2 Screaming Natural-Gas Buys

Focus: ETFs

Doug Fabian Image Doug Fabian Editor, Successful ETF Investing, ETF Trader's Edge, Weekly ETF Report, and ETFU.com

Not only can investors profit on the development of natural-gas infrastructure in the US, but that infrastructure will make that gas more valuable, says Doug Fabian, who shares two picks.

Doug, now is a good time to get involved in natural gas?

Well, I'll tell you, natural gas is an unbelievable opportunity for our country.

I want to begin right there, because when you look at what has happened in the past couple of years in terms of technology, a new technology has allowed us to be able to access natural gas like never before. So the reason that natural gas is at decade lows is because we have an abundance of supply now in the United States.

Just to give you a price comparison, we are at approximately $2, a little bit above $2, per BTU of natural-gas prices in the United States. The price in Germany is $15. The price is Japan is $15. So we have a tremendous edge from a manufacturing standpoint comparing these two other countries to what we have in the United States today.

What we lack is we lack the infrastructure to be able to access the natural gas. For instance, you cannot easily put natural gas in your car. You can convert your car to natural gas, but there is no place to fill it up.

Right. Small problem.

But five years from now, that will be no problem.

And so that’s part of the opportunity. It’s the build-out of the natural-gas infrastructure, and the fact that we’re going to be using so much more natural gas, which is clean burning, good for the environment, and so advantageous for us as a country.