Making Sense Of The New Balance In Crude Oil Prices [Chevron Corporation, BP plc (ADR), Total SA (ADR), CNOOC Ltd (ADR)]

Don’t Sleep on the Opportunities in Natural Gas

It’s another story entirely on the natural gas side. Despite the expanding global reserves of shale, tight gas, and coal bed methane, gas prices are moving up. Once again, more than 80% of extractable reserves worldwide are found outside of North America.

In fact, while the attention remains fixed on the shale revolution underway in the United States, latest figures indicate there is more volume available in China, Argentina, and Algeria than in the United States.

With natural gas, the NYMEX price is now above $4 per 1,000 cubic feet (or million BTUs) as we move into a winter heating cycle that should push prices closer to $4.50.

That means there is a range of profitable moves about to hit. Natural gas normally doesn’t have the sizzle that crude oil has among investors. Of course, making money tends to change that real fast.

What makes the gas picture different are appreciable increases emerging on the demand side. From the rise of U.S. liquefied natural gas (LNG) exports to both Europe and Asia beginning in 2015 to the transition well underway from coal to gas in the generation of electricity, the ability to produce more unconventional gas is being met by a rise in the demand curve.

So despite a dip in crude oil prices, there are still plenty of places to make money in energy.

Money MorningWritten By Kent Moors From Money Morning

We’re in the midst of the greatest investing boom in almost 60 years. And rest assured – this boom is not about to end anytime soon. You see, the flattening of the world continues to spawn new markets worth trillions of dollars; new customers that measure in the billions; an insatiable global demand for basic resources that’s growing exponentially; and a technological revolution even in the most distant markets on the planet.And Money Morning is here to help investors profit handsomely on this seismic shift in the global economy. In fact, we believe this is where the only real fortunes will be made in the months and years to come.

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