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Clean Energy Stocks

Following an Oil Billionaire to Natural Gas Profits

By Nick Hodge
Friday, August 15th, 2008

Mary Sawaya has seen a 50% increase in business over the past five years.

She sells work boots and Carhartt overalls in Kemmerer, Wyoming.

But the work boot market hasn't always been so bullish.

According to Sawaya, "About 10 years ago, [the energy industry] was in a slump. And then when Williams Field built their second plant and [Enterprise Products Partners LP] came in, and all this oil and gas cycling came through ... our business went way up."

Job growth in Wyoming has been the strongest in the nation over the past few months. The state's budget surplus is a whopping $571 million.

A recent local news report claimed the state and its citizens have benefited from the sale of coal, oil, and natural gas. But, the report claimed, "Natural gas has really been the biggest money maker in the past couple of years. It's boosted the whole state, but especially the towns that are really close to the energy fields."

Notice she didn't say oil fields.

Before I get into the clean energy stocks associated with this energy boom, let's take a look at some of the market forces behind the push...

Natural Gas: The New Transportation Fuel

No, it's not oil that's fueling this modern day boomtown—it's natural gas.

You see, many of the world's largest oil fields, including those from which the U.S. gets large amounts of imports, are in decline. This is a fact that is not going away. In fact, Cantarell, Mexico's supergiant and a large source of American imports, declined 28% last year. At that rate, it will be gone in four years.

To make up for this (and many other) declining fields, energy (not oil) companies are racing to pick up the slack. Indeed, we really can't produce any new additional oil until we find and produce enough to offset the decline of major fields.

So everything is on the table. Biofuels, tar sands, oil shale, deepwater, and yes, even natural gas liquids. We need them all. And we need them to be recovered responsibly.

This is what The Pickens Energy Plan is all about. Using our domestic supply of natural gas—like the fields in Wyoming—to increasingly fuel our cars. Some of the electricity that was once produced with large amounts of natural gas will then be shifted to cleaner wind-based power.

This all comes down to energy security and independence. Importing 66% of all oil and oil-based refined products makes no sense at all (and hasn't for a long time).

But, as I've said before, Boone's efforts aren't entirely selfless. The billionaire, who currently serves as chair of BP Capital, has large claims in clean energy, natural gas- and wind-related companies and projects.

He's got a $12 billion stake to build what, until recently, was considered to be the world's largest wind farm on the Texas panhandle (Clipper and BP recently announced a wind farm that would be even bigger). Pickens also has heady interests in natural gas fueling companies and in natural gas engine manufacturers.

And with the amount of financial weight he brings to the energy party, you can bet policymakers are responding.

California has already set forth a ballot initiative that would allow the state to invest in the burgeoning market for natural gas-fueled cars and trucks. The measure, which currently faces no opposition, would free up $5 billion to fast-track the deployment of a million natural gas vehicles on California's roads.

The presidential candidates, for their part, are each taking meetings with energy guru.

If you like the plan or hate it, it's fair to say we're going to see a bump in the nation's use of wind energy and natural gas as a vehicle fuel.

Clean Energy Stocks: From Wyoming to Your Portfolio

Earlier in the article we discussed the effects the natural gas boom is already having in small Wyoming towns. That's because Wyoming is a hotbed of liquefied natural gas activity.

The associated economic benefits of the increased use of natural gas aren't being monopolized by Wyoming's citizens. Liquefied natural gas specialists operating in the area, like Enterprise Products Partners (NYSE: EPD) and Williams Partners (NYSE: WPZ) will also see a nice bump.

But the companies that stand to make the most financial gain are those providing liquefied natural gas and natural gas engines to the end market.

T. Boone himself has 40% claims in companies that operate in those sectors.

And you should have your claim, too.

The liquefied natural gas and engine companies in which T. Boone is invested have returned 10% and 107% respectively over the pat year.

And that was before the Pickens Plan and huge natural gas bull market came into play.

I've prepared a full report on how you can instantly start profiting alongside billionaire oilman T. Boone Pickens.

Those that have followed his lead over the past few years have made millions. And you should be getting your fair share.

Call it like you see it,

nick hodge

Nick






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