May Natural Gas reign as "queen" by concerns about Japan's nuclear crisis

The U.S. 99 trillion U.S. dollars natural gas industry, led by Exxon Mobil Corp. (XOM) and Chesapeake Energy Corp. (CHK) is prepared for increased demand as Japan's nuclear crisis shakes confidence in nuclear energy, executives said.
The natural gas have risen 11 percent since the earthquake of March 11 record and the tsunami in Japan pushed for a battle all day against a fusion nuclear reactor there. Futures gained as much as 0.5 percent to $ 4.275 per million British thermal units on the New York Mercantile Exchange and stood at $ 4,264 at 11:11 am in Singapore. Nymex gas contracts for delivery in March 2015 touched $ 6,083 on 16 March. The contract has fallen 1.5 percent to $ 5.99.
The production of fuel for heating and power plant can be increased within months, thanks to the industry's ability to extract large cheap gas shale deposits in North America, Larry Nichols, chief executive of Devon Energy Corp. (DVN), the third largest U.S. oil and gas producer, said in an interview.
Devon halved the amount of equipment natural gas drilling in the Barnett Shale of Texas as gas prices declined in the last year. "We identified 7,000 without drilling sites are surrounded by production wells," said Nichols. "In areas like that, it's pretty easy to ramp up. There is no geological risk to talk about."
U.S. Nuclear Regulatory Commission said March 21 will begin a review of national nuclear safety after an earthquake and tsunami overwhelmed the six-reactor station Fukushima Dai-Ichi Tokyo Electric Power Co., destroy their cooling systems and threatening radioactive fuel crisis. Although the crisis fell this week, the radiation released from the damaged plant contaminated food, water and sea water.
The Queen Rules
"Natural gas is the queen for a decade, maybe two," John W. Rowe, CEO of Exelon Corp. (EXC), the largest U.S. nuclear power generator, said in an interview last week on Bloomberg's "balance" with Pimm Fox. "It gives you a lot of economic advantages and allows you to take the time and the work of the mix of renewables and nuclear in the future in an orderly manner."
The prospect of tighter regulation of the industry asked to reconsider Exelon 3.65 billion U.S. dollars in planned expenditure nuclear and NRG Energy Inc. (NRG), the largest U.S. producer independent power to reduce the work and delay the orders of two reactors of 1,365 megawatts planned in Texas.
"We had reached a point where they had a much higher level of public confidence and to be changed by this event," said Rowe.
Licensing Delayed
The NRC is likely to delay the first licensing of new reactors in a generation beyond the end of the year as the agency determines whether the design changes necessary to prevent failures similar to those of Japan, said Michael Worms, an analyst at New York, BMO Capital Markets.
"Nuclear is providing," said Thomas D. O'Malley, president of the PBF Energy Co. LLC, the private equity-backed partnership refined oil in an industry conference in San Antonio the night. "Who is going to sign a release today? Absolutely no one after this disaster."
the abundance of gas supplies have led to low prices of the producers damped, while increasing the attractiveness of gas as low-cost fuel for power plants, said Rowe.
"Never in my career have been so many predictions that natural gas prices be so low for so long," said Rowe, 65. Any new plants, Exelon is based on gas development, wind or solar, "said Rowe.
Losers Gain
Gas producers Southwestern Energy Co. (SWN) and Cabot Oil & Gas Corp. (COG) led gains among U.S. oil and independent producers of gas in 500 of Standard & Poor's since the earthquake in Japan, after trailing the index in 2010. Southwest, based in Houston, has increased 16 percent to close at $ 42. 03 yesterday, the highest since June. Cabot, also based in Houston, has increased by 15 percent to $ 49.29.
sustained gas prices as high as $ 6.50 million British thermal units may be necessary for companies like Devon back to the gas fields, said Nichols. Devon, like many producers, production has shifted more land to oil and liquid petroleum over the past two years, oil prices nearly doubled to more than $ 100 a barrel.
Japan, the largest importer of liquefied natural gas is increasing demand for fuel to replace the damaged nuclear capacity. Have little effect in the U.S. and the Canadian market, North America and is a major importer of gas, and has significant export capacity, Leo P. Mariani, an analyst with Austin, Texas-based RBC Capital Markets, wrote in a March 18 client note.
Outlook
"The gas must receive a benefit in 2012 to 2015 if nuclear power is to insist throughout the world and demand for gas increases," wrote Mariani. EQT recommended Inc. (EQT), Forest Oil Corp. (FST), Petrohawk Energy Corp. (Hong Kong), Newfield Exploration Co. (NFX), Rex Energy Corp. (REXX) ​​and the Southwest.
Exxon Mobil, the largest U.S. gas producer, along with Chesapeake and Range Resources Corp. (RRC) are some of the many companies that would benefit from increased demand for power plants for fuel, Curtis Trimble an energy analyst at MKM Partners LP in Houston, said in an interview. Gas production is profitable for the range of $ 4 per million British thermal units, CEO John Pinkerton said in an interview yesterday.
gas power plants are the second largest source of electricity in the U.S. behind coal, according to the Energy Information Administration. Nuclear reactors, the third largest source, providing about 20 percent of U.S. power.
Stock Market
Gas accounted for 24 percent of power last year, an increase of three percentage points in market share in two years, the U.S. said in a report of 11 March.
Calpine Corp. (CPN), which owns the largest group of U.S. plants gas engines, has much to gain as delays nuclear and high coal prices increase the demand for production in Texas, California and the southeastern U.S. Angie Storozynski, a New York-based analyst at Macquarie Capital USA Inc., said in an e-mail.
The new federal standards for air pollution in public services is likely to lead to the withdrawal of some coal plants, which will also drive increased demand for gas plants, Storozynski said.
"We expect the natural gas as the fuel of choice for U.S. energy generation in the future," he said.