Thean:
The natural gas sector has an upside potential equal to that of oils (well, almost<G> - barring some dramatic shift in the geo-politcal climate). But it has less downside risk, at present. Since more than half of the U.S. production comes from the Gulf area, which is subject to hurricanes (which are projected to be more frequent and/or more powerful this season, due to La Nina). It's now hurricane season, and rigs are required by law to shut down during one, placing constraints on production. Tropical Storm Earl (now a Class I hurricane) started a rise in natural gas futures on Monday; today, figures were released that reflected a smaller-than-expected increase in supplies...so the increased prices will probably hold...and the season is just beginning. La Nina is also supposed to cause a colder winter than usual. Additionally, natural gas is not subject to foreign pricing pressure. So, all things considered, it looks like a good bet, IMHO.
I've enjoyed the thread, Merritt |
