CT Programmer

Natural Gas: Clean Fuel with a Dirty Little Secret

As more and more NG pipelines are being built out all across the country, you will see more and more people switching from home heating oil to NG, especially in the NorthEast. Gas prices vary widely all across the country. As these pipelines even out those prices, I think you will see it drop. However, you're going to see higher demand for gas. So I think as oil rises, you're going to see more stability in gas prices at a reasonable level. And if gas prices drop too much, the gas companies (CHK, XTO, etc.) will cut back on production, thus bringing the price of gas back up. If we ever build out any real LNG export capacity, you're going to see gas prices go up by a lot.

Wind's Our Future, but Natural Gas Is Now

I am bullish on NG. However, I see the more logical path (assuming no heavy govt subsidies to steer it) toward electric vehicles fueled by NG power plants. As you said, the technology for NG vehicles and filling stations is there --- many cities have switched bus fleets to NG --- but the infrastructure is the thing that has the huge build-out cost. Imagine replacing every corner gas station (liquid) to an NG station (gas). Even with LNG, its a huge obstacle. But you've got electrical plugs and electrical lines everywhere. You just plug in in your garage. Imagine this: putting in plug-in electric meters in a parking lot where people can charge their car while at work. You have the electricity right there already (the lampposts).

But regardless of the direction NG goes --- directly in the car or to the power plant to charge your car --- I am still bullish on gas. It is the logical choice to wean us off foreign oil. Wind and solar, that's all great. It will get there in a decade or two. But it will still account for only a modest proportion of our total energy needs for the foreseeable future.

I think Obama should pick T. Boone as his VP!