If you can sell something for $4 here and $16 somewhere else, where would you sell it?
Well, the shale gas we're producing in North America has buyers in Asia willing to pay 4x the going price here. That spells a lot of opportunity for companies helping to get liquefied natural gas (LNG) across the Pacific.
See our top choices for this nascent boom here...
Natural gas commodities
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- How to Invest in the U.S. Natural Gas Revolution
- Natural Gas Prices Move as the Switchover from Coal Continues
- Two Natural Gas Stocks to Buy Now Before the Transportation Revolution
- Natural Gas Companies Inch Closer to LNG Export Approvals
- Natural Gas Stocks: Time to Pick the Next Winner in LNG Export Race
- Natural Gas Companies Attempt to Make Fracking Safer
- Natural Gas Prices Could Triple – And So Could Your Profits
- Why I'm So Bullish About Natural Gas
- The Best Way to Invest in the Natural Gas Rebound
- Why This Chinese Company Is Investing in U.S. LNG
- Natural Gas Companies: Shell's Huge LNG Win
- Five U.S. Natural Gas Companies Set to Soar from an Export Boom
- 2013 Natural Gas Forecast: Six Bullish Reasons Why Now Is The Time to Buy
- As Prices Rise, Here's How to Play Natural Gas Companies
- Three Natural Gas Stocks Ready to Ride the Price Rebound
If you can sell something for $4 here and $16 somewhere else, where would you sell it?
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.
Companies are ditching coal for natgas, which is pushing natural gas prices higher. Check out how this trend is just beginning... Read more...
Here are two stocks to buy that sit in the sweet spot of a dramatic change that has just started to sweep through in the U.S. trucking industry. Read more...
Natural gas companies that want to export LNG got a treat last week: The DOE approved its second application. So who’s next to get the greenlight? Read more...
There's a worldwide race heating up to supply the world with liquefied natural gas (LNG) and right now the U.S. lags far behind.
But that's about to change, with the U.S. expected to go from 0% of global LNG exports today to 9%-12% as early as 2020.
Investors should get ready because certain natural gas stocks will surge along with the exports.
So far, only Cheniere Energy Inc. (NYSE: LNG) is allowed to export LNG out of the U.S. to both free trade and non-free trade agreement (FTA) countries- it hopes to begin exporting in 2015.
And Cheniere's stock has been on a tear since earning that approval.
When the DOE announced the approval of LNG exports from Sabine Pass on May 20, 2011, Cheniere was trading at $7.69. The stock soared over 30% that day, finishing at $10.04, and today trades nearly 301% higher at $30.82.
Now, investors have another chance to profit from an LNG company.
Once again the catalyst will be approval from the DOE to export LNG to non-FTA countries.
And a non-FTA permit is the key with LNG exports.
The debate over fracking heats up: oil & energy on one side, environmentalists on the other. Here’s how natural gas companies have tried to help. Read more...
Natural gas prices are finally turning around, hitting multi-month highs - and piquing the interest of legendary investors who say the commodity has a lot higher to climb.
While most commodities are moving lower in price - some quite sharply - natural gas has soared in 2013.
The June natural gas futures contract on Monday settled at $4.392 per million BTU, putting it up 31% so far this year. This makes natural gas the top performer among the 24 commodities in the Standard & Poor's GSCI index.
Noted contrarian investor Jeremy Grantham of GMO Asset Management is among the natural gas bulls. He recently told a value investing conference in Toronto that investing in natural gas at today's low prices is a no-brainer.
I just arrived in Texas yesterday for my latest round of oil meetings.
But my interest has moved in another direction.
Natural gas futures have closed at levels we haven't seen in quite some time, reaching $4.14 per 1,000 cubic feet on Thursday. As gas settles north of $4, that means the prospects for natural gas investors continue to improve.
With natural gas prices inching up toward $4 per 1,000 cubic feet on the NYMEX futures market, let’s talk about how investors can make some money off this.
In fact, what’s happening now is just the beginning. My own estimate remains for an average price of about $4.35 come high summer, absent any unforeseen developments, with an increase to $4.85 to $5.15 by the end of 2014.
So, as the natural gas rebound continues, what opportunities should you target?
Here’s the winning strategy...
A private energy company based in China is reportedly investing in the construction of a network of liquefied natural gas (LNG) fueling stations in the United States.
According to a Reuters report, ENN Group Co. Ltd. is teaming with a small U.S.-based company, and the partnership plans to open 50 to 60 LNG fueling stations this year. LNG stations cost an average about $1 million each to build, industry experts say.
ENN has already built a number of natural gas fueling stations in China, which is much further along in use of LNG for heavy trucks than the United States.
LNG's been promoted by investors such as T. Boone Pickens and natural gas producers including Chesapeake Energy Corp. (NYSE: CHK) as a cheaper, cleaner fuel for long-haul trucks.
Now more natural gas companies are teaming up to provide LNG, which means more investment opportunities for energy investors.
Tuesday's $6.7 billion deal underscores - yet again - the looming importance of liquefied natural gas (LNG) to natural gas companies and the global energy market. Here are all the details you need.
You see, critics of exporting natural gas have argued that exporting the resource to global markets would hurt the U.S. economy by raising natural gas and oil prices.
But last week's NERA Economic Consulting study, done at the DOE's request, showed the United States would get a positive economic boost from exporting liquefied natural gas (LNG), even under all possible scenarios in which exports are envisioned.
"Across all these scenarios, the U.S. was projected to gain net economic benefits from allowing LNG exports. Moreover, for every one of the market scenarios examined, net economic benefits increased as the level of LNG exports increased," the study found. "In particular, scenarios with unlimited exports always had higher net economic benefits than corresponding cases with limited exports."
The study could increase the chances of the Energy Department approving permits for natural gas companies to build LNG export facilities. Only one company has ever been approved to build an LNG export terminal, and at least 15 more LNG export projects are waiting for the green light.
Here's why companies are vying for a piece of the LNG export market.
How LNG Leads to ProfitsLNG is simply natural gas in liquid form, and when it is liquefied the cooling process actually reduces the space LNG occupies by more than 600 times.
That makes transporting LNG on tankers much easier than moving natural gas through pipelines. It also allows companies to sell natural gas overseas, where natural gas prices at $11.83/MMBTU are about 3.5 times higher than U.S prices at $3.4/MMBTU.
Money Morning Global Energy Strategist Dr. Kent Moors says the export of LNG from the U.S. to global markets "is the single most significant change in the energy market for the next several decades."
"American operating companies recognize the LNG market will provide a major outlet for surplus production," said Moors. "Last week while I was in Moscow, Russian natural gas giant Gazprom again gave an estimate. They now believe that the U.S. will account for 9-12% of the world's LNG flow before 2020 from 0% today."
Natural Gas Companies to WatchSome U.S. natural gas companies are ahead of competitors in setting up LNG-export facilities.
Investors who want to profit from LNG exports should keep an eye on these:
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.
One, the sector came out of a very mild winter that saw very poor demand for natural gas.
Two, the onset of summer - and a particularly hot one, at that - has had the exact opposite effect.
This summer's record-setting heat has wreaked serious havoc on the economy. The price of everything we consume has been to some degree impacted by the heat, and natural gas is no exception. As temperatures have risen, utility companies have had to rely more and more on natural gas to generate electricity.
What's more, due to strengthened environmental regulations, coal-fired power plants are coming off-line, and their capacity is being replaced by natural gas.
On the supply side, prices were also juiced by last week's Energy Information Administration report that supplies increased by 24 billion cubic feet, missing expectations of a rise between 27 million bcf and 31 million bcf.
While prices are up, they're still hovering below $3. Since much of the country is still in the throes one of the hottest summers on record, there's still some money to be made.
What's more, analysts are predicting a colder winter than last year, which should bring some stability to prices when the heat wave subsides.