How to Profit from Low Gas Prices

[LOUPOWERS]

With gas prices in the basement, but may go lower how can one profit from this slump. Do you think this slump will accelerate the shift from diesel to natural gas? Take a look at those companies geared up to convert trucks and buses to run on natural gas. Today oil is trading at about $100/bbl with natural gas at about $2.50 per MMBTU. That is a ratio of 40 to 1 an alltime high in in my 53 years of oilfield experienc. The BTU equivalent is 6 to 1.

Is oil about to come down I do not think so. Check out my news blog at http://TheWorldEnergyDilemma.com for the latest on the MiddleEast. On the other hand is natural gas about to come up. I do not think so. With all of the gas coming from high ratio shale wells and a warm Winter the Gas supply is at an all time high. Natural gas storage levels are also at record levels. For an idea of what companies to look at, consider the ones metioned in this Motly Fool Link. http://www.fool.com/investing/general/2 ... -fuel.aspx I own WPRT which is up 6.18% at 1:00 PM CST today on this down market day.

Some day natural gas prices will go up, but it may be a longer wait than you were thinking.

Lou Powers

[dan_s]

Every trucking company and any company with a large fleet should be taking a hard look at the cost/benefits of converting their vehicles to run on either CNG (light trucks and cars) or LNG (for the big rigs).

In a free market, the HUGE difference in price between NG and Oil will be taken advantage of.

I made this point in my presentation at River Oaks Breakfast Club meeting today.

Take a look at http://www.neogas.us/ This is a private company that can set up a CNG refueling station anywhere. Someone needs to take these guys public now, while the iron is hot.