As the rush to export liquefied natural gas (LNG) gathers steam, the Energy Advantage portfolio is primed for even bigger gains.
Make no mistake, LNG exports are now set to hand us one of the best investment opportunities of the decade.
That's a stunning reversal from just seven years ago, when everyone agreed the United States would be using LNG imports to meet 15% of its gas needs by 2020.
However, the unconventional shale boom (shale, tight, and coal bed methane) has changed everything we used to think about natural gas.
Now, even the most conservative Russian estimates acknowledge that the U.S. could be providing between 6% and 8% of all LNG exports worldwide by 2020.
In fact, Cheniere Energy Inc. (NYSE: LNG) has already garnered no fewer than five huge, multi-billion dollar, 20-year contracts with some of the largest European and Asian importers.
But new developments have suddenly thrown up another hurdle that threatens to delay all of this economic promise.
Here's the countermove that's brewing in Washington, D.C…
Four Timely Moves For The Next Three Crises
Sorry to say, but we are only in a brief "lull" between crises. Nothing was resolved in the eleventh (and a half) hour Fiscal Cliff compromise, and three new crises are coming down the line in 2013. Here's what we face now and how you can still structure your energy portfolio for profits.Read More...
The Path to Energy Independence is More Rocky Than It Seems
You might have seen yesterday's headline in the Wall Street Journal: "U.S. Redraws World Oil Map."
As the article explains, U.S. oil production is now on pace to surpass Saudi Arabia by 2020. This would make the United States world's largest oil producer. We're already the second-largest natural gas producer, according to 2010 EIA estimates.
It's all thanks to the U.S. shale boom that has unlocked billions of barrels of oil and trillions of feet of natural gas from the Appalachian Mountains to the Pacific Coast, from the Bakken in North Dakota to the shale fields of southern Texas.
But all of this fracking has caused some serious economic and environmental problems.
And while I greatly advocate increased drilling and domestic production, we still must address a wide-range of problems now plaguing the shale oil and gas sectors.
After all - with apologies to Voltaire and Spiderman - with such great fortune comes greater responsibility.
That's why I am in the third day of what has become a very interesting conference here in Pittsburgh. It was convened to set the agenda moving forward to deal with the almost invisible aspects of shale oil and gas drilling.
In fact, for the first time, the conference's primary focus will be on the negatives caused by the drilling.
We also have questions surrounding the amount of water required to frack these formations (the process needs a lot of water to break open rock and release hydrocarbons), as well as the ongoing public health fears from the chemicals used.
Now, we are seeing parallel economic problems as well.
In the Marcellus basin, researchers are now recording some of these shortcomings and placing them in four basic categories.
The real concern is that these four problems - in infrastructure, labor, local inflation, and the environment - will remain well after the drilling (and the revenue) has moved on.
So before you decide to declare "energy independence", take a look at some of the downside that may come along with it.
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The Keystone Pipeline Fallout: Canada Makes Over a Billion New Friends
"If you do not change direction, you may end up where you are heading." Lao Tzu
You can forget about energy independence for now.
Without Canadian oil it is nothing but the latest American pipe dream.
In the wake of the Keystone Pipeline decision, Canada has decided to play ball with China instead.
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