for-natural-gas.htm#comment-1929 That's a great question. By rights it shouldn't go up more than the cost-of-living increase. That doesn't seem to be the case, however. That’s a great question. By rights it shouldn’t go up more than the cost-of-living increase. That doesn’t seem to be the case, however.

]]> By: Hannah's Grandpa http://askalandman.com/igs-energy-is-it-smart-to-lock-in-a-price-for-natural-gas.htm/comment-page-1#comment-1928 Hannah's Grandpa Mon, 29 Jun 2009 06:01:50 +0000 http://askalandman.com/igs-energy-is-it-smart-to-lock-in-a-price-for-natural-gas.htm#comment-1928 If you look at T Boone Pickens plan, it calls for CNG powered cars, and CNG is natural gas, whether this will drive the price up, (if it catches on) or not, I think that depends on whether the price of gas goes down or not, also whether or not electric cars also catch on or not. As for my self, I would take mu chances, stick with the current low price, and if the price did go up past the $1.5 price, I would start looking into an alternative power source. If you look at T Boone Pickens plan, it calls for CNG powered cars, and CNG is natural gas, whether this will drive the price up, (if it catches on) or not, I think that depends on whether the price of gas goes down or not, also whether or not electric cars also catch on or not.

As for my self, I would take mu chances, stick with the current low price, and if the price did go up past the $1.5 price, I would start looking into an alternative power source.

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