• 3 minutes Will Iron-Air batteries REALLY change things?
  • 7 minutes Natural gas mobility for heavy duty trucks
  • 11 minutes NordStream2
  • 3 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 10 hours U.S. Presidential Elections Status - Electoral Votes
  • 1 day Evergrande is going Belly Up.
  • 2 days Is China Rising or Falling? Has it Enraged the World and Lost its Way? How is their Economy Doing?
  • 1 day Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 4 days Poland Expands LNG Powered Trucking and Fueling Stations
  • 10 hours Europeans and Americans are beginning to see the results of depending on renewables.
  • 5 days World’s Biggest Battery In California Overheats, Shuts Down
  • 4 days The unexpected loss of output from wind turbines compels UK to turn to an alternative; It's not what you think!
  • 1 day Forecasts for Natural Gas
  • 3 days Ten Years of Plunging Solar Prices
  • 3 days Extraction of gasoline from crude oil.
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

A Rare Opportunity In Natural Gas

Natural Gas has been rallying along with oil, but I have still preferred to stay away from investing in it, as the gluts that plague natural gas are local and less easily rebalanced than the global gluts that currently plague oil. But, there is one opportunity I see in natural gas – and that’s in LNG – Liquid natural gas. And the still best stock in that space remains Cheniere Energy (LNG).

The natural gas market is not like oil, in that it is not a global market – the markets that price natural gas are unique to where it is used, with prices in Europe that hover at a $5 premium to U.S. prices, and in Japan at as much as a $10 premium.

The model at Cheniere has been a very a simple one: Capture the arbitrage between plentiful and cheap natural gas here in the U.S. and extremely strong demand and dear prices in Asia.

But less simple is how to capture that arbitrage: The mechanics of turning gas into a liquid for transport requires frigid temperatures and extreme pressures and specialized tankers to contain it. Building even one LNG plant is a multi-billion dollar endeavor, which Cheniere has done successfully in the Sabine Pass in Louisiana (and soon will finish in Corpus Christi, Texas) –but it required a choking amount of debt in order to accomplish.

In addition, market action could quickly destroy that U.S./Asia premium: We’ve seen U.S. natural gas prices reach upwards of $10 in the early years of the century and…




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