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Natural Gas Stocks: The Ultimate Form of Stored Solar Energy

Solar is the future---or for the forseeable future of around 3.5 to 5 billion years going forward.

Natural gas represents the present and is the best alternative fossil fuel available. The 50 to 100 years of current proven reserves now discovered should allow us more than sufficient time to solve the problems associated with harnessing solar energy directly and economically.

It's just a matter of time. We need to use that "battery" now.

As Ralph Nader said quite presciently, "If Exxon owned the sun, you could bet that we'd have solar"!

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

Is Natural Gas a Long-Term Investment?

Based on equivalent heat energy, a million BTUs (MBTU) of natural gas currently costs about $4.12 while crude costs $12.59 for the same MBTU.

This 1:3 ratio cost discrepancy, would clearly seem to favor an escalation in natural gas prices even if crude costs come down a bit.

At 1:3, there's considerable leeway for heat purchasers to buy more gas and less crude. Throw in the environmental benefits inherent in natural gas combustion and something has to give. It should rather clearly result in an increasing demand for gas. With the glut in gas supply the adjustment expected won't be 1:1 ($12.00) but it is unrealistic to think prices will remain at $4.00.

The natural gas industry has to re-invent itself sufficiently to enable gas to be available wherever crude oil is. When that conundrum is solved ----and it's primarily in the transportation sector that crude is the king pin---natural gas will be the clear winner and $4.00 natural gas will be a distant memory.

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?