Yusko Bullish On Shale Gas

Aug 26 2014 | 2:34pm ET

Every American born will require 6.29 million cubic feet of natural gas in his lifetime, which is just one of the reasons why Morgan Creek Capital's Mark Yusko thinks shale gas is a “monster opportunity.”

In a 45-minute Tuesday webcast, Yusko took participants on a whirlwind tour of the world from an energy perspective, touching on oil, natural gas, coal and renewables.

But he started with shale gas, discussing both the “Energy Renaissance” in the U.S.—now the biggest producer of oil and natural gas in the world, poised to become a net exporter of natural gas thanks to exploitation of its shale reserves—to the huge deposits in China and Argentina—the former with reserves of 1 quadrillion cubic feet; the latter with the ability to “solve all its problems”  by developing its 'Vaca Meurta' (Dead Cow) basin.

Energy plays he likes include fracking sand, which he termed a “tremendous investment” and one he expects will continue giving as drilling companies up their requirement from 30 million [pounds] per well to 120 million in search of increased production.

“Everybody says we shouldn't frack. We better frack,” said Yusko, arguing that without the U.S. Energy Renaissance, oil would be at $200 a barrel (in part because Saudis are increasingly using rather than exporting their reserves) and the U.S. would be in trouble.

Yusko also predicted that India would become a major player in world energy markets, part of an explosion that will take the world's population beyond 10 billion by 2100, according to UN projections, with Asia and Africa the most populous regions.

Among the opportunities this presents, said Yusko, is automobile plays as car ownership explodes—he said Morgan Creek has been “nibbling” at this space, with investments in things like car dealerships.

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