{"id":26704,"date":"2012-01-18T23:34:01","date_gmt":"2012-01-19T04:34:01","guid":{"rendered":"http:\/\/countingpips.com\/fx\/2012\/01\/18\/building-your-wealth-from-shale-gas\/"},"modified":"2012-01-18T23:34:01","modified_gmt":"2012-01-19T04:34:01","slug":"building-your-wealth-from-shale-gas","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2012\/01\/18\/building-your-wealth-from-shale-gas\/","title":{"rendered":"Building Your Wealth From Shale Gas"},"content":{"rendered":"<p><strong>By MoneyMorning.com.au<\/strong><\/p>\n<p>Last year, <em><a href=\"http:\/\/www.portphillippublishing.com.au\/research\/vp\/AWG\/m6awglhs-tp-mm-teaser.php?code=W9AWM623\" target=\"_blank\">Australian Wealth Gameplan<\/a><\/em> editor, Dan Denning suggested where you should have your assets to prepare for &#8220;complete financial collapse&#8221;.  He provided the following handy chart&#8230;<\/p>\n<p><span><\/span><\/p>\n<p><strong><\/p>\n<div align=\"center\">How to Protect Your Wealth In A Complete Financial Collapse<\/div>\n<p><\/strong><\/p>\n<div align=\"center\"><img decoding=\"async\" src=\"http:\/\/www.moneymorning.com.au\/images\/mm20120119a.jpg\" alt=\"How to Protect Your Wealth In A Complete Financial Collapse\" border=\"0\"><\/div>\n<p><em><\/p>\n<div align=\"center\">Source: Australian Wealth Gameplan<\/div>\n<p><\/em><\/p>\n<p>Dan&#8217;s advice was to move into <a href=\"http:\/\/www.dailyreckoning.com.au\/energy-resources-and-real-asset-investing\/2011\/12\/09\/\">assets that had real value<\/a>&#8230; assets you could use to sustain life and trade.  The break-up was partly tongue in cheek&#8230; but the idea behind it was not.<\/p>\n<p>The one problem is that it&#8217;s almost impossible to know when the collapse will happen.<\/p>\n<p>Will it be this year?  Or next year?  Or will it be in 30 years&#8230;<\/p>\n<p>That&#8217;s why even though you may have a big picture, macro-economic view on the state of the economy, it&#8217;s still important to think about the small things.  And that means earning a living and building your wealth through the right investments&#8230; regardless of when the collapse happens.<\/p>\n<p>Remember, despite the poor state of the economy, businesses and ideas still carry on.  Business owners and managers still look to make profits&#8230; entrepreneurs still think of new ideas and take risks&#8230; and, share prices can still go up.<\/p>\n<p>It was this kind of thinking that got Dan interested in the <strong>shale gas<\/strong> industry.  And in particular, three stocks he backed last year to benefit from this booming industry.<\/p>\n<p>If you&#8217;re not familiar with shale gas, in simple terms it&#8217;s gas that&#8217;s trapped in deep rock formations.  It&#8217;s different to conventional gas.  With conventional gas, the gas forms in porous rocks and can be easily &#8220;sucked out&#8221; by drilling into the rock.<\/p>\n<p>But with shale gas, the rocks aren&#8217;t porous.  They need to be cracked apart (fractured) to allow the gas to escape.  Only then can it be &#8220;sucked out&#8221; through the well.<\/p>\n<p>It&#8217;s this kind of innovation that provides benefits to shale gas investors (such as the readers who invested in Dan&#8217;s recent stock tips) and to consumers.  As this report from <em>Bloomberg<\/em> notes:<\/p>\n<blockquote><p><em>&#8220;A shale-driven glut of natural gas has cut electricity prices for the U.S. power industry by 50% and reduced investment in costlier sources of energy.&#8221;<\/em><\/p>\n<\/blockquote>\n<p><H2><center>Buy Shale Gas While the Price is Low<\/H2><\/center><\/p>\n<p>Yesterday we mentioned how the <a href=\"http:\/\/www.moneymorning.com.au\/20120118\/the-age-of-natural-gas-is-nigh.html\">natural gas<\/a> price was back to 2008\/09 levels.  Overnight it has fallen further, to just USD$2.49 per million British thermal units.<\/p>\n<p>At some point you&#8217;ll see a floor under the gas price.  After all, with all the money spent on exploring and producing the stuff, gas producers aren&#8217;t going to give it away for free.<\/p>\n<p>That&#8217;s what makes taking a punt on natural gas (and especially unconventional natural gas) a good bet right now.  The best time to buy an asset that&#8217;s about to leap in demand is when prices are low.  Compare that to <a href=\"http:\/\/www.moneymorning.com.au\/20120116\/how-global-oil-supplies-could-fall-40-overnight.html\">oil <\/a> which is still at USD$100.