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Cheniere Energy: Finally, some good news for America

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There are many factors culminating from this very real and promising potential of an LNG displacement of coal and oil. It gives us the potential to be energy independent, with a cheep and clean alternative. It is the promise for new jobs, and has the ability to bring back long-lost manufacturing businesses from overseas. Too good to believe? Let us look at several drivers of this amazing phenomena, and yes, it is time for some good news.

Factor number one...

Japan: For years Japan has depended on liquified natural gas from the only viable LNG facility in America, Alaska. Fears of another Fukushima nuclear disaster has closed down virtually all of the country's nuclear reactors, and they are shifting to new methods of generating electricity. LNG promises to fill that gap.

Japan's utilities burned about 5.3 million tons last December alone, and that trend is said to be escalating exponentially. Now being the number one LNG importer, utilizing 40% of world demand, surely they will impact LNG stock in a positive way.

Japan's central bank has been printing money out of thin air to attempt the stabilization of a sliding economy, and this has increased, by inflation, the price of consumer natural gas. Japanese utilities are trying to band together for more purchasing power, and are expected to turn more and more to US supply, as we are now the largest producer of Natural Gas in the world. So every agreement reached will boost stock prices in that area...

Factor two... Cold weather...

A new term "Polar Vortex" is displacing the myth of global warming, and this has boosted the use of natural gas.

Since we are the producer, no doubt, we will receive a huge discount compared to what will be paid in Europe and Asia. And Asia will see that trend rise with their unprecedented demand... They have moved in one generation from a bicycle to a moped to the automobile and these energy demands are setting the stage for some big export players here...

Cheniere Energy operates between Texas and Louisiana, next to Big Lake. It is now the largest receiving terminal in the world. When they have the ability to export, said to be up and running by the end of 2015, they will be unstoppable, and even higher Natural Gas prices would be a plus for them. If you had invested when I suggested it several years ago, your dollar would now be about 12, and they have not yet even reached the starting gate.

Cheniere Energy operates through two segments, LNG Terminal Business, and LNG and Natural Gas Marketing Business. Though there has been some insider trading this January, Cheniere Energy analysis continually promotes a buy, and no one promotes a sell or hold. Looks like blue skies...

Cabot Oil & Gas will also be a big player here, from exploration and property development, to the building of a fleet of super tankers.

Athlon Energy now has a Zacks Rank of number one. This exploration company sees the potential of LNG and is betting on it big time. They operate primarily in the Permian Basin, and that speaks volumes, and being bullish does not describe the potential of this market. It is gargantuan.

Factor three: A Puppet Master agreement

It is obvious and without doubt, the more of a commodity produced the cheaper it becomes. The huge technical breakthroughs in hydraulic fracturing and horizontal drilling has increased supply for both oil and natural gas in the United States.

While oil has been the primary commodity played by US businesses on the global stage, the use of natural gas is not a new idea. Its potential has been known from the first well drilled, but it is an idea whose time has finally come, and infrastructure for it is now being built...

But the two amazing abilities in drilling for oil and natural gas came from many other sources as well, from new dill-in fluids, new software, pumps and valves... a wide array of innovations, and many of the big boys are wanting a piece of the action. And though it looks promising that Cheniere Energy will be the first up and running, they will not be the only players. BP, Conoco-Phillips and Trans-Canada are collectively planning a facility in Alaska, and Kinder Morgan is getting involved in both existing and future energy projects, and that optimism is projecting in the movement of stock prices. Up. Kinder Morgan is well known and a specialist in getting product to market from where it is drilled, be it oil or natural gas, to where it is used. Instead of a pipeline, however, they want to put it on a boat.

In the paranoia and bag-gas of fear-driven speculation, it is good to see a bit of positive light. I saw this trend coming for about ten years, and glad I have lived long enough to see it finally come true. Yes, it is certainly an unpredictable economy, with a lot of hidden factors that determine direction, but as an international fluid engineer I saw first hand these new developments from the field, as fifteen years ago I was on the second directional project using new synthetic drill-in fluids and directional tools that gave us three hundred feet of actual pay. Today, this extends to miles, and the science of drilling has expanded in ways unseen back then. Not even Cheniere Energy saw this technology boon coming, as it primarily built its facility to import... Someone moved the cheese, and Cheniere changed direction and taking an educated and hard-won leap of faith, promises to win big.

There is hope for America, and we as a people can do anything we put our minds and hearts to, if only our government would get out of the way. A big brother nanny state does nothing but create complacency and lazy dependence, with progressive socialism as its backbone. Only a Libertarian mindset can get our Constitution and civil liberties back, again controlled by the people. Only a free market can save our economy...

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