PARODY. FALSE. NOT TRUE.
Dateline: Washington DC March 11, 2011
Today President Obama, with T. Boone Pickens by his side, signed legislation to subsidize Natural Gas Infrastructure for Transportation Vehicles (NGITV).
The Federal Government will allocate 50 billion dollars to subsidize to any auto manufacturer who chooses to build a Natural Gas Vehicle (NGV) and another 50 billion dollars to build retail NGV pumping stations. In addition, a tax credit of $10,000 will be issued to any purchaser of a NGV vehicle. The first vehicle, a Honda, is already available. http://automobiles.honda.com/civic-gx/
“”With this legislation, America will wean ourselves off Foreign Oil and gain true energy independence for our transportation vehicles. Combined with Natural gas, coal and nuclear power plants for power generation, true energy independence is within our grasp.”
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There. Easy as that. Duh.
YES WE CAN!
Looks like the back slapping will aid Berry 2012 and anoint a new RockaFella Pickens with natty gas Masstahs. Meanwhile, physics knowing and loving persons scratch their heads when electric cars are superior and mitigate monopolies as “off grid” markets can, but not as of today, burgeoning.
Your Haiku is literary genius…
Never happen. Pickens was a swift boater.
You kidding? He’ll get into bed with anyone if he has to..
I am very long NG. Would love to see this happen.
As Stephanopolous likes to say:
“It will never happen.”
Because the people who pay him already told him the paid-for outcome.
the first mandate should be the post office vehicles, and all muni vehicles. and especially rebuild the post offices’ habits,they are a pitiful waste of gas and oil.
The big oil runs the show. NG is a bunch of small time companies wait for xom to start buying up producers then the legislation will follow. The big boys still need to milk this for all it’s worth they could give a shit abut the USA they only worship dollars.
And you don’t even need to do the whole infrastructure at once. When I lived in Holland, my car had a conversion kit installed – started on petrol, switched over to gas once hot enough. There was a bit of an HP loss involved, but you could flip a switch and run just on regular gas if you needed to.
NG + shale = < Brent/WTI for now, and several decades to come.
First of all this is the kind of ‘initiative’ that frankly we were expecting from day 2, if not 1 from this admin. If the committment is broad based it may evolve. Our cheap oil is not supply based but geopolitically engineered/supported; just look at eur’s oil bill and in UK (where I have paid almost double per litre) that could change with the end gameof upheavals around the world. Big oil however has been investing and buying companies nat gas related which may be supportive ultimately. Obama lacks credibility bec he’s in reacctive mode in overdrive; but hav to start somewhere, and mayb this is it. Peace.
TWST: What’s your value-oriented and contrarian approach leading you to buy today? What are some of your top investment picks?
Mr. Saleeby: I like the natural gas area. It’s certainly out of favor right now. Every other commodity has skyrocketed in the last year, year-and-a-half, two years. They are out of favor, and right now, many of the companies in the business can’t even make money operating in the business, and that’s because of technology, ironically, because of horizontal drilling and fracturing. And that has changed the landscape of natural gas. I think that area will change. Exxon Mobil (XOM) bought one of the biggest companies in that business just about a year ago, and in buying them, they’re signaling the long-term outlook for it is very attractive. I think so as well.
A couple of companies that I like there are Comstock Resources (CRK). It’s good management, they’re smart management, fairly conservative balance sheet, and I think they’ll do real well over time. Another company is QEP, which is QEP Resources (QEP), which was a spin-off from Questar (STR) – good management and a lot of different hot areas for exploration in natural gas. They also have some other assets as well, but they wanted to separate themselves from the utility, because there’s two different analysts that will look at the company differently, a utility analyst and an exploration analyst. And sometimes it’s difficult for one analyst to know what the other analyst’s job is and so on and understanding that industry, so they decided to spin it off. I think that was an attractive thing.
Another area I like are material stocks; they are out of favor, you’ve seen them getting killed, this last week especially, like Martin Marietta Materials (MLM) and also Vulcan Materials (VMC). And I like a foreign stock called Heidelberg (HEI), for some people who want to play the emerging markets through Germany and are willing to take the risk of buying a European company right now. I think that what’s attractive about it is I like the aggregate business, and one of the reasons I like that business is the fact that the barriers to entry are enormous. Nobody wants a quarry next to them, they create a lot of dust with trucks going in and out all the time. And yet everybody needs one in their area, because you need it for construction in primarily three areas: infrastructure, commercial construction and residential construction.
So in that kind of environment, there’s just not a lot of new permits being given, and as I mentioned, usually a lot of those things work in the favor of the material stock or the quarry company or the aggregate company or whatever you want to term it. They also generally have a 30-mile radius that they do business in, because once you carry aggregates beyond that time frame in that area, all of a sudden you’ll have a situation where the cost will eat you alive. So you don’t compete against a guy or an operator in California or Texas. I like that part, and eventually they become good real estate assets. There’s been a lot of consolidation in the business over the years. The stocks are down 50%, 60%, 70% from their highs, in many cases. And I think that we’re going to need that longer term. That’s one of the things we’ve deprived ourselves of in the last 10 years – infrastructure – and I think aggregates and concrete and cement will play a vital role in that.