Most politicians, energy experts and consumers cite the abundant supply and low price of natural gas realized by the U.S. Shale Gas Revolution as reason to celebrate. However, natural gas producers, investors, and speculators who have bet on higher prices still continue to “sing the blues.” Despite recent NYMEX natural gas futures prices hovering around $2.05/MMBtu and lower physical natural gas prices, I am very bullish on natural gas for a variety of reasons. In fact, I believe that three times the current price is a bargain for the benefits that the fuel provides.
Recent events in the Chinese stock market and the steep decline in crude oil prices are wreaking havoc on global economies and reducing revenues to OPEC producing countries, respectively. However, when things are not going well economically, it forces national and local governments to rethink their energy policies and the fuels they rely on to heat and cool homes and businesses, produce electricity, and transport people and goods. It is indeed a time when fuels traditionally used in a country are vulnerable to new thinking that puts a premium on human health and environmental issues.
Fortunately, abundant and inexpensive U.S. shale gas and LNG Exports from the U.S. to Europe, Asia and South America will provide more economic options to national and local governments that want to begin attacking chronic air pollution problems in their large urban centers. As natural gas takes center stage as a solution to chronic air pollution, demand for the fuel will increase and so will prices. Let me explain. Read more about Why I'm Bullish on Natural Gas