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Boz there isn't one world market price for natural gas, for one main reason - it is very costly to transport (ie turn into condensed liquid), so in effect you have a whole number of disconnected markets with different prices.... North America is a large market and their gas prices have collapsed...

Gas price assumption is the key, $3/mmbtu is very low... recent contracts for LNG are priced at closer to oil parity, so after taking out the cost of liquefaction and using $80/bbl oil it equates ~ $9/mmtbu. Just doing some rough calculations, assuming revenue of ~ $50/boe for the gas at...