Investing in Natural Gas Infrastructure 800 (1)

7/28/2019 Investing in Natural Gas Infrastructure 800 (1)

1/3

Investing in Natural Gas Infrastructure

Special Report

Around 1400 B.C., a goat herder saw a burning flame coming out of a spring. He also noticed his animals actedstrangely after wandering near a particular chasm on Mount Parnassus.

After investigating, he found himself "agitated like one frantic."

The ancient Greeks named the place Delphi.

As you know, the Oracle of Delphi was one of the most powerful beings in the ancient world. Because of herprophetic ramblings, the 300 Spartans fought at Thermopylae, Alexander the Great conquered the known world,and the inventor of gold coinage, Croesus, lost a kingdom.

Recent studies by a team of scientists from Wesleyan University discovered that the source of thesebrain-altering vapors was a mixture of ethylene and methane.

Ethylene is a natural gas that can be used as a anesthetic. It produces euphoria, excites the nervous system,and has a sweet smell. This matches the descriptions of the historian Plutarch.

Obviously, these effects were attributed to divinity. A temple was built and a young female virgin was placed in

charge.

The Oracles grew fabulously rich on their predictions. At one point, the temple was the largest storehouse of goldin the world, and was not surpassed until the rise of the Byzantine Empire a thousand years later.

Thus the earliest known source of natural gas changed the course of empires and created tremendous wealth...

Natural Gas

Right now, the United States is the leader in a world-changing technology called fracturing. This technology hasallowed the production of natural gas in the U.S. to reach historic levels.

The Key to Unlocking a Vast Fortune

Up until a few years ago the problem was that massive percentages of natural gas were locked up in shaledeposits spread throughout the Ring.

Recovery of the resource was impossible.

But that all changed when the hydraulic fracturing was invented. Put quite simply, hydraulic fracturing is a gamechanger. Its the "best thing since sliced bread" of the energy sector.

Now I'm not going to bore you with a long scientific explanation of what the process is. But I do think it's importantto at least have a basic understanding of it.

Historically gas and oil deposits simply laid in pockets underneath the surface of the earth. They were easy findand relatively easy to get to.

You simply found them using seismic or magnetic surveys and then drilled where the pockets showed up.

Then the oil or gas came out under its own pressure.... simple enough.

Now don't get me wrong, there's a whole lot more to it than that but you get the idea.

And in many parts of the world, including the United States, this traditional method of drilling for gas and oil is stillprevalent.

Fracturing Isn't New

But in the 1940's Halliburton invented a process called hydraulic fracturing, or as it's known now, fracturing.

At its simplest, fracturing is the process of blasting a mix of water, sand, and chemicals into a well that releasesthe gas or oil trapped inside shale.

The reason fracturing didn't come into vogue until the past few years was at the very heart of what's setting offthis revolution..... technology.

Knowing Where to Fracture Is Key

Until a few years ago the technology didn't exist that could accurately measure just how much oil or gas wastrapped in the shale formations.

And up until that time, the technology of fracturing itself was under-developed.

But throw in skyrocketing oil gas prices, dwindling supplies, and an ever increasing world appetite for energy andyou have the perfect storm for profits.

When energy prices increased, the rush was on to f ind more domestic reserves. And with that push came a slewof new discoveries in America.

The Headlines Tell the Tale

This headlines were pulled over a two week period from February.

Take a look:
http://www.wealthdaily.com/


2/3

Total invests billions in shale gasTotal is banned from developing unconventionalhydrocarbons in France, its home market, but is plowingbillions of dollars into the US as it seeks to tap booming demand for oil and gas extracted from shale rock. Financial Times, Jan. 6

Exxon Gets 13,200 AcresExxon Mobil has acquired about 13,200 acres in leases in Monroe County as the oil and natural gas giantcontinues expanding its Utica Shale footprint. The Intelligencer, Jan. 8

China's Sinopec buys stake in five shale projects in the U.S.Devon Energy Corp announced Tuesday the sale to Chinas Sinopec of a one-third stake in five shaleprojects in the United States. The terms of the deal call for Chinas No. 2 oil company to pay 900 million

dollars in cash to the US firm and contribute 1.6 billion toward the cost of drilling. Bloomberg, Jan. 4

Shale Bubble Inflates on Near-Record PricesChinese, French and Japanese energy explorers committed more than $8 billion in the past two weeks toshale-rock formations from Pennsylvania to Texas after 2011 set records for international average crudeprices and U.S. gas demand. As competition among buyers intensifies, overseas investors are paying topdollar for fields Bloomberg, Jan. 9

The natural gas race in the United States is moving so fast, it makes your head spin.

Going Global

And its starting to spread globally, just like the flu...

In Asia, natural gas costs around $17 per M, a near 600% premium to the cost of natural gas in the States.

So it makes sense that Asian energy explorers would take stakes in shale gas formations in the U.S.

Not only will they enjoy the production benefits, but theyll learn the technology of hydraulic fracturing so that theycan exploit their own shale fields.

Think about this for a second: The U.S. holds an estimated 2,543 trillion cubic feet of gas enough to supplyAmericas demand for more than a century, according to the U.S. Department of Energy.

Shale gas like that found in the Marcellus accounts for 862 trillion of that total.

In China, its estimated the country's shale gas formations contain 1,275 trillion cubic feet of gas. So its inChinas best interest to learn everything it can from American hydraulic fracturing.

Regardless, the U.S. has a major head start in shale gas production.

And just as they have in the Bakken, early investors will make fortunes riding this gas wave.

Bottom line: America is going to be swimming in an ocean of natural gas and natural gas profits. And that willhelp the American consumer.

This glut has driven the price of this clean energy source from $12 to $2.50 Mmbtu.

Underground storage is at record highs, and companies like Chesapeake (CHK) have shut down production.That's because you can't make money from production; no one wants any more natural gas. There is nowhereleft to put it.

As you can see by the following chart, the number of drilling rigs in use is dropping to crisis-era lows.

And this is happening at a time when unleaded gasoline is selling at $3.50 a gallon and moving higher.

But this is the best news in the world if you are an American.

Picks and Shovel Plays

The spot price in Japan for Liquefied Natural Gas (LNG) is $18. In Europe, it's $13.60.


3/3

For those of you who don't know, LNG is NG that is condensed for easy transport on ships. Obviously, this setsup the mother of all arbitrage plays...

There is a mad dash to build new LNG terminals, pipelines, and vehicles. The rental price for LNG shipping hastripled in the past year. Shipping companies are in a mad dash to upgrade ships from the 1970s and build newones.

Heated competition is leading to fights between industry and NIMBYs in places like Oregon and Maryland tobuild new export terminals.

Companies like Dow and DuPont are resisting exports because they want to ensure low costs in the U.S.

Government leaders have even called for a ban on exports that's how you know it's real!

But it won't stop cheap energy... Of the nations 11 LNG receiving facilities, nine have asked for permission to beconverted to export terminals.

Regulators have conditionally approved at least two requests. More will come.

This is real.

There will be a number of ways to make money off of this major trend.

To keep up with opportunities in this new and exciting investment region read Wealth Daily from your own inbox.

You can view the HTML version here: Investing in Natural Gas Infrastructure

Wealth Daily , Copyright Angel Publishing LLC . All rights reserved. The content of this site may not be redistributed without the expresswritten consent of Angel Publishing. Individual editorials, articles and essays appearing on this site may be republished, but only with fullattribution of both the author and Wealth Daily as well as a link to www.wealthdaily.com. Your privacy is important to us -- we will never rent orsell your e-mail or personal information. No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the

solicitation of an offer to buy or sell the securities or financial instruments mentioned. While we believe the sources of information to be reliable,we in no way represent or guarantee the accuracy of the statements made herein. Wealth Daily does not provide individual investmentcounseling, act as an investment advisor, or individually advocate the purchase or sale of any security or investment. The publisher, editors andconsultants of Angel Publishing may actively trade in the investments discussed in this publication. They may have substantial positions in thesecurities recommended and may increase or decrease such positions without notice. Neither the publisher nor the editors are registeredinvestment advisors. Subscribers should not view this publication as offering personalized legal or investment counseling. Investmentsrecommended in this publication should be made only after consulting with your investment advisor and only after reviewing the prospectus orfinancial statements of the company in question.
http://www.wealthdaily.com/http://www.wealthdaily.com/http://www.wealthdaily.com/http://www.wealthdaily.com/http://www.angelpub.com/http://www.angelpub.com/http://www.angelpub.com/http://www.angelpub.com/http://www.angelpub.com/http://www.angelpub.com/http://www.wealthdaily.com/http://www.wealthdaily.com/http://www.wealthdaily.com/http://www.wealthdaily.com/http://www.wealthdaily.com/report/investing-in-natural-gas-infrastructure/800http://www.wealthdaily.com/report/investing-in-natural-gas-infrastructure/800http://www.wealthdaily.com/report/investing-in-natural-gas-infrastructure/800http://www.wealthdaily.com/report/investing-in-natural-gas-infrastructure/800http://www.wealthdaily.com/report/investing-in-natural-gas-infrastructure/800http://www.wealthdaily.com/report/investing-in-natural-gas-infrastructure/800http://www.wealthdaily.com/report/investing-in-natural-gas-infrastructure/800http://www.wealthdaily.com/report/investing-in-natural-gas-infrastructure/800http://www.wealthdaily.com/report/investing-in-natural-gas-infrastructure/800

Documents

Investing in Natural Gas Infrastructure 800 (1)