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A Trillion Reasons to Bet Big on Nat Gas

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"It's time to make your move."

If you think oil prices are too high now—at $100 a barrel—it's time to adjust your thinking.

Truth be told, I don't think we'll see sub-$100-a-barrel oil ever again.

Investors who accept this new oil-price reality—and position themselves accordingly—can settle back and enjoy the ride: As oil prices soar, expect LNG prices to zoom in tandem.

For more than 50 years, LNG has been imported into the U.S. market for use as a fuel, and it does all this without causing major accidents, and without creating any major security concerns. We know that this is a safe, proven fuel.

Utilities have begun switching to natural gas. Legislation pushing for lower emissions is helping to make natural gas more attractive, too.

But the reason LNG has exciting potential is this: Natural gas is shipped mainly through pipelines—meaning that it's traditionally been a "regional" product. . .until now. The development of LNG transportation will make it possible for firms to look much further afield.

By converting the natural gas into a liquid form, it can be economically shipped overseas to awaiting customers, willing to pay a world price that's much higher than the current regional prices.

With crude prices at 30-month highs, and no reason to believe that we'll see oil drop back below the $100-a-barrel level, LNG is clearly gaining momentum.

It's time to make your move.

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