As I'm sure many of you have noticed Natural Gas has gone through what many have called a revolution. The techniques involved with fracking have caused a full on shale boom. The boom of the fracking industry brought so much gas to the market that it overwhelmed the market capacity and send prices crashing. Drillers have so much gas right now that they are burning off millions of dollars in gas with no where in the market to take it. Many fleets are even making the switch from burning diesel or gasoline fuels in favor of natural gas. In some cases this has resulted in fuel cost savings of up to 40%. So where are the investment opportunities surrounding natural gas?
Clean Energy Fuels
This company is building a network of fueling stations to bring gas to market and to new customers. This company is not making money yet, but it is very new and has a good head start investing in the infrastructure to support the 30% of new transit vehicles powered by natural gas.
Mega Cap Energy Players
Companies like Chevron, Royal Dutch Shell, and ExxonMobil that already have natural gas projects should also do well. Given the volatility of the gas market these more diverse companies will remain stable. The gas market is definitely on the rise but once the market becomes more global and shipments start flowing to say Asia portfolios should definitely see a bump. Although I wouldn't expect a large bump until 2015.
If you would like more information on opportunities in shale Gas. KKR's Global Institute chaired by General David Petraeus and run in tandem with Ken Mehlman released a detailed report on Historic Opportunities from the Shale Gas Revolution.
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