Energy and Capital's Weekend Edition: Natural Gas

Keith Kohl

Written By Keith Kohl

Posted September 19, 2009

Welcome to the Energy and Capital Weekend Edition — our insights from the week in investing and links to our most-read Energy and Capital and sister publication articles.


To say that natural gas is on the move would be an understatement. After extending its run through much of this week, natural gas prices have risen to nearly $4 per Mcf.

But hey, don’t take my word for it.

Take a look for yourself:

natural gas price chart 91909 EAC

Rallying from seven-year lows, have we finally seen a bottom for natural gas prices?

Of course, we can partially thank the EIA weekly storage report, which showed that the five-year average fell to a 16% surplus (compared to 17% from last week’s report). In other words, traders are less worried that U.S. storage levels will reach capacity before the winter heating season takes off.

Naturally, the one point of concern for investors is the supply glut. If the U.S. reaches capacity over the next six weeks (the winter heating season typically begins in November), that will force producers to sell their gas on the spot market, which will inevitably weaken prices. Don’t forget the fact that producers can’t ramp up production until the glut passes.

The good news is that the over-supply will eventually work itself out, assuming an economic recovery is in the pipeline.

Until next time,

Keith Kohl

Energy and Capital



P.S. In case you missed out on some of our articles from this past week, you can catch up on our top stories below.

Offshore Drilling Stocks: 3 Stocks for Your Offshore Profits
Earlier this week in Energy and Capital, I took a look at how far the world has to go to reach new sources of oil, highlighting the investment opportunity opening for investors like us.

California Executive Order: A New Solar Feed-In Tariff Will Increase Sales
 Green Chip guru Jeff Siegel covers the latest news resulting from Governor Schwarzenegger’s push for more renewable resources in the Golden State.

Louisiana Natural Gas Explosion: New Gas Discovery Sparks Unprecedented Land Rush
Investors are given a front-row seat to the world’s fourth largest natural gas discovery, highlighting four companies at the forefront of this gas bonanza.

Top Dividend Stocks: You Decide – Wal-mart Greeter or Life of Leisure
Wealth Daily Editor Steve Christ offers insight into the world of dividends, as well as advising readers how to correctly pick up those top-dividend stocks.

Top Silver Stocks: 5 Silver Companies Increasing Production
Gold World Managing Editor Luke Burgess follows up last week’s review of his favorite gold producers with a fresh look at five silver companies about to take advantage of the greatest silver rush in history.

The Cleantech Revolution: The Biggest Wealth-Building Opportunity of Our Lifetime
Green Chip‘s Nick Hodge brings readers along for the ride as he gives an in-depth analysis of one of the world’s hottest industries. This time around, readers have a chance to join Nick’s success, which includes more 30 double-digit winners so far this year.

China’s Electric Car Market: China in the Spotlight at the Frankfurt Motor Show
Wealth Daily Editor Brian Hicks takes a moment to reflect on how the Chinese auto industry is going to cause an explosion in rare metals and shows readers one mining stock that’s in the perfect position to profit.

Angel Publishing Investor Club Discord - Chat Now

Keith Kohl Premium



Hydrogen Fuel Cells: The Downfall of Tesla?

Lithium has been the front-runner in the battery technology market for years, but that is all coming to an end. Elon Musk is against them, but Jeff Bezos is investing heavily in them. Hydrogen Fuel Cells will turn the battery market upside down and we've discovered a tiny company that is going to make it happen...

Sign up to receive your free report. After signing up, you'll begin receiving the Energy and Capital e-letter daily.