Tuesday, January 4, 2011

Natural Gas Prices Could Go Up in 2011

NEW YORK, NY--(Marketwire - January 3, 2011) - 2010 marked a year that most natural gas investors would like to forget. The reason for the drop in prices and stocks was simply supply and demand. Natural gas supplies have grown in recent years as new technologies have made it easier for producers to unlock previously unreachable reservoirs in onshore shale formations. Some natural gas producers have vowed to reduce natural gas drilling until the gas becomes more valuable, however the chances of supply being greatly reduced are minimal. In the last few months, reports have surfaced implying that the industry appears to be taking steps to avoid catastrophe, though the outlook is highly dependent on political action and (as always) the weather. The Bedford Report examines investing opportunities in natural gas and provides research reports on Chesapeake Energy Corporation (NYSECHK) and Petrohawk Energy Corporation (NYSEHK). Access to the full company reports can be found at:
According to the Energy Department, around 52 percent of American households use natural gas for heating. While weather forecasts still call for a cooler-than-usual winter, a recent government report showed there was an adequate supply of natural gas to meet cold-weather needs, while the US Energy Information Association (EIA) said that natural gas in storages declined by 89 billion cubic feet.
The Bedford Report releases regular market updates on the natural gas so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at www.bedfordreport.com and get exclusive access to our numerous analyst reports and industry newsletters.
Going forward there is slightly more optimism surrounding natural gas. Analysts argue that the natural gas oversupply in the United States could make the nation a major natural gas exporter in upcoming years. Demand for gas is soaring in Asia and other emerging markets as their economies expand.
More liquefied natural gas export facilities could be developed going forward. The Wall Street Journal reported that a subsidiary of Cheniere Energy is working on a deal to supply liquefied natural gas to one of China's largest independently owned natural gas companies. Chesapeake Energy's Chief Executive Aubrey McClendon told investors at a conference he has been in talks with Cheniere to supply gas to the proposed facility. While Cheniere would still need to build the liquefaction facility, the company's CEO believes that interest in the project from natural gas suppliers such as Chesapeake, as well as Chinese interest "confirms the global appetite for US natural gas."
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