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Learn How to Profit from This Revolution

Guest post by: Michael Farrell

Article Overview: A few years ago, the United States transitioned from being ready to import natural gas to becoming the world’s biggest natural gas producer, reports Mike Farrell with aspenIbiz. Read this short post as the availability of natural gas to power the U.S. economy is revolutionary and is the place to be for good investments for now and the years ahead.

Learn How to Profit from This Revolution

According to a recent study, 40% of the natural gas producers in the U.S., did not obtain break-even. This reflects that natural gas producers have costs all over the map. In the same study, it is reported that you only need a natural gas price of only $1.60 to make it attractive because natural gas comes with liquids like butane that can be sold for a high price today.

These low prices stimulate demand and there is a lot of demand coming.

Recently GE said it would make a big bet on natural gas as fuel for power generation. GE will invest heavily in natural gas turbines and related equipment. The head of GE's energy division said that due to significant changes in the shale gas industry, the opportunity for natural gas to generate power makes it extremely competitive against other forms of power.

Simply put, shale gas is natural gas that lay trapped in rocks and was, for a long time, inaccessible.

It is hard to overstate just how revolutionary the whole thing is. Anne-Sophie Corbeau of the International Energy Agency summed it up well. "A few years ago, the United States was ready to import gas," she said. "In 2009, it had become the world's biggest gas producer. This is a phenomenal and unbelievable."

It is, almost unbelievable. America has a huge amount of this energy resource. More and more, we will turn to shale gas for energy. It is already eating into coal's market share and more recently, it is taking a bit out of alternative energy.

For example, the construction of new wind farms in the U.S. will decline next year because of competition from cheap natural gas. So says the CEO of the largest developer of wind projects in the U.S.: "Shale gas makes the production of electricity from other sources not attractive enough."

As previously indicated, the effects of shale gas have been revolutionary. A renowned physicist and author, Freeman Dyson, writes that "the most important improvements of the human condition caused by new technologies are often unexpected before they happen and quickly forgotten afterward."

He relates the story of his grandmother, born around 1850 in Yorkshire, England. To her, the most important technology to impact working-class homes when she was growing up was the introduction of wax candles, which replaced tallow candles.

"With wax candles, you could read comfortably at night. With tallow candles, you could not," Dyson writes. "According to my grandmother, wax candles did more than government schools to produce a literate working class.

"Shale gas is like wax candles." In short, it is revolutionary.

Of course, shale gas has accumulated some enemies. Matt Ridley, the respected science writer, put out a report that states, "Shale gas faces a formidable host of enemies in the coal, nuclear, renewable, and environmental industries - all keen to strangle it at birth."

Many say that extracting shale gas pollutes drinking water and damages to the economy. According to Ridley, "All technologies have environmental risks. Press coverage that talks about ‘toxic', ‘carcinogenic', and ‘radioactive chemicals' is meaningless. Vitamin A is toxic. A single cup of coffee contains more known carcinogens than the average American ingests from pesticide residues in a whole year. Bananas are radioactive. The question that needs to be posed is always - how toxic, how carcinogenic, how radioactive?

In the well-considered opinion of Ridley, endorsed by Dyson, the answer is that shale gas poses no new or special risks. Contamination from agricultural run-off or oil spills from the transportation industry is more frequent.

Of course, those debates often boil down to politics, not economics. If it were otherwise, the U.S. would not be turning so much of its corn supply into ethanol. But that is another matter.

Still, natural gas enjoys heavy political support of its own as President Obama has endorsed incentives for natural gas-powered vehicles. As Ridley points out, "gas powered vehicles produce almost not particulates, 60% less volatile organics, 50% less nitrogen oxides, and 90% less carbon monoxide, which means less smog, ozone, and brown haze.

Natural gas is the place to be. Power companies are replacing coal-fired plants with gas-burning ones. Big Oil is buying up natural gas acreage. These all will be good investments for now and in the years ahead.

I trust this post has provided some background and evidence that a revolution is underway in the shale gas industry and this means big profits. These activities will provide alternative wealth creating opportunities and our economy will become significantly stronger.

I favor a quote from Steve Forbes. Forbes says that pursuing additional financial education and the resulting increase in our financial literacy (including the investment potential in the shale gas industry) will open our eyes to alternative wealth creating strategies and this will be the key to resolving our global financial crisis.

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Article Tags: Alternative energy, B2B B2C eCommerce, Breakthrough Technology, Financial Education, Mike Farrell aspenIbiz, Natural gas, Second Income Opportunity, Shale gas



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