Natural Gas By Rail (NGBR) -- August 4, 2014

I thought I posted this, but I can never find it. So, for the archives: the next big thing -- natural gas by rail. Reuters is reporting:

As politicians debate the dangers of a massive increase in oil carried by rail in North America, railroads and energy producers are considering the same for natural gas.

Buoyed by the unexpected success of crude by rail, companies are beginning to consider transporting natural gas as remote drilling frontiers emerge beyond the reach of pipelines, executives said. 

Natural gas by rail is years away and likely to face strong public resistance after a series of explosive crude-by-rail accidents. But the potentially multibillion-dollar development could connect gas-rich regions like North Dakota with urban centers, presenting an opportunity for railroads, drillers and tank car makers already cashing in from hauling oil on trains. 

It could also be a cure for environmentally unfriendly flaring, a growing problem in far-flung areas where more than $1 billion of natural gas produced alongside oil is burned off each year for lack of processing plants or pipelines that can take years to build. 

Speaking of " railroads, drillers and tank car makers already cashing in from hauling oil on trains," Berkshire Hathaway/Warren Buffett reported 41% increase in profits this last quarter; and, Warren's company now has the most cash ($50 billion) on hand of any company in the United States. Warren owns Burlington Northern Santa Fe, the #1 mover of crude oil in the United States, possibly in North America. You can bet that Warren's 41% increase in profits wasn't from selling ice cream cones at Dairy Queen, especially not in the second quarter. By the way, this was Warren Buffett's biggest quarter ... ever. He can thank Mr Bakken.

What should Warren do with all that cash? Buy Union Pacific. LOL. 

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Cocktail Trivia

I did not know this. Reuters via Rigzone is reporting:

The summit aims to showcase American interests in the region, home to six of the 10 of the world's fastest-growing economies and the fastest-growing middle class, through public-private partnership deals. 

The region? Africa.

I would have guessed China had six of the 10 fastest growing economies, followed by Dickinson, Watford City, Williston, and Parshall.

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Bumper Stickers

http://www.zazzle.com/FirstPrinciples

The Road To New England -- August 4, 2014

The Christian Science Monitor is reporting:

In the first three months of 2014, Massachusetts residents paid nearly as much for energy as they did in all of 2012, according to Independent System Operator-New England, a nonprofit formed by the Federal Energy Regulatory Commission (FERC) to oversee the region’s bulk power system. While natural gas prices in New England averaged around $36 per megawatt hour in 2012, they routinely spiked above $200 per megawatt hour over that period.

And apparently the folks in Massachusetts don't mind. 

I'm just a spectator in all of this; I have no dog in this fight. It will be interesting to see how this plays out. LOL.

By the way, the next big thing in railroading: liquid natural gas by rail. 

Here are the realities:

• contrary to what the nuts with the eccentric signs (their words, not mine) say, New England's demand for energy will increase (unless industry and jobs go away);
• New England is shutting down its coal plants and nuclear energy plants;
• solar and wind can't come close to making up the coal/nuclear loss;
• customers will get their natural gas one way or the other -- yes, that's reality;
• if the nuts with the eccentric signs (their words, not mine) don't like pipelines, they can watch unit trains carry highly volatile natural gas in from the Marcellus (no, it won't be Bakken natural gas; it will be Marcellus gas); and,
• it won't get less expensive by putting the inevitable off

But after watching the Boston folks pay for the "Big Dig," it appears they are used to paying for their mistakes.

You're Goin' Nowhere, Chris Isaak