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Natural Gas Could Soon Double

Written By Brian Hicks

Posted June 17, 2010

We nailed it… absolutely nailed it.

When we made the case for the natural gas bottom last month… we were doing what any smart investor was doing – ignoring the herd.

These guys were so busy panning natural gas that they missed the rally… and they’re still missing it

Since our call… Even as the Dow plunged, natural gas ran from about $4 to more than $4.85.

And it’s still running… Heck, by summer’s end, we could see $8 (easily).

Time to go long natural gas

Sure, the usual arguments have long been that supply is out-pacing demand… and on and on.

But we now have:

  • A disaster in the Gulf, where 15% to 20% of natural gas production originates. And the BP spill is sure to put a crimp in future production.

  • Predictions for a disastrous hurricane season and very warm weather ahead; Hurricane season could send natural gas much higher if production is negatively impacted. The same thing is true for crude.

  • And a president who is now supporting a natural gas future:

The time has come, once and for all, for this nation to fully embrace a clean energy future,” Obama said. “That means [making] everything from our homes and businesses to our cars and trucks more energy efficient. It means tapping into our natural gas reserves, and moving ahead with our plan to expand our nation’s fleet of nuclear power plants. And it means rolling back billions of dollars in tax breaks to oil companies so we can prioritize investments in clean energy research and development.

Obama’s support in and of itself is a game-changer!

And if those weren’t enough, we have affirmation from a proven sector analyst

Henry Groppe, who we’ve mentioned in the past, also believes natural gas will double by the end of summer.

Groppe argues that shale wells are depleting rapidly, and that there is a real shortage of gas “which will become apparent this summer in dramatic fashion… Gas inventories are about to get a lot tighter… new supplies are overstated, and prices are headed north of $8 by the end of summer.”

And, as we told you in May, Groppe’s opinion is not one to be ignored…

Screw the herd…

Don’t follow the herd and expect to make money… you won’t. And that’s been proven.

Go long natural gas here… and hold. We’ve already issued four new natural gas bets to subscribers of our Pure Asset Trader just the other day.

And all are expected to perform exceptionally well.

Join in the profits with our team that’s now 62 for 65 since February 2009 — the same team that just called the turnaround in one of the most controversial sectors.