3 Top Natural Gas Stocks to Buy Now
This past year was a downer for the natural gas market. After peaking at the end of 2016, the price of natural gas steadily declined, going from $3.30 per MMBtu in January to $2.88 by October. That slumping price kept a lid on production in the U.S., which rose just 0.6 billion cubic feet per day (BCF/D) versus 2016 to 73.4 BCF/D.
However, the industry appears poised for a much better year in 2018 when several catalysts should drive demand -- and the price of gas -- higher. According to the U.S. Energy Information Administration, domestic consumption should grow by more than 3.7 BCF/D in 2018 because of increased demand by power plants, the industrial sector, and for home heating due to the expectation for healthy economic growth and more normal weather conditions. Add to that rising exports via pipeline to Mexico and by cargo tanker from newly built liquefied natural gas export facilities, and the industry will need more supply next year. As a result, the EIA believes gas will average $3.21 per MMBtu in 2018.
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Source: Fool.com