<\/p>\n<p>The longer things stay this way and with more big gas discoveries, there&#8217;s a big chance natural gas will be the energy source to replace oil.  And when that happens you can expect a boost to the natural gas price and big rewards for the companies and investors who take a punt while the price is low.<\/p>\n<p><strong>Cheers.<br \/>\nKris.<\/strong><\/p>\n<p><strong>P.S.<\/strong> We&#8217;ve written about shale gas for some time.  But you&#8217;re mistaken if you think it&#8217;s too late to join in the boom, because it&#8217;s only now starting to hit the mainstream.  As a report in today&#8217;s the <em>Age<\/em> proves: <em>&#8220;Australian shale assets &#8216;next big thing&#8217; for investors&#8221;<\/em>.<\/p>\n<p>The report notes, <em>&#8220;While shale assets in Texas sold at $US25,000 an acre this year and a holding in Ohio and Pennsylvania changed hands at about $US15,000 last month, shale properties owned by Australia&#8217;s Beach Energy can be bought for $US406 per acre&#8230;&#8221;<\/em><\/p>\n<p>Could Aussie shale assets increase 6,057% to the same price as Texas shale assets?  Why not?  To find out which shale stocks Dan Denning has picked to benefit from the shale gas boom, <a href=\"http:\/\/www.portphillippublishing.com.au\/research\/vp\/AWG\/m6awglhs-tp-mm-teaser.php?code=W9AWM623\" target=\"_blank\">click here for a no-obligation trial to <em>Australian Wealth Gamplan<\/em>&#8230;<\/a><\/p>\n<p><strong><em>Related Articles<\/em><\/strong><\/p>\n<p><a href=\"http:\/\/clicks.portphillippublishing.net\/t\/AQ\/AAhfMw\/AAhu4A\/AAVNkw\/AQ\/AcNNXQ\/EYCF\" target=\"_blank\">Special Report: Six Extraordinary Resource Investment Opportunities for 2012<\/a><\/p>\n<p><a href=\"http:\/\/clicks.portphillippublishing.net\/t\/AQ\/AAj9LA\/AAkNfw\/AAWXkQ\/Ag\/A1Soqw\/4SSq\" target=\"_blank\">How Global Oil Supplies Could Fall 40% Overnight<\/a><\/p>\n<p><a href=\"http:\/\/clicks.portphillippublishing.net\/t\/AQ\/AAj9LA\/AAkNfw\/AAWXkg\/AQ\/A1Soqw\/klTT\" target=\"_blank\">The Markets Rally Like It&#8217;s 2008<\/a><\/p>\n<div>\n<a href=\"http:\/\/feeds.feedburner.com\/~ff\/MoneyMorningAustralia?a=8KM7s-JSWIg:nkrAyg1Arq4:yIl2AUoC8zA\"><img decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~ff\/MoneyMorningAustralia?d=yIl2AUoC8zA\" border=\"0\"><\/img><\/a> <a href=\"http:\/\/feeds.feedburner.com\/~ff\/MoneyMorningAustralia?a=8KM7s-JSWIg:nkrAyg1Arq4:V_sGLiPBpWU\"><img decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~ff\/MoneyMorningAustralia?i=8KM7s-JSWIg:nkrAyg1Arq4:V_sGLiPBpWU\" border=\"0\"><\/img><\/a> <a href=\"http:\/\/feeds.feedburner.com\/~ff\/MoneyMorningAustralia?a=8KM7s-JSWIg:nkrAyg1Arq4:gIN9vFwOqvQ\"><img decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~ff\/MoneyMorningAustralia?i=8KM7s-JSWIg:nkrAyg1Arq4:gIN9vFwOqvQ\" border=\"0\"><\/img><\/a>\n<\/div>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~r\/MoneyMorningAustralia\/~4\/8KM7s-JSWIg\" height=\"1\" width=\"1\" \/><br \/>\n<a href=\"http:\/\/feedproxy.google.com\/~r\/MoneyMorningAustralia\/~3\/8KM7s-JSWIg\/building-your-wealth-from-shale-gas.html\" target=\"_blank\">Building Your Wealth From Shale Gas <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By MoneyMorning.com.au Last year, Australian Wealth Gameplan editor, Dan Denning suggested where you should have your assets to prepare for &#8220;complete financial collapse&#8221;. He provided the following handy chart&#8230; How to Protect Your Wealth In A Complete Financial Collapse Source: Australian Wealth Gameplan Dan&#8217;s advice was to move into assets that had real value&#8230; assets &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/www.investmacro.com\/fx\/2012\/01\/18\/building-your-wealth-from-shale-gas\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Building Your Wealth From Shale Gas&#8221;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-26704","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/26704","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/comments?post=26704"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/26704\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=26704"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=26704"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=26704"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}