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2012/01/28

How the EIA Just Boosted Gas Prices

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How the EIA Just Boosted Gas Prices
By Keith Kohl | Saturday, January 28th, 2012
Keith Kohl

Recently, the EIA dropped another bombshell on the shale gas boom.

We've had front-row seats to the surge in natural gas production that's taken place in the United States over the last seven years.

And finding those plays has never been much trouble.

shale plays

According to the EIA, almost 90% of the total technically-recoverable shale gas resources are located in just three regions: the Northeast, Gulf Coast, and Southwest.

But lately, the government has been sending mixed signals when it comes to shale gas...

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This Technology Could Destroy Warren Buffett's $2 Billion Solar Farm... 

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If the rumors are true, this new discovery could capture more energy in a single month than Saudi Arabia will produce in the next 50 years.

Click here to find out how this is possible.

So what happened?

Remember last year when the United States Geological Survey released its report stating the Marcellus Shale formation (the largest shale gas play in the U.S.) held more than 400 trillion cubic feet of natural gas?

At the time, it was huge jump over their previous estimate of just 84 TCF.

Then, just as Obama delivered his “all-of-the-above” plan to develop domestic energy sources, the EIA suddenly had other ideas...

A few days ago, Nick Hodge explained how the United States will become an LNG exporter as early as 2016.

And we know that companies like Cheniere are already lining up long-term contracts for gas shipments reaching as far as India and China.

Yet even with the latest revision, that 2016 date will be met — and here's why...

Even the latest trimming of Marcellus reserves doesn't diminish the role that these shale gas resources will play for the next several decades; nor does it significantly change the big picture when we break down our natural gas production:

shale gas breakdown

Some things aren't going to change — and that includes our growing reliance on natural gas.

As you can see above, more than half of our future natural gas production will be from shale and tight gas resources.

The Opportunity is There for the Taking

If you were looking for news to bump natural gas prices from their weakest levels since 2001, the Marcellus revision has already helped push natural gas 20% higher this week:

small gas priceclick image to enlarge

Investors will be hard-pressed not to be optimistic over natural gas in the long run.

The only question for investors now is when to jump in feet first.

Of course, the smart money will take advantage of this bullish case in a different way... and this emerging play isn't affected one iota by the EIA, USGS, or even Obama.

Keep an eye out for my report to hit your inbox over the next few weeks.

In the meantime, you can find more profit ideas for today's market below.

Enjoy your weekend,

kpk sig

Keith Kohl
Editor, Energy and Capital

The Dirty Secret Behind the Oil Sands: Tapping the Billion-Ton Mother Lode
The Canadian oil sands have a secret: Along with the billions of barrels of heavy oil, Alberta also has access to a “super-mine” that will practically hand over billions of dollars in rare earth metals to one tiny explorer that's preparing to tap this valuable resource.

North America's Next Gold Rush: Profiting from the Biggest Gold Discovery in Decades
One of the most successful gold-investing gurus is at it again. This time, he's prepared to give you the lowdown on his latest investigation into a mining company that could be sitting on more than $160 billion worth of gold...

12 Shocking Facts about the Bakken: Why the American Oil Boom is Here to Stay
Today I want to tell you about the law of unintended consequences regarding the hyper-speed growth in economic output in the Bakken.

Solar Competes with Natural Gas: The Hard Truth about Solar
Editor Jeff Siegel discusses a new solar technology that could allow solar to become cheaper than natural gas.

Oil Exploration Companies: The Last Time This Happened, It Jumped 162%
The easiest way to make money, in terms of time spent versus cash returned, is to research and buy oil exploration and development stocks.

Gold Investing 101: How, When, and Where to Invest
Don't miss Angel Publishing's special online seminar, hosted by a man with 34 years of gold investment experience. It's free and space is limited, so sign up now.

Proof Obama Loves Gas and Oil Shale: We Told Him, He Listened
The 2012 State of the Union address sounded unusually similar to what I've been writing in Wealth Daily and Energy and Capital: Create millions of jobs by opening up our vast gas and oil shale formations.

The Future of Nuclear: Uranium Shortages Loom
We all know oil's back over $100 as the economy starts to rebound. And natural gas prices are at decade lows because of abundant new supply. But what's up with uranium?

Natural Gas Rebound: Obama's Most Profitable Slipup Yet
Energy and Capital editor Keith Kohl discusses why Obama's slipup during the State of the Union Address will have very profitable consequences for investors.

The Only Logical Solution: Buy Gold  
Please don't send me hatemail for what you are about to read in this article... What I am going to tell you is true. Your disdain for the facts won't change them; shooting the messenger won't change what's going on.

U.S. to Be Natural Gas Exporter: $30-Billion-per-Year Industry Already Established
Editor Nick Hodge takes a bird's-eye look at America's new natural gas industry and ways investors can profit.

Gold and Silver are Breaking Out: It's Time to Buy Gold and Silver Again
2012 is the Year of the Dragon. According to this year's Dragon prediction, investments will do well "with a steady income throughout the year." Gold and silver will do well, too.

Montana's Second Oil Boom Begins: Why Montana Oil Profits Won't Leave Investors Out in the Cold
Montana's oil industry won't stay in North Dakota's shadow for much longer...

From the Archives...

Uranium Shortages Loom
2012-01-27 - Nick Hodge

Obama Unveils His Energy Agenda
2012-01-26 - Nathan Holl

Obama's Most Profitable Slipup Yet
2012-01-26 - Keith Kohl

$30-Billion-per-Year Industry Already Established
2012-01-25 - Nick Hodge

Obama's Clean Energy Promise
2012-01-25 - Brianna Panzica


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Energy and Capital, Copyright © 2012, Angel Publishing LLC, 1012 Morton St, Baltimore, MD 21201. All rights reserved. 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. Energy and Capital does not provide individual investment counseling, act as an investment advisor, or individually advocate the purchase or sale of any security or investment. Neither the publisher nor the editors are registered investment advisors. Subscribers should not view this publication as offering personalized legal or investment counseling. Investments recommended in this publication should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company in question. Unauthorized reproduction of this newsletter or its contents by Xerography, facsimile, or any other means is illegal and punishable by law.

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