The Utica shale formation hasn't gotten as much attention as some of the others, but that may be about to change as drillers home in on a "sweet spot" in southeastern Ohio that is producing staggering amounts of natural gas.
Wells drilled in the Utica "sweet spot" were the main reason Ohio natural gas production more than doubled from 89.4 billion cubic feet in 2012 to 203 billion cubic feet in 2013.
This stunning development will pay off handsomely for these five natural gas stocks in particular...
The Irresistible Future of Natural Gas Investing
Today, I'm flying back from Houston... again.
It seems I've been spending quite a bit of time in Texas these days - and for good reason. The rollout of our exciting 25-well oil and natural gas investing project is just one.
But another revolves around the tremendous changes in the industry itself, especially when it comes to natural gas.
In fact, I just presented the keynote address before the annual meeting of the Gas Compressor Association at the Moody Gardens Convention Center in Galveston.
It dealt with the inescapable and irresistible future of natural gas.Here's what I told those assembled about the new, "gas-driven" world...
Alert: These Energy Stocks Are Most at Risk in the Ukraine Crisis
The Ukraine crisis has taken another turn.
A referendum is now set to take place on Sunday (March 16) to decide if the Crimean peninsula will become part of Russia, and the outcome is hardly in doubt.The overwhelming majority of the population there is Russian ethnic, speaks Russian, and will almost certainly vote in huge numbers to become part of Russia.
LNG Stock Chart: 3 Stocks Crushing the S&P 500
The Standard & Poor's 500 Index has climbed 41% in the past three years - but there's a group of stocks that is tearing past it as the outlook for their industry gets brighter.
I'm talking about liquefied natural gas (LNG) stocks. Take a look at this LNG stock chart:To continue reading, please click here...
LNG Stock Analysis for 2014
Liquefied natural gas (LNG) stock analysis for 2014 shows even more potential upside for share prices than years past, as companies get closer to exporting.
That's because several already-approved LNG terminal projects, with a focus on energy-hungry Asian customers, will proceed this year.To continue reading, please click here...
- Two of Today's Best Investments in the Growing Trend of Energy Security We've seen how the U.S. shale oil and gas boom has created a lot of new investing opportunities in the energy sector. As U.S. production soars, however, so do the risks to the infrastructure required to get the oil and gas out of the ground and into people's homes and autos. Now energy security is growing into a handsome profit opportunity of its own...
One LNG Stock to Buy in 2014
Money Morning Global Energy Strategist Dr. Kent Moors first told Money Morning readers about liquefied natural gas in 2010 - when our favorite LNG stock was trading around $6 a share.
Then in April 2012, this company received federal approval to build the first major LNG export facility in the United States.To continue reading, please click here...
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 Most Unlikely Beneficiary of the Natural Gas Boom An array of energy's sub-industries are making a fortune from America's natural gas boom. Rigs, pipelines, rail, wastewater treatment, trucking, seismic imaging, well-site security... And a lot more opportunity is on the way, like the deal Kent just uncovered. But perhaps the most unlikely beneficiary of the shale revolution is the coal industry. After all, "King Coal" has been dethroned in recent years by the swelling supply - and bargain prices - of clean-burning natural gas. Indeed, thermal coal at the Australian port of Newcastle, the Asian benchmark price, is currently near lows not seen since November 2009. Australian producers have especially been struggling. They've been cutting costs and paring back production because U.S. and large project financiers like the World Bank are pulling away from coal projects. And overall, ever-increasing environmental regulation is discouraging coal-powered electricity. But the dynamic is suddenly changing. That's why these $19 coal shares could jump to $26...
How to Invest in the Global Race to Export LNG
As Money Morning Global Energy Strategist Dr. Kent Moors told us yesterday, the United States on Aug. 7 finally approved its third application to export LNG (liquefied natural gas).
The delays in the U.S. LNG export approval process have been frustrating an industry that's ready to capitalize on the price differences between North American and Asian natural gas prices. Asia LNG sells for about $16 per million BTU versus less than $4 per million BTU in the United States.
While the U.S. Department of Energy streamlines this lengthy approval process, our neighbor to the north is also using its abundance of shale gas to race into LNG exports.
You see, Canada has a lot of natural gas.Read More...
- Why this Country is a Huge Profit Opportunity for Natural Gas Companies Natural gas companies have a huge opportunity with LNG, but there’s another huge export boom already happening, that you can invest in now. Read More... Read More...
- Obama Finds A New Way to Strangle US Economy President Obama is about to make an end run around Congress and sign some executive orders that will virtually doom the lifespan of coal-fired power plants. But in his effort to clean up the U.S., he’s costing the economy more than it will save. Read More...
- Natural Gas Stocks are About to Reprise an All-Star Performance Natural gas prices are on the rise, but natural gas stocks have failed to respond. Wait, if we look at what happened about 10 years ago… oh, wow… Read more... Read More...
- Buy Signal: Top Hedge Funds Are Moving Into Energy There is an easy way to find out where the market thinks a particular sector is heading: Check out the movement of futures contracts held by top hedge fund managers. These days, the signal is clear and pointing in one direction. Check this out. Read More...
- Betting on the Coming Boom in Natural Gas Prices There is still some way to go before prices hit the $4+ level - still the perceived "breakeven" point for many producers. But low temperatures in the Eastern U.S. are certainly bringing gas back into play. Here are two ways to profit. Read More...
2013 Natural Gas Prices: Now is the Time To Be Bullish
Forget the Farmer's Almanac.
As we move into the winter season, two things are becoming clear. First, this one will be colder than last year, nationwide. Second, natural gas prices are moving up.
A colder season ahead is an almost statistical certainty. The likelihood of having a repeat of last year's mild winter is quite low. And my second assertion is now supported by several factors.
Until very recently, the changing of seasons was a determining factor in gas prices.
The warm winter throughout much of the U.S. last year certainly contributed to the dive that saw gas prices plummet to near $2 per 1,000 cubic feet (or million BTUs), the NYMEX futures contract unit.
The bigger issue, however, has been the game-changing entrance of unconventional natural gas supply in North America. Both the surplus of in-market stored gas and the ready availability of expanding reserves have been driving factors in lowering prices.
The amount of available gas is staggering.
Known reserves of shale and tight gas, coal bed methane, and remaining free standing volume now allow up to a 25% increase in supply per year into the foreseeable future.
Now, nobody would actually drill that much, because they would destroy the market (the classic example of "drilling" oneself in the foot).
But the ready availability was restraining pricing. That resulted in a period in which gas rig utilization has fallen each month - to its lowest level in over a decade. The industry has been slowing the introduction of accelerating volume into what had been an oversaturated market.
The hottest summer on record also contributed to a steady improvement in price. As the power-generating sector moves quickly toward low-priced gas as the fuel of choice, rising temperatures also increase the need for gas.
But now, at last, the balance is forming.
The inventory is now the smallest in the last two years, as demand picks up in petrochemicals, industrial usage, and even vehicle fuel prospects.
The major thrust is beginning.
This will not be a straight line for natural gas prices. Volatility cuts in both directions.
But one thing is clear.
The gas market is about to get a whole lot stronger...
To continue reading, please click here... Read More...