An article titled ‘The Case for Natural Gas’ was posted today – click here.  It is a short read that includes charts.  The article suggests that at the current spot price of U.S.$4.30 (versus U.S.$13.00 last July) the a direct or indirect investment in natural gas may be:  “an opportuntity that comes along just a few times in an investor’s life. It might be considered an ideal “long-term investment” with the potential of a “short-term positive surprise”.

The author’s thinking centers on the possibility that natural gas will be the ‘go-to’ fuel for the Obama administration’s efforts to reduce dependence on foreign oil while reducing carbon emissions, and that “Few investment themes in this day and age have such compelling fundamentals. And there are few natural resources more essential to the energy, transportation, food production and security needs of the world than natural gas”.

The author discloses long postions in both the U.S. Natural Gas ETF (NYSE:UNG) and Chesapeake Energy (NYSE:CHK), so his article and conclusions in my view needs to be read with a ‘grain of salt’.  That said, I do think the natural gas spot price bears watching closely.  I plan to comment on it in further posts on this Blog.

The views expressed in this Post are those of the author. They are offered to readers for information and general guidance only. They are neither intended to, nor should be taken to, constitute economic or investment advice. No check of data underlying articles or comments referenced herein has been made, and no responsibility is taken for them.  See Legal Disclaimer.

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