Last week, I talked about how important it is to have something set aside for long-term growth, non-income producing, even in retirement. Increased life expectancies makes 30 years of unemployment more realistic than ever before. That’s what retirement really is: 25 to 30 years of unemployment.
And one of the industries I believe will offer the best long-term growth – long term is a minimum of five years – is energy… specifically, liquefied natural gas exporters.
I know it’s hard for most of us over 55 to believe that the U.S., who took it so hard on the chin during the Arab oil embargo of the 1970s, will actually be an exporter of energy, liquefied natural gas. I guess if you live long enough… well, you know the rest of that one.
Anyway, companies are lining up to liquefy and sell our gas to the rest of the world, and we have a lot of gas to sell. And we can sell it for a lot less than what the European Union (EU) especially is paying now.
One of the earliest players in the liquefied natural gas export area was Cheniere Energy (NYSE: LNG). Dave Fessler, The Oxford Club’s Energy and Infrastructure Strategist, talked about this company years ago.
It is poised to capitalize on what is being called the second phase of our gas exploration and development: the expensive phase.
The first phase produced a glut of very cheap gas. The second phase will be selling the gas outside the U.S. at much higher prices, at a premium to market prices.
Even though Cheniere is operating at a loss while it waits for final approval to begin exporting gas, this is an industry with a virtually unlimited future. Not only will the company’s export facility on the Texas-Louisiana border export gas, but it is in the process of building a liquefying facility.
Much of the world is totally dependent on liquefied natural gas for their energy needs, which means a locked-in market for a very long time. And Cheniere will be the leader in this market for some time to come.
Don’t look for this one to be a short-term skyrocket. It has more than doubled in price this year, but I know long term there is much more to come.
A virtually guaranteed market for an absolute essential… energy. Take a look at Cheniere Energy.