On coal & Nat gas- EKS, i did not realize they are converting part of mines as storage facilities! thats something new I learned today. However, you are correct that with current storage capacities relatively full there is not much room for storage and hence there is a fear that costs are going to fall futher.
However, Paul is correct - fed. govt. favors natural gas and its also much more eco friendly. I was reading somewhere that the use of coal in energy production is going down and getting replaced with Nat gas -however its a slow process.
On China - China contains 3rd or 4th largest Nat. gas reserves in the world, however they don;t have the technology. Instead of trying to buy coal producers, supply coal into china ( which is not that bad in short term), you guys are better off investing in companies that are going to go into china with their natural gas technology and produce it. They will be making tonnes of money in the coming year or two. The process has already started! |
