Wednesday, June 16, 2010

Can Investors Capture Gains In Carbon Capture?

Carbon capture and storage (CCS) seems to be an inevitable emerging technology over the next few decades. CCS holds the promise of cutting CO2 emissions from power plants by up to 80-90%, while not imposing a crippling cost burden on energy producers and customers. As increased legislation aimed at controlling green house gas emissions seems like a done deal in the years to come, investors should look to see how they might position themselves to profit. 

Look to the Oil FieldsOne of the early adopters of CO2 capture and storage has been the oil and gas industry. Companies including Statoil (NYSE:STO), Kinder Morgan (NYSE:KMP), and Denbury Resources (NYSE:DNR) have been early movers in this field, which involves injecting CO2 far beneath the ground to stimulate better oil and gas production. Kinder Morgan operates CO2 pipelines and reported a few years ago that in the Permian Basin and Mississippi nearly 11 trillion cubic feet of CO2 had been used to generate and incremental 1.2 billion barrels of oil that might otherwise have remained in place.

For the complete column, please go to:
http://stocks.investopedia.com/stock-analysis/2010/Can-Investors-Capture-Gains-In-Carbon-Capture-STO-KMP-DNR-ALB-GRA0616.aspx

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