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Last week, I delivered my major address on the future of natural gas. The occasion was a high-powered meeting hosted by Dominion Transport at the beautiful Nemacolin Woodlands Resort in western Pennsylvania.
In attendance were more than 100 leading CEOs and other executives from principal gas production, transmission, distribution, and end using companies.
My keynote presentation was entitled "Natural Gas Moving Forward: LNG, Hubs, and Pricing Prospects." In it I addressed where liquid natural gas (LNG) prices have been... where they are now... and where they're going.
I thought I would share my presentation with you in today's Money Morning, as it will be especially useful as we look for opportunities with investing in natural gas. Here's what I told my audience... the straight story on what's happening in the LNG sector...
A Brave New World for Natural Gas?
Ten years ago next month, I was sitting in a meeting of analysts, practitioners, and energy sages discussing the condition of the U.S. natural gas market. We all agreed that by 2020 the country would be importing at least 15% of the gas used daily.
That turned out to be quite a "B.S." read - "before shale," that is.
Well, these days we are at another juncture. And this one is going to propel us into quite a different market. I want to lay out for you what I have been experiencing in the world energy market, the import of discussions around the globe, and the impact on things closer to home.
"Brave New World" is going to be an understatement. And that becomes clear when we sketch out the current and short-term projections for natural gas production and demand, along with the picture attending, expanding end uses for gas - electricity generation, industrial applications, for vehicle fuel, and as feeder stock for petrochemicals.
But first, let me outline the current domestic energy situation...
About the Author
Dr. Kent Moors is an internationally recognized expert in oil and natural gas policy, risk assessment, and emerging market economic development. He serves as an advisor to many U.S. governors and foreign governments. Kent details his latest global travels in his free Oil & Energy Investor e-letter. He makes specific investment recommendations in his newsletter, the Energy Advantage. For more active investors, he issues shorter-term trades in his Energy Inner Circle.
Two questions re: gas
1-Why is there rarely any mention of LNGLY when they have a gasification and shipping site in Louisiana that will be on-line before LNG and another site being developed in Nova Scotia?
2-Why is there little or no action utilizing "flared" gas at the well sites for power generation? Cheap or free power and less pollution. Yes?
In your article, you mention the current and short term projections for natural gas production and demand. As I am sure you well know, a new method of fracking (using sand and water to extract oil and natural gas from the ground) was recently discovered. I imagine that this discovery is something that is shaping the natural gas and oil industry, due to the lowering of the cost to take both substances from the ground. What changes did you see in the projection of natural gas production after the recent method change?