• 30 mins Enbridge Pipeline Expansion Finally Approved
  • 2 hours Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 2 hours OPEC Oil Deal Compliance Falls To 86%
  • 18 hours U.S. Oil Production To Increase in November As Rig Count Falls
  • 20 hours Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 22 hours Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 24 hours EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 1 day Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 1 day Aramco Says No Plans To Shelve IPO
  • 4 days Trump Passes Iran Nuclear Deal Back to Congress
  • 4 days Texas Shutters More Coal-Fired Plants
  • 4 days Oil Trading Firm Expects Unprecedented U.S. Crude Exports
  • 4 days UK’s FCA Met With Aramco Prior To Proposing Listing Rule Change
  • 4 days Chevron Quits Australian Deepwater Oil Exploration
  • 4 days Europe Braces For End Of Iran Nuclear Deal
  • 5 days Renewable Energy Startup Powering Native American Protest Camp
  • 5 days Husky Energy Set To Restart Pipeline
  • 5 days Russia, Morocco Sign String Of Energy And Military Deals
  • 5 days Norway Looks To Cut Some Of Its Generous Tax Breaks For EVs
  • 5 days China Set To Continue Crude Oil Buying Spree, IEA Says
  • 5 days India Needs Help To Boost Oil Production
  • 5 days Shell Buys One Of Europe’s Largest EV Charging Networks
  • 5 days Oil Throwback: BP Is Bringing Back The Amoco Brand
  • 5 days Libyan Oil Output Covers 25% Of 2017 Budget Needs
  • 5 days District Judge Rules Dakota Access Can Continue Operating
  • 6 days Surprise Oil Inventory Build Shocks Markets
  • 6 days France’s Biggest Listed Bank To Stop Funding Shale, Oil Sands Projects
  • 6 days Syria’s Kurds Aim To Control Oil-Rich Areas
  • 6 days Chinese Teapots Create $5B JV To Compete With State Firms
  • 6 days Oil M&A Deals Set To Rise
  • 6 days South Sudan Tightens Oil Industry Security
  • 7 days Over 1 Million Bpd Remain Offline In Gulf Of Mexico
  • 7 days Turkmenistan To Spend $93-Billion On Oil And Gas Sector
  • 7 days Indian Hydrocarbon Projects Get $300 Billion Boost Over 10 Years
  • 7 days Record U.S. Crude Exports Squeeze North Sea Oil
  • 7 days Iraq Aims To Reopen Kirkuk-Turkey Oil Pipeline Bypassing Kurdistan
  • 7 days Supply Crunch To Lead To Oil Price Spike By 2020s, Expert Says
  • 7 days Saudi Arabia Ups November Oil Exports To 7-Million Bpd
  • 7 days Niger Delta State Looks To Break Free From Oil
  • 8 days Brazilian Conglomerate To Expand Into Renewables

Boom Times in the LNG Sector

It's been awhile since we've seen mania in resource stocks.

But two examples these last few weeks look like just that.

Last week, liquefied natural gas technology provider Chart Industries jumped 13% in a day, after announcing a contract for a facility build with Noble Energy in Colorado.

This in itself isn't bubble-like. But it starts to look more so when you combine it with Chart's recent share price performance.

The stock has doubled over the last nine months. Now standing at a towering 47x P/E on 12-month trailing earnings. A day of double-digit gains on top of such rapid growth thus starts to look somewhat frothy.

If there was a resource sub-sector ripe for bubbles, it would be LNG. The sector has lately come into vogue, after announcements of ambitious plans for LNG export projects in the U.S.

To be sure, there are good opportunities in American LNG. Every bubble starts with a grain of truth. And based on the valuations in the sector, it looks like expectations are getting well ahead of financial reality as we know it today.

It's striking that this performance comes at exactly the same time as another mania-like stock performance has unfolded in the resource sector: that of nuclear fuel manufacturer USEC.

USEC's share price exploded over the last two weeks. Going from $3 to as high as $29.

No explanation is apparent for the burst. The company has not released news, nor provided any speculation on the reasons for the gain.

It may turn out to be something else, but it certainly looks like manic buying.

These two events could be coincidence. Or perhaps a subtle comment on where the resource markets are at. Certainly more excitement than we've seen for quite some time in the space.

Here's to good old-fashioned boom times,

Dave Forest



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News