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Category: Investment, Natural Gas
Senior Energy Industry Executive Made the Call on Natural Gas and Natural Gas Distribution Pipelines
By Senior Energy Industry Executive Karl W. Miller
February 17, 2010
Energy Commentary from Karl Miller - Read Bio and More info
February 17, 2010 - Investorideas.com Energy Newswire: Investorideas.com reports to interested energy investors, "Senior Energy Industry Executive Karl Miller, a well known energy expert, made the call on Natural Gas and Natural Gas Distribution Pipelines.
Mr. Miller is currently on medical leave but has agreed to contribute his energy market opinions and views to Investorideas.com. Mr. Miller has agreed to provide his market opinions and views for public interest and does not receive any compensation for his commentary.
Mr. Miller is a globally recognized energy executive and institutional investor with a balance of both financial and energy sector expertise. Mr. Miller began his career on Wall Street during the 1980s and has an extensive background in banking, commodities trading and risk management.
Yesterday, El Paso Corporation (NYSE:EP) reported that its wholly owned subsidiary, Tennessee Gas Pipeline Company (TGP), has executed binding, 20-year term agreements with Chesapeake Energy Marketing, Inc., a wholly owned subsidiary of Chesapeake Energy Corporation (NYSE:CHK), and StatOil Natural Gas LLC, a wholly owned subsidiary of Statoil (NYSE:STO), for 100 percent of the capacity for its Northeast Upgrade Project. The project will provide 636,000 dekatherms per day of incremental firm transportation capacity from TGP's 300 Line in Pennsylvania to an interconnect in New Jersey to serve growing markets in the Northeast.
The Northeast Upgrade Project is a natural extension of TGP's presence in the heart of the developing Marcellus Shale play. The project would cost approximately $400 million with a majority of the capital spending taking place during 2013.
Full news is available on the Investorideas.com Energy Newswire: http://www.investorideas.com/RSS/feeds/Energy.xml
Re-Release of previous commentary:
Why Natural Gas: Let's Just Keep Saying It Until Washington Gets the Message
By Senior Energy Industry Executive Karl W. Miller
February 2, 2010
about stocks: CHK, DVN, EOG, APA, APC, WMB, EP, KMI, XOM, MRO, CVX, OXY, BP
For public interest, senior energy executive and institutional investor Karl W. Miller, today issued the following statement through his advisors regarding consolidation in the U.S. Natural Gas Industry and the "JOBS" the natural gas sector has created and will continue to create.
Washington is clearly challenged on Natural Gas, not because they don't understand it, but because it does not fit in with their pre-determined Agenda. See weblink titled "Why Obama and The Democrats Can't Say "Natural Gas": http://www.naturalgasstocks.com/Karl_Miller/news/1283.asp.
As Mr. Miller has opined, you can't ignore the elephant in the room. And we have some big elephants in piling into the Natural Gas room. The major oil companies have "re-discovered" the U.S. Energy markets through natural gas and are on the acquisition trail in a big way. The key point to these acquisitions of natural gas producers by major oil companies is that while they would certainly accept any subsidies provided to the natural gas industry from Washington, they don’t need them to expand the industry.
Lets also get a few fact straight, natural gas is not in a state of permanent excess supply as Mr. Miller has had to correct many ill informed financial analyst and media on multiple occasions. See weblink titled "Why the U.S. Natural Gas Industry is NOT in a State of Permanent Excess Supply" at: http://www.investorideas.com/news/123009a.asp
The major oil companies all have sufficient capital and access to capital to fund their acquisitions, production expansion and most importantly, distribution, whether it be in fueling truck fleets or other uses. Even without any additional acquisitions, "rising tides floats all boats" doctrine is in place in the natural gas industry.
The pipeline companies such as Williams Company, El Paso and Kinder Morgan will toe the line when told to do so and basically construct whatever the oil companies and natural gas producers tell them to, as long as they sign a long term shipping contract to anchor any new expansions.
The public utilities commissions in each state will not get in the way of natural gas, as they are already very comfortable with natural gas as a fuel for the power plants across the U.S. and understand the basics, and have made it clear that they are "not going to approve outrageous rate increases" to pay for loss making wind and solar, on the back of a recession. Washington does not seem to get this message either.
California may be the exception, but when you are broke as a State like they are, Mr. Miller suspects they will backtrack as well, as there is no money to pay for their lofty and unrealistic energy goals, when they already produce 40% of their electricity from Natural Gas. One has to wonder who is driving the bus in California. See weblink titled "U.S. Renewable Energy: A Self-Inflicted Crisis in the Making": www.investorideas.com/News/062909c.asp
Also, lest we all forget, we already have a very comprehensive and established atural gas infrastructure, hundreds of natural gas power plants, most of which are fairly new. And finally, the more renewable energy assets we put on the ground, primarily wind and solar, the more natural gas power plants we need to construct to balance the intermittent and volatile energy output from these renewable assets.
Mr. Miller has opined on multiple occasions that natural gas demand is rising and going to become a much larger part of the overall U.S. Economy, will drive tremendous job growth, "far more than a boutique renewable energy industry", and is the cleanest fuel that the U.S. has access to in reasonable abundance, subject to construction of more pipeline distribution infrastructure throughout the Country.
Mr. Miller has made it crystal clear on multiple occasions to Washington that to ignore these compelling facts in the natural gas industry would not only be foolish, but financially costly to all investors, and as Washington has already seen, dangerous to each and every politicians political career if they fail to listen to the American people, starting with major housecleaning in the November 2010 elections. See weblink titled "Win, Lose or Draw in Massachusetts Senate Race, Washington Needs to Focus on America and Start Solving the Housing and Energy Policy Issues Now": http://www.naturalgasstocks.com/Karl_Miller/news/1201.asp
The American people don't want nuclear, don't want massive utility bill rate increases, and don't want to fund any additional loss making business ventures, and we certainly don't want to try and change our constitutional structure by decree of any one political party.
Balance, logic, and common sense will rule, but we may have to clean house in the November elections to get to that point.
Mr. Miller provides these words of wisdom for all sides to consider from his twenty plus years in the financial and energy industry and the trenches, "fear not the messenger, but fear who he represents". Mr. Miller represents the American people in this matter and they are pissed off to put it politely.
Disclosure: Mr. Miller is an independent and a capitalist, and is not affiliated with any political party.
Mr. Millers Office
Mr. Miller is currently on Medical Leave.
Disclaimer:
This column, Energy Commentary from Karl Miller, is the opinion of Karl Miller.
Content found in the articles is subject to the terms found in the InvestorIdeas.com disclaimer and does not represent a recommendation of investment advice. Investors should seek the advice of a qualified investment professional prior to making any investment decisions.
U.S. Utilities and Natural Gas producers are the best "Safe Haven" after U.S. Treasuries Plus You Collect a Dividend, Not Zero Percent Interest Rate" at the following link: http://www.naturalgasstocks.com/Karl_Miller/news/2046.asp
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