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Is There a Natural Gas Powered Boat In Our Future?
If someone had asked me that question a year ago, I would have said: "Nonsense, can't possibly happen." Now I'm a little less sure of that. Some interesting things have been going on. The supply of natural gas in the US and Canada has dramatically increased as a result of improved drilling and exploration technology. We now have more natural gas than we can readily use or transport, and as a result, at least in the short term, prices for natural gas have decreased. As an example, the historic price multiple between a barrel of oil and a thousand cubic feet of natural gas has been approximately 10 to 1. It is now at 40 to 1, a huge reduction. This has resulted in a number of efforts to leverage natural gas as a transportation fuel, i.e., trucks, trains, ships, taxi fleets, busses, etc. Obviously a lot of new infrastructure needs to be built to provide for compression, transportation and end user filling stations. A lot of work has already been done in the area of diesel to natural gas conversion engines. Once a few more of these pieces come together, natural gas as a transportation fuel will become much more common than it is now. In the meanwhile there are some interesting investment opportunities. http://seekingalpha.com/article/326572-2-energy-markets-and-their-implications-for-investors In the interest of full disclosure, I own some of the stocks mentioned in that article. |
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