Investment Strategy

The US supply of natural gas has increased dramatically over the last few years as a result of improved extraction techniques. The renaissance of energy production in the US is leading to a number of new and growing investing themes:

NATURAL GAS AS FUEL

arrow Natural Gas Replacing Diesel - Our country’s energy revolution has unleashed a massive amount of natural gas, and its use can displace more expensive diesel in many instances.

arrow On The Road

  • There are over 14.8 million natural gas vehicles (NGVs) on the roads worldwide with up to 25 million expected by 2019

  • 1,526 CNG stations operating with additional 156 (10% of fleet) with 2015 planned CODs

arrow Rail

  • The overall cost saving is expected to be $200,000 each year across the typical 30 year lifespan of a locomotive. An added benefit is the need to refuel less frequently

arrow Marine

  • ECA regulations coming into effect forcing natural gas operators to make a choice between initial capex then savings or ULSD with expensive operating cost.

FLARE GAS CAPTURE AND OIL STABILIZATION

arrow New Equipment Required - As the energy industry becomes more of a mobile, manufacturing industry rather than a large scale, fixed position exploration business, many new wells are drilled, and each time a well is drilled, methane, propane and ethane are released. The industry and government have agreed that this energy needs to be captured for environmental, economic and regulatory reasons. The process of capturing gas requires a variety of equipment. Which we provide.

arrow NUSA flares over 7 billion cubic meters of natural gas per year

arrow Economic and regulatory drivers

  • Gas can be monetized - Propane, butane, pentane, ethanol, ethane, plastics, methane (CNG/LNG). Example, North Dakota producers flared est. $1 billion in fuel in 2012.

  • State/federal mandates

  • Flexible, low cost manufacturing of modular solutions

  • Huge market, currently very few competitors

METHANE CAPTURE FROM LANDFILLS, AGRICULTURE AND WASTE WATER TREATMENT

arrow Credits Available - Due to new regulations, methane capture at these sources are receiving very attractive credits.  These credits will spur the development of many digesters across the country

arrowThe main sources of human-related methane emissions are agriculture (36 percent), natural gas systems (23 percent), landfills (18 percent), coal mining (10 percent), petroleum systems (6 percent), and wastewater treatment (2 percent).

    DISTRIBUTED ENERGY PRODUCTION

    arrow Equipment For Multiple Purposes - The distributed energy economy requires billions of dollars of equipment that are designed to be moved in order to process sand, water, water removal, energy, power and fuel.

     

   

 

In developed markets, companies that provide or consume energy are increasingly faced with the need to expand, upgrade or replace their existing energy infrastructure amidst evolving environmental policies, improving system efficiencies, and volatile commodity price movements.
These changes create challenges but also great opportunity for governments, businesses and individuals alike to improve the way they secure and provide energy in a more sustainable way for the decades ahead.