{"id":26676,"date":"2012-01-17T23:31:15","date_gmt":"2012-01-18T04:31:15","guid":{"rendered":"http:\/\/countingpips.com\/fx\/2012\/01\/17\/the-age-of-natural-gas-is-nigh\/"},"modified":"2012-01-17T23:31:15","modified_gmt":"2012-01-18T04:31:15","slug":"the-age-of-natural-gas-is-nigh","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2012\/01\/17\/the-age-of-natural-gas-is-nigh\/","title":{"rendered":"The Age of Natural Gas is Nigh"},"content":{"rendered":"

By MoneyMorning.com.au<\/strong><\/p>\n

Last week Japan’s Inpex Corp made a final decision to build a $32 billion liquefied natural gas<\/strong> terminal near Darwin.<\/p>\n

Now natural gas price is back to the 2009 low… below USD$3 per mmBtu (million British thermal units). And a long way from the 2005 peak of USD$16 per mmBtu.<\/p>\n

Yet despite the low gas price, energy companies keep investing big bucks in the industry.<\/p>\n

<\/span>
\nThe reason is simple: gas is plentiful… and companies discover more of it all the time. If you’re investing in a gas explorer, that’s just what you want. You want to look for a resource that’s easy to find and in high demand.<\/p>\n

Natural gas ticks those boxes.<\/p>\n

And on top of that, natural gas is in high demand because it’s the only true<\/u> alternative to oil as a viable energy source.<\/p>\n

The Age of Natural Gas<\/H2><\/center>
\nYou can forget about solar, wind and wave power. Sure, they’ll contribute around the fringes of energy generation. But they won’t reach the scale of oil, gas and coal.<\/p>\n

Of course, a low natural gas price does present some problems for gas explorers and producers. If the price sinks too low it could have an impact on some of the high-cost projects.<\/p>\n

But so far that hasn’t been a problem.<\/p>\n

And with so many new discoveries… some of which are using new recovery methods (such as the shale gas industry, something we’ve covered in Australian Small-Cap Investigator<\/a><\/em>), it would take a big upset in the energy industry for it to knock the gas industry for six.<\/p>\n

The U.S. Energy Information Administration says that U.S. natural gas production could increase by 30% over the next 20 years… Couple that with the high oil<\/a> price and it gives you a clue to where the energy market<\/a> is heading – and that’s to more demand for natural gas.<\/p>\n

As we see it, the only outcome that could dent the demand for natural gas is if the oil price falls and<\/em> a series of new oil discoveries is made.<\/p>\n

But if recent history is anything to go by it’s clear that the age of oil is coming to a close. And the age of natural gas is only beginning.<\/p>\n

Cheers.
\nKris.<\/strong><\/p>\n

Related Articles<\/em><\/strong><\/p>\n

Special Report: Six Extraordinary Resource Investment Opportunities for 2012<\/a><\/p>\n

How Global Oil Supplies Could Fall 40% Overnight<\/a><\/p>\n

The Markets Rally Like It’s 2008<\/a><\/p>\n

\n<\/img><\/a> <\/img><\/a> <\/img><\/a>\n<\/div>\n


\nThe Age of Natural Gas is Nigh <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

By MoneyMorning.com.au Last week Japan’s Inpex Corp made a final decision to build a $32 billion liquefied natural gas terminal near Darwin. Now natural gas price is back to the 2009 low… below USD$3 per mmBtu (million British thermal units). And a long way from the 2005 peak of USD$16 per mmBtu. Yet despite the … <\/p>\n

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