Skip ‘Jack Flash, It’s gas, gas, gas. I don’t know what Mike Jagger meant in those lyrics to the ancient Rolling Stones song, but I know that natural gas prices are going up around the world.
I am now in Brazil, having set a record in the LNG imports by 2021 and has also opened a new LNG-powered power plant in Rio de Janeiro. This is just one example of the purest form of CH4 … metgas, methane.
As the weather improves – today is a beautiful day – 88% of the world’s population lives in half the globe. Northern Hemisphere.
High natgas prices reflect – as all markets do – forecast variable on future supply and demand. So, natgas prices tell you it will be a cold winter, and we may not have enough. In fact, this week, Portfolio Guru announced the closure of two major fertilizer factories in the UK due to the high prices of natural gas in the UK.
So, it’s so bad we can’t even make fertilizer! Feel free to make your own jokes here, but this kind of inflation is not funny.
Whose fault is it? This is where I have to be a diplomat and spread the word about many players, but that (RM) readers are not expecting me.
Explosion of natural gas prices is a inevitable and inevitable result of government policies that destroy fossil fuels. Four points!
The so-called “green” movement is responsible for this. These ridiculous carbon-free “solutions” are the culprits of the irrational, daring government tools. England, like Texas last winter, was blowing that better wind, with no better verb. Wind turbines suffer from indirect interruptions and are exposed to the harsh harvest of modern, practical electrical grids.
Is there a way to change this? Well, since I started following smart, green technology companies like EXROF and Nano One Materials (NNOMF), my Canadian following has been growing by leaps and bounds. I’m definitely not Luddy. Indicating that wind power is terrible is a statistical judgment, not a judgment of value. But when I checked last year, Canada had a choice on Monday. I look, Justin Trudeau!
Canada has abundant natural gas supplies, but Trudo and the Green Warriors conspired to keep most of them underground. Thank you, wonderful boy!
But this is a pillar of investment, not a political one. Gold, natural gas prices are 4x higher in Europe (according to TTF pricing) and in Asia (based on JKM pricing), the US 7-year high is even higher than 5 / mmBTU.
It is an arbitral tribunal. A simple financial concept of natural gas. So in the companies you are digging (R&R), Cobalt Oil (Coaj), Southwest Energy (SNA, etc.), buy a pipe (Antero Midstem (AM) has become the light of my life this year) and then ( Grease Tellurian (TELL), Cheniere (LNG) and put it on boats (Flex LNG (FLNG) my favorite of LNG sailors) to Europe and Asia.
It’s a simple business, and I like it even for fertilizer names like CF and Mosaic (MOS). Closing plants is not good at all, but if no one can fertilize anywhere, and we are not at that level, the prices of chemicals like DAP and urea will go up. That is what we are seeing now.
Just open your eyes. It’s easy to see … and it’s easy to see how blind some of our leaders are.
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