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BNP Paribus oil and gas equity analyst Anne Cameron on the challenges in profiting from natural gas prices.
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Attached so the US supply you've heard about this of natural gas hitting record levels for this time next -- it's already their spending -- forward it looks very very bullish or at least for for supplies bearish for prices.
This next analyst says don't expect that to drop any time soon.
But she says there is a way you can make money while natural gas prices are down and Cameron is an oil and gas equity analyst at BNP Paribas it's good to see you thank you being here -- will get to that one thing intersect were teasing -- along the way but.
Meanwhile -- as anybody has somebody in the world figure out a way to.
To capitalize on this cheap natural gas price so far we still have this huge supply and not enough places to put it.
-- really the only way to make a lot of money.
With US natural gas prices being so low is to export it and so there are plans.
In place to start exporting actually four BCF a day overseas and -- on tankers to Asia liquefied exactly exactly but we are many years away from that at this point.
Who's buying it from us where are the buyers and what does that mean for anybody who wants to get in on this because.
You know at some point is probably going to rise remember that the higher the past couple years as fourteen dollars per million British thermal units look at it now -- dollar.
But the fact that we've been there before means we could get there again I'm actually sure that I agree I mean the dynamics of the natural gas market have really changed.
Particularly because we figured out how to get oil out of sale and so there's a lot of gas that comes out with drilling for oil.
So it isn't it isn't just as simple as because it came down it's going to go back -- even if we find an -- for for this -- if we find an outlet for -- that is a game changer but that's like 2016 I mean this -- nothing near -- so how do we make money out of well there's actually one gas stock that we like we actually upgraded range resources today mostly on their oil production growth.
Ticker RC it's so we think it you know easily go to -- -- look at all the way to let let us figure this out it's a natural gas company but it really the play is because its oil production is -- exactly so almost all of our natural gas producers have figured out how to drill for oil.
In addition to get something they're giving up on dance -- just means there's more gas coming.
What is your best bet -- -- a year from now are we going to see more people I mean we've we've had a lot of people -- from Boone Pickens other folks who think that there are ways.
To capitalize -- an outlook for this cheap gas and that might eventually -- create some use for this huge supply we have do you think that's.
-- I think -- we either need natural gas powered vehicles are we need to export.
I -- that's -- only two solutions here look at let me push on that natural gas powered vehicles you know Ford is starting to work on some of that and you see that -- that Toyota has a couple of them out there.
-- not adopted widely because of the sort of razor razor blade issue or chicken -- I guess if you give a fair analogy.
People want to make sure when they bought run out of that they can pull up into fueling station that I know they can get the natural gas.
Are we seeing that come along we're not -- very much at all I mean who's gonna pay for that's it takes a lot of capital to convert fueling stations and vehicles.
-- were really a long time away from its gonna take your growth in the kind of get all this stuff -- areas thank you very much in -- good to see you thanks for.
