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Tuesday, July 21, 2009

Low Price for Natural Gas May be Just What is Needed

The low price for natural gas may be just what is needed to expand markets in the transportation and electric generation sector.

Instead of pouring printed money into uneconomic alternative energy, American political leaders could have Government Motors apply its efforts to building vehicles to run on the proven technology of clean natural gas. Utility executives can make the easy choice of simply running natural gas through generating capacity already in place rather than agonizing over the expense and political uncertainty of new coal and nuclear capacity.

While natural gas cannot meet all the transportation and electric generation needs entirely at once, there appears to be the capacity to supply all of the expected growth and more. Considering that $3 a gallon gasoline is equivalent to $24 a million btu natural gas there is ample room for the price of natural gas to rise and still be a bargain for consumers.

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