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.
Now global companies will look to the United States for a steady supply of inexpensive energy to power manufacturing across a wide number of verticals. International manufacturers are expected to invest up to $50 billion through the end of the decade on new capital projects in the United States, according to Boston Consulting Group.
This presents incredible opportunities for investors looking for how to invest in this second wave of the natural gas boom.
And there's one state you should look at to start profiting today...
The Biggest Winner in Natural Gas Growth
The State of Louisiana has been one of our favorites when hunting for profits from the U.S. natural gas revolution.
One of the best investments in natural gas it has given us is Cheniere Energy (NYSE: LNG) and its Sabine Pass Liquefaction Project, which sits along the border of Louisiana and Texas. The stock has soared from a low of $4.00 on Oct. 3, 2011, to $35.88 on Oct. 8, 2013. The exporting of liquefied natural gas, set for 2014, will continue to offer profits for this stock and new entrants to the practice.
Now Louisiana is going to be a huge player in the second wave of natural gas profits.
That's big news for the state - and for anyone wondering how to invest in natural gas today.
These investments involve the following companies:
- South African-based Sasol Ltd. (NYSE: SSL) has planned a $21 billion investment in a natural gas processing plant. This is the largest investment by a foreign-based company in American history.
- Royal Dutch Shell plc (NYSE: RDS.A) announced recently that it will likely build a $12.5 billion gas-to-liquids plant in the state.
- Incitec Pivot Ltd. (OTCMKTS: ICPVY), an Australian fertilizer and explosives company, will build an $850 million ammonia plant.
- Australian Magnolia LNG has planned a $2.2 billion gas liquefaction production and export facility.
- CF Industries Holdings Inc. (NYSE: CF) is spending $2.1 billion to expand its Louisiana Nitrogen Complex in Donaldsonville.
As new projects come online, the demand for domestic natural gas will only continue to swell. And if you want to capture the profits, you'll need to know exactly where to look.
Here's how to invest now...
About the Author
Garrett Baldwin is a globally recognized research economist, financial writer, and consultant with degrees from Northwestern, Johns Hopkins, Purdue, and Indiana University. He is a seasoned financial and political risk analyst, with a focus on stocks, hedge funds, private equity, blockchain, and housing policy. He has conducted risk assessment projects for clients in 27 countries, and consulted on policy and financial operations for some of the nation's largest financial institutions, including a $1.5 trillion credit fund, a $43 billion credit and auto loan giant, as well as two of the largest Wall Street banks by assets under management.
Garrett joined Money Map Press as an economist and researcher in 2011, specializing in alternative strategies with an emphasis on fundamental and technical analysis.