- The U.S. is self-sufficient and has many decades of domestic reserves. Shifting some of our consumption away from foreign oil would reduce our reliance on a volatile region for our energy supplies and is, clearly, in our best interest.
- Natural gas generates around 2/3 of the C02 of crude-oil-based products and only 50% that of coal. Therefore, natural gas must be part of any serious effort to reduce our carbon-based pollution.
- Natural gas is far cheaper than crude oil on a BTU-equivalent basis. At current prices, nat gas produces energy at about 1/3 the price of crude oil.
The shale gas plays have really transformed the economics of the domestic natural gas market. By allowing access to abundant supplies, shale drilling has both improved our position of self-sufficiency while propagating uneconomic production as E&P companies drill in order to retain the leases they've bought. While the low returns on capital that result should be self-correcting, for the bulls on natural gas and their related E&P stocks—it's an interminable wait.
This is why so many names appear attractive—their prices are weak.