Natural Gas Oversupply Prompts LNG Boom -- Clean Energy Fuels Corp and Cheniere Energy Poised to Benefit
March 07 2012 - 8:20AM
Marketwired
Natural gas prices are bordering on decade low levels this week as
above normal temperatures across the nation push usage down. The
dramatic drop in natural gas prices, combined with the United
States' abundant supplies has prompted fuel switching by utilities
away from coal into cheaper gas. Moreover, the large supply of
natural gas has pushed the government to consider boosting exports
of liquefied natural gas. The Paragon Report examines investing
opportunities in the natural gas market and provides equity
research on Clean Energy Fuels Corporation (NASDAQ: CLNE) and
Cheniere Energy, Inc. (NYSE Amex: LNG). Access to the full company
reports can be found at:
www.paragonreport.com/CLNE www.paragonreport.com/LNG
Last month, Energy Secretary Steven Chu said that the U.S.
Energy Department will not make a decision on future liquefied
natural gas exports until it has weighed the potential consequences
of sending U.S. gas abroad. Chu explained that there was concern
that exporting the nation's surplus natural gas could lead to
higher prices, but that had to be balanced against the economic
benefits of increasing the U.S. exports.
Louisiana state Economic Development Secretary Stephen Moret
says that -- provided natural gas prices remain low, but not too
low -- Louisiana will see tens of billions invested in
petrochemical plants and LNG export terminals and also thousands of
construction and permanent jobs that accompany them.
The Paragon Report provides investors with an excellent first
step in their due diligence by providing daily trading ideas, and
consolidating the public information available on them. For more
investment research on the natural gas market register with us free
at www.paragonreport.com and get exclusive access to our numerous
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Earlier this month, Senator Jeff Bingaman, and chairman of the
Energy and Natural Resources Committee, introduced a measure to
force electricity companies to use an increasing share of energy
produced from "clean" sources over the next two decades. Bloomberg
reports that natural gas, which already is edging aside coal in
American electricity generation, would be one of the biggest
beneficiaries of a clean-energy mandate.
"The obvious goal is to expand it beyond renewables in order to
get enough votes," said Dan Simmons, director of regulatory and
state affairs at the Institute for Energy Research in Washington, a
group critical of the legislation. "By including natural gas, it's
a way to broaden support."
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