There was not a word in the media about the price of natural gas (NG) falling under $2 last month.  On February 18^th, the price hit $1.52, the lowest in over 25 years (other than Covid).  What a huge break for all consumers this could turn out to be.  If the price remains at these levels, it will make green energy even less price competitive. The day the price went under $2, two greens on the radio announce that all fossil fuels must cease immediately.  They clearly expect all consumers to pay substantially higher energy bills for no improvement to the climate.  Greens have no idea what to replace NG with that is competitive in price.  We expect the price to trade between $1.50 and $4 for decades because of global reserves close to 350 years thanks to new finds in Africa.

We are told solar and wind power are the best ways to lower greenhouse gas emissions. In theory this is true, but it will never happen because they cannot power the planet all day like fossil fuels. Proponents of this energy can talk about the potential of the technologies as much as they want, but the reality is the world is so far away from being able to manufacture, utilize, and maintain this technology efficiently and reliably as NG.  In the grand scheme of things, the biggest emissions reductions will be a shift from coal to natural gas. It produces only 10% of the air pollutants and 50% of the CO2 that coal does. The smart governments will choose NG.

Because it is used in so much manufacturing, the cost to do so will decline in price where governments do not impose a tax on carbon. The savings will be realized in lower costs in home heating, cooling, cooking, food prices via lower cost fertilizers and transportion costs, as well as in chemicals like those used in sulphur-based drugs and in plastics. These price cuts will result in more disposable income. Unfortunately, In Canada’s situation, any drop in price will be consumed by the increase in the Carbon tax.

There is now a push to ban natural gas in homes. Nanaimo, B.C. is the most recent town to jump on the bandwagon. It will be interesting to watch because it will make zero change to the level of emissions but cost the owner more. In July, Bloomberg Businessweek wrote “cooking with NG accounted for 1% of U.S. residential energy consumption and 3% of overall NG consumption in 2020. Residential natural gas cooking was responsible for about .1% of U.S. greenhouse gas emissions.” These numbers are not a threat to the environment.

Just to show how out of touch the Climate Cabal is, the IEA estimates that if “oil and natural gas consumption were to evolve as projected under today’s policy settings, limiting the temperature rise to 1.5C would require an entirely inconceivable 32 billion tonnes of carbon captured for utilization or storage by 2050, including 23 billion tonnes via direct air capture. The amount of electricity needed to power these technologies would be greater than the entire world’s electricity demand today.” There will never be enough renewable energy to accommodate this.  More importantly, who is going to pay for the needed infrastructure? The consumer of course through higher electricity prices and taxes to cover the subsidies. It is a recipe for economic disaster.   

We should be rejoicing the fact we are warming. If anything, we should be focusing our efforts on surviving the next ice age because the cold kills more life than the heat. We already know how to survive Saharan temperatures, like people have been doing for thousands of years. We also have natural gas to keep us cool, can desalinize water, and have a thorough knowledge of greenhouse farming.

How many profitable “green” companies are there in Canada that do not rely on Government subsidies? How many businesses have environmental mandates that costs them profits and tax revenue for the government to fund healthcare, military, housing, and education? When Trudeau turned climate extremist Canada's economy started to slow. As a result, we had to make up the billions in losses and shortfalls with debt which resulted in higher interest rates and a devalued currency, all of which destroy wealth.

Given both the global political climate and that the finances of most countries are a mess, there will be increased pressure for energy policies geared towards cheap NG.  Any government that refuses to accept this will be left in the dust. It proves they do not have their citizens best interests in mind and investment will look elsewhere for a home. NG will be the number one energy source around the world for a century at least. Everything else will cost more and make no improvement to the environment. NG is our future.

Falling NG prices will be bad for the producers who are heavily leveraged. Some will go bust but there will always be someone willing to buy them at a proper valuation that allows for a decent return.  These assets are not going anywhere. We prefer pipelines and integrated oil companies rather than companies that just produce NG.