Nat Gas Evolution
Last week there was a huge win for natural gas, Cramer said, in Colorado. The state’s largest electric utility, Xcel Energy, reached an agreement with the governor and the state legislature on a bill that requires XEL to cut coal emissions on roughly a third of its plants by the end of 2017, so that they can run on natural gas. This could be just the beginning, the Mad Money host told viewers, as Xcel has another four plants outside of Colorado that exclusively run on coal.
“Now given the EPA’s national reach, it’s conceivable that this could be the start of a nationwide move away from coal," Cramer said, "and towards more natural gas.”
So, who benefits here? How about Noble Energy, Cramer said, a global oil and natural gas producer that’s about 60% nat gas and 40% liquids, with half of its operations in the US and half abroad. The company produces the natural gas that XEL will have to buy in larger amounts as it transitions away from coal. Plus, Noble’s largest onshore oil and gas asset is the Wattenberg Field in Colorado, where it has 53 million barrels of oil equivalent in proved reserves. And, he said, the company just closed on its acquisition of almost all of Petro Canada’s assets in the Rockies too. Also, NBL has solid offshore assets in West Africa and Israel, as well as in the Gulf of Mexico on the domestic side.
So, Cramer invited Charles Davidson, the chairman and CEO of Noble Energy on to Mad Money to learn more about its US onshore business and to find out if America can gain energy independence by adopting natural gas. Watch the video for the full interview.
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