By Chris Mayer in DailyWealth:
There hasn't been a better time to buy a natural gas producer in years.
First, let's begin by acknowledging that the price of natural gas fell because there was too much of it. We are in a recession, after all. Industrial demand for natural gas has fallen through the floor and into the basement. But mindless zombies or congressional leaders (I repeat myself...) do not run this industry.
Producers are cutting back. And the decline rates on gushing new shale gas plays (which helped contribute so much gas to the pool) are 60%-75%. If these producers don't drill, the flow of gas from their wells will fall by that much in the first year.
And they aren't drilling, not as much. The rig count has collapsed...
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