A fossil fuel might be our best way to help the environment today.

I know that sounds far-fetched.

You see, I just returned from the U.S. Energy Information Administration’s (EIA) annual Energy Conference in Washington, D.C. As regular Growth Stock Wire readers know, the EIA is a source of unbiased energy information.

[ad#Google Adsense 336×280-IA]While I was at the conference, I learned plenty about energy policy.

But what really stuck out to me was what I learned about climate change…

Unlike many of the conferences I attend, the EIA conference isn’t about individual stocks.

That’s why I was happy to see Steven Kean, CEO of pipeline giant Kinder Morgan (KMI), take the stage on Tuesday morning.

Kean’s presentation was so important that I pulled him aside and spoke with him privately afterward. His practical solution to address today’s climate issues? Use natural gas.

As my colleague Matt Badiali explained on [Thursday], natural gas is cheap and useful. It’s also much cleaner.

Consider this… Since 2007, the absolute level of greenhouse gases emitted has fallen nearly 10%. This is due in large part to the increase in natural gas usage (along with a drop in coal usage). The carbon dioxide emitted by the power sector fell more than 20% over this period.

Still, everyone – Kean included – thinks we need to do more. He knows we have tremendous resources and technology at our disposal in the U.S. We have huge amounts of natural gas. And producing and using natural gas helps to reduce our carbon footprint.

Natural gas is also practical: Kean says Kinder Morgan’s most expensive natural gas project is 800 times cheaper and 50 times more effective than the battery of the electric carmaker Tesla (TSLA) per unit of energy. The efficiency of the Tesla battery will likely improve over time, but it’s not cost-effective yet.

Today, Kinder Morgan is well-positioned to participate in the growth of gas. This “ExxonMobil of pipelines” already owns some of the most valuable energy “arteries” in the world and has assets in nearly every important area of the oil and gas market in the U.S. and parts of Canada. It is also focused on natural gas… 62% of its first-quarter revenue came from handling gas.

Plus, the company just sold half of one of its pipelines to utility giant Southern (SO) for nearly $1.5 billion. It’s uncommon for KMI to sell assets. But because it’s a partner in a 50/50 joint venture, it only has to pay half of the capital expenditures going forward. Plus, KMI can use some of those proceeds to pay down debt, retain its investment-grade credit rating, and keep its debt costs low.

I’m bullish on KMI shares today. Natural gas is the most responsible fuel for the climate. And Kinder Morgan will benefit in a big way as natural gas usage continues to grow. Consider picking up shares now.

Good investing,

Brian Weepie


Source: Growth Stock Wire