[Editor's Note: Earlier this week Kent delivered his oil price forecast. Today it's natural gas. After several down years, Kent says the bear market is over and its time go long.]
Natural gas is developing into a very different market from oil, one that offers plenty of opportunities for investors to make big profits in 2013.
There are two contrasting dynamics when it comes to natural gas
prices. First, the amount of recoverable volume has been accelerating, thanks to increasing unconventional (shale, tight, coal bed methane) reserves and technological improvements to extract it.
A rise on the supply side would generally reduce prices, especially if the number of operators continues to increase. More gas moving on the market from more suppliers results in a downward pressure on prices.
The second dynamic, however, is moving in the other direction, enticing the increase in drilling and expansion of infrastructure.
This factor considers the demand side, and there are at least six major trends
colliding to increase the prospects for gas usage as we move through 2013.
As a result, I expect natural gas prices
to see a 25% increase from current levels... here's why.
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