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.

Uranium a Long-term Play

Long term future of Uranium

There is no doubt uranium is going to rebound in the future, as demand will skyrocket at a time when supply will not be able to meet that demand.

Approximately 200 new nuclear reactors are scheduled to be built around the world, and including the 400 plus already out there, uranium will be needed to power them up for a long time to come.

In the short term though, uranium spot prices seem to have found a bottom at around $40, with maybe $45 being the top in the foreseeable future. There is little to indicate that will change in the next year or so, although there are some possibilities that could change that quickly.

For example, the major game-changer would be if China decides to go after uranium before the anticipated upswing in prices occur. While that would drive up prices some, it wouldn't be the same as if a large number of countries or companies were going after it at the same time.

China has done this with other raw materials in the past, and there's nothing to indicate they wouldn't do it again. If they do choose to go that route, then all bets are off on the prices mentioned about, and if they don't do that any time soon, prices should be tight around the figures mentioned.

Uranium is definitely a long term play, but for those looking to get into over a period of time, these prices are a good starting point, and they will only rise in the future.

Companies, indexes, futures and ETFs are all ways to invest in this increasingly important commodity.

Market Vectors Nuclear Energy ETF (NYSE:NLR) - Great Uranium Play

Market Vectors Nuclear Energy ETF

We continue to talk at Commodity Surge on the uranium industry, which is sure to explode in the years ahead, based on the over 200 new nuclear plants in various stages of planning or construction around the world. Market Vectors Nuclear Energy ETF (NYSE:NLR) is a great way to play uranium, and it has other benefits as well.

For example, the nuclear ETF is also a way to participate in emerging markets, as the vast majority of the nuclear plants will be built in those countries.

Even with attempts to increase production, the uranium mines in the world won't be able to supple the growing demand for uranium any time soon, and that ensures prices will eventually start to rise again as a consequence.

In the middle of 2007 uranium spot prices had reached as high as $136 a pound, but plunged along with everything else during the height of the economic crisis, to about $45 a pound today.

I don't see a much simpler and better way to invest in uranium unless you absolutely have the time to delve into every part of the industry. The other great things is low fees of an ETF and not having to deal with the prospect of trading in foreign markets. This applies to Market Vectors Nuclear Energy ETF because most of its holdings are tracked on foreign exchanges.

Any downside here? Sure. Like almost every investment today, much depends on the time a real and sustainable economic recovery arrives, and whether or not, or how long it takes, to enter another recession.

This is important because of the spending aspect of the sector, which would be cut back in a big way if things go sour economically again.

Even so, I look at this as a long-term play, and even if things go bad, I think nuclear commitment from countries around the world is here to stay. It's not a matter of if uranium prices will go up, it's only a matter of when.

Market Vectors Nuclear Energy ETF

Illinois Removes Nuclear Plant Ban

Illinois removes nuclear plant ban

Seeing the handwriting on the wall, states are seriously started to look at increasing the use of nuclear power to meet their electrical needs, and the Illinois Senate voted on Monday to remove the ban on building new nuclear plants in the state; that after 23 years of forbidding new plants to be built.

In one hilarious response from an obviously disturbed and fearful person, they implied it would turn the state into a “radioactive waste repository.” Evidently the so-called activist hasn't heard you can now recycle nuclear waste and re-use it. Even if you couldn't it would still be very safe.

The measure passed by an overwhelming 40-1, and it now goes to the Illinois house for approval. Billions of dollars and many jobs are at stake for those wanting to get their share of the federal dollars being allocated for the building of the nuclear plants.

It's actually far past time nuclear power was re-introduced into the United States. The stupid and wasteful solar and wind power garbage does't work on a large scale, and nuclear is among the best there is out there.

Be on the lookout for uranium-producing companies, as they will be hot in the future as demand for the commodity surges.