I just heard Rick Santelli whine about our government not using natural gas to fuel our cars. Let’s not be naive, ok? The government is owned by large corporations. Companies like XOM, CVX and COP want to own the natural gas space, but were caught off guard by a slew of start up companies. Over the past 5 years, partly due to inaction by our government to use natural gas for cars, partly due to the advancement of horizontal drilling, the price of natural gas has plummeted, bankrupting hundreds of companies, as a result.
As we speak, there are many over-leveraged natural gas companies with the very best properties in America. Because they are now being controlled by debt holders, those assets will be sold or they will go bankrupt. When liquidated, the big oil companies will buy up the property.
Only after this process is complete will the quintessential American politician take action, promoting natural gas as a primary fuel for the US automobile market. Within 10 years, the price of natural gas will be north of $10 and the natural gas companies who survived this transfer of wealth would’ve enjoyed parabolic moves to the upside.
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HEK
AMEN TO THAT!
When i heard Rick talking about that, TheFly came to mind. and now you post this.
Sooo True… unfortunately
logical , Senor
My car doesn’t work very well with a black iron pipe hooked onto it.
At $10 does natural gas driven transport make sense?
Seems like we’re betting on the come, technologically, in that set of assumptions.
It’s not whether it will make sense or not. The question is, will it be profitable for XOM?
Better to generate electricity from NG and charge-up your car at night in your garage.
Not with the new tech they have that will have zero emissions at plant and car.
Direct use of the gas itself avoids the mind boggling transmission losses inherent with electrical power.
Is there an ETF for Southeastern Ohio raw land?
Cool, hope you are right. I have nat gas ORRI.
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