How to Invest Today in the Rapidly Shifting U.S. Natural Gas Market

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.

You see, southern states like Texas and Louisiana have functioned as the major supplier to the U.S. gas market, and the eastern and western states have been the two high-consumption regions.

But current conditions and future projections have triggered a rapid shift in this process.

In fact, many energy experts, including Money Morning Global Energy Strategist Dr. Kent Moors, believe the U.S. natural gas market will be turned on its head before the start of the next decade.

The U.S. Natural Gas Market: A "True Sea Change"

An Oct. 8 report from energy analytic firm Bentek Energy highlighted just how big this transformation will be.

"Based on our latest modeling, the U.S. is embarking on a true sea change," said Bentek director of energy analysis Rocco Canonica, lead author of the report.

Bentek wrote that gas production from the entire Northeast has soared more than 500% since 2005. This is due in large part to the Marcellus Shale in Pennsylvania and West Virginia and the Utica Shale in Ohio.

Production from the Marcellus Shale is rising much faster than expected, up about 50% so far this year from 2012 levels. Bentek reported that 36% of total U.S. natural gas production growth from 2013 to 2023 will be in the Northeast United States.

However, while production takes off, the region will account for only 15% of growth in gas demand.

Instead, Bentek said the traditional gas-production region in the southeast will become a "premium market area" for natural gas.

This "explosive demand growth" for natural gas will come from more gas-fueled power plants, gas-powered industrial projects (including petrochemicals), and large exports of liquefied natural gas (LNG).

This redrawing of the gas supply-and-demand map in the United States has many implications – for both companies and investors (evidenced by the five picks we give away below…)

Join the conversation. Click here to jump to comments…