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Cramer: Bet on natural gas

October 08, 2009
CNBC's "Mad Money" man Jim Cramer says King Coal is in store for a let down, and natural gas is waiting in the wings to take its place as America's fuel source of choice.

When he's not pointing out the fallacy of hydraulic fracturing regulations (watch the video here), Cramer is touting natural gas as a clean burning fuel with plenty of American reserves.

Pointing out that carbon sequestration has "become gospel" in Washington, Cramer says clean coal is reaching the end of its shelf life with EPA proposing tough rules that will make mining more expensive.

From BloggingStocks:

Our coal strategy vs. our natural gas strategy makes no sense at all, as everyone from the Sierra Club to Al Gore would tell you. Coal's much, much dirtier and because of coal we have to put through incredibly draconian rules that affect all other businesses if we go cap-and-trade. Again, that's a known issue.

If we went with natural gas, where 100 years' worth of use has now been discovered -- enough to solve much of our trade deficit, make us energy self-sufficient and put millions of people to work drilling and building pipelines -- then we would not have to worry about mountaintop mining or EPA rules. But we can't because of a couple of committees in Congress that are dominated by coal people. So instead we cut jobs for coal and raise the price of coal.

Just the dumbest thing we can do. But it doesn't matter. This Congress talks a huge game of carbon reduction and pursues the exact opposite course.

Arch and Peabody have been trading up here because of China, not the U.S., so I don't know if you have a good reason to sell these here. They are very promotional companies. But longer term, this fuel is doomed no matter how much Congress defends it. Longer term, companies like Devon (NYSE: DVN) (Cramer's Take) and Chesapeake (NYSE: CHK) (Cramer's Take) will prevail. Even short term, though, they are getting hurt. New York just announced it is putting in new rules that make drilling more difficult in the state's portion of the Marcellus Shale. Unbelievable.
 
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