Natural Gas Set for Recovery in All Sectors

Keith Kohl

Written By Keith Kohl

Posted June 23, 2015

As with oil, U.S. natural gas production jumped after combining horizontal drilling techniques with hydraulic fracturing. And as you and I both know, the surge in output led glut in supply, which in turn caused the price of both crude oil and natural gas drop precipitously.

But this isn’t all-around bad news for investors!

Natural gas production in the U.S. is up by 5% year over year, according to the Energy Information Administration (EIA). Their latest monthly report estimates that average output is expected to rise 4.2 billion cubic feet per day this year.

This means producers are still producing, and are able to stay profitable in low-prices.

And demand is looking to grow with this supply. The EIA estimates U.S. natural gas consumption to rise to 76.7 bcf per day this year, a growth of 4.3% year-over-year, based mostly on the power and industrial markets. These higher rates of usage are driven by low prices; the less it costs, the more they’ll use, which will raise the price again in the long-term.

Cove Point

However, this demand growth isn’t necessarily enough to use up all of our extra supply.

Luckily, storage is an option. So far this season, average natural gas injection has been higher than the 5-year average by 32%, meaning that storage companies – and eventually those in position to export natural gas – are heating up.

To continue reading…

Click here to read the Seeking Alpha article.

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.