Alamo

Betting on Natural Gas, Part II: Investing Ideas

Continuing our reliance on foreign national oil companies is absurd in view of the fact that we presently have proven reserves of natural gas to offset our "crude mania".

There appears to be overwhelming support in congress to transition this nation to one using compressed natural gas (CNG) in the national transportation sector although that body has been woefully slow to act. Quite possibly, at the end of the healthcare debate congress will get behind the CNG fueled transition issue.

Keeping the present 250 billion dollars currently being "exported" each year here in our economy has to be a powerful economic stimulous plan.

With 60 million homes in the US already served with natural gas and an increased availability of the home re-fueling units (Phill units) America could be driving on CNG relatively soon. Presently, those Phill compressors are too expensive to find widespread use, but I could see a situation where economy of manufacturing scale could make them more reasonably priced as well as more efficient. That potential 60 million market base should be a strong motivator.

Additional pertinent details on the positives of natural gas use in America can be found at :
America's New Natural Gas.com website

6 Natural Investments in Natural Gas

The comment by Imagasser above is worrisome as well as enlightening.and begs the question why a CHK dividend check was AT ANY TIME INSUFFICIENT?

At best it reflects very poorly on CHK's business practices assuming it was due to simply a clerical ommission. At worst, it suggests a very serious state of financial affairs. I am long CHK and would "like" to think the company is solvent. What IS the explanation Mr McClendon?

Devon Energy Excited About Haynesville Shale Potential

Devon's enthusiasm in the Haynesville Shale trend is well founded.

The Haynesville shale is projected to contain about 4 times as much natural gas as the Barnett Shale and is in a considerably better area to develop the gas field. Much infrastructure (pipelines, good highways and road access and an area that is "oil patch" savvy,etc) and in between large metropolitan areas with great market potential.

From a development aspect, the Haynesville Shale represents the ideal setting. If the nation converts to CNG this thing is a gold mine.

Devon Energy Corporation Q2 2008 Earnings Call Transcript

Reading the Q2 transcript you come away thinking DVN is an agressive player in the Haynesville Shale trend, but the facts suggest otherwise.

The dominant company--at least from the publicity side of things is CHK and to a lesser extent, GDP, PVA and COG. EnCana/Shell are beginning to develop southern areas. So exactly where is DVN? This thing, the Haynesville has the wherewithal along with the other so-called unconventional shale plays (Barnett, Woodford, Marcellus, etc) to be the means through which the United States transforms itself from an internationally produced crude oil based gasoline fueled economy to a gas or compressed natural gas (CNG) economy. This roll over appears to be a done deal and the investment potentialities are practically unimaginable.

It looks like those DVN execs are shooting themselves in the foot by NOT disclosing more agressive maneuvering in the Haynesville play. I want my money on the firstest with the mostest and the loudest. That development--described as very likely the largest natural gas discovery in US history, from an investment stance similar to Wal-Mart in the 1970s or Dell in the 90s.

Why so quiet DVN do you have it or not? CHK seems to think--and
say they do. Your silence is deafening. Put your dollars on CHK the leading horse in this race.