JCC

How Much Natural Gas Remains in the USA?

You can choose to ignore the accessibility of natural gas from shale at your own peril. When you fracture shale the vicuous oil stays in place. When you fracture shale the natural gas flows naturally.,

In the exploration for oil, we learned these lessons. The resulting natural gas flow has been huge, and we have quit exploring because of over-supply.

If we ever learned how to economically extract oil from shale, we would have a 500 years supply. Unfortunately this has not occurred.

We have learned how to economically extract gas from shale, and that is the origin of the 100 years estimate.

Surprising Upturn for the Energy Sector

A month ago I surmised that we would start to see positive movement in equiities in the following sequence:
1. Financials - I purchased and the results so far have been great. They are going up.
2. Resources - The logic is that as recovery takes place more resources will be required. This includes energy.
3. Industrials - I expect these to take a lot longer because of all of the economic damage.

Well financials are rocket-shipping, and they have a ways to go. With all of the worldwide reaction to the monetary crisis, carefully chosen financials are a great investment.

Resources have just started to move. Volatility will be here for a while, and then chosen commodities will rocket-ship.

We are witnessing natural reactions to the economic cycle, and it is a great time to be an investor.