> on increasing demand for natural gas from China (good for US increasing supply)
> more opportunity at Bakken North Dakota
> new tech on invisibility
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From: Energy and Capital <eac-eletter@angelnexus.com>
Date: Wed, Jun 13, 2012 at 2:35 AM
Subject: China's Secret Gas War
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China's Secret Gas War
By Keith Kohl | Tuesday, June 12th, 2012
"It's going down, down, down, in a burning ring of fire..."
At first, I didn't take much heed of the singing that drifted over the cubicle wall. This wasn't the first time I've heard my colleague Chris DeHaemer whistling a Cash tune.
But today was different.
His musical inspiration was a specific natural gas chart he'd pulled up his computer screen:
"Let it go down to a buck, all the better for us," he crooned, poking his head above the partition, "the coffee's cold and gas prices couldn't be better for us than in the trenches..."
I've written before how Chris is taking a different approach to natural gas.
Unlike the "wait-and-see" tactics that have many hesitant gas investors on the sidelines, he's buying — because unlike these other guys, Chris knows precisely which gas stocks to play during a glut.
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These days, oil in the ground is like money in the bank.
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You can pen your "Bakken Bank Account" today for as little as $6.00.
The Never-Ending [Supply] Story
When it comes to fossil fuel supply or production, nothing should be considered endless — but in the case of natural gas, we can expect to enjoy a rosy production outlook for decades to come.
Despite the recession, four hurricanes in seven years, and ever-increasing domestic demand, the supply glut plaguing the gas industry could take years to work itself out.
Last year, nearly half a million natural gas wells across the United States produced over 24 trillion cubic feet of marketed natural gas production.
According to the bean counters at the EIA, that's a 30% increase during the last seven years and more than we've ever produced before.
What to do with all that gas?
The pundits in the mainstream media spouting off about the future of LNG exports are way off the mark. Although there are currently nine projects on U.S. soil up for review, only one is actually approved.
I have no doubt you've heard these same people talking about Cheniere Energy's Sabine Pass Liquefaction terminal in Louisiana.
What they fail to mention, however, is that Canada is already ahead of the game — that and Canada's direct access to the Asian market...
And then there's the fact that most U.S. LNG exports would be bound for Europe, where prices aren't as sweet:
So, why the Chinese?
The Manic Mandarin
Even though the IEA has said global gas demand will increase by 50% by 2035, much of that will come from China.
One of China's largest state-owned gas producers has warned the country's natural gas consumption could triple to 550 billion cubic meters a year during the next two decades.
In just the next five years, Chinese demand is expected to double.
What's more, this newly-found addiction to natural gas comes with a major hitch: finding that much gas!
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A new material is making invisibility a reality.
The Israeli Army is already using it to make invisible missiles, and say they're "only at the beginning" of what this technology can do...
It's going to make early investors a fortune.
We have video of it working right here — as well as details on how to get invested now.
Their own shale gas revolution is still in its infancy, but it turns out extracting the gas from China's shale formations may be as easy as it has been here in the States.
That could lead to a serious increase in gas imports, sparking an LNG war that will last decades.
A Better Way
The truth is there are better opportunities than the blooming Chinese natural gas market. And they're much closer to home.
I often refer to our transportation sector as the holy grail of U.S. energy. Slowly, the rest of the herd will come to this realization...
The government is gearing up for a fight over shipping our abundant gas resources overseas.
The rumblings have been low-key so far: a mild warning or an outright threat made during a small energy budget meeting.
You can bet the politicians on Capitol Hill will milk our gas supplies for all they're worth, which will inevitably hinder our LNG export ambitions.
If nothing else, government greed is the one thing we can count on. In fact, some investors already are...
I know firsthand how Chris' readers are finding the real value in gas over the long haul.
They got started with his latest investment report. I recommend you check it out today.
Until next time,Keith Kohl @KeithKohl1 on Twitter
A true insider in the energy markets, Keith is one of few financial reporters to have visited the Alberta oil sands. His research has helped thousands of investors capitalize from the rapidly changing face of energy. Keith connects with hundreds of thousands of readers as the Managing Editor of Energy & Capital as well as Investment Director of Angel Publishing's Energy Investor. For years, Keith has been providing in-depth coverage of the Bakken, the Haynesville Shale, and the Marcellus natural gas formations — all ahead of the mainstream media. For more on Keith, go to his editor's page.
The Bottom Line
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