Energy Stock Trading: Oil and Gas Stocks
Energy Stock Trading: Oil and Gas Stocks
Recent times have seen the oil and gas industries undergo a quiet revolution which has been reshaping the energy industry in the United States and also changed the way energy stocks are traded. ‘Shale gas’ (natural occurring gas trapped within dense sedimentary rock formations or shale formations) as many in the energy business call it has widely been seen as a game changer over the last few years and this has seen the transformation of the country’s energy supply. Referring to spot prices at Henry Hub, which is the benchmark supply point in Louisiana, gas prices have managed to reach a whole new level this year. Prices are estimated to have dipped to approximately 63%, surpassing the 2011 highest price of $4.92/MMBtu in June to a decade-low of $1.82/MMBtu in April 2012.
So far, the prices have managed to rally back to around $3.00/MMBtu in the recent past. As a result of the abundance of this source of energy in a country that was once face with a looming deficit, gas stocks have managed to go up. In fact, some companies in major US stock markets have managed to record up to 10% above their benchmark levels. In my opinion, this is a just a reflection of the full-bodied onshore output.