There is blood in the streets in the energy sector. Oil- and gas-related stocks have been pummeled for the better part of the past year and a half. Yet, economists and analysts continue to lower their forecasts for energy prices and downgrade stocks in the group. The latest rout came this week on bankruptcy rumors surrounding Chesapeake Energy (NYSE: CHK) — once one of the world’s largest natural gas producers — which seemed to call into question the survival of some companies in the space. However, there is little question regarding long-term demand in the sector. Natural gas… Read More
There is blood in the streets in the energy sector. Oil- and gas-related stocks have been pummeled for the better part of the past year and a half. Yet, economists and analysts continue to lower their forecasts for energy prices and downgrade stocks in the group. The latest rout came this week on bankruptcy rumors surrounding Chesapeake Energy (NYSE: CHK) — once one of the world’s largest natural gas producers — which seemed to call into question the survival of some companies in the space. However, there is little question regarding long-term demand in the sector. Natural gas accounted for 35% of U.S. power generation last year, up from just 20% in 2010. And BP (NYSE: BP) estimates natural gas consumption will grow 13.4% through 2020. #-ad_banner-# Energy companies that can survive the current storm could thrive when the clouds clear. In the current market, though, one natural gas heavyweight could offer traders a chance to book a 174% annualized return. Why I’m Bullish On A Sector The Market Loves To Hate With oil and gas producers burdened by huge debt loads thanks to years of heavy capital investment and falling energy prices, it’s not surprising that… Read More