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Natural Gas Infrastructure

by Byron on April 14, 2011

Now, I know only a very little bit about the natural gas market, so take what I say for what it’s worth – a mere thought – but it seems there is money to be made.  However, unlike the black gold that is oil, perhaps the most money in natural gas is to be made in something other than the actual stuff itself.

Natural gas is apparently EVERYWHERE.  There is so much of it that it isn’t worth very much.  Recently only a little over $4 per 1000 cubic feet.  But there are great incentives put forth by the government.  Some of America wants nat gas as an alternative to oil.  What’s the problem?  There is inadequate infrastructure around nat gas.

With oil you have refiners and tankers.  There are 1000’s of transportation devices that need oil to work.  There is storage and pipelines.  There are filling stations.  There are numerous products that need petroleum as some part of the development.

Natural gas has some of this sure.  But it doesn’t have nearly enough to energize a society.  Therefore, if you believe in the natural gas story, investments to be made are in the movement, storage, and use of the commodity.  Not in the commodity itself.

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