Gas is a natural

In an interview with GoldSeek.com the founder of Global Resource Investments, Ltd. Rick Rule, a retail broker specializing in mining, energy, water utilities, forest products and agriculture says that conventional oil & gas is likely to remain a good business for investors, but that the market for natural gas is not yet a global one but a series of regional markets.

The North American gas market, he says, is in a very favorable position in terms of things like supply and LNG storage infrastructure, which is seen as a cheaper substitute for oil functions (like power generation) in Eastern markets. That’s why energy-starved nations in Asia are busy building LNG infrastructure.

Mr. Rule also offers his assessment of energy security in Europe, which also appears to be “going for gas.”

Europe, similarly, has fairly high gas prices and has developed what the Europeans believe to be a dangerous reliance on Russian supplies.  There are moves afoot to lessen European dependence on Russian gas, like moving Iranian or Azerbaijani gas through Turkey into Europe, and moving North African gas into Europe.  Over time, I suspect, a way will be found to provide energy security for Europe where the Russians have a big share of the market but will not dominate the market.

Furthermore, he believes the time has finally come when natural gas will come into its own as a fuel for cars, and the United States is likely to lead the way in that transformation. But without LNG capacity, autos powered by natural gas will be stranded, according to Rule.

Read the full interview.