View from the Observation Deck

1. The first thing U.S. investors need to acknowledge about the natural gas market is that it is an entirely different dynamic than the crude oil market.
2. The U.S. does not need to import natural gas from overseas. Natural gas is plentiful in the U.S. and throughout North America. There is no Middle East squeeze to fear.
3. Depending on the source, it has been reported that the U.S. alone has enough natural gas to last 100 years. Some dispute the figure on the grounds that some of it may be too costly to extract, but it is plentiful.
4. The Energy Information Administration just released a study in which it sees the potential for the price of natural gas to rise by 54% as early as 2018 due to higher U.S. gas exports.
5. If you combine the environmental concerns surrounding the process of hydraulic fracturing (fracking) with an abundance of supply it could mean that investing in natural gas companies may demand more patience.
6. Natural gas is currently selling for $2.35 per million British thermal units (BTUs). A good entry point if you're patient, in our opinion, considering its average price over the 10-year period in the chart was $5.97.