When it comes to a real energy revolution, you might be in for a surprise because the biggest energy revolution in the world may not involve prairies full of solar panels and windmills, or futuristic high-tech cars that run on hydrogen or sophisticated battery arrays. It may not even be in the United States. It’s beginning to look like the biggest energy revolution, in terms of sheer size, may be the conversion of China, and other Asian countries, to natural gas (NG).
What’s so revolutionary about natural gas? Isn’t it a fossil fuel? And why Asia?
It’s not that natural gas is revolutionary. The modern natural gas industry has been around since the 19th century, and NG is indeed a card-carrying fossil fuel. But natural gas has a unique mix of qualities that appear to be winning the energy battle in some of the most populous countries on earth.
First of all, unlike oil, natural gas is the cleanest of all fossil fuels, reducing carbon dioxide emissions by 30%-40%, nitrogen oxides by nearly 50%, carbon monoxide by 75%, and particulate emissions by 95%. Over and above the reduction in greenhouse gases, the need for cleaner air at ground level is becoming far more critical in newly industrialized cities. And that, of course, is where Asia, and especially China, enters the picture.
Cities like Beijing, rapidly transitioning from bicycles to automobiles, have begun to experience some of the worst air pollution in the world, putting pressure on the leadership to do something. Add to that the fact that China is rich in natural gas, plus has one of the richest supplies of undeveloped coalbed methane, a form of natural gas, in the world, and you can understand why the government is now looking to natural gas as the most realistic solution to its exploding demand for energy and transportation. In addition, China and Asia are still in the early stages of growing their energy distribution network, and have options open to them that more mature industrialized nations do not.
China’s National Development and Reform Commission is already establishing production goals in excess of 10 billion cubic meters within just the next couple of years. Active mining and processing projects are getting underway all over the country, and tens of thousands of NG vehicles are already on the road in China. However, that doesn’t mean that nobody in the U.S. appreciates the benefits of natural gas. It is, after all, considerably cheaper. If enough stations were built, consumers could save 50% in fuel costs. But the big action seems destined to be in Asia.
A large and diverse set of companies stand to benefit from the coming tidal wave of natural gas and NG vehicle demand.
• Honda Motor (NYSE: HMC) – Honda offers the Civic GX Natural Gas Vehicle, fueled by compressed NG, resulting in near zero emissions (named America’s Greenest Car in 2008).
• China Natural Gas (OTCBB: CHNG) – One of the leading providers of pipeline natural gas for industrial, commercial, and residential use, and compressed natural gas (CNG) for vehicular fuel in Xi’an, China.
• PetroChina (NYSE: PTR) – One of the world’s oil and gas giants. The company is currently working on a major coal based methane project in China.
• Far East Energy (OTCBB: FEEC) – Based in Houston, with several offices in China, the company is exploring some of the largest coalbed methane projects in China.
• Green Dragon Gas (AIM: GDG) – The parent company of Greka China. Green Dragon is focused on the production, distribution, and sale of natural gas from coal bed methane.
And then there is Energtek (PINKSHEETS: EGTK), a leader in the development of Adsorbed Natural Gas (ANG) and other natural gas related technologies. Energtek is not about finding natural gas, but rather about storing and transporting it in a more economical way using ANG. Recent technological developments by Energtek have made ANG viable, and at exactly the right time in history. Applications for it are numerous, anywhere natural gas needs to be stored, transported, or used. The company is already involved in government supported projects in India and the Philippines. If ever there was a company poised to take full advantage of the natural gas energy revolution now taking place in Asia, it is Energtek. For them, and for many of the people in the world, this is the real energy revolution.
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