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Peak Oil
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Re: Gas shale may be next bubble to burstThe simple solution is to buy coal reserves. As always, the mosty-overlooked, least-loved investment is often the one that does the best. You can also diversify by buying Baker-Hughes. They are now building gas drilling sections which can bend (enabling horizontal drilling) while carrying communication back to the surface and collecting sensor data about the strata. In the US, the majority of new electric generation under planning and construction is now NG plants ... coal is still second, with all the others, nuclear, wind, solar, geothermal, wood, and so forth, way behind ... but these new shale gas wells tend to have smaller initial flows which rapidly diminish by half and go downhill from there. Already, the same coal to deliver the same btu's as $4.80 worth of NG, costs only $2.70. Estimates of reserves may actually be conservative, but range in the 100-200 year range for current levels of consumption. And China is now starting to import metallurgical coal from the east coast, through the Panama canal. (disclaimer -- I own BOTH: SU and CLR, and CNX and PCX in quantity) |
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