natural gas stocks
The U.S. natural gas industry is undergoing seismic changes that are inverting the traditional gas supply-and-demand map of the United States - literally redrawing it.
And this offers the opportunity to make even more money than before for those who know how to invest in natural gas today.To continue reading, please click here...
Best Investments in Natural Gas: This New Demand Source Is Changing Everything
[Editor's Note: Subscribers of Dr. Kent Moors' free Oil & Energy Investor service received this article Oct. 8. The energy sector offers you some of today's best investment opportunities that will thrive even if Washington's budget shenanigans derail our economic recovery. Read Moors' latest analysis below - and sign up to stay up to date on the sector's biggest profits.]
As we have discussed on several occasions, there is a revolution occurring on the demand side in natural gas. No fewer than five major advances are hitting that will ramp up the requirements for this fuel source.
It's a development every investor should know about because it pushes new names on to the list of today's best investments in natural gas.This is creating a rare opportunity for energy investors...
How to Invest in Natural Gas Today
There's a new global capital shift that's affecting how to invest in natural gas today for maximum profit.
You see, there was a time when U.S. manufacturing companies invested heavily in the Middle East because of the region's low-cost energy sources.
Today, that money is coming back home.
International companies have noticed that the United States is a cheap source of natural gas. That's because the rise of hydraulic fracturing triggered a boom in U.S. natural gas production.To continue reading click here...
The Best Stocks to Buy Now to Play the Booming Marcellus Shale
The shale gas revolution in the United States just keeps getting better - especially if you know the best energy stocks to buy now.
This past spring the research group Potential Gas Committee raised its estimate of potential recoverable U.S. natural gas reserves significantly.
The group increased its 2010 estimate by 25.6% to 2,384 trillion cubic feet of gas. That is double the estimate of just 10 years ago.
For the Best Natural Gas Stocks, Look Deep in the Heart of Texas
To pick the best natural gas stocks to play the natgas price rise, you need to look not just at company fundamentals, but one crucial factor: Where these companies' assets lie...
That's because companies with assets in Texas are booming, and will deliver some of the best gains ever seen by energy investors.
Texas is the historical center of the U.S. energy industry. Today it's a major producer of natural gas.
Joel D. Moxley, president of the Gas Processors Association, told the Houston Business Journal, "Booming is the only way to describe the natural gas industry in Texas."
Texas holds about 23% of the U.S. natural gas reserves and accounts for approximately 30% of current U.S. output.
Its present output is roughly 19.7 billion cubic feet of natural gas per day. That means if ranked globally, Texas would rank third for natural gas production - behind Russia and the other 49 U.S. states.
One main area of focus for natural gas in the Lone Star state is the Eagle Ford Shale Formation. Production there nearly tripled between 2009 and 2012.
How to Invest in Natural Gas Stocks as Prices Swing Back
There are staggering numbers coming out of the energy world - numbers that explain how to invest in natural gas now...
According to the Energy Information Administration (EIA), in the United States alone is parked over roughly 862 trillion cubic feet of natural gas reserves. That's over a century's worth of domestic supply.
Better yet, there's plenty of domestic demand for that supply -and it's growing.
Why this Country is a Huge Profit Opportunity for Natural Gas Companies
Here at Money Morning, Dr. Kent Moors and others have spoken often about how the coming liquefied natural gas (LNG) export boom will be a huge profit windfall for natural gas companies. LNG exports should begin in earnest from this country in 2015.
But there is a natural gas export boom that is occurring right under many investors' noses.
Vast amounts of U.S. natural gas are currently being shipped via pipelines to many experts' favorite emerging country.
In fact, Money Morning Global Investing Specialist Martin Hutchinson called investing there a "100-year opportunity."
The country in question? Our neighbor to the south: Mexico.
Natural Gas Stocks are About to Reprise an All-Star Performance
Everyone likes a good comeback story where large obstacles are overcome on the way to a favorable outcome.
And we're about to see one in the investment world...
The shale gas boom seemed to be a disaster for the natural gas industry as the price of natural gas plummeted over a five-tear period to reach a multi-year low below $2 per million BTU in April 2012.
A Huge LNG Energy Boom Has Begun
Oh, the law of unintended consequences and the opportunities it brings.
Thanks to the new standard of Keynesian Abenomics, the Nikkei has blasted 47% higher since November. The Yen has lost about 25% against the U.S. dollar in the same time.
While we don't know what the future will hold for these trends, there's something else going on that will not fade quickly: The weak Yen has made imports to Japan a whole lot more expensive...including energy.
Since the Fukishima-Daiichi nuclear disasters in March 2011, Japan has compensated for its offline nuclear power plants by importing copious amounts of Liquefied Natural Gas (LNG). It was the fastest way to keep electricity output stable in an economy reliant on non-domestic energy suppliers.
Energy now accounts for about one-third of all Japanese imports. In March, those imports were valued at $17 billion Yen for the month. The following month, that number hit $22 billion.
Not surprisingly, in April Japan set a new record for spending on LNG imports. To be sure, a foundering Yen has contributed greatly. But this nation built on exports needs to keep the lights on. If all of Japan's nuclear plants were up and running at capacity, they'd supply 30% of the country's electricity needs. Instead, they account for just 2%.
And Japan is not alone.
How to Invest in the U.S. Natural Gas Revolution
It's no secret America has been in the midst of a natural gas revolution.
The technological advancement of fracking is causing nothing less than a full on shale boom, opening up amazing new profit opportunities if you know how to invest in natural gas - which I'll get to later.
According to the International Energy Agency (IEA), shale's share of U.S. oil & gas production will soar over the next 20 years. By 2035, the agency expects as much as 25% of U.S. oil and 50% of U.S. gas production will come from this source alone.
Thanks to the complexity and time involved, fracking a well is expensive, with costs running up to $10 million per well. It also requires a lot of room, a number of vehicles, and sophisticated and powerful equipment to get the job done.
But finding, drilling, and production costs are coming down as efficiencies are being gained. And this phenomenon will accelerate the rate at which supply hits the market.
Since late 2010, the time to drill a Bakken well has fallen dramatically - from 36 to 22 days currently.