Tuesday, March 22, 2011

Damning Natural Gas with Faint Praise

Well, faint praise is better than nothing.  Following the recent tragic Japanese earthquake, it seems as though folks are turning their attention back towards natural gas.  We've discussed this idea already, but the New York Times published an article yesterday suggesting that the fortunes of natural gas may be on the rise, as the fuel is being viewed by many as a safer bet than coal or nuclear.

The article quoted a Société Générale analyst who called gas the fuel of "no choice." Another analyst said that based on the risk/reward equation, gas is a "technical knockout" winner. Neither is exactly a rah-rah assessment, but the important concept to keep in mind is risk/reward.  Nothing is truly risk free, especially in the energy industry - it's all about achieving the best balance for all stakeholders (which is all of us).

Interesting that the article appeared on the front page of the "New York" section of the Times, given that the state currently has a moratorium on Marcellus Shale drilling.  Maybe it won't change anyone's mind, but it certainly is food for thought.

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