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Thursday, January 6, 2011

Natural Gas Update

Normally I would just post this link on my natural gas page since this blog is focused more on North Dakota oil. But this article is so good, I didn't want folks to miss it.

The graphics alone are worth the price of subscribing to my blog.

4 comments:

  1. This is why natural gas will become the fuel of the future especially for electricity. 1. Bi directional LNG shipments will make Natural gas more of a world market then a local market. 2. New supply will make Natural gas a more stable choice than oil. 3. The bloom energy box can run on natural gas and is presently being utilized by some big names. This is a game changer technology and will be an interesting IPO one day.(And it can sequester carbon dioxide and much more). 4. Many companies are researching natural gas to liquids technology. The technology is present it will become viable when oil sustains a consistently higher price point.
    5. A company in Israel has developed an electric car that is cheaper than an average car (they do this by owning the battery and having switch out stations to resolve range issues when necessary)Ultimately most people buy cars based on price. If this idea catches on then more electricity will be needed thus additional market will be needed to produce electricity. Lower prices will mean that competition will bring about better ideas. I think we will see a revolution in the energy sect or much like we see in tech today it will be interesting to compare what is normal today with what it will be like 10 years from now.

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  2. I agree with you 100%. Huge infrastructure yet to be built. In one of the states most committed to "green energy," which for this discussion I include natural gas, I was surrounded by oil and gasoline in Los Angeles, and yet in one suburb I was able to find one natural gas "pump." On rare occasions I saw a county vehicle refueling.

    With all the investment in the Bakken, isn't 75% of natural gas still being flared? Something like that. With billions being invested in nine counties the natural gas infrastructure is pathetic.

    So, natural gas is the fuel to "bridge us to the future," but it's going to take a huge infrastructure build-up.

    I am relatively heavily invested in natural gas plays, so am looking to this happening sooner than later, but I bet it's my grandchildren, not my children, who benefit from my long term investments.

    Short term I hope to benefit by natural gas just getting back to $6 someday.

    The current administration could help me out by stopping hydraulic fracking for natural gas. (Yes, I'm being cynical; I don't really mean that, but nat gas investors could win either way if "hedged" correctly.)

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  3. Sasol ( stock ticker SSl) built a huge NG to liquid project several years ago in the country of Qatar.
    Then when the cheap NG is burned up the country can convert coal to NG , remove the polutants and burn the NG..

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  4. Another energy company in which one could have doubled their money past couple of years and it pays 4.3%. Lots of investing opportunities.

    Ticker symbol is SSL.

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