• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 2 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 4 hours How Far Have We Really Gotten With Alternative Energy
  • 8 days They pay YOU to TAKE Natural Gas
  • 4 days What fool thought this was a good idea...
  • 7 days Why does this keep coming up? (The Renewable Energy Land Rush Could Threaten Food Security)
  • 3 days A question...
  • 13 days The United States produced more crude oil than any nation, at any time.
Dan Dicker

Dan Dicker

Dan Dicker is a 25 year veteran of the New York Mercantile Exchange where he traded crude oil, natural gas, unleaded gasoline and heating oil…

More Info

Nat Gas Investment Outlook Is Bleak

I’ve been talking almost exclusively about oil in the past dozen columns I’ve written for you – but what about natural gas? Many people continue to inquire about my thoughts on the long-term trajectory of Nat gas and whether they mirror my thoughts on oil. Is there value to be found in ‘survivor’ natural gas stocks, like Devon (DVN) or EQT Corp (EQT), as I maintain there is value in the ‘survivor’ oil stocks?

In short, the scenario for ‘natty’ remains bleak.

The long-term market for natural gas shares similarities to oil – there is a known glut in both which needs to clear either through a decline in production, an overwhelming (and unexpected) increase in demand, or both. US natural gas prices labor under the added burden that they are not in the least affected by global pricing – where possible shortages from Middle East suppliers can mean a lot for crude prices, they are almost meaningless for the “local” US natural gas markets.

Much like in oil, we’ve been waiting for those “time bombs” I keep talking about of major restructurings and outright bankruptcies to emerge in the natural gas space to whittle away some of the production – and I have been equally astounded at the resilience of gas producers to avoid the ultimate axe. Insanely leveraged Chesapeake (CHK), for example, has been a bellwether stock that I’ve been following to signal to me the beginnings of that capitulation. Instead, it continues to find ways to stay alive – selling assets, restructuring…




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News