As our cars move away from oil and gas ....
Where will that leave our oil and gas pipelines 10, 15 years from now ?
Would it be better to take our distributions in cash and reinvest them else where?
Thanking you for any and all thoughts.
Humm!!! Government Motors will be producing electric cars. The question is who, if anyone, will buy them? One will save a little money early on not buying gasoline but the initial cost will be very high for a smallish car of limited range. Sort of like a souped golf cart. But the kicker is the battery pack; an 800 lb. monster of high expense with an unknown life span. When you have to replace that baby the cost of operating your vehicle on gasoline or natural gas will look like chump change.
Also, don't forget about the cost of electricity to re-charge the batteries.
The electricity will need to be produced somehow. Wind and solar? Not likely in meaningful quantities in the next 10 years. Coal? Kind of defeats the purpose of converting to electric autos. Most likely, natural gas would be used in increased quantities to produce the additional electricity to power electric autos.
Net, net, battery powered cars would not be bad for natural gas pipeline companies like EPD, ETP, and BWP, as well as many others.
It will be past 2010 before amy mass buying of electric cars because of only short haul ability, the closest thing will be advanced bio-diesel.They are using that at Fed-Ex for long haul trucking.Near term next 10-20 years if they make the plants it could be bio-diesel and gasoline.
If you believe this, don't invest in oil and gas(oline). This MLP is focused mostly on Nat Gas and NGLs, which are not used extensively in transportation. Nat gas is mostly industrial and electricty generation; NGLs are mostly industrial. EPD has very little exposure to oil.
Thanking everyone for their feed back on the electric cars.Although the car companies all appear to be working on family size electric cars.Most people don't feel this will be a problem to our oil and or gas stocks.
I mostly buy ,hold and reinvest my dividend paying stocks.However,after holding and reinvesting in my REIT stocks.Well, I now see I should have taking those large dividends and reinvested them elsewhere.
Best of luck to all.
Pipelines not only carry gasoline, they carry jet fuel, NG, heating oil and many things we never even heard of, do you expect electric jets, are you going to switch to electric to heat your house? PS they also supply NG and fuel to Electric plants so I guess if we all switch to electric everything they will need more fuel.
If you believe the electric car will replace the internal combustion engine, then you have to next ask yourself the question: where is all that electricity going to come from? That is *a lot* of electricity!
If you think it will all come from wind and solar, then you have a point. But the statistics I've seen (pickensplan.com is a good place to start) lead me to believe that it will be a very long time before these technologies could supply a significant fraction of the energy our country needs.
In the meantime, we have an abundant domestic supply of natural gas thanks to recent technological breakthroughs in its production from oil shales. And burning natural gas is relatively clean, creating significantly less carbon dioxide per unit of energy released compared to oil or coal.
Because it would be both economically and politically feasible, I personally see a future of electric cars creating demand for NG-fired electricity production.
I agree with the idea that electric cars have a possibility to replace the internal combustion engine (although this is a long shot in the next 10 to 15 years).
I further agree that this will be beneficial for US pipeline companies since NG will be needed for increased electric demand. Even if wind and solar can generate large volumes of electricity economically (not presently possible, but perhaps breakthroughs will occur), coal will be replaced first and all available NG will be used due to its more attractive environmental characteristics.
If you believe cars will move away from oil and gas over 10 to 15 years, you should invest in the power source that will replace oil and gas. In addition, you should not own any MLP energy company. Perhaps consider a short position. You could even short almost any energy company with the theory of cars moving away from oil and gas over 10 to 15 years.
Personally, I do not believe the US (or any major country) will move away from oil and gas over the next 10 to 15 years, so I plan to continue my MLP investments. These companies are already participating in Ethanol; and they will adapt to changes in energy use over time.
My thoughts are to hold until they stop raising their distribution payments.
However, I'll stop reinvesting my distribution payments in the pipelines and invest them elsewhere.
I also stay diversified in my holdings. I was just looking for other peoples thoughts on this.
Thanking you for your's and best of luck to you.
Our cars will run on electric starting in 2010.
My guess would be within 10 to 15 years everyone will be driving electric cars.
So what will our pipline do then ?
Not enough need for all to go NG.
I'm thinking of removing my holdings out of reinvestment.Then investing that money elsewhere.