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You’ll Be Surprised By This Underdog Investment in 2024

Keith Kohl

Written By Keith Kohl

Posted March 5, 2024

Everybody loves an underdog, don’t they?

Maybe you see a team that’s been beaten down so bad year after year, you can’t help but start rooting for them a little. 

Perhaps a few of you remember watching the Giants do the impossible by upsetting a Patriots team that had gone 16-0 during the 2007 regular season. The final drive alone gives fans chills. Or, maybe a few of my veteran readers can think back 34 years ago when Buster Douglas knocked out Tyson

I’m sure there’s more than a few of you who even remember the Miracle on Ice, when the U.S. men’s hockey team upsetted a Soviet Union team that had dominated the Olympics for years. 

And now there’s an underdog out there right now that has been beaten down, pushed to the back of investors’ minds and forgotten about; their focus shifting to more excitable sectors of the market. 

Don’t Call It a Comeback… Not Yet

The story of the U.S. natural gas industry reads like a greek tragedy these days. 

Since the 1950s, the United States’ demand for natural gas has been a never-ending ride higher. Except for a brief lull in demand growth back in the 1980s, our thirst for natural gas has consistently grown and continues breaking into all-time high territory.

Don’t believe me? Go ahead and take a look for yourself:

natural gas production

Last year, the U.S. consumed an impressive 32.5 trillion cubic feet of natural gas!

And still, it was easily one of the most underwhelming investments out there. 

To answer why that’s the case, we need only to look back on the single greatest energy boom of our generation. 

You see, things were very different back in 2007. That year, our natural gas imports soared to a record high of 4.6 trillion cubic feet. Sure, we were a huge producer of natural gas, but we weren’t producing enough to keep up with our appetite. 

And for that extra gas we craved, we were not only forced to turn to our friendly neighbors to the north for help, but the U.S. was starting to import a staggering amount of liquefied natural gas as well. Between 2002 and 2007 — just five years’ time — our LNG imports surged nearly 240%. 

Then, when natural gas prices seemingly couldn’t spike any higher, our own ‘Miracle On Ice’ moment took place. Companies had started combining horizontal drilling techniques with hydraulic fracturing and were able to tap into a vast wealth of natural gas locked in tight rock formations underground. 

That event led to the biggest oil and gas boom of our lifetime. 

In the Appalachia region in particular, the Marcellus shale has pushed our natural gas output to new heights — to the point that companies started reversing our LNG import facilities so that we could export that gas internationally. 

If you want to put this boom into perspective, it was recently announced that the U.S. had become the world’s largest LNG exporter, finally overtaking Qatar.

However, this boom came with a huge drawback.

Whenever the supply/demand fundamentals are thrown so far out of whack, prices will always react. And there’s been no greater collapse in energy prices in recent memory than that of natural gas; it’s been a plague for producers and investors alike for years. 

Even the slight respite we had in 2022 when the Russia-Ukraine war sent volatility spiking higher, it wasn’t long until natural gas prices were once again in the trenches. 

But this story may turn out to have a happy ending, because we all know that the cure for low energy prices IS low energy prices. 

And after years of cheap natural gas, we’re finally starting to see the major players react. Today, EQT — the largest natural gas producer in the U.S. — announced that it was going to start curtailing production in March. 

Add in a few more bullish factors for prices, such as lower U.S. crude oil production (associated natural gas output via our oil production has sent a flood of natural gas supply into the market), and a little break from the warm winter we’ve been experiencing recently, and you might just have a recipe for a natural gas comeback. 

That would make the bottom we’re seeing right now an interesting buying opportunity. 

Until next time,

Keith Kohl Signature

Keith Kohl

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A true insider in the technology and energy markets, Keith’s research has helped everyday investors capitalize from the rapid adoption of new technology trends and energy transitions. Keith connects with hundreds of thousands of readers as the Managing Editor of Energy & Capital, as well as the investment director of Angel Publishing’s Energy Investor and Technology and Opportunity.

For nearly two decades, Keith has been providing in-depth coverage of the hottest investment trends before they go mainstream — from the shale oil and gas boom in the United States to the red-hot EV revolution currently underway. Keith and his readers have banked hundreds of winning trades on the 5G rollout and on key advancements in robotics and AI technology.

Keith’s keen trading acumen and investment research also extend all the way into the complex biotech sector, where he and his readers take advantage of the newest and most groundbreaking medical therapies being developed by nearly 1,000 biotech companies. His network includes hundreds of experts, from M.D.s and Ph.D.s to lab scientists grinding out the latest medical technology and treatments. You can join his vast investment community and target the most profitable biotech stocks in Keith’s Topline Trader advisory newsletter.

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