UPDATE: Opportunity 3
The most underpriced conventional energy commodity in the world.
If you’re already a paid-up (Pro) Bear badass, then you most likely have already read about the opportunity that I published on May 30th 2024.
This commodity, which is the focus of the 3rd-installment in my Opportunity Alerts series, is in an overlooked sector… which is primed for explosive growth, as there will soon be a shift in global market dynamics that will essentially require this commodity to be more competitive here in the US of A.
Now, I’m not going to sit here and try and pretend you can’t guess that I am referring to Natural Gas; but it is specifically U.S. producers who will, soon, stand to reap massive rewards.
And, if you’re a Pro subscriber, you can see the three (3) main options I’ve found that will help you to get the most exposure to natural gas and its forthcoming price equilibrating effects, each with their own advantages and considerations.
Read all about it here:
And, just yesterday, international investor and entrepreneur James Hickman, posted something that dovetails nicely into what I wrote about, again, in late May:
Right now, natural gas prices in the US are dramatically lower than they are in Europe… and it’s easy to understand why: the US has some of the biggest natural gas reserves in the world, while Europe has almost nothing by comparison. (This is why Europe is so reliant on Russian gas).
And since Joe Biden has banned new LNG (liquefied natural gas) export terminals from the US, it’s difficult to move that US natural gas to Europe.
This is why prices in the US are less than $3, versus more than $10 in Europe. If US producers were free to export, prices in the US would rise, prices in Europe would fall, and the global natural gas prices would be more or less the same, similar to oil.
In terms of energy equivalence to oil, $3 per million BTU natural gas is the equivalent of paying around $15 – $20 for a barrel of oil. That’s cheap. And it means US natural gas is the most underpriced conventional energy commodity in the world.
But it probably won’t stay that way for long.
First, large tech companies, which are building massive, energy-hungry AI data centers, are also looking at putting in their own power plants… which will most likely be powered by natural gas.
Second, the new export terminal ban probably won’t last. There are lawsuits, legislation, and an upcoming election, any one of which could restart new LNG exports. When this happens, US natural gas prices could quickly rise.
In either case, natural gas producers stand to benefit substantially from higher prices. And it just so happens that shares of many of the best quality producers right now are laughably cheap, with low multiples relative to earnings, book value, and Free Cash Flow.
To see my full write-up on this opportunity, including the five (5) natural gas producers I have no problem endorsing, click here:
Your Partner in the Quest for
Living a Life Without Limits,
Barry “Bear” Goss
