Natural gas will be the world’s fastest growing fuels for at least the next 20 years. Meanwhile, once-abundant reserves of natural gas near key markets such as the US and Europe are depleting. The likely consequence: A massive increase in the global natural gas trade. Fortunately, a technology exists to facilitate the movement–and the trade–of natural gas over great distances.
Natural gas is the fastest growing major source of energy in the world, with the US leading in demand. However, many of the most productive gas wells are located deep underwater or in remote land sites, making transportation of the gas difficult. However, this booming demand for gas transportation is great news for investors. Third-party companies, other than those companies that explore for and produce gas, often own pipeline networks. Pipeline assets are extremely profitable and throw off tremendous amounts of free cash flow offering investors an opportunity to earn relatively safe, stable yields.
A discussion of natural gas, focusing on developments in the recovery of unconventional shale gas reserves.
Liquefied natural gas (LNG), coupled with technological advances, is redefining the energy business. Simplified LNG transportation processes are making abandoned gas fields viable once again, as well as opening new supplies for exploration; making LNG a main investment theme for The Energy Strategist. The drilling and refining industries are also a focus; due to increasing demand and tightening supply, cheap oil is a thing of the past.
Elliott H. Gue gives us a rundown of this week’s Natural Gas Inventory Report. Several processing facilities are currently offline because of the recent hurricanes in the Gulf. Elliott explains what this means for the sector going forward.
