NEWS & INSIGHTS
Natural Gas Has a Great Future
According to ExxonMobile, global demand for natural gas will rise by 50 percent from 2014 to 2040. This is faster than most other fuels and more than twice as fast as oil. One reason is versatility. Natural gas can run generators that make electricity, or be used directly in homes, offices and factories. Gas is also emerging as a fuel for heavy-duty trucks and marine transportation.
Another key reason why gas is growing so fast is its relatively low carbon content, which makes it an effective and proven tool for curbing CO2 emissions, particularly in the electricity generation sector. Natural gas emits up to 60 percent less CO2 than coal, currently the world’s top fuel for generating electricity. Demand for natural gas is expected to grow in all regions of the world.
Big New Market for Fayetteville Shale?
Energy Security Partners of Little Rock has proposed a 33,000 barrell per day Gas to Liquids Plant with Jefferson County Arkansas being the likely location. Hope the state, Fayetteville Shale gas producers, pipeline companies and maybe even the trucking industry will join together to make this plant a reality. The plant will be designed to convert natural gas to synthetic diesel.
The Fayetteville Shale has provided billions of dollars in economic benefits, including thousands of jobs, royalties, taxes, and lower utility rates. Now natural gas prices are too low to sustain industry growth, and drilling in the Fayettville shale has stopped. Many jobs have been lost, royalty payments and related tax revenues are way down, and state severance tax revenues may be down by about $40 million for this fiscal year. This project looks like it could use around 120 BCF per year of natural gas (about 12% of 2014 Fayetteville Shale production), helping to support natural gas prices and more drilling.
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Benefits of Income Property
When you borrow money to invest in income producing rental property, you can make money three ways. First, through positive cash flow to the extent the rent you collect exceeds your expenses. Second, through debt reduction as the tenant pays down your mortgage on the property. Third, through capital appreciation as the value of your property increases over time. There are also multiple tax related benefits. Call me to assist with with your purchase and sale of investment property.