President Obama and the rest of his Administration remain vigilant in their attempt to convince Americans that “green energy” and “green jobs” are real. The only reality seen in this Administration’s “green jobs” push is the consequence of Big Government intervening into the private markets.
It turns out the United States isn't running out of natural gas -- it is actually swimming in it. It won't need to borrow from its neighbors.
Back in 2005, Hurricane Rita struck the Texas coast, Microsoft (Nasdaq: MSFT) released the Xbox 360 console, the Chicago White Sox won the World Series, and the United States seemed to be running out of natural gas.
The other day, the estimable Wall Street Journal editorial board took issue with the equally estimable T. Boone Pickens, the legendary oilman, over the Nat Gas Act. The Journal argued with its customary lucidity that Pickens' idea of subsidizing natural gas, even for a short period, was ill-advised.
Well, a return to the glory days of 2008, when natural gas briefly touched $13 per thousand cubic feet (MCF) seems nigh on impossible. It's simply hard to envision a scenario where natural gas is once again scarce -- at least in terms of any reasonable investing time horizon.
Consider this: $3 of natural gas gets you about one million BTUs (British thermal heating units) of energy. It takes about eight gallons of gasoline (or about $25 to $30 worth at current prices) to get the same amount of energy.
By now, you've read countless articles about the rise and fall of the natural gas industry. A half decade ago, the industry was giddy with delight because a newly-refined drilling technique (hydraulic fracturing, known as "fracking") turned seemingly dormant energy fields into absolute gushers.