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Natural Gas Export Stocks

Will This EIA Report Push Natural Gas Stocks Higher?

Written by Jeff Siegel
Posted January 16, 2012

We have so much natural gas coming up that we don't know what to do with it.”

That's what Andrew Ware, a spokesman for Cheniere Energy, told reporters last week.

But Ware's statement isn't entirely true.

Because Cheniere knows exactly what to do with it.

And as a result of this company's actions, jobs will be created and enormous amounts of money will be made by those who invest appropriately.

Dirt Cheap

Cheniere Energy (AMEX:LNG), along with about a dozen other producers, is swimming in supply. There's so much, the cost of power production has plummeted to record lows.

Hell, my energy bill last month was so low, my wife actually thought the utility company made a mistake.

There's no doubt that consumers are loving all this cheap natural gas. And we should enjoy it now, because it won't last forever.

You see, last Friday natural gas futures closed at $2.67 per million BTUs. Dirt cheap!

But it's going for as much as $12 per million BTUs in Europe and $18 in a few Asian markets.

As a result, there are now nine domestic producers lining up to get approval to export roughly 10 billion cubic feet of liquefied natural gas per day.  That will certainly translate into a nice pay day for producers, but also a boost in pricing for U.S. consumers.

The latter is causing some to cry foul. And this week, the Energy Information Administration (EIA) is expected to release a report that will actually examine the price effects of potential exports.

What will that report tell us?

Who cares?

It's nothing more than a tool to placate a few boat rockers.

Would an increase in exports result in an increased price for consumers?


And certainly the DOE will glance at this data before issuing new export permits. But the only concern the DOE really has is making sure that an increase in exports won't cause a domestic supply disruption.

And that ain't gonna happen, my friend.

The Bottom Line on Exports

We really do have more natural gas than we know what to do with.

The fact is, natural gas is the new king. Hands down, nothing can touch it. The days of coal being the primary source of our power generation are coming to an end. Natural gas is taking on that role going forward.

Some of our natural gas bounty will also be used to power our buses and trucks. And of course, we'll export an enormous amount, too.

Because here's the bottom line on exports. . .

More natural gas exports equal jobs. It's that simple. And you'll find few in Washington – on either side of the aisle – willing to trade cheaper utility bills for job creation and GDP growth.

Don't think for a second those nine companies aren't going to get those export permits.

And when they do, the flood gates will open wide and every domestic producer that's currently operational is going to benefit handsomely. That's why we're loading up now.

Because once those export permits are released, you're going to see a nice, long steady price increase that's going to supply us with a nice, long steady flow of income. Particularly from the Three Forks formation, where for the past few weeks I've been watching a lot of big money getting very cozy with the producers.


To a new way of life, and a new generation of wealth. . .

To a new way of life and a new generation of wealth...

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Jeff Siegel

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Jeff is the founder and managing editor of Green Chip Stocks, a private investment community that capitalizes on opportunities in alternative energy, organic food markets, legal cannabis, and socially responsible investing. He has been a featured guest on Fox, CNBC, and Bloomberg Asia, and is the author of the best-selling book, Investing in Renewable Energy: Making Money on Green Chip Stocks. For more on Jeff, go to his editor's page.


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