1 Natural Gas Stock I'm Avoiding

While the natural gas sector has received plenty of hype, research analyst Austin Smith cautions investors away from Cheniere Energy. Natural gas is far more expensive in Asia than the United States, a gradient Cheniere hopes to take advantage of by exporting natural gas out of the U.S. The problem is that many Asian nations, including China, have plenty of untapped natural gas stores that will erode Cheniere's advantage once companies like Halliburton or Schlumberger exploit these reserves. 

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Austin Smith has no positions in the stocks mentioned above. Isaac Pino has no positions in the stocks mentioned above. The Motley Fool owns shares of Halliburton Company. Motley Fool newsletter services recommend Halliburton Company and Schlumberger. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


Read/Post Comments (6) | Recommend This Article (1)

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  • Report this Comment On August 03, 2012, at 6:26 PM, curtbs wrote:

    You fools need to start puting up a DISCLOSER to whether your long,swinging or as we know now short.Come on everyone knows LNG will be only game in USA for sometime and to say we will depend on Asia is a farce.I wish you guys had to pay more for useless PR's.

  • Report this Comment On August 03, 2012, at 8:40 PM, Derosy wrote:

    Austin you have not done your homework or you would not make such stupid statements about Cheniere energy .They have already signed twenty-year contracts!

  • Report this Comment On August 03, 2012, at 8:43 PM, Derosy wrote:

    Including one with South Korea! Can you say Asia?

  • Report this Comment On August 09, 2012, at 12:05 PM, bunngolf wrote:

    2 billion from Blackstone committed and other 3 billion committed in financing secured. Long term contracts based on Henry Hub. Asia just starting to understand fracking with contracts benefiting domestic producers like Devon. No meaningful pipeline infrastructure in Asia. Just how long do you think it will take them to get completely up to speed? Just by having the natural resources available does not mean you can wish them to be productive for you without meaningful development. Oh, and by the way, I wish Cotton was a monkey, as well!

  • Report this Comment On August 10, 2012, at 6:28 AM, boredwalk wrote:

    5 million gallons of water per one well equals big problem for China that already has an environmental problem with clean drinking water.You barely scratched the surface on your research.

  • Report this Comment On September 07, 2012, at 1:02 PM, jprovi218 wrote:

    I am very deep in LNG and expect to sell @ it's peak in 3 years and shift it all to Clean Energy stock, which I am slow crawling in right now. The increase of nat.gas pumps for the public and the big 3 car companies jumping in like Chevy & Honda are currently with the CNG flex cars will be the next boom stock....Currently, Pilot gas stations are leading the push by installing several public nat gas pumps on the major highways...They are doing this through Clean Energy

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