Friday, October 22, 2010

Natural Gas Disrupting Everything, Including Own Industry

In one of the most interesting and possibly long-term profitable plays at this time is the natural gas sector, which is not only disrupting other energy sectors, but is in fact disrupting itself.

For example, not that long ago nuclear energy looked like it was about to make a huge comeback, and in some places that may remain true, for example China, which has numerous nuclear plants on the drawing board.

But the recent discovery of the enormous amount of natural gas reserves there are in the United States, and other parts of the world, has made nuclear yesterday's energy news, as well as wind farms, and more than likely, ultimately the high-price solar sector.

What's more fascinating, are those companies with heavy natural gas exposure have disrupted themselves, as those who want to increase margins, and probably survive, are spending on increasing their oil exposure.

An amazing development when you think of it. The incredible amount of natural gas reserves are pushing us back to oil again. No matter how hard some may attempt to deny that, it's the absolute truth.

Natural gas companies will have to become experts at cutting costs in that segment, as supply is enough to easily last for decades, and possibly into the far future beyond that. This is talking about known reserves, which have increased exponentially.

In the short term oil remains the key energy source, although coal is right up their with it as far as percentage of use for energy in general.

Coal accounts for about 48 percent of electricity production in the U.S., but is expected to pull back to about 44 percent by 2015. Natural gas is expected to increase from 21 percent of electricity production to 25 percent by 2015.

The only thing that could upset this fantastic scenario for low price energy is the evil of radical environmentalists, who are devastating the United States and other parts of the world through lawsuits and pressuring lawmakers to create regulations which basically destroy energy use of any kind.

The only thing these hypocrites like is wind power, which of course, unknown to most, destroy wildlife, especially birds in bats at levels which would shock most people if the story was told.

BP's (NYSE:BP) small effect on animals and sea life makes them look like guardians of the earth in comparison to wind turbines.

This is where we should all draw the line and fight back so hard as to destroy these evil organizations and people who continue to hate the human race and inexpensive energy that makes their lives easier.

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