Natural Gas Breakout

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Natural Gas Breakout By Keith Kohl | Friday, June 28th, 2013 The writing has been on the wall for the better part of a decade. Lately, we've been seeing signs that natural gas is slowly taking over in U.S. energy consumption. Even after Obama outlined his strategy to combat climate change this week, new opportunities started to line up for us. But the hype over renewable energy is starting to build back up again as well. Has it gotten ahead of itself? Less than twenty-four hours after Obama delivered his speech, the International Energy Agency made a bold claim: Renewable energy will surpass natural gas for power generation – within three years! Here in the United States, there's a much different outlook. According to projections from the U.S. Department of Energy, these renewable sources will have a hard enough time accomplishing that feat in three decades. Advertisement "Octopus" Drilling Technology 8 Times More Powerful than Horizontal Drilling This new technology will make America the most powerful oil and gas producing country in the world, toppling the mighty Saudi Arabia. In fact, this technology will double U.S. oil production to 11 million barrels per day. Most importantly, it will create a new wave of oil millionaires and billionaires over the next year... To get in on this opportunity, click here for full details.  In regards to the IEA's prediction, however, the devil is in the details. Those of you waiting for a solar revolution to take place might want to have a seat in the corner, because the majority of this electricity comes directly from hydropower. We're still not buying into another overly optimistic report on how renewables will overtake natural gas in the next three years... In fact, the only real pressure to natural gas we'll see will come from higher prices making the fuel no longer competitive against other sources. Unfortunately for the IEA's great green hope, we're not going to see a similar price spike to the one in 2008. And despite the fact that the spot price for natural gas at the Henry Hub has doubled during the last two years, you can see that hasn't been the case since April (click chart to enlarge): So where does this leave individual investors like us? Sitting back and letting opportunities pass won't fly... so what do we look for? What part of the natural gas industry stands to reap huge returns going forward? Is Bigger Better? The obvious course of action for investing in natural gas is through the companies supplying the 62 billion cubic feet of gas we'll consume on a daily basis this summer. It shouldn't come as a surprise that the five largest natural gas producers in the United States account for 20% of its supply. You know these names well enough: ExxonMobil, Chesapeake Energy, Anadarko, Devon Energy, and BP. Together, they produced nearly 13 billion cubic feet per day at year-end. In fact, every one of these players is heavily invested in North America's unconventional gas boom. For example, roughly 90% of BP's gas operations in North America are located in tight, shale, or coal-bed methane plays. BP's first move into U.S. shale took place in 2008 when the company entered the Woodford and Fayetteville shales. In 2010, it cost ExxonMobil $35 billion – including $10 billion in debt – for XTO Energy to gain its first stake in the U.S. shale patch. Perhaps a better question is how they would have performed for your portfolio since... but we'll get to that part in just a minute. Advertisement Push Button Profits Forget waiting years for your investments to pay off... One analyst recently went live with a powerful trading system — a 15-year field-tested technology that pinpoints trades that move as much as 185% in as little as seven days. It has sounded the alarm on trades that could have handed you a return of 81.82% in just 24 hours... and done so with a shocking 90% accuracy. With this system, making money becomes as easy as pushing a button. You simply wait for its three indicators to signal a stock is a buy... then make a single phone call to you broker... and wait for the system to tell you to take your profits. Just click here now to discover his powerful trading system.  Finding Your Profit Niche What can possibly be more valuable to individual investors than the biggest and best natural gas producers in the country? How about finding a unique play in the market that's in a position to deliver tremendous value for shareholders? These aren't the companies driving a drill-bit into the dirt. They are the alternative investments solving the issues surrounding one of the most vital components to natural gas production – hydraulic fracturing. Last month, I even mentioned some of the stocks tackling the huge water issues surrounding the 'fracking' process. Yet these alternative investment opportunities aren't unique to the natural gas industry. And I have to say, that's something my colleague Nick Hodge has proven time and again in today's market. He's on top of a situation right now that controls a product worth $900,000 per gram – a fact that could make early investors more than triple their money. Oh, and in case you're wondering how his tiny, relatively unknown stock has been performing compared to the five largest natural gas companies in the U.S... well, it hasn't even been close over the last few months: How did he and his readers do it? I recommend you take a few short minutes and let him explain all the details behind this recent blockbuster play. You can access his whole report absolutely free right here. Until next time, Keith Kohl @KeithKohl1 on Twitter A true insider in the energy markets, Keith is one of few financial reporters to have visited the Alberta oil sands. His research has helped thousands of investors capitalize from the rapidly changing face of energy. Keith connects with hundreds of thousands of readers as the Managing Editor of Energy & Capital as well as Investment Director of Angel Publishing's Energy Investor. For years, Keith has been providing in-depth coverage of the Bakken, the Haynesville Shale, and the Marcellus natural gas formations — all ahead of the mainstream media. For more on Keith, go to his editor's page.   I liked this article | I did not like this article Follow Energy and Capital on The Bottom Line Related Articles Mexican Oil and Gas Revival Why California Is Indebted to Natural Gas Emerging Oil Plays Side-Stepping a Canadian Gas Crisis Recently... Obama is Investing in THESE Companies Left Out of an Energy Boom The Next "Big Thing" in Solar Is... Why Oil Prices Remain High Sell Tesla (NASDAQ: TSLA) and Buy THIS Stock Now!

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