Buying Natural Gas Stocks in 2009?

Natural gas is a blend of inflammable gases formed underground through the decomposition of organic materials. The main component is methane. Today Natural Gas stocks are a great investment because natural gas is a cleaner fuel and is widely used. Approximately 25% of the energy used in the U.S. comes from natural gas. Experts say that the demand for energy will go up by 58% in the next 25 years.

Winter is here and the time is right to buy natural gas stocks.

Natural Gas Stocks to Buy in 2009

Devon Energy Corp. (NYSE: DVN) -supplies roughly 3% of the natural gas consumed by the U.S. This independent company produces more than 2 Bcf per day. The company is recommended by Fortune Magazine and Energy & Capital editor Keith Kohl.

Petrohawk Energy (NYSE: HK) - another Kohl favourite, it has the equivalent of 1.33 trillion cubic feet of natural gas in proven reserves,

Range Resources (NYSE: RRC) - Kohl points out that recently, Range reached a production of 400 million cubic feet per day.

The Outlook For Natural Gas Stocks

According to Dan Dicker, a licensed commodities trade advisor, prices of natural gas next year will have increased to $7/Mcf . So the outlook is bright for investing in natural gas.

In Europe, the future does not look very bright, as it relies on Russia for about 40% of its gas. But in the U.S., there seems to be no imminent problem. Says Keith Kohl in an article: " The fact that natural gas markets are regional (unlike oil, natural gas is transported using a pipeline infrastructure) means we can breathe easy."

While some analysts are concerned about LNG imports being affected by a possible OPEC-like cartel formed by the leading producers of natural gas round the world, Kohl does not think that liquid gas will play an important role in the next 10 years. According to him, domestic natural gas should be our focus at present because of its enormous growth potential.