The New Energy Savior: Natural Gas To The Rescue

What would you think about $1.50 gas again? With the recent advancements in Natural Gas extraction methods, it may go lower than that! Many large U.S. companies are starting to replace diesel engine trucks with Natural Gas vehicles. By all accounts we are the Saudi Arabia of Natural Gas. Many estimates put the reserves at enough to last at least 100 years.
The auto companies already make CNG(compressed natural gas) vehicles overseas. As soon as they start building them here they will sell. When people start buying them the oil producing countries will feel the pinch when they see the demand for gas start to plummet. But then the scare tactics will begin.
Everybody will be told that we don't have the infrastructure to fuel the vehicles. We will be told that cars will be exploding, and be too dangerous. I say BULL!
When T. Boone Pickens was trying to get Congress and Obama to listen to him about the possibilities of using Natural Gas for transportation, all Obama wanted to talk about is Electric Vehicles. They have years to go before the battery technology allows vehicles to be used for more than just traveling around town and then back home.
And the neat thing about having a CNG vehicle is you can have a fueling station hooked up at your home if you use Natural Gas at home. Besides if the service stations know CNG vehicles are here to stay they will get set-up to sell it. A few years ago there were only 2 Ethanol stations in our state, then with Ethanol production going up there were hundreds of pumps across the state within a year.
Then think of the future possibility of Fuel Cell vehicles. All of this isn't just a pipe dream, it is going to happen sooner than some people think. About 15-20 years ago Chicago had all of their buses in the city on an experimental Fuel Cell program. All the buses in Chicago, can you imagine that? Why doesn't every large city in the country have this?
As I stated earlier what about $1.50 gas? I not only think it's coming I think it could go lower than that.
I hear people talking about how much gasoline China will be using but what they are not reading is that China is also working on alternate fuel programs. As sure as I am sitting here today, OPEC will be wanting to give it's oil away sometime soon. The world will be coming to us for their energy needs(CNG)
That is enough for today, boy do I feel good about the thought of OPEC shaking in their boots. I hope our politicians have enough sense to stay out of the way and let the explorers and drillers free us from the hell that hostile countries enjoy putting us in.
Opinions are wonderful, use yours to let people know where you stand. We don't all agree on everything but I believe that everyone has the right to their opinion. So let's continue with our discussions.

Until Next Time

Rog

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Gasoline Unwind Continues

After a huge retreat yesterday gasoline futures continue to fall today. The price at the pump continues to be a mystery however.

I get real tired watching the wonks on TV and listening to them explain why prices do what they do. If prices go up today it's because the Chinese are using more gas, if prices go down tomorrow it's only because Silver or something else went down.

When Crude Oil was at about 145-147 a barrell a couple years ago gas prices were a little over 4.00/ gallon. The other week when crude was about 115/barrell gas was at, you guessed it about 4.00/gallon!
But to the people on TV it's about Memorial Day and the blends change and we have maintenance at refineries and again they say how much China needs.

Does anybody other than just me remember about 15-20 years ago when China decided to start building it's infrastructure and start trading more with the West and getting itself into position to be a major manufacturer in the world? This isn't just a phenomenon of the past 5-10 years as the people on TV would have you to believe.

What I am trying to get at is whenever prices start doing funny things it's either China or the Middle East uprisings or whatever is convenient at the time in the news. I live within 80 miles from one of the largest refineries in the midwest and our prices are 20 cents higher than the national average. The people on TV says it's because of an addition being put on at the refinery. They have been at this for 2 years so now it makes a difference, give me a break.

OK my rant  is over. In the very near future I will be writing about our energy situation and a very easy answer to solving our energy needs for years to come.

Also I will be posting a little article I wrote about Trading options, especially for beginners, so keep in touch.

Rog


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Commodities Taking A Breather

This week saw futures prices trying to find their way after recent pullbacks. The Dollar is trying to make a recovery which is bearish for most commodities.

The recent floodings along the Mississippi River areas will probably put a wrinkle in crop plantings and how much will be lost beacause of flooding. Some crops will not be able to be replanted, like corn or soybeans depending on how fast the land can dry up. This will make trading grains a little touchy.

My next article will deal with what can be done with options. Trading options instead of futures contracts can let you sleep much better at night. Options can be fun if kept fairly simple.

For anyone interested, both new and experienced traders, you can get a free look at a great site and what they have to offer by   GOING HERE

Until then...

Good Trading

Rog

P.S. For those who like something differant to experiment with I will usually put a link   HERE

Just something you may be interested in doing in your spare time. Have fun!