WPSPIKER

Natural Gas Production Declines Are Becoming More Evident

With the production from NEW multi-direction drilling rigs the low count is nothing to worry about with the massive storage filled up and the less than bad temps and downed industrial production the nat gas prices are being held up by speculation is best that most people in the know can figure. UNG for example helps little guy get into the market and helps to prop up futures prices which effect pricing all around. While it UNG probably is not going to make anyone much money in near term and is too unpredictable for far term. best bet is not the producers either but transporters and end users who will be biggest benefits in next few years with down prices for the product of NG. Look to gas pipe line companies who get paid for the amount that moves through the lines and those that benefit from selling the gas to end users, there are several good ones who pay great dividends with solid earning to support them as well as most of them have rate increases to the ave home user on books and approved through state/local gov and once the price is increased you know they will not claw back that trend... Look to elec. utilities who have NG as a feed in raw material to produce electricity as well. I own NI, DUK, FST, VLO and recently took profits and got out of CHK....
my well meaning advice and not an expert would be to look at as many similar companies as you like, do home work prior to jumping into anything right now as utilities and pipe line companies are lagging overall markets but that is good as it leaves more room for them to go up and less room to drop. Cyclicals are hot at the moment but there is lots of volatility in them. Producers are going to have a pull back real soon I think and the utility/defensive sectors will hold firm and maybe start to rise at a better rate and catch up to the overall market place.

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