There is a huge building U.S. Natural Gas Crisis
lifeaftertheoilcrash.net
The ramifications of Peak Oil are so serious, one of George W. Bush’s energy advisors, investment banker Matthew Simmons has stated, “The situation is desperate. This is the world’s biggest serious question,” while comparing the crisis to the perfect storm: “If you read The Perfect Storm, where a freak storm materializes out of the convergence of three weather systems, our energy crisis results from the same phenomenon.”
Simmons’ investment bank, Simmons and Company International, is considered the most reputable and reliable energy investment bank in the world.
When asked if there is a solution to the impending natural gas crisis, Simmons responded:
"I don’t think there is one. The solution is to pray. Under the best of circumstances, if all prayers are answered there will be no crisis for maybe two years. After that it’s a certainty."
Go listen to this interview or read the excellent book---he believes building multi-billion LGN terminals is absurd because of long term limited supply of world NG and expense involved in transporting and storing.
I guess they also make great terrorist targets and no one wants them in their backyard.
High Noon for Natural Gas: The New Energy Crisis
Darley, Julian
click on real player
financialsense.com
Other reasons:
1) There is no OPEC to solve the North America natural gas supply problem 2) Problem will last for Years since LNG supplies only a tiny portion of US supply and there is no way to ramp up for years. 3) Natural Gas demand by new power plants coming online is skyrocketing-this was a result of a 1998 government report that forecasted ample supply of natural gas for years to come 4) all the reasons listed in the best interview and analysis I've ever seen: An Interview with Andrew Weissman by Bill Powers, Editor Canadian Energy Viewpoint January 4, 2004
financialsense.com
2) the government's natural gas policy is to hope for warm weather which is doomed
3) Warren Buffett moved on the area in 2001 and now controls approximately 8% of the US natural gas pipelines
4) Canadian natural gas is needed to extract oil from oil sands. The oil sands have placed Canada second in the world in oil reserves. Most are not aware of this fact. China's biggest state oil companies are considering investment in Alberta's oil sands. At least the Chinese have it figured out right. There is enough oil in the oil sands to supply North America for 50 years yet we have chosen to spend billions upon billions in Middle East defending "our" oil supplies. Absurd !
Bottom line is there is no solution to solve the North America natural gas supply problem. This is the reason I've focused on the area for investment and have made fabulous returns thus far. One of the ones I even discussed here in January 2004 has since doubled--AOGI. I've even found one that will focus on China's energy crisis (Americans use approx. 29-30 barrels per day....the Chinese are at 1.5 barrels per day. A friend just got back from China. More and more cars.)
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