The Really Useful Gold Thread

energyi
I have shares in Antonov (a transmission company) and have my eyes on Torotrak (another) due to problems which I perceive in the supply of oil. So I have looked a lot at the trend in cars and their fuel efficiency. As we have burnt so much oil in the past, I think there is a definitite move to gas powered cars. I am not talking about fuel cells, where I have my doubts despite all the hype. I am simply referring to car engines which can be simply converted to run on other hydrocarbons, Liquified Petroleum Gas is the current preference, but I am sure Detroit is working on Compressed Natural Gas as a way out of some of the dependence on oil.

I have seen from Gold that I am happy to leave money in for the long term (many years) where you are nipping in and out weekly or monthly, at a guess.

Natural Gas is probably a very good long term bet. I like gold, but at the end of the day, gold will just be a currency/commodity exchanged to buy things, and gas will be high on the shopping list.

Even if hydrocarbon supply levels can be maintained, Chinese/Asian demand will be picking up, which leaves a shortage elsewhere. Its long term, and more fundamental than gold. Alternative monies could be used (gold/euro/dollar, etc), but the purchase of power is assured.

I have read that new oil fields are a quarter the size of fields we found in the past. We get by, by draining twice as many, and twice as fast. Volumes will be forced to drop, so we cannot invest blindly, but the value of remaining hydrocarbons must surely take off exponentially. More equipment will be required for lots of small exploitable areas. Nimble small companies (capable of working well with local politics) will benefit and the large dinosaurs may prosper, but will suffer in comparison with the smaller companies. Companies involved in the conversion from petrol to compressed gas will benefit, whether this be extraction companies, or companies building gas bottles, pumps and valves instead of petrol tanks for cars